COMMERCIAL.

Taranaki Daily News, 20 October 1921, Page 2

COMMERCIAL.

THE QUEENSLAND LOAN. By Telegraph.—Press Assn —Copyright. Washington, Oct. iS. The Queensland loan money was paid over in full to-day to the .State’s American bankers, the National City Bank. LONDON WOOL SALES. London, Oct. 18. Yorkshire newspapers suggest that the refusal of London buyers to agree to B.A.W.R.A.'s merino proposal is due to their objections to adding an extra day to the series, especially a Saturday, having in view the fact that the next series opens on November 3, when large quantities of merinos will be offered on the first and second days. NEWTON KING, LTD., REPORTS. At Douglas on October 10, all classes of cattle found ready buyers. Dairy cattle sold very well. Wether hoggets 9s, 4-tooth ewes 13s 6d, 2-year-old steers £2 Is, store cows 28s, 325, fresh conditioned do. £2 2s, £3 10s, yearling heifers 345, 395, better grown do. £3, empty heifers £6, springing do. £B, £lO, £ll 10s, better classes £l2 10s, £l4 10s, dairy cows £9 10s, £lO 10s, better quality do. £2O. At Stony River on 11th inst. incleipent weather affected the yarding, especially In the store section, but prices kept up satisfactorily throughout, nevertheless. Aged draught mare £2O 10s, store cows 30s, £2 15s, yearling heifers £2 7s, £3 2s, £3 1?3 6d, empty do. £7, springing do. £ll 10s, £l5 10s, choice do. £lB, heifers calved £9, £ll 10s, £l3, dairy cows £9, £l3, £l4 15s, better quality do. £l6, £l7 10s. At Ohura on October 13, a full yarding of cattle came forward, a good proportion of which sold. Prices were well on a par with those at present ruling In Taranaki. Hoggets 7:; 9d, forward wethers 13s Id, store cows 325, forward do. £3, 2%-year-old steers'£2 15s, £3 12s, well-conditioned bullocks £4 12s 6d, £5 ss, to £6, yearling heifers 355, £2, £2 10s, empty do. £4, £6, springing do. ; £lO, £l2 10s, backward classes £6, £B, £9, dairy cows £7, £l2. At Waiwakaiho on the same day practically the whole of a very fair yarding sold. Quotations as follows: Hoggets 12s, store cows 12s 6<L 22s 6d, forward do. £2 10s, £2 15s, yearling steers 10s, yearling heifers 255, 30s, 40s, better sorts £2 14s, £4 10s, Jersey do. £6, £7 ss, empty heifers £4, £5 12s 6d, springing do. £l2 10s, heifers calved £9 10s, £l5, dairj’ cows £7, £lO 10s. “BAWRA’S” PROSPECTS. The following extract from the financial column of the Sydney Sun of September 29 gives th? point of view of the share market regarding “Bawra’s” prospects: “Bawra” priority certificates are holding well in value, an-1 at the second call buyers offered 9s 7d, but sellers demanded 9s Bd. There seems little doubt that they are worth that price, as with £ 5,000,000 cash on hand there appears to be a likelihood that “Bawra” *wlll be in a position to redeem the unpaid balance of 10s 6d in about six months’ time.

“Bawra” shares, however, have’ fluctuated. They were sold to-day at Ils 9d. “Bawra”' assets were originally valued at £22,000,000. A cash distribution of £5,000,000 was made on July 31. The remaining portion of owners’ Interests, therefore, has a nominal value of £17,000,000. Cash on hand, however, amounts to £5,0’85,000, thus leaving an amount of £11,915,000 to be found to pay owners in fuff—certificates and shares. “Bawra” had 744,500 bales of Australian-owned wool unsold at July 31, with which to meet this amount, ■nrd, Jn addition, £947,000 vyorth of other assets. It appears, therefore, that to pay the shares in full “Bawra” will need to net close on £l5 a bale for the wool on hand. Whether this can be done remains to be seen. It depends on the Buoyancy of the wool market, and the quality and condition of the wool stocks.

Commenting on the market prices. Winchcombe, Carson, Ltd., say that there is no solid reason why the market value of the shares should fluctuate. It is solely due to the quantity of share scrip being placed on the market. Prospects for “Bawra” wools have not lessened. If anything, they have improved. The whole of the world’s markets report advanced values for wool during the last month. Payments on the shares by “Bawra” are not. likely to be delayed until the full amount Is available. Part payments will, no doubt, be made as the wool Is sold, and the cash comes to hand. This fact should have an enhancing effect on values forZ'Hie shares.

Dealing with the question, Schute, Bell and Co. Ltd., state that growers are naturally concerned as to when a further “Bawra” dividend may be forthcoming. It was admitted by Sir > John Higgins In his address to the Melbourne conference that “Bawra” had then over five millions cash in hand. It is an open secret, however, that actions pending with regard .to certain spin wool claims aggregate about two millions, so that not unnaturally “Bawra” is inclined to hold on to the cash in hand until these actions are decided by the courts.

The position outlined has a direct bearing on the values of both certificates and shares; but as regards the former it is clear that continuing sales of “Bawra” wool must soon provide sufficient additional cash to enable the balance of thd priority certificates to be redeemed, and yet leave a safe margin of cash* to meet possible success on the part of nil the skin wool claimants, and, furthermore, to provide for “Bawra” working expenses.