Commercial a financial. Evening Poet Office, Wednesday. THE MONEY MARKET.

Evening Post, Volume LXX, Issue 136, 6 December 1905, Page 4

Commercial a financial. Evening Poet Office, Wednesday. THE MONEY MARKET.

Tho open market discount rate is down to 3$ per cent., a fall of 5s per cent, from tho highest level reached since September. There is no variation in the Bank rate, which stands at 4 per cont., «nd no change need be expected until tho Now Year. The indications point to a very easy monoy market in January, provided, of course, political disturbances do not create » new situation. The 4 per cont. rate of the Bank of England has proved effective, for the bullion roservo of the Bank has been gaining in strength during tho past four week*, tho additions during tho period boing £2,158,000, a very substantial gain. Australtsia his felt to some extent the hardening of the London money market, but riot sufficiently to apply any check to trado and enterprise. It is bolieved that in tho new year quite a number of public loans will bo placed, and ono authority states that the Victorian ' Government intends to borrow half a million at the commencement of 1906; while the Metropolitan Board of Works will have to conib dn to the market to meet any balance of the maturing 4i per cent*, which may be left unconverted. The New Zealand Government is also to be a borrower, and a half-million local loan is anticipated during the next few months. South Australia, has borrowed £150,000 privately at 4 per cent., and will require another quarter of a million ; while Western Australia may also want funds shortly. New South Wales has several conversions coining close now, and in addition may require funds for public works. Altogether about three millions sterling will be Wanted during the next six months; the amount is not large, and with tho continuance of prosperity the colonies can easily meet the demand. Colonial credit has certainly improved in London ; still, it is doubtful whether the financiers of the Metropolis will support ti colonial emission except at a high rate of, interest. Several of the colonies must approach London to arrauup for tho renewal of maturing loans, and those ioperations will indicate tho financial standing of the colonies. In the ine&uwhilo it ia interesting, iv view of the improvement that has taken place, to compare the latest quotations for colonial Government securities with thoae current a year tgo: — 4 PER CENTS. 1904. 1905. Dec. 2. Deo. 1. New South Wales ... 108* 108 Victoria 105 106 Queensland 105£ 106 New Zealand ... 106 106£ 3£ PER CENTS. Now South Wales ... 96 99 Victoria 97 100 South Australia ... 93 100 A ! Queensland 97 99* New Zealand ... 100 991 West Australia ... 95 97 Tasmania 99 99i 3 PER CENTS. New South Wales ... 85 86J Victoria 86$ 86i South Australia ... 85£ 88 Queensland 85i 87 New Zealand ... 88 87 West Australia ... 84 86 Tasmania 87 90 At the corresponding date of last year the Bank rate was 3 per cent., so that although money is dearer now than it was a year ago, colonial securities, with few exceptions, are substantially higher. On tho 9th December last year Now Zealand issued a million, loan in seven-year bonds at 4 per cent., with the right to convert into 3£ per cents, within two years at 103, four years at 101, and seven years at par. The loan was a success because the terms were favourable, and the issue was underwritten at a commission of 1 per cent. THE WOOL MARKET. The London sales which opened last week have exceeded anticipations — that is to say, tho September fancy prices were barely maintained, but every description was firm at the July rates. This is very satisfactory indeed, and gives promise of a firm market for January, because it is evident that the consumptive demand is fully equal to the available supplies. Tho future of wool — the probable level of values to be obtained for the clip which is now reaching the ports of shipment — is a matter of general public interest, for the wool money acts as a trade fertiliser to a very large extent. Messrs. Buxton, Ronald and Co., in their "Annual Colonial Wool Report" covering tho period from November, 1904, to September, 1905, deal with the prospects in, the following terms:— "There is no direct evidence that the demand will fall off. On the contrary, most trades are looking up, and everything points to the initiation of a period which will put more purchasing power into the pockets of the million. We have therefore that prospective inclination, which generally accompanies tho ability, to spend money, to set off against the_ increase from Australia, an increase which loses 'a great deal of its cheapening capabilities from tho probability that from almost every other wool-producing country I supplies will be less. The general outlook is, therefore, sound, and the growers J should havo little uneasiness as to the j future. . . . Crossbreda are, as already stated, at a high figure, but whether thoy are dear or not is another matter. The j cessation of hostilities in the East, it was argued, would at onoe reduce tho demand, but this i» by no means an assured fact, hb so many buyers usually interested in coarse wools have been forced out of the market by 'Khaki' orders, and havo been quietly waiting for the moment when tho declaration of peace would allow things once more to settle down into their ordinary groove." This is deoidedly cheering, but any estimate of the prospects that faita to take account of the growing tendency of using shoddy is certain to be wide of the mark. Colonial woolgrowers are, however, pretty certain to realise satisfactory ' pricet for tho cb'p now being got rOady for the market. The Wellington woolbrokers hold their second sale on Friday, when about 5000 bales will be offered. This sale should reflect London movements. THE METAL MARKETS. The industrial metals continue to harden and present prices are at a fairly high level, and enjoying quite a boom. Cop. per is quoted at £77 7s 6d, a high prico, but a long way from the highest. In the last century copper fluctuated between £190 and £39, the latter price ruling in March, 1895. French capitalists tried to corner copper in 1888, and drove the price up to £100; on the collapse of tho combination it fell back to £50. From March, 1895, to April, 1900, copper rose from £39 up to £78 10s, but in January, 1902, the 'price was' back to £48. If. ig ascending* now, but the set back is sure to follow. Tin during tho'last century varied between £57 and £151. It is now selling at £156 15s, while in the early months of this year it was as low as £130, During the paift century lead varied between £9 and £30 r and spelter between £13 and £30. Lead is quoted this, week at £16 5s and spelter at £28 12s 6di Silver is now 2s 53d : it has been as low aft' Is" 9Jd and as high as 5s 2|d. During tho last century pig-iron has fluctuated from as high as £8 a ton down to considerably below £2, and the cheapening of the methods of production and tho vast increase in the American and German output have told permanently on tho prico. NOTES. The announcement , that IJoyd's ha« agreed to continue the existing arrangement with the State Firo Department is accepted as correct, although no private advices havo boon received to confirm the report. Tbo old arrangoxnont imposes certain conditions on tlio Slato Department which, of course, are very well known to tho general body of underwriters. In this ihrursneo fight tho companies are not so much pitted against tho State Department as against Lloyd's, and sinco the rate oriting of tho past has not had any effect on the London corporation, it is not unlikely that tho oompanies mil take another big slice off tho rates. Tho shipment i of butter from Australia for the period from Ist July to 21st November show that compared with tho corresponding pttriod of last year them is a deoreaie of about 10 por conl., owing to adverse climatic conditions in tho » Coast district. Shipments am expected to reach their maximum about the middle of this, month. There has been & slight

fall in the London quotations for butter, but with the Christmas demand in view values should again bo firm, unless, of courso, supplies are much in excess of actual requirements. During the nino months ended the 30th September, Australia shipped more wheat to tho United Kingdom than tho United States and Canada combined, Australia's contribution being over 10 per cont. of the total import. In years past Australia rarely supplied tho Old Country with more than about 2 por oent. of her requirements of wheat. Wholesale merchants report an excellent trado for tho Christmas month. Retailers havo purchased very freely, and the volume of business is quite equal to if not a shade bettor than that at tho corresponding date last year. Tho outlook in tho country districts has improved a great deal since wool and butter havo boon sent to ports of shipments.