FINANCE AND COMMERCE.

Dominion, Volume 1, Issue 167, 8 April 1908, Page 10

FINANCE AND COMMERCE.

. : THE. SHARE, MARKET.. " . Yesterday witiiessod- another dull-.time for r y investment 'shares, tjie v;.' orders were few, the bids in two instances at "least, exhibited advances. Bank-sharc-s were r - r unchanged. New Zealands were. in . ' • £§ ' 125., but holders wanted • National -Bank' shares'were on;offer. -atis. ' Insurance 'shares display a v»eakening'' ten-/ • ' dency, and' buyers . have been • very - scarcc. Nationals, were .offered at. 275. -,9d.,' and New Zealands at. 175.. Financial • shares were steidy at ; full marlcet rates, the quotations : being: Equitable' Building, sellers XlO 2s. 6d.; V": Wellington Trust and Loan,. buyers i! 7 95.; ■ ' Wellington Investment, sellers, 12s. '3d.; .Now V .'.-Zealand'-'and River 'Plate,', buyers,'.£l'- Us ; v.Gd'. Has sliares were as dull-as Eeiiding- - .- Sas shares-a.; Speculative' offer;of 13a.'; 9d'.-i.was • nado.: ' Wellington;>Gas'Vshares, s£lor paid ' up, tore on sale at iEI9-10s.; Canterbury. -Frozen lleat shares, sellers J:8 2s. 6d.,- Christchurcli ileat shares,: buyers'-iio; 55.; Wellington' Meat Sxpor't,- third: issue,, sellers i 3. ,ss. vatu Rails;-buyers 465., seller? 475. 6d.", Wei-', - nngton Woollen, 605..;' Westport Coal; I- shares have - -with ..buyers,;at ;'si .195.-;. Oonaghy 'Ropo-'and. Twine,buyers- iG, ; -sellers ; \' . '£6 .55.; ■ Leyland-O'Brien Timber, se.lleVs-i's62 ; is.; New Zealand - Paper' Mills, sellers--R3s. > Sharland and Co., buyers 18s. 6d., sellers 205.; : 'J'aranaki Petroleum, ss. 3d.;,: Ward.-Snd. C 0... Brewery shares, buyers have advanced their iids to .£4 15s. . .. THE. MINING';MARKET.' '. ' .• The. business .in,'this;section :-is 'iestrictcd. i.'-Testerday- TaUsinans ■ ca'me r in 'for iittentioh; • . and /sales were made at £2 13s. 3d. The : . quotations were as under 1 - . -Buyers. Sellers. Sales. , > . s.-.d. : V .& §..d. .>£ s.^d.; Talismans ... -2 13 D '2-13- G- >. 2 13.;.3 WaihL . ... ? .-7', 6, , 9,y9 Waihi Grand JundV.; 1 136 ; 1,15. 6 1, Kuranui Caicdoniun 0 fi '8-' -0 f O l 0 ' ; '■ Big Hiver' :.- ' .'.V 'O 15' 6 0 17' 1 0 THE UNDERWRITING OF LOANS. ;" As the several States of the Commonwealth ■ ' jre likely to' be borrowing on the London ■ : market in the near future, the advisableness - ' of dispensing with the'underwriting of,-State loans in London'will be one of the questions ■for discussion during ..the Conference now being held by the State Premiers.- It is contended that, while Australia was to some ex- ' , tent , under a . cloud through 1 . persistent and : /frequent appeals to the Britisli money-lender,- v " underwriting was doubtless essential. '-' 'Now there, is a feeling among the State, Treasurers ' • ; that it is no longer needful for. the successful 'S flotation' of State loans. If savings can be . ' effected. ;by dispensing with the services- ; of! ~ tiie\loan underwriter so much the better, but it is as well to remember that. Londofi 16 a - conservative financial • centre, and that it is difficult and sometimes unwise fo' break away from ""a long established custom. If under- . writing ;is dispensed with other difficulties are,: certain to crop, up, which 1 in the end-may prove more expensive than the ■ underwriting commission. The'; Companies Act, 1907, while ' it affords 1 protection- to : shareholders and -in-' '. vestors^: does not "touch, dummy.-' underwriting' : by responsible underwriters who . pass genuine . cheqiies ' but run practically.- no- risks; ■'Themore, subtle ;device of' the, modern financier', i ; was for v a, powerful 'house of unquestionable. . financial-credit to give .its cheque under..,cir-, ' - cumstances. and, conditions which, by . arrangements with ' promoters, really involved- no serious liability. Underwriters who took a .largo block under such arrangements practically received the call, but not' the obligation - of underwriting, for a large amount, at an, over-riding commission.-or -upon .special terms,; until sub-underwriting had- been' found/'prii'c.tically; relieving them, whilei if - it were not found, they : had sufficient control over 'the issue to prevent its being made. , ■ BRITISH BANKING. The feature of/ tie- banking: business' in Great Britain 4iMng>l9o7^'.traß^t^eVhigh'»rates^ - ..charged by,-the .'-banks, due' to : great .commer- ;-. "cial activity/, iSnd later on to! tli'e\crisis^in - the United -States. Therefore banking profits . .for the ; term-show considerable expansion. ' . But just as'.there-was an increase in the'-Bank average discount rate from <£4 ss. 3d. per cent.in 19U6:t0,'U;4 18s. 6d.-per ceiit., iihd in'"th'e; average, market' rate-,for. best', three' , bills,: so. has.;there been an increase in' the! interest allowed' on ,depgsits;\fr'om <E2 13s; sd. - per cent. - iiiv'.l9o6 to d£3,3s:-v6d.- in ,1907: This has ineant ~that. the .-bani's'/obtained far .less . benefit \froni..ithe,;highVrates ruling than was generally regarded , as being 'the-, case.' The banks, of course, have had the. full-advantage- : of the deposits, .not. bearing.;iilterest; -That, as..-the'-"-Economist" points - out - in its annnfil compilation of British banking . profits,-. hasi enabled ' /I;."much better' showing to bo made' Tin . 1907- -than;'in' 1906. Including ; undivided,i';profits broi(glit>;-' forward, ...theamount .ajVaifable by!. 32 '.banks; ■ for the - ''agiinst '■ ! J87,676,677. Despite the larger amount avail- : able, dividends paid only totalled A' 0,543,392, or .£29,477 . less than in 1906, alth'o'ugli""the ■ amounts carried to reserve and written, off •: premises, etc., showed contraction. The rea- , son of this is that the fall in Consols • and' other: securities in 1907 was. oil-such- 'a" scale' , as to take, no less/a sum than <£1,003,175 to partially cover such the further Bum of <£320,990 drawn -fromHthe; reserves Kay; V. ing also to be applied .to that purpose. .In ail, therefore, jei,523,000' was needed' to mfeet 1 depreciation in securities during 1907, so that ' . it can be quite understood, as the bank, officials and the "Economist" point out, that, despite the larger profits earned,, the .year ; was one of considerablei;;;diffioiiltjr itnd '.tfial.-:.;,- c ', -DEARER MONEY;'":-'': , : In Wellington at least money is scarco and dearer; none of the building societies appear to have much available for lending, and , the % ,bjg - insurance companies are in 'the 'samo condition. This may be only a temporary short-' age, but'it is nevertheless inconvenient for borrowers, who are in consequence pu to the trouble of canvassing among the lending institutions, and in' soino cases' offering a' high'- - rate of interest. No, doubt some who have funds available for investment are holding back, knowing that, borrowers ,!jrill« be com£ veiled-to presently offer, more attractive terms!gnvcral who took up mortgages some time ago', ' or who . were forccd to become • mortgagees through the sale of land are ' now 1 trafficking ■ ! in-such mortgages, the buyers in .such cases securing substantial concessions. 1 Tho share market dullness is attributed to-tha acarcity^

of money for investment, and any pressure to sell must result in lower, values; in any case, iw.ith'i. mortgage. rate? "advancing, there is a tediiiioy -to * preferi&v&'tment in mortgages rather than in s'hares. ' Queensland meat trade. . An. informal,.',cpnfeirenco' of the companies and firms interested''in-the frozen meat'export trade ,of Qneensland was held recently to consider whether there was a sufficient surplus of cattle, available for export to justify the 'reopening of the various ,works during 1908, and, if so, whether they could be bought at prices that would leave some ■ margin of profit to exporters. Tho very severe drop in. the value ;of hides/'"fallow, and other by-, products, taken in'ctm'JUnction with' the advances in cost' of fuel, materials, labour, transport, &nd other charges, have • rendered the freezing business so',"tifiprbfitable ;«s to keep several works closed;-'-and- greatly to restrict, .the operations of 'others. The lower costs and excessive supplies of Argentine beef, coupled with ,'their cheaper freights,'mate that country such a,, 'formidable" competitor''With Australia in the. United Kingdom as to shut out Austra-i liiirt beef -entirely at this, juncture,: pending a. "lower '.range- of ■ values-here. idealising that'supplies of beef in'-'cold"stores were ample to provide for Eastern and other foreign business and contracts-during .the next few months; ■the opinion was expressed that, there was no pressing necessity to purchase cattle. Resumption of work will; therefore,', doubtless depend on prices reaching au export level under or-, dinary market conditions and influences. '/l ". MARINE UNDERWRITING. •! Marine . insurance, .according to the latest , statistics available, has not been a profitable !busmessito most, British offices during the last 'twelve ~'Thte;. final .results, of thejroperatioris were-'Had "in- 1905j' were, worse- in 1906; Wind improvement, in -1907J--!fi!iecnccountsirofi nine companies show, iftn,..aggregate dsfip.iWin 1905 .of ,£10,071, at-' tributed to the Russo-Japanese war. ' In 1906, when there was .no war, the deficit had inT9nd' the "conclusion to w-hich students of the position have come is .that, premium .rates have fallen ,so low as to make profits impossible. The rpason why the obvious .remedy—tq. raise rates—is hot applied is''.due/to" "tho 'peculiar . conditions 'of;' the! marine underwriting business. . ' The . companies have such large sums ' reserved from "the""'proSts*'bt'bygone years tht their incomes from investments 1 alono suffico to pay dividends to shareholders of from 13 to 20 per 'ceilfe-' annually?' even the underwriting business''of the companies shows large deceits. , No .industry, or avocation could i show a group of-companies. which have, distributed over ~£20,0,000. in after realising an aggregate loss of-£57,000 -for -the same period. It- is pointed ont that if marine: insurance companies were more dependent for profits on' their underwriting account .managers would be subject to'pressure'from' shareholders, and premium rates would rise to a remunerative basis.■; .;!. "i. :• •!- ■ ,!- COMMONWEALTH WHEAT CROP. ' -The wheat crop for the season '1907-8; !V accbrding.v'to- reliable official'estimates - J is -'plated at 41,496,392 bushels, and Hhis,'-;co'mp'red with ".'the''out-turn of' the previous', season,- : is-''as-under: — W 1906-7. 1907-8. • State.- •-• i- ■ Bushels. Bushels. Victoria .... ' 22,618,043 12,322,275 •S; "Australia - v:. - - --17,145,796 ■ : 16,000,000 'M.S. Wales 21,817,938 8,682,117 W. Australia ... '... 2,758,567 ,3,492,000 Tasmania & Queen'l'nd .1,760,310' ; 1,000,000" 41,496,302 The decrease is heaviest in New South Wales, fairly -heavy in Victoria. West Australia is now producing enough wheat to meet, local requirements. Of the season's crop of 41J million, bushels,, there will be a surplus of about 15,000,000 bushels for export beyond the Commonwealth, and the export trade will be conducted mainly"from .South Australia. NOTES Company has iEsugd.Jano.ther I,ooo,QjO.^shares. . ...According,, to.fig'ures.. compiled- by the general manager of the Hamburg-American Line, 15,432-. ..immigrants. .arrived in the United •States'-iii January, and;r;sS,767 alien .steerage passengers .-went away. _ j-- . ' ' - '■ ■ '' "On ' February - 5 a partner in ' the •. Baldwin; Locomotive Works stated that 10,000 of the -19,0.00 employeeshad been paid off since December.'owi'ng to the lack of orders. Whereas :formerly"- ! thei works "built 60 locomotives a -week,, only-20 a week..wcre then being turned .out,. . .... ' - ! : - .MINING- ' ■.■j[BY;;;TBLEGEAPH,—SFEOIJUj' COKnESPONDiNT.]' '■ _ Greymouth,. April 7. The Big River Co. cleaned up after, crushing ■600- tons,-and- obtained 8340z. 17dwt. retorted gold, leaving the concentrates and tailings yet to bo treated. The above parcel of gold is valued at ..... "STOCK EXCHANGE. . ' ~ / ":(DY ' TELrGiuVii.-iriiEss association.) ' ss> . » Dunedin, April 7.. '.Stock Exchange sales.: SManuherikia, 17s. 6d. ' ' LIVE STOCK SALES. Messrs. Dalgety and Co., Ltd., report as follows' on their .Mhi-toCsile, held yesterday:— We had a small entry of cattle, and a good yarding'of sheep. Four* and 6-tooth ewes made Ills.; 2-tooth ewes, smaif, 125.; fat and ''forward ewes, lis. 7d.; full mouths, Gs. 9d., 6s. lid.; aged ewos, 35., 3s. Id.; small lambs, 4s. Id.; medium mixed lambs, 55., ss. 9d., ss. lid.; '. Jersey heifers, £2:los'.' : (ny TELEGRAPH. —SPECIAL COKRESrONDENT.) Pahiatua, April 7. ■ -■ Messrs.. Abraham and Williams and tho New Zealand Loan and. Mercantile Agency Company held their weekly sales to-day, when thoro was a good all-round en try of sheep. TJw yard- - ing -of-'cattle ".was fair-; The weather was ■ showery; "and- the -atleft'dancc moderate, prices showing a decline, and many lines being passed in.-. -Wethers- made, 95..:-2 d.; 2-tooth ewss, 10s. Bd'.;' full mouthed;"Bs.,-9s:; aged, 45., 55.; culls, 2s. Gel.; lambs, poor conditioned, Is. Gd. to 3s -6d.;'rains, 10s. Gd. to 21s.' Cattle,—3-year -.steers, 605.; weftoew, 128.; coirs, 20a. -

, WELLINGTON SHARE LIST. Li-h, ■ •■'.'■ TleM COMPACT. Italanca ""° r S|- „ • r Forwarc'; ga £*•■., £< ?".° r ' Sale.' Investor. - ' TUvra ' ■ : ' &■ ': ■'■'■* ' • £ "• '1- * *•«• <1- ■. X 6- £ s.d. ' (T.W7iS«nfl' ' V "'' Vmmi.. Si , ' 3J ; jn • ..012:0/'. ;9U 0- 013 0 3 ns ;:; •,:''mm.- ,» •.»• • 6 5 0 67 0 57 0 »® •. ' '• ,.,5™ ' 'immi fto-330.. ..{ nnlM.' n 17 0 1 7 .0 ' I 7 2 \<£%tiwT : !"-' " ••Jromi ' S95.671' 2 .. a . .ijo -3 15 0 317 0 . Fo^h: iX | « 216 0 . 2 " I ■ " Howard . . ,.75,000 b7ldSG . i , unltd ' 10 ... .; . EtiuHableBundSig - EO.OOO ' ' & f 10 . ,j 10 2 6 10.0 0 ,5 o 0 -!'>:■ : Mcta)poBtiuiBnUaii«' . . : 7 , ,, ' .0-123 0110 B 4 4 ■ - • \\ invest. • w0,0!X) ,, «.,i >• -v •<* .. » q .a* 7 11 g 706 n 7 fl . ....•WergtonTnwt&Loatt .-101,250 • 'MS * * r - g - -•8 7 J ® n 956 & I 1 V ISSS •' '»• 1 '»« ■ 7 111 6 111 C . JU «* I Ja- : S .315,133 i 6 --0*5-1 05 1 0 5 0 10 0 0 : : vveElttrcir''.' \ § '» •• 0 „ 9 10 2 6 » 0 •«.» •»$ * ..SIS \«»o. »• ... . Hawera ... - .. .-8,25) 74» * '-„V ■ • ■< / . . . l\ew Plymouth -. .18,030 .jj jj{}: 10' v •» ' J>ai.icr .... ] 's.M !•> V •„ ..-.. - - . 40,937!- ffl.l 33 5 o. la ■ i: ■ KfflS ' "• C0 °, 10 ml' "if '■ 10 10 0 10 11 6 5 8 2 ; ...Wellington - - . jo 4>57 o, .g ( \ f ' rantcrbufy V- '.JSM2J. V; '.M 1 , ' 5 in r n in 10 n ' ' I r *V- • . MIV-"tfJJ' »7,lr»j.; 1U . UlU .'8' ( .10 6 0,/ .10 10.0 ' . s .... .. , iU»-261 -.1 nil. 2 0 3' -U0 3 .2 0-0 5 1 3 Uia . ; . . wooi}. 4. s;, U ou o io o o ->\VcIIi DS tonpatMxp 'j "r. ; . 8 - : , "i o : 5 B 0 f 5 6 " f ■ ' it, 2j ' 8 ' .3 5.3 .3 5 0 c 0 3 : " ' isjesa ;, 3 H 31 • " " .t.. i? W • . 170 01) 121.451 ' ' 1'' ; • ■ 4 ' ' 7 - 2 6 -0 2 :7 6 2 7 0 H 0 y " ' t ' lU'il ■:'■:*■ " . 5 •• ■ 1,511 0 , LdbnstS- ;. : mS)j. -J. >;»• • 1" »• 'ViH.a ■•■■.'■ . - "■; :;Wctn.Sleam Ferry • 4U.-J.3J w 1 J".'.■■ ..J., Vesti)ort, 0A '-' ' ■ tlOOiD 117,'215 ■ Sj. . li „ .135 .619. 0 . • 7 0 0 ' 7 8. 0 6 0 0 'Qaflpiri' . ' tUioOJ ' [ ' 3jJ - ; r UJ - ' '3 . -10'-0 - l O O . ;l 0 3 7 8 0 ' . WOOLLKX. . ni | v.. vM: : 4. ?.o 0, .330 310 410. :■;> ,:.V ciSngton- '.-V• ".U0JJV '-w 4 ; 1 t> 3 0.0 3 3 0 3 3 0 V13 4 ■y- ■ lJto^hvKom® 0 i 47,03) •' - 5 nU - 600 650 . . W.OJ) , •'.' . I' J" 'W- .22 0 f J 0;. £ 3 0 617-3 .J.auiicevtlloljimj . ''.oJJ . •': • * V^KfK 0 *-- fSwlV "fl '■ Sit'. .--..f.l 1 '- 0 -:. 212 6 ' f-U.,0 1 6 3.0 V- * "Miss' if J /'"SS' 7 1"? «• J 13 3 t 0 » ;• . t.2..CcmoQ5- •. ' - 40,00.1. ■ ••?■ , z 111 t 112 0. ' . xuiiiiiiKisoo. - ' it.i-*'-' "-. f, 1 ' 0 " ir J9 _ v :; / ...31^'; 6 - ■ " to&i ■:■* J, 4.. 10;' 415. 0 . - .117, 0 :: :-A> B tR opera Hou« ' '■"' J -, S • . Vtui Fresh Fool - Sawedl , .7 • : ff.'. • AVhilcoiaLcA Tombs- / ,, i Jf.i ? 4 8 0 ; / buamua. L it.o« ' * u "' 13 Oil t II 0 C18 0 » 0 0