FINANCE AND COMMERCE.

Dominion, Volume 1, Issue 41, 12 November 1907, Page 8

FINANCE AND COMMERCE.

BRITISH TRADE.

There is no; recession in British trade so, !ar, but perhaps it is much too soon to, exject any change as the result of the financial stringency. Three or four months, hence, an impression • may bo created, but in the 'm'cail- , while there is ample evidence that the trade figures of 1907 will reach high-water mark. The imports for October increased by ,£3,025,000, and the exports by .£5,085,000, as compared* vith the corresponding month "of' last ,-rycar." The increase of imports for the, ten months . amounts to .£35,142,000, arid the' expansion in exports totals <£46,331,000, < or,;;togethor, ; aa' in-J crease of .£81,473,000, ; and tlie figures :.bf 1906 were a record. The mftyemen.ts-.of-'the, two, months that remain to complete the ; year ; can* iot materially affect tho position.'" ' AMERICAN PROSPECTS. " i' : Just what must happen, and is happening in the United States is clearly' Stated; by one of tho Republic's financial magnates. Ho gave expressions to his views in September, fully a month before the crisis commenced, and maintained that "production, interchange, 'and transportation, together with consumptivodemand, have not begun to show any such reaction as they will have to. Bank; clear-; ings are , beginning to shrink, and railroads are telling a similar story through their earnings, or soon will do so. Already they li'avo begun to cut;off orders from the . big stegl companies. You will ree,ill that the United States Steel Corporation reported a shrinkage, of 25 per cent, in new orders a liionth ago? Well, that should have been 40 instead of 25 per cent. Business in steel has gone off, and lias not finished the downward movement. Thus far, we have been making a showing on accumulated orders, and the-end-of-that sort of thing is not far oil. Building enterprise must slacken soon, and: inquiry at the banks might roveal the ; that they will-.'-'ndt; finance undertakings of that character-as'freqly 1 as heretofore.. AH this will -mean a.'release-of a great many ; employees .' from.^wdrk,^Md,'a cutting .down of,"the total'-wage fnnd,' with a consequent reduction; of consuming po'wer.ybf the general public.-whichL'ought to make'it plain, without further comment, just how and why there is to, be: a'recession of business in commercial and'industrial lines in the not far distant future, even as there has been in the stock and bond speciilativo and investment markets." . V" - -■ 1 HOUSE PURCHASE AND LIFE ASSURANCE, ' /Th'e Scottish Temperance Life Assurance Company now combines 'life assurance with house purchasing. This'.schemo is based upon a combination of mortgage, transactions with ondowment assurance policies, and its special advantages are that a mortgage is not cailcd up during the currency ofvtbe policy, and is repaid either on the death of, tho policyholder or at the end of a stimulated: period by application of the amount ■assured. As an illustration, it is shown that,, for a half-yearly payment of ,£l3 75.,a-man, aged 30, can effect's 15 years' endowment policy for ,£4OO. If (after, say, .five years) the'. full, sum: assured is advanced on loan housk-property to that vahie, and the policy/being given i as'security, the half-yearly premi}irti,.,is,, increased to ,£2O 75., and on this payment being continued during the remainder of the t®rm! 'the - lorun would be paid up and, the property. free, while should death occurth.e loan is'paid'off.-"All expenses are covered'.by the premiums charged. The Company, apparently, is-prepared to advance two-thirds of the value of the "house property" 'from the beginning of tho policy, 80 per cent, thereof after three years' payments, and the full value after Ave years' payments.,^ THE MONEY MARKET.■ ; ; ■ Consequent oh the Bank of England dis-„ count rate being advanced, the> rates of the banks in all tho other European capitals have been advanced. At Berlin the rate is 7J per cent., in Paris 4 per cent., and at other centres it is higher than in Berlin. It will be noted that tho rate of the Bank of France is 4 per cent., which is much lower than that of the other institutions, still the rate is high for France. Three per cent, is about the usual "rate in Paris, and that rate was maintained nil through the Baring crisis, and through the period of the Boer war. The '■ return • of the Bank of Franco on September 19 showed that .the institution possessed .0111,658,000 in gold and ,£38,653,000 in silver, and at the same , time the note issue was .£187,572,000. The fact that tho Bank of France is less disturbed than the other banks appears to be beyond the comprehension of some people. The' French bank must keep a large store of gold, because of its enormous circulation, which is six times that of the Bank of England, but not of the total note circulation of tho United Kingdom, because other banks have the right" of ""note issue. The Bank -of England would have as large a gold reserve if it had the same note circulation as the Bank of France. The difference is due to the fact that in England, a much greater use is made of the cheque than in France, where nearly all business is covered by the notes of the Bank of France. Furthermore, the French bank can pay out in silver or gold at its option, but the Bank of Eng-land-pays in gold. The British bank is practically tho world's banker, and, notwithstanding the enormous business transacted, the metal reserve of .£30,000,000 to .£35,000,000 is found ample in normal times. Eminent financiers in London have at various times urged that some efforts should bo made to establish a national gold reserve, but that is a matter in which the Savings Bank must take a prominent part. . In Great Britain, as in the Commonwealth and Now Zealand, the Government Savings Banks hold enormous deposits, und none of them have any metal reserve. ' ■ THE METAL MARKETS. - !' Standard Copper is down to J259, and Electrolytic to JCM; both gardes haye ■ declined since tho heavy purchases by China caused prices to advance, but the prices now are not as low as they were during the slump of a fortnight ago. The Americans are, apparently, forcing sales of this metal and also of lead, of both of which they are the largest producers in the world. The forced sales of wheat have caused the values of tho cereal to decline, but , it is only by the sale ol' such commodities at knock-out prices that the Americans can hope to got the gold they need so much. It is stated in the cable that the heavy selling of copper has absorbed a good part of the American accumulation, leaving the position somewhat healthier. The output of the copper mines of Amcrica had increased very greatly sinco the beginning of the year, but last month owing to tho slump tho Amalgamated Copper Company shut dowu several of its mines with

tho view of limiting the output. Tho demand for the metal has fallen,oft', owing to the in- !• .ability of'the electrical companies to finance ; new ventures. , ' .-V: T v ■ THE UNITED STATES STEEL CORPORA--1 ; TION. ; , • , .This gigantic Corporation has secured.twenty,t six million dollars' worth "of. stock on tho " Tennesseo Coal, Iron, and,'Railroad-.Company, : and: as the total<stock of .the.'concern is fifty million dollars, tho Stool .Trust, has got tho ■ •controlling interest, and -ilias taken control. ! The' Tennessee Company owns a'steel rail mill, i, blast furnaces, 1 coal mines; ■ ■ -iron mines, ■, l ,foundries, etc., lin Tennessee and Alabama, owns twenty-six miles of'.tho Birmingham. Southern Railroad, /has' a lease of. tho ■ .Alabama Steel and Shipbuilding Company's plant, which has a capacity- of 1000 steel billets and slabs daily. Tho Steel Corporation, prior to. the acquisition of the above, owned ninety-seven blast furnaces, seventeen openhearth and sixteen Bessemer steel plants, seven steel rail mills, fifty-three, bar, billet, etc., mills, in twenty-six plants; fifteen structural sliapo mills in six plants, fourteen plate - mills in .four.-.plants;-five,.plants comprising ninety-five puddling furnaces; sixty-two merchant mills producing barriron, steel, etc., in eighteen plants; thirty-eight plants'comprising 440 pot mills producing tin, plate,'' etc.; twentyfour rod mills in thirteen .plants; twenty-two wire plants, sixteen (welded ai\d seamless) tubo . plants,. fayenty-tyo bridge' and structural plants, twenty-four complete .foundries, thirty.lufour, skelpmills; j 1 thirty-ong' '.miscellaneous armour, axle, etc., works, extensivo iron-ore mines in the Lake Superior' rfegion; 02,517 acres of coking coal, and 20,039 acres of surface and 18,882 beehive coke ovens, etc., in Westmorland and Payette Counties, Pa.; 357 by-product coko ovens at Bohwood, W., Va., aiiu Sharon and South Sharon, Pa.; 31,908 acres of steam arid gas coal lands, etc., railroads, lake vessels, oro . docks, natural gas lands, etc. HIGH COMSIISSIONER'S,~;REPORT.. The Department of Industries and Commerce has received the following cable from the High Commissioner, dated London, November 9 The mutton market is steady.' Shipments now .arriving are very small. ~. Canterbury brands are quoted at 3|d.. and North Island at 3|d. for light weights; 3jcl.'heavy weights. . . The lamb market*.is slightly, weaker, with less demand. New" Zealand.stocks on hand aro light. Canterbury brands are quoted at - 5Jd., and other than Canterbury sd; ~ncr lb. ' The beef market; is', steady. The demand is cliiolly for : forequarters.Y Ther-averago prices aro 3Jd. and 2|d. per, H>. for hind and foroquarters respectively. Tho butter market : is steady,... but without animation. The, averago" price realised throughout the week is 122j. per cwt., for chpicest New Zealand brands, and stocks are almost exhausted. - Danish butter is quoted at 126s.;'Siberian, 1125.; arid Argentine," 120s. per owt. The cheese , market is. quiet,.,..No alterationin prices t6 report. ~ ■ >; Tho hemp market is quiet, with a moderate enquiry at rates cabled last week. New long-berried. wheat -is quoted at 425.t/6d.,-"and "sho'rt.-berried *at 415., Gd. per 49Glbs. px granary. Market quiet but steady. •' Oat - ' transactions" are ' light.; ■■'" New Zealand Sparrowbills are quoted-at 275. ■ 6d. per 3841b5., and Danish at 21s, Gd. per 3201b5. Dew . Zealand beans, f.a.q. new crop, are 1 quoted at 335. per 50-ilbs.- Grain prices are nominal. 1 The cocksfoot market is firm, but tho de- " mancr is only "moderate.'"' Bright 171b. dressed seed is quoted at 745. per cwt. ...LONDON. MARKETS. - v-" - -'-METALS. '■ -V- , BY TELEGB/iPH—-TRESS ASSOCIATION—COPYRIGHT. 1 " , London, November 10.". : Copper.—On spot and threo months, ,£59; . '.electrolytic; J!G}. ~The decline .is due to heavy [ selling, which has absorbed a" good part of tho . American accumulation, leaving the position , scmewhat healthier. Tin.—Oii/spot, JEI37 55.; three months, ,£133 I 15s. Prices are moving. to a great extent, in j sympathy with those for coppor. . Antimony.—£l2'to «£l3. I - Silver.—2s. ;2,IM(Sd. L , _ MEAT ANt) 'PRODUCE. - ..Shicp.—Canterbury medium, un- , changed; heavy 3jd.j North Island, 3|d.j best . brands, 3 13-lCd. : • •Lamb.,—Unchanged. 1 f Beef.—Ox fores, 2 9-lGd. ; New Zealand hemp.—November-January , shipment, ,£2B 10s. ■' \ Kauri.—ln stock, 715 cases. ; - 'Rabbits.—Firm,-and prices" unchanged. Ins creasing supplies from all sources aro de- ; pressing tho market. . Copra—South Sea, .£l9 17s. Od. } * iWE ;STOCIv; SALES; . • Lny TELECItAPH.— OWN CORRESPONDENT.] f , t P ;S mAT " A . November 11. •-A>< -P.pi.lT.sales there was a marked . advance -iu --all -lines.. • Prices—Weaners 12s. to " ICs " to ISs - ; stores, to 30s'.; sows j 2bs. Cd. ' 5 ' —

WELLINGTON. /SHAKE • -tlGT, COMPANY Capital SS i§! rmCES.' , yield ra ' dPP - gS Investor. BANKS. - £ ' £ ■ X i £ i s. 3. .' ( Vi £ s. d. i s. dj W» Zealand - - E,CC0,00a SHI,675 '3i ; 3i 10 Oil 0' 10 9 G 910 0 3 10 3 National - - - 875,000 835318 .Si. ' 15 ■ 13 6 8 0, ;,|6 0.0., INSURANCE. , -. ■ ...n «.«..* ■ National - - - 100.000 219,339 J unltd. 15 1 6 0' 7 : 'l 7 6 1 7 0 611 1 New Zealand ... SCO,COO --. '' 336,785 £ 8 10 * 0-.0" . -l/'J 0 ; tJ SouthBritish - - - 100,000. 513,48) 1 unltd. SO ,5 14 0 ., • • - Standard - .. - 75.000 "- 82,163 2 unltd, 10 1,8"-0 < •---a 2 0 1 3-'»0 616 4 financial. ;■ * Eauitable Building - 50,000 - < '44 5&..::. 6 E • 10 10 3 ,,6.. ..,10. 6. 0 10 2 0 418 9 Metropolitan Building 21.000'', ' 6,229 10 . nil'- 7- IS'0.0^ Wellington Invest. - 50,000 V J ' ' V.1' ■i,. r .6';' I';, , 0,12 0 W ol'gton Trust & Loan "-101,250'' - ' 80.620-'-- 5.. ':.5! ' /8 6,,. ..,7,12,0 7 10 0 6 6 8 National Mortgngo ' 500,000 ' ... 112,250 ■ ;,-'2 ,*■- 8/ '10'' 6- ; 3"5, 0 3 4 0 6 5 0 N.Z. and Rivar Plato - ' 300,(j00 ' 230,COB , . ,1 nil '.,, ,? !., 0, 0, ; 1'., P' G 4 15 0 Loan and Morcantilo - 135,222- ,157,i Si' 5 > - 0..7. 0 O j G 9 19 GAS. Auckland - . Y- ' '". .'80,553 '. ' /&' nil 16 '14" 0 0" 0 Christchurch *. - 152,000 -65.087 > > 5 - nil 10 10 5 0 Feuding - - - 10,803 ' 103 1 I 1 i nil"'; —... ,?' .J). 7 ' 3 ,017 0 GiBborno - - - ' 17jl00 ' : 9,239-. "1 : nil - 19i -. ■ -212.0 .... Hawora . . . 8,250 6M 2 i -10 l-l-0~ --1.3. 0 - • - New Plymouth • - 18,000 3,159 6 nil 10 715 0 Napier, - \ 10 nil 15 25 0 0 - " 40,SCTf 22,517 5 5 15 ............ . M10 ,'0 .... „ . '. . - ] " 1 9 15 3 7' 6 rolmoreton North " 27,000 11,093 4J .J 10 736 736 664 Wellington "- -■ ' ' . 67 083 10 nil 10 .18 14 0. 1317 6 .18 15 0 5 6 8 124,570 rj . .5, ..5., 10 ' •■ -- -meat. , ::: : r..; :v : Canterbury'- . - 183,727 " 30,074 7} 8}' 8. 8 0 0 Christchurch - , - 165,920 54,337 10 nil. 8 10 7 6 1012 6 10 10 0 713 4 -,' Gear - - - 1- OTm ,l 85.193 1 nil. 10,. , 2 8 0 ,. ...- WM0} ' 4 6 10 ■ < Wellington Meat Exp. j 6 nil. 8 „ . 105,766 r 53,767. .. 4, ., 1 8 5 0 0 .. 5 2 .6.. . " J S3 S3 8 3 5 6 3 6 0 Wanganui „ 45,850 11,401 5 nil." " ' ' "8" " 3 6 0 5 7 3 TRANSPORT. W.&M.ltoUway • 170,000 121,453 .1 "4 :7 .2.2,0., ,8 5 0' 2.3,0 3 6 8 N.Z.Shipping - - 473,8(0 113,751- - 8 nil. . 5 C. 0. 0 . Union Steam - - COO,000 473,533 10 nil. 10 18 10 0 1810 0 6 8 1 ' Wgtn. Steam Ferry - 46,2)0 65 ' 1 nil; 6 013 0 COAL. Westport - - - 280,000 117,215 . Jj' li ' 15 • 715-6- - 717 6 - - fl70 613 9 Tiupiri - - . . 82,500 5,339 1 nil. , ; 7i . 019.9 , ,1 0 6.. , ■WOOLLEN. Kaiapoi... - 100,000 52,851 5 ml, 6 Mosgiol.... 83,457 17,212 34 li 4 Wellington '- ■' i- - 60,003 - 24,368 , t. 4 1 - -6 • -B 6 6 3 6 0 T 5 6 MISCELLANEOUS. . Ponaghy Kope - 47,000 — 10 nil — 513 6 Loyland & O'Briot] " S5.000 34,085' 1 nil 15 36 0, 276 llauricovillo Limo " 7,000 208 1 Pi 8 15 0 N.Z. Candle - ; - " 10,000 — 10 nil _ 10 0 0 N.Z. Drugs . - " £00,UX) . S4.5M ,3,- nil, 7 310 6 tU 0, . N.Z.Papor Mills " 94,755 ■ '.1477" ."-1" ,- nii :. " "7 1 376 1.3' G 1 8 75 ' 619 0 : N^.Cement- ■- " 40,000 2,013 .:i nil , 8 -1110- ,112.6 Manning 4 Co. - - Ofi.COa 37,670 4 1 10 4 0 0 ' . , Ward & Co.',- .. - 60,000 20,655 . 4 , .....1 ' 10 5 2 6 Wgtn. Opera Houso - 18,630 1,705 ■ 5 nil 8 -600 750 Wgtn. Freeh Food - 28,261 — 1 nil _ 0 3 0 Whitcombo & Tombs- 46,5150 E0.153 5 nil JO 4 6 0 4 10 0 BUarland. Limited 48,676 9.311 1 nil 74 019 3 "■ ' /- ■ •