COMMERCIAL & FINANCIAL

Evening Post, Volume LXVI, Issue 55, 2 September 1903, Page 4

COMMERCIAL & FINANCIAL

Evening Post Office, Wednesday. THE MONEY MARKET. The London money market is inclined to stringency, and is no doubt sensitive to tho disturbed political outlook in the Balkans and China. The open market discount rate approximates to Bank rate, aud this condition indica.lo3 an eai\y hardening of rates. It is the time of year when money gets dearer, because of the demand for moving crops to tho seaboard lor export, but in addition to this there are other factors that are causing a disturbance. The political situation is seen in the price of Imperial Consols, which are now quoted at tho low prioe of £90 12s 6d. Stock Exchango securities generally are at prices that show the stocks are not in great favour, with investors. Fortunately the colonies are keeping off tho market, the only loan pending being the Victorian Conversion Loan of fivo millions, which must be raised Very shortly. With respect to this issue, and tho flotation is of interest to all tho colonies, private advices received in Melbourne stato as follows:— "There have been several semi-private conferences among dealers in colonial stocks here regarding the coming Victorian Conversion Loan. The majority are strongly opposed to the proposal which has been put forward to issue Treasury Bills -to cover the conversion. The market^ here is stuffed with this olass of security, and, in addition, all the States, particularly Victoria, have large further conversions to arrange in 1907 to 1909. Unless a comprehensive conversion scheme, taking in future conversions, is put forward, a 3i per cent, issue of inscribed stock at 98 or 97 for 20 or 25 years would be best for the State." The writer adds in his lotter that no issue can hope for success that is not backed with a substantial sinking fund beyond the reach of needy Treasurers. The Eetting-up of a sinking fund that cannot be seized and' taken in as rovenflo will be forced upon the colonies,, for tho impression appears to be that tho Treasurers need to bo protected against themselves. Apart from the projected New Zealand million loan in aid of publio works, for which Parliamentary authority is to be asked this session, pnd also the debftnture issues in connection with State Firo Insurance and other schemes, there appear to be considerable sums falling due during tho next threo yeara, for which provision will have to be made. The amounts falling due are approximately as under: — •

The immediate prospects of the London money market may be judged from the present quotations for the 3 per cents, and 3£ per cents. The prices are as under: —

SHIPPING REBATES. The system of rebates that obtains in shipping circles to enforce the loyalty of shippers is detrimental to business, and while at various times there has been a good deal of agitation to put a stop to this system, nothing has been done to achieve success. The navigation laws of the United States, the unfairness of which British shipping companies have felt, appear to be capable of holding the rebate trouble in check. Messrs. Arkell and Douglas, of New York, in their Australasian market roport dated 18th July, state: — "Under the present laws of the United States covering general earners of freight, it appears as if combination between threo or four lines establishing uniform rates is not tenable, and in consequence of this position, and action having been taken- by the United States District Attorney against several lines, the various existing arrangements between parties loading to South America, South Africa, and Australia have had to bo rescinded. It has also been practically decided under tho law that agreements to pay shippers 'return primages or other allowances for guarantoed sole support is not admissible, and conquently tho various lines have been forced to issue ciroulars doing away with the system from the present time. There is no question whatever but that the system of rebates which has been adopted by the Australian, South African, South American, and other lines, to force shippers to loyalty to a. special line, holding over them penalties unless they adhere strictly to these agreements, which were practically obliged to be accepted by them, even if against their will, to secure the advantages that others enjoyed, as these lines had an absolute monopoly, has been to the detriment of the trade and most irksome to those who preferred to have their freedom and take advantage of any opportunity which might offer, and no one engaged in the business will be but pleased if the law is finally enforced, and the entire system of rebates, which does not rest upon a proper business -foundation, shall be swept away." The rebate system pervades nearly all branches of trade, and in this colony merohants are tied up in their purchases of sugar, flour, kerosene, and other commodities. Some cheek should be applied to this system, but this can only be done by legislation ; it is the "tied house" principle in general trade. COMPANY REPORTS. The balance-sheet of the Union Bank of Australia (Limited) for tho half-year ended 28th February last, and submitted to the shareholders in London in July, shows the net profits at £113,649, as against £96,714 for tho corresponding period of the previous year. The steady expansion of the profits of this Anglo-Australian institution is shown in. the table appended — Gross Net Feb. Profit 3. Profits. £. £ 1900 203,459 92,000 1901 203,130 86,628 1902 217,785 96,714 1903 238,513 113,041 The bank has exhibited extreme caution, and its advances account is less than in previous years, while the depoßitß are slightly larger. These items afford an instructive comparison — Feb. Deposits. Advances. * 1900 ... 15,793,602 15,412,707 1901 ... 15,249,030 14,874,519 1902 ... 15,418,748 14,498,977 1903 ... 15,949,227 14,371,228 The reserve fund of the Union Bank now stands at £1,000,000, and the whole amount is invested in British Government securities in tho names of trustees, and is held apart from the business of the bank. It is a reserve fund in its proper sense, and immediately available in case of emergency. The balance-sheet of the Wellington Woollen Company, just circulated, and covering operations for the year ended 31st July last, is extremely satisfactory. The business has been well maintained under efficient management, and the handsome net profit of £9014 16s 6d is announced. The plant is being increased by the addition of worsted machinery, and a great increase of business is expected to result. Tho figures of the balance-sheet are decidedly satisfactory, aud tho favour in which the company's shares are held by investors is shown by the persistent demand for them. ', STOCK SALES. Messrs. Abraham and Williams, x.id., stato that since their last report sales have been held at Shannon, Otaki, Palmerston, and Levin, as well as several clearing sales of dairy stock. At each centre cattle have come forward in large numbers and found ready sale, prices being well maintained. A good demand exists for all classes, with the exception of dairy neilers backward in calf, which have shown signs of easing off in price. Dairy heifers near calving arc still finding ready sale at prices ranging from £6 15s to b( jos. Sheep have been coming forward below average numbers lately, and tho demand is particularly keen, especially for fats or ewes in lamb, prices for which are steadily advancing each week Quotations : —At Shannon— Ewes in lamb, 14s 3d; hoguots 9s 4d to 13s ; wethers, 13s lOd : cull hoggets, 6s to 8* ; 18-month steers, £4 to £' 3s; 2 and 2i-vear steers, £5 9s; yearling steers, £3 5s to £3 lls : 18-month heife-s and 2-year heifers, £4 15a ; wca.llors, Cfls 6d to 355 ; yearling heifers, £2 7s ; fat cosre. £5 17b 6d to £6 10sa cows m

calf, £4 10s to £6 3s. At Otaki—Hoggets, 93 lid ; ewes in lamb, 13s ; wethers, 16s 3d ; weaners, 35s lo £2 ss ; yearling well-bred steers, £4- 4s ; forward cows, £5 ss ; 2g-year steers, £5 17b ; springing heifers, £6 13s 6d ; springing cows, £6 6s to £7 7s 6d. At Palmerßton— -Fat and forward owes, 15s to 16b ; fat ewes, 17s 7d to18s Id ; ewes 'in lamb, 18s 2d ; hoggets, 103 7d ; cull owes, 6s 9d ; fat bullocks, £8 ss; 3-yoar bullocks, £6 15s. At Lovin — Forward wethers, 10s 3d ; ewes in lamb, 16s ; forward bullocks, £7 3s ; 2-year Eteer3, £4- 15s to £5 ; weaners and yoarlings, £3 Is ; yearling heifers, £2 14s 6d ; empty 2-year heifers, £3 16s to £4 4s ; fat cows, £6 10s to £7 12a 6d ; springing heifers, £5 15s to £6 7s bd ; store cows, £4 lls to £5 ; mixed weaners, 31s to £2 12s ; weaner heifers, 37s 0d- to £2 8b ; store pigs, £1 2s 6d ; young sows, 27s 6d. Mossrs. Freeman R. Jackson and Co., in conjunction with Messrs. Abraham and Williams, report on their Johnsonville sale as follows: — There was a fair entry of bullocks of prime quality. Bidding was irregular. Beef made 28s; be3t bullocks, £11 15s ; others, £10 103 to £11 ; light do, £9 12s 6d., Sheep, in small numbers, were of fair quality, and sold freely. Best wethers brought 20s; light sorts, 15s to 16s; ewes, 16s 6d to 17s 10d; others, 14s lid. Messrs. Thompson Bros., Ltd., Harrisetreat, report, the following wholesale prices ruling on the Wellington produce market during the past week:— Flour, £10 10a per ton ; oatmeal, £10 to £10 5s per ton ; bran, £3 10s per ton ; pollard, £4 to £4 53 per ton; rolled oats, 9s 6d per dozen; wheat, 3b lOd to 4s, according to sample ; oats, 2s to 2s 4d per bushel ; maize, 3s 9d per bushel ; barley, 3s 6d per bushel ; partridge peas, 4s 9d per bushel, blus Prussian peas, 7s per bushel ; horse beans, 4s 3d per bushel ; oaten sheaf chaff, 903 to 95s per ton; pearl barley, 16s per cwt ; split peas, 16s per cwt ; cheese, factory, 6d to 6id per 1b ; bacon, B£d per 1b for sides, 9d for rolls, 9d for hams; butter, 8d to B£d per Ib, according to sample ; eggs, Wairoa Is Id, other , brands Is per dozen ; fowls, hens 43 to 4s 6d, roosters 4s 6d to 5s 6d, according to weight ; duoks, 5s to 6s per pair ; turkeys, hens 7s 6d per pair, gobblers lls to 13s par pair ; cabbages, 2s to 4s per sack ; potatoes, 70s to 85s per ton ;•> seed Canterbury flukes, £6 per ton ; cooking apples, 5s to 7b 6d per case ; dessert apples, 7s 6d to 9s per case ; carrots, 50s per ton ; parsnips, 5s per sack.

N.S. Wales ... Vict&ria S. Australian Queensland ... New Zealand W. Australia Tasmania 3i p.c £ s d ... 98 0 0 ... 98 0 0 ... 101 0 0 ... 95 15 0 ... 101 Ov, 0 ... 98 OJO . . 100 0' 0 3 p.c. £ s cl 89 7 6 90 0 C 89 5 C 90 0 C 91 5 C 90 0 C 91 10 0

.v 1904 [n 1905 [n 1906 [n 1907 ... £1,448,950 ... 1,671,200 949,766 759,800