COMMERCIAL. & FAINANCIAL.

Evening Post, Volume LXXII, Issue 93, 17 October 1906, Page 2

COMMERCIAL. & FAINANCIAL .

Evening Po3t Office, , -^.di«|djuz^— — ■ THE MONEY MAI li i&pS^' On. Thursday last the Gi and Court of tho Bank' of Engla jund ifc imperative to advt, tho official discount rate to 5 per cent. On tho 13th ult. th» rate was increased from oi por cent, to 4 por ceu ; and a fortnijrht 'ago it was xu at T3 *\ m tho market was dißorganisod, tho Bank refusing to discount bills nt lesa than 4£ per cent, except for its "own customers, and now we come to a 5 per cent, rate, wh'eh has not boon known einoe the Boor war. The advance was inevitable, oa Iho outflow o! gold has been very irreat. On the 2Gth Soptemlir Iho metal i n the Ireue Department was £32,731,000, and oa Wednesday of ,last week— that in, 'n fortnigat later — the amount had 'Shrunk tw £27,726,000— that is to Bay, there was aa outgo of £5,005,000 in two weeks. Apparently there is ri& immediate prc.-pset ol any cessation of the demend, for we ai „ tc-ld that Eaypt requires £250,000, and « further million it likely to bo* req-uired. It is a question now whether tho 5 per cent, rate will bo equal to at'ractrihg "gold from Australia, and South Airtea in sufficient quantities to meat the creraarfdß ponding and to, in part, make good the lousea already incurred. South Africa, will in all probability incraasa its shipments, and appears to have already done so, for a record shipment of one million sterling has just be«i dejpatchod from Capetown. South Africa caa spare double this amount eacU month, for tho Transvaal monthly output now exceeds half a million ounces. Australia cap afford to let go £1,500,000 * month without trenching on reserves; but £3,500,000 in a. month will not meet tht» case, for we liavn to remember that when tho Bank rate, was first advanced, which, j waa on tho 13th i^t., arrangements were made to obtain £3,000,000 from the B-irde of Franco. Thiß amount, too, has oozed out, leaving the Bank of EngiJnd with ita pmont small reserve. If we extend tha comparison wo find that on tho 31st Auguet last the metal reserve stood at £37,119,000, so that in six wee& thoro has been a loss of £9,393,000, while- durinE the corresponding period of last --«• ,r the loss was only £4,913,000. In tht weeltß the open market, discount ralo h_r . advanced from £5 8s 9d per cent, to 1' 12s 63 per cent., and with tho preaei t shortage of monoy the rates will no doubt harden further. The effect of this 'tightness of money will be to depress the 'value* of gilt-edgod securities and alea that of produce. It will restrict sp latiom and bring about a temporary po~'' j>mpnt of projected ventures. With tao diECount rnto for three months' fins *&•#" pap ruling so high, the "short ce'V ,v, v have moved up in &ymi r ij ,?-. ' -O\ colonial banks that are ii *>'fttr -Aey. in London at short call b .. -n.e cx« callcni profit. There is^sair. 0 about £14,000,000 of Australian : / ao invested, and tho Bank of Ni>- Zealand 14 also- interested to a' fair an -unv THE WOOL MABR, f. • """"' The Bradford Top market I>-"S declined a halfpenny for crossbred eouats, with «.' weakening tendency, but merinos are xlronger. Compared with tha quolatiotae, a- year ago, 40's, at lojd, are unchanged, 2nd 46's, r.t'l7id, are a pennyfiower. Th» adverse tone of the money inprkefis certain to dopress values, for buyers are not likely to operate in advance of actual requirements. The wool clip of Australasia will require a large sum to ftn'nr.ca, and ,with monoy at tho present high rate ther» will be no disposition to borrow to stock; up with raw wool. Shearing in some of, the near-by stations in this district ha* already begun, the fine weather of th* past few weeks facilitating operational This year's dip ought to be a good one, for tho season has been Favourable itt most places in the colony. The following is a statement of Australasian wool exports from Ist July to 30tli September, as compared with tho corresponding period lost year, compilod by Dalgety and Co., Limited: —

three months of 24,877 bales, of which: New Zealand is responsible lor 353 bales. Queensland is the only colony to exhibit an increase, tho shipments from that Stato being 4937 bales greater than last year. The lateness of tlie Eoaton in Australia, accounts for the shrinkage, and it is also likely Hut more of the new dip is being held back to be .markoted at the colonial sales. There is no doubt that th* year will terminate with an increase of 150,000 to 200,000 "bales. THE COLONY'S REVENUE. The colony's revonue for tho first six months of the year serves to emphasis* tho prosperity of our people and tho ex? ccllent conditions thart prevail. The extent of thtf improvement will tie seen by the following figures: — Sis months. ' £ 1904 5,072,118 1905 3,179,937 1906 3.482,569 t The increase this year amounts %o the substantial sum of £302,632, " and every source of ordinary revenue exhibited an improvement. The Custon's r "enno for tha first Six months of, tho financial year 1904-5 totalled £1,233,021; while this year it has reached £1,354,075, an increase in two years, of £121,054. The per Mt/pit* contribution through the Customs has increased in recent years, and ie 15 really timo there was a revision with iho object of lowering tho duties. Thi« l^vision is promised for next year, and it is to bo hoped Parliament will give tho matter tho attention it deserves. ' THE WHEAT CROP. "Beerbohm's" preliminary -eEtimaie maces tho world s wheat crop n.t/437,600.wnnSnnnii™ °/ 48 P lb each ' ■» ■««»& 420.8ft.000 quarters last year, hitherto th» largest on record. The same authority'^ estimates for the coming season place th* nnnnrin ro{ l ulr6l nonts ■of Europe at 58,000,000 quarter^ and tho^ o c non-Euri pean countries at 8£ mill _, arters or a total of 6bk million quauew 1 "» America really ha*, a surplus of 20 mil. lion quarters, and Argentina nnd Austr*. lasiaai wneat do not fail us, the world't surplus may easily reach 75,000,000 quar- ' ten?, in which cmo tuo season would be classea amongst those of comparative' nbundaafce, which by its apathy and indisposition to speculate seems to be the ReiTortl opinion of tho trade." The wheat «£? ketshave been fitful, varying with the aaoftSA w»p -£F£3 Ahe estimate officially given falls below harvest was tho fact that itm» a JeS l^^^u^ApS iifiiiif vious record figure of 1901. Spring r&ah deteriorated to some extent Xsg *X and commercial estimates pl&ood thf, in' dicated crop at 278,830,000 bushX a* <^m" Pired with 264,516,65$ actually wS tart year, and '289,025,717 in 1901 7°72*2fiW ?°l' , therofore / Promhed to b. 772,264,000 buiWs, or ?.4,000,000 buVheS more than in 1901, and 80,000,000 mow .than last year. America is rughin B wheat across tho Atlantic, the deliveries ot spring wheat recently being very heavy Australia is likely to have a record wheat crop. la Victoria it is estimated that 2,088)900 acres are under the oereal. A 12 bushel crop fer the area to be tbroshod will yield over 25,000,00* bushelt, while a 14 bushel average would produce a record average of orer 29,090,000 bushols. The weather will alwaya be a potent factor in tho produotion of wheat, but Australia now eeom» likely to have a very good season. Of the New Ze*l*nd prospects notjhiug oan be' eai^ iust »tL pteieai,.

1900-7; Bales. Victoria 11,732 JSTew South Wales 71,651 Queensland ... 50,286 South Australia... '2,155 Wo&t AuElralia'.i. 4,4£fr ~sc\? Zealand ... 23,098 l«,ttil ISOo-o. Baler. 13,216 91,078 ' 25,359 7,«5 7;759 23,*51 is figures disclose a net dscr reaia for thi