COMMERCIAL ITEMS.

Dominion, Volume 3, Issue 772, 22 March 1910, Page 10

COMMERCIAL ITEMS.

■ V- ———r . ' INVESTMENT SHAKES. > I . There were no transactions ' recorded yesterday, .which-,,is. characteristic of Monday. The quotations disclose firmness in all' groups. National Bank, buyers .EG 4s. 6d.; Bank of New Zealand, buyers <£9 12s. 6d.; Wellington Investment, buyers lis.,-, sellers \lls. • 3d;; Wellington. Trust 'and, Loan, sellers'.£7,4s.; Feilding Gas, buyers J!1 Is. .Gd.; , Gisborne Gas, buyers £2 10s.; Wellington Gas, ,£G 15s. paid, buyers .£l3 10s.; Gear .Meat, ,£1 paid, buyers .£2 13s.'; Wellington Meat Export, ,£2 12s. Gd. paid,' sellers £2 lGs.;New Zealand Shipping, .buyers £1, ; 17s. Gd.; Wellington Woollen, buyers i' 3 25.; West, port Coal, buyers ,£G 2s'. 6d., sellers 55.; lieylaud-O'Brien Timber, buyers'.£l •is. 3d.; New Zealand Drug, buyers M 75.; New Zealand Portland Cement, buyers i£2; Sharland's preference, buyers d2l 2s. ;,.Taranaki Petroleum, buyers Bs.', sellers 9s. 3d.; Ward and Co., brewery shares, sellers .£5. THE MONEY MAKICET. The advance in the Bank of England discount rate has so far not affected the values of New Zealand produce. Frozen moat is standing well, and prices'shoiv a. strong disposition to nioye upwards. Of course, where' the .heavy shipments from this country-reach tile terminal market values will most likely recede, but that would 'be a normal movement resulting I'iom the operation of the laws ofsupplv and demand. Butter and"chec.se continue to briiig high. prices, and the London wool sales are progressing favourably. The stringency in the money market cannot last long, and with the turn of the quarter easiness should again bo experienced. It is very evident now that the rate was advanced to meet the special anVl peculiar conditions that havo arisen through British "politics- The financial necessities of the British Government are extensive, and it is significant that soon after the, rate was advanced. the Government 'announced a loan of <£21,000,000. Another factor making, for dear money just now is the fact that the Government deposits are just about half of what they' wero a year ago, £0,6-14,000 against •£18,830,000. The Bank has not the command of Government moneys that it had last year and for years previously, and tlie abnormal situation has been met by an abnormal procedure. With the settlement of the Budget the market will ease. . ' THE WOOL TRADE. The London wool sales continue satisfactory, although crossbred wool has not recovered tho initial decline, and the outlook for tho'future is very encouraging. According to tho "Manchester Guardian" of a recent date, orders for worsted machinery continue to flow in, despite the advances in prices • and the impossibility of early delivery." A contract for 10,0.00 spindles to equip a Bradford extension has been given this jveek. If the tfado is to expand further probably there will havo to be more building, ns spinners who aro at all successful arc at the end both of their engine power and their lloor space. Considerations of space and power have deterred purchases ol'machinery in some known cases and delayed purchaso in others. The briskness of business which has introduced new men to new places is accountable for some of tho good sales of winding and beaming machines. The demand lor gill boxes t is such thaA one of the prmciual makers

cannot promise delivery in less than a year. The home demand is assisted by Continental and American orders. The American Woollen Company, some- o£ whose machinery is imported, is pressing on with the Ayer Mills, which aro to bo capable of treating 50,0001b. of scoured wool per day. There nro other American orders for worsted machines, and export returns from the Bradford U.S. consular area show that for a year past shipments have been larger than ever before.

BEITISH LIFE INSURANCE. Returns furnished annually to the Board of Trade by British insurance companies show that a remarkable development lias taken placo in all branches of life assurance in the United Kingdom during the last twenty years. The amounts paid in premiums iu connection with both ordinary and industrial schemes of assurance are ■ given below, together with figures showing the- increase in funds lield ■by the companies during the same period:— • Ordinary Assurance. Premiums. Punds. 1889 .£13,55G,325 .£155,208,202 1908 26,014,232 .. 309,991,863 Industrial Assurance. Premiums. . Funds. 1889 £i,ooß,Sl!i -£0,262,170 1903 12,440;568 35,155,683 The total assurances in force at the close of 1908 amounted'to'.£726,B7s,ooß under ordinary tables, in addition to .2267,460,613 effected by means of industrial policies, I and it is instructive to compare these 1 figures with .totals of .£437,510,512 and .£83,891,620 assured under the respective tables at the close of 18S'J. These ngnres would seem to afford ample testimony to the growing prosperity of a very largo section of the community, and it will be seen that.the rate of progress has been especially marked in respect of industrial business. The proportion of premiums absorbed in expenses is, of course, substantially greater in industrial than in ordinary assurance, maintaining an average of approximately 44 per cent, in -the former us against H per cent, in tho latter class of business. Unfortunately it has not been found practicable to reduce materially the high, percentage of premiums absorbed in the transaction of industrial business during the period in question. : .

ASSETS. IN THE BALANCE-SHEET. In its February, number the "Incorporated Accountants' Journal" publishes an interesting 'article discussing the question of .the true valuation of assets in the balance-sheet of a' going concern. The discussion hinges on the question whether assets should .be stated at their realisable, value, in the event of immediate liquidation, and leaving out such items as goodwill, or whether plant-and machinery should hot be rather valued on what may be called their productive basis, thus vindicating the' present-day balance-sheet, with all its faults. - The "Journal" asks:—"Why. should goodwill be singled out and made an exception of if it possesses a realisable value? We grant the difficulty "of.-assessing its true ,value, but if it cost, say, £10,000.twelve months, ago, and the. company has had a successful-year's trading, who is to say that it would not fetch the same tomorrow? Then'the plant and machinery is to be reduced,to the. value which it would fetch if realised, which means at least half the cost must be written off the first year. , It is a matter o£ common knowledge that , the saleable, or break-up value of machinery .bears , no relation whatever to tho cost price. It is not bought to be broken up and sold, but to be used as a .means of production, and Us. continued'capacity to .produce is tthe true basis of its value. Stockrintrade, on the other hand, is bought for the (purpose of being sold agaiii at a .profit, and, therefore, it is valued on a different basis. What is the object, of a balance-sheet? Is it to show the position in which the company would stand if liquidated, or is it to show'the position as' a going concern? Surely it is the latter. The public do not. subscribe 'for shares in the expectation of seeing the .company in the winding-up. court, and they would be tho first to resent the ■writing-down, of all the assets -to the ■value which they would Tealise if sold." Tho article concludes with tho following general principles:—"lt is almost impossible to lay clown definite rules for assessing tho valuo of assets for balancesheet purposes, but speaking ':■'■ generally..the following will.usually apply:—Fixed assets being acquired; not for sale, but as a medium for. the. production of marketable goods, their value is. dependent upon their cost and the length of time they are. calculated' to properly and efficiently carry out tho functions for which, they are designed. (2) Floating assets being acquired, not for retention, but for exchange and rapid'turnover with a view to profit, are valued at' cost or current market value, whichever .is the -lower! (3) Both fixed assets.are valued on the basis' that the company will continue to carry, on its business as a going concern, (4)' Goodwill is an asset of a special character, the value of which fluctuates according to ' the prosperity . of tho company, but which-for various reasons it is found, preferablo in practice to retain oh the balance-sheet at cost."

Customs revenue collected at Wellington yesterday amounted to £7-13 4s. Bd.

. WELLINGTON MARKET REPORT. Messrs. .Laery and Co., Ltd., Wellington, report wholesale prices ruling on the market:—Wheat, fowl 4sl Id. to 4s. 3d.; feed oats, 2s. 4d. to 2s. 7d., Dun oats 2s. sd. to 2s. 7d., seed oats 2s. Gd. to 2s.'Bd.; Algerian oats, 2s. id. to 2s. Gd.; maize, 3s. 10d. to .45.; crushed malt, 75.; fowl barley, 2s. 9d.; Cape barley seed, 35.; flour, New Zealand .£lO ss. to .£ll 55., Australian £U 10s. to .£1:2; peas, Prussian blue ss. Gd., split ..£l7 10s.; bonedust, £5 155. , ; superphosphates, .£5 to £5 55.; pollard, £i ss. to £b 155.; bran, £i to M 10s,; pearl barley, 155.; basic slag, £i 10s.; chaff (oatensheaf), M to £i 10s.-; oatmeal; £U 10S-. to' £12; potatoes, table £3 to £6 ton; onions, 3s. to 4s. Gd. civt.j molasses fodder, .£5; bacon (factory), sides Gja., hams 3d;, rolls 7Jd.; butter, prime bulk, 9d. Poultry—Hens, 35.; ducks, 3s. Gd. to 4s. jid. per pair; turkeys, gobblers 18s. to 205., hens 10s. to Ms.; fresh eggs. ls ; 3d. to Is. del.; preserved eggs, Is. 2d. dozen; cheese,'sjd.' per lb., loaf 6Jd.'; Akaro'a machine-dressed cocksfoot, Gd. to 7d. per lb.; farmers' dressed cocksfoot, 4d. to sd. per lb.; ryegrass, 3s. Gd. to 4s. Gd. per bushel; Italian ryegrass, 3s. Gd. to 4s. 6d. per bushel; white, clover, 70s. to 755. per cwt. . THE METAL-MARKETS. By Telcsraph—Press Association— Copyrient. London, March 20. Silver is quoted at 23Jd. per oz. Tin.—On spot, £145 2s. 6d.; three months', .£147 ss. Le'ad.-.£13 Is. 3d. ' ' LONDON WOOL SALES. By Telegraph—Press Association-Coryrleht London, March 20. Tho wool catalogued to date totals 117,108 bales, of which 111,032 have been sold. Americans are buying more rt-ossbreds. Prices were iu sellers' favour. Yesterday's selection—chiefly speculators' sec-ond-hand lots—realised full lato rates. Sales included: Kiwi Okirae, top price 13d., average 10M.; Raukawa, top price 14\d., average, 13Jd.; Titi, tip price 13d., average llfd.; Awliea, top price 13d., average IOJd. In connection with the present .series of wool sales in London, Messrs. Dalgety and Company, Limited, report the following realisations of wool on account of their clients:—l 93 bales wool, Okirae, on account ,T. Campion, 'Esq., I'ordell, average fleece, 10.9 d.; 150 bales Okirae, on account J. Campion, Esq., Fordell, all

round average, 10.7 d. 76 bales, Puketiro, on account Mr. AY. K. Morion, Hnnterville, average of fleece, 10.7 d.; average bellies and pieces, S.Gld. 159 bales \Vharanui, on account Sir. C. V. Hurray, Blenheim, average fleece, 11.6 d. S3 bales, Tirohanga, on account Mr. A. E. Thomas, Blenheim, average fleece, lljd. 38 bales, Lovat, on account Mr. T. G. Fraser, Masterton, average fleeco, lO.ld. 24 bales, G!en Darrah, on account Mr. Ct. Searlo, Palmerston North, average fleece, 10.2 d. 11 bales, WD, on account Mr. W. Dawbin, .Palmerston North, average fleece, 10d. 8 bales, Lovat, on account Mr.. T. G. Fraser, Jlasterton, all round average, B.G2d. HIGH COMMISSIONER'S CABLE. The Commerce Division of the Department of Agriculture has received the following cablegram from the High Commissioner, dated London, March 19:— Tho mutton market is strong, and prices are advancing for. all descriptions, ■the demand is principally speculative, on account of the difficulty of obtaining supplies. Holders are firm. Average prices: Canterbury, -iid. per lb.; North Island, 4id.; Australian, 3jjd.; Eiver Plate, 3jd". ' • Tho lamb market is very firm, with a general and active demand. Average prices: Canterbury, s|d. per lb.; other New Zealand, s£d.; Australian, and River Plate, 4Jd. . Tho beef market is firin, and. stock small. High prices are restricting business in New Zealand beef. New Zealand hindquarters average 4Jd. per lb., fore--quarters 3fd. The butter market is steady;' with a moderate demand, but the high level of values restricts business, and buyers are holding back expecting prices to go lower.. The shipment of butter per ss Corinthic arrived in good condition. Tho average price of choicest New Zealand butter is 1245. per cwt.; Australian and Argentine, 1215.; Danish, 1305.; Siberian, 1225.

Tho cheese market is very firm, but buyers are cautious and business dull. New Zealand finest white cheese, is averaging. 625. per cwt., coloured 60s. The hemp market is quiet, with a small business doing. Prices are as follow:—On spot—New Zealand good fair, .£25 per ton; fair, ,£24; Manila fair current ,£24' 10s., April to June shipments; good fair. S&i 10s.; fair, £?3 10s.; Manila, .£23. Tho week's output of hemp at Manila' was 26,000 bales.

Wool.—The market is firmer for merinos, but not quite so 'film for medium and coarse e-rossbreds.

.COLONIAL AND OTHER PEODUCE. By Telocraßli—Press AssociatioD—Oopyrieht. London, March 20. Wheat.—A cargo of Australian sold at 395. 4Jd.; another cargo realised 395. lid. Three cargoes, totalling' 14,0.00 quarters,' .of South Australian and Victorian,' are expected in March, also 6200 J tons of Victorian ■ per-steamer (February, shipment), all sold at 395. . "

Hides.—The hides sales were neglected. Prices remained unchanged. ■. Leather.—Stocks, of. Australian leather, in first hands, are exhausted. Babbits—Market flat.- Large Sydneys, in store, 19s. Gd.; Melbournes, Us.; Mel r bournes, for present shipment,. are offering -at 12s. Gd. Hemp.—Market' ; dull. ' Consignments afloat arc quoted at JE24 10s. ' Copra.—Market - strong, with fair business. South Sea, in bags, £2i 12s. 6d. Cotton.-7.90d. per lb. , NEW ZEALAND DRUG COUP ANT. i- (By Teleirraph.—Press Association.)- . ' Dunedin, March 21. The thirty-first 'annual' meeting of shareholders in Kemptiiorne, Prosser and Co.V (New' Zealand Drug Company) was held this afternoon...

In moving the adoption' of, the report and balance-sheet, Mr. Brown (chairman of i directors) 6aid that the. general ..reserve stood at ,£27,500, and the directors; recommehde'd that £2500 be. added 'to "it The fire insurance reserve was i£Bls, re-' serve on customers' accounts J32657, and staff fund .£3195. Open accounts • -and liabilities were £17,723, as against .£61,358, last year, and bills payable were .£11,533, as against .£14,299 last. year. i; ,eets side tho stock stood.at £149,622,.a 5, against ',£181,347. last ycar/and"propertie4; at £103,192, as against .£103,005 twelve months previously. Bills receivable were £363, and .book debts £53,145, as against £55,964 last year.' The net profit for the. year was £16,607. Tho interim dividend paid in September absorbed £7000, and the direotors recommended a, . dividend for the half year at the rate of 7 per cent, pel , annum, leaving £6591 to •be carried forward. ' •.' The report and balance-sheet were-, adopted. ■ Dr. Ogston and Mr. John Mill were reelected directors. Messrs. W. E. Holmes' (Auckland), C. P. Powles. (Wellington), G. W. Hulmo (Christchurch), and William Brown and Co. (Dunedin) were appointed auditors. ,

Mining, news will be found on page 5 of this issue.