COMMERCIAL AND FINANCIAL THE CITY.

Evening Post, Volume LXXV, Issue 48, 26 February 1908, Page 4

COMMERCIAL AND FINANCIAL THE CITY.

The wholesale distributers report a satisfactory volume of business during the jw,st,,week. The soft good 3 houses have had a vafy fait month, but could do with come cooler weather to give a fillip to the now season's buying. There ia a disposition to more keenly scrutinise credits and a note of caution is van' outstanding feature of business in all sections. In the produce market tho scarcity of butter has leel to a further increase, of price, and best brands are now Is 5d per lb. Already butter _ is being put into store for winter supplies, and tnei'e does not appear to be much prospect of any downward trend in prjees. GRAIN.— In flour and grain a, good steady business is recorded. The shortage in bran >an,d' pollard has "had the effect of hardening quotations. PoUard 13 virtually unobtainable in any quantity, and even at £6 f.o.b. southern ports' supplies are of hand-10-moil»/h ' dimensions." Bran has gone from £4 10s to £5. are unchanged, and some large transactions are stated to havo taken place in the South on the basis of 2s 4d and 2s 6d for high grade. Locally quotations range from 2s 6d.to> 2a &d. DRlEl>_FßUlTS.— Reviewing the season for dried, fruite, London brokers state that^tne citrrant orqp hits been estimated at about "147,000 tons. The pooitron of the market is a strong one on account of the Greek Government taking 8000 tons out of tha present stocks' in Greece of 34,000 tons, in payment of dues from the fruit growers. This will leavo 26,000. tons, against a consumption, based on the average of the last three years, of 30,000 tons. But for the high bank rate it is considered that buyers would bo operating more freely than they are. London, stocks on S\e% December last tvefe 7750 tons, 01 oniy i o«e^h»lt of what -was- held, twelve x months' previous. WOOL. — The Manohesier Guardian, in its admirable commercial summary for 1907. makes the following remarks regarding crossbreds: — **Tho course of crosslfed • wools " has mot boon, as favourable as that \of merinos, and here nothing but a drag~ging tone has! been experienced. Naturally a cessation; or rather a modification ■of the special conditions which have fa--voured crossbred wools in past years, has 'meant a lower range of ' Values, both in English and colonial sorts. Two wars,. • aided materially by a universal demand for 'tweeds,' meant the absorption of tra;mcmdous weights of crossbreds, but as we ■ -liave already seen, with growing prosperity and increased purchasing powes of the people- there has been throughout the year a more extended call for fine wools. All • through 1907 crossbreds have moved tardily, and wools havo only been shifted 'at lower prices. . Tho last Now Zealand •clip was hardly- as bright and well grown •as the previous" one ; still_ -for all th.at : growefsi-re'ceived good paying prices for , their wools, and the whole has been shift- ' cd. The course 6f tops prices shows a gradual easfe, the "month of March about ! seeing th& highest point tduahed for cross' .bred qualities. PracSufially tho whole of "the New 'Zeal»nd*clipyand a-larger pro- • portion than ever from the River Plate, • has had to be - lifted by the Yorkshire ' trade, and with tops and yarn .as well as •' fabrics not going off so: freely as in tho two previous years, values have suffered. , All through the year Bradford spinners have kept remarkably busy, and this has v no doubt helped consumption, but for all that there has never been about the that vim which has "long been such *~a characteristic of ctfdssbred wools. ', BUTTER.— The Same- authority makes ■ some interesting comments regarding the "English market's extraordinary"' capacity 1 for absorbing' huge, quantities^ of buttor. , For the elevefi months ended' November "' SOtb^tKe' aggregate imports into Britain 1 of foreign and colonial, butter were 3,829,502 ' owt, of the value of £20,593,887 as against „ 3,091,012 cwt for tho corresponding period 19C&, valued at £21,502,755 The variI^aticn in production and export of the on- which Britain depends is i well illustrated in the case of the United States. Whereas last year they sent 157,v 229 cwt of butter, the total for the first : eleven months of i 907 was only 55c\vt. « It is suggested that if the population of ;the United States continues to increase «as rapidly -during- Itbe next decade, they /will cease to be an expdrfing country alto-'-pefcher in provisions. „ Canada also— ' frOnT'ft'hohi so much has been 1 arc pec ted — wi»*doeliaing-iB-ber exports of hotter. In 1906 she sent over 191,947 cwt, whereas this season to the end of November the , quantity has fallen to 54,752 ewfc. Luckily for the British consumer die imports from 'Australasia have 'helped considerably to adjust the balance. Of the foreign sources of supply Denmark far our-dis-tances all competitors. It is noticed that Russia has risen to tho second pla^e. This i 3 accounted for, by^ the extension _of ..the rra4lwaj,r ra4lwaj , thrdugh Siheria, by which tfncaensQl'grasing-'arsas "are brought within 'acce* ,' and by "tl«. Application there of the Danish and Swedish systems of, dairying come excellent produce reaches Britain. Gernlati exports have declined owing to the increasing home population. Germany, in fact, has become a competing buyer against Britain in the markets of Russia and Denmark. FROZEN MEAT.—in thoir review of the frozen -meat trade for 1907, Messrs. • ~W point put that thoro were exceptionally largo increases in the supplies of New Zealand mutton and lamb. There Was- att excellent demand for the latter owing in a largo measure to the prospority of the industrial classes, a result of general activity of trade in the United Kingdom. Live stock was dear in atl the countries of production, and left but little margin for the freezing oompanies to work upon. New Zealand sent 1.973.-035 carcases of mufton, 2,824,332 carcases of lamb, and 220,162 quarters of beef. The average price realised for New Zealand lambs »vas s£d per lb, which compares favourably with 4 11-16 din 1906. The 1 highest prica realised for New Zealand mutton was sd, and the lowest 4d per lb. It is noteworthy that iho quantity of frozen ment actually passing through London's groat market. Smithfield, is doclinim*;, while the provincial markets aro obtaining more of their supplies direct, and a[l these markets have been relatively more* .active than London. The demand was sufficient to absorb the increase of 3&,832 tons of frozen meat imported ; and although supplies on spot > and afloat woto always ample, Ihore was never any unduq accumulation of stocks. The quality of North Ifland mutton ufually gave complete satisfaction; and the grading at the bost brajids compared favourably with the grading of Canterbury parcels, which sometimes laoked oa re, and North Island sheep realised prices which were frequently close up to thoss for Canterbury's. New Zealand ewes now bern? excluded from -army contracts lo"t one of their most remunerative omlers. and were only i>g.')emblo at relati\ely lower rates than in previous years. There wps tin incierifii in soles of New Zealand beef ; but i liiiorcnt, quality and grading caused frequent trouble with buyers. On (he Continent no marked progress \>-ns made towards importing frozen jneaf, but considerable agitation continues ■with thi-> object in virav.'. more particularly .in Germany and Frijnce, As yet the hnavj* du<ic3 and prohibitive restrictions sfTectunlly prevent _ importations. An irnpoifnnt International Congress of tho roMgerahng industriea is to be held in Paris in June next with tho object -of gjv»ig prospective Continental consumers of rofri<rerp.<ed produce an opportunity of beco'ninjar more familiar with tho trade. Representative committees havo boen formed in England, France, Germany, and Italy, and it is hoped that tho cpngrccj raav be of {issuance in interesting French cud German consumers in frozen meat, and_ thus further paving the way for deliveries to thoso markets. NEW ZEALAND EXPORTS— The toial valuo of exports from New Zealand last ycDi- v.as £20,071,609 and apart from specie there is an increase shown of no Jess than £2,071,813, compared with the previous corresponding period. The chief items of exports compare for quantity as follows: — ' 1907. 1206. Wool lb .. .. 171,641.857 154,034.998 F-rze'n meat, cwt 2,053,218 2,015,656 Tallnw, tons £0,764 18.916 -BiUter cut 328,436 320,223 'Cheese, cwt .. 237,187 IM,M)I Kauri glim, tons.. 8.708 9.150 Hwnp, tons .. 2a.s<L> 2 (,768 »fc«st bushels 1.395 61,109

CASH HOLDINGS.— The comparative ca§h holdings of the principal European banks of issue at the end of December, is 1 of more than usual interest in view of tho financial crisis that has just terminated " The figures referred to are as follow s : — • GOLD. E,ink 1906. ISO 7. of £ 2 ■ 1 England ....__.. 39,064,478 50,745,846 Geimaay.- .. _ « ... 33,280,850 35,208,650 Fiance -. 108.229.000 107,047.471 RusstA - 87,766,000 94,879,000 Austria. 46,344,9^0 45,808,000 ! Italy (3 issue biunks) .. 36,821,000 44,920,000 Holland - 5.536.E00 7,316,000 ; Belgium .. .. _. '.. _ 5,027,000 5,423,000 ! Slum „.,„„.. 15,240,000 15,660,000 i SILVEIi. Bank 1906. 1007. ut « £ £ Eng|rnd ..„_..., — — Fiance" 7 .," -T ~ .'" Z 39,9*2,000 36,702,875 Pmiß.a .. .. 4,816,C00 5,510,000 1 .U-stria ..' 11,751,000 11,2^3,000 It >iy (3 issue banltn) .. b,400,000 5,040,000 Holland .. ..-..,-.. ... 5,76&,367 4,567,000 Bfclc.um'.. — .• — — — — Spurn ~ .. 24.243.0C0 23,720,000 ■In addition, to the- above holdings of coin in theif^ coffers, the Bank of Russia keops somo £2,000,000 in balances abroad, and other institutions possess foreign bilb for largo Bums payable in gold. The most remarkable fact brought out ia that, in spite of the largo exports to tho United States and EgyDt, the stocks of gold held 1 were actually about £20,000,000 greater than at the end of 1906. In only two cases — France and Austria-Hungary — ara decreases jhown, while Italy and Russia j have materially strengthened their position,' the former showing a gain of £8,100,000 and the latter on« of 57,100,000, though in tho case of Russia the improvement is partly counterbalanced by a drop of £3,500,000 ia balances held abroad. Of course tho volume of credits founded upon these reserves has expanded to a far greater extent. PREMONITORY SIGNS OF CRISIS.— In a statement supplied to the New York correrpondent of tne Economist, Mr. E. Hepburn, an authority, gives a graphio idea of tho circumstances leading up to the crisis which has been fraught with worldwide consequences. Hft says: — "For the past four years thero ha«_ been ip the United States a cohtinned advance in prices generally. Uowbolcsome extravagance, ranging from iho labourer to the capitalist, has supplied a, seemingly unlimited demand, a demand to great and persistent that there ha* been practically little competition in the Belling of goods. The competition has been altogether in obtaining goods to cell.' The bonsumor war an anxious purchaser at almost any price. Wholesalers increased tbeir supply, manufacturers increased the capacity of their plants with hothouie hasto and with labour and material at a range -of prices never beforo equalled, thus permanently over-capitalising their plants. to illustrate : Pig-iron in considerable amounts was imported into, this country, where 'we mine ore wth . eteam shovels. Building, especially large steel structures in • oar largo- cities, has been rapidly poshed all ovei the country, at a cost 01. one-third .greater than the same" structure could have been erected for five years ago. , Speculation has by no means been confined to Wall-street or personal securities." Every locality has its form of adventure. City, town, and villago lots, farmß, , wild farm lands, ore properties of every kind, timber" and timber lands> especially the latter, have been purchased on the partial-payment plan at constantly advancing prices. Shrewd men foresaw a react ion w and expected it at least two years ago ; but our successive 'bumper Crops' with "a strong foreign demand at higtt'prfcb«, postponed tKe reckoning. Tho pxtonsiqn of business was 1 -co great that all ' interests were borrowerall the time, h^encs the shortage at mobile capital, hence the money stringency." BANK AUDITING.— "A great deal might be written and f»id- on* audit as it is and audit as it o]]gt|t .to-'ber t A» remarked on an earlier occtsiojt,"- ilays the ,cify edftor of The Age, "when dewing with the provisions of the Federal Banking Act, the system now in vogue is nothing moro than an accountant's report, testifying to the correctness of cortain books and accounts. Nothing is done to verify the moet important point to the public and shareholders, namely, the data from which the Conclusions as t& profit of loss aro drawn. Auditors have, it seems, to accept without cavil a manager's or board's valuation of assets, and they mutt not go behind the latter. Under such conditions, it may -fairly bo olaimod that the audit certificate app3ndqd to balance .sheets is virtually worthless. " Doubtless it complies with the letter tof tho compjuiiej statute The worst feature of tho audit system is the more than indifferences with which it is treated by Eharehddei'S, as long as things go smoothly. ' If some unfortunate individual raises tbo question at half-yearly meetings he is immediately cried down, and ia ac-' cased of boing desiro'ii« of injuring the position of tho institution. ■ Theu' everything is promised in the way of the much needed reform, bub directly the storm abates things quietly, dfop back into the old groove. Tha objection in a limited colmmunity to' letting • nrivate auditors go througn arid valuo .the assets on which a balance sheet is founded may bo reasonable. It is to meet this difficulty and to place the question of mtamin&tion and valuation in tho hands of a State auditor that provision for the appointment of 'the -latter in a Federal Banking Bill is suggested. That'such a p'roposul will meet With the strongest opposition of maimjore and boards 'of directors it certain. JJut | it is this very opposition that indicates its valuo to tho public. Some will a°Bort j that tho BVStcm will be an unwarrantable intrusion on tho part of the State into the private dealings of the community, but ! tho answer to this is to bo found in stating that tho taking of dopofil3 from the public alters tho wholp question, and that it is only reasonable that they should i ask to havo thoir money j!rotected as far ! as posriblo jby tho State from misufft, fraud, and th& like.. It is not suggested that the official auditor should examine' and check tho values Of companies or 'institutions that do not receive deposits from the pubb'c, and this restriction disposes of any objections that might bo raised on their account. _ Surely it may be asked how much auditors have at present to take for granted in; doing their prepara^ tory work, and this query, if answered J without reservation, would provo at onoo that tho existing 6ystem of audit does not carry with It that itamp of absolute correctness that is bo much, to bo, deiired in the interests of tho public. MEAT POINTS.— The total imports of moat into \ha United Kingdom last year reached 516,357 ton* , ?in " increase of 7.3 per cent. Of tho aggregate imports, 33 per cent, consisted of frozen meat from Australasia, 41 per cent, of chilled and frozen meat' from South America and 23 ncr cent, of chilled from the UnitedStates Home-bred supplies remain about stationary, while tho population of tho United Kingdom is increasing to tho extent of about 400,000 annually. Colour is lent to the bolief that tho population of tho United Spates is growing so rapidly that tho exports of beef from that country aro not-likefy to expand. It 'is considered that ' tho nurc-hifing power of the people of tho . United Kingdom has not been increased proportionately to tho increase in' national trade. No ( new sources of supply were opened up' last, year. The imports of frozen mutton ' amounted to 5,800,351 earrascs, which constituted a record. The pfovious year of greatest import was 1905, when 5,582,065 carcases cam 9 forward. The imports of lambs were aUo heavy. They reached 4,349,584 carcases, an increase of 658,363 carcases. Frozen beef imports reached 1,614,380 Quartern,' tho third successive record. Thoso foregoing points have been eullod from Messrs. Weddel's annual summary of the moat trade.

Tha attempt tg» employ women fliotor drivers in. Berlin lias failed mfcerably. Two ladies who devoted themselves* to this calling were at first very successful, but after a few weeks they were unable to bear up against ridicule. Besides, meir duties were only indifferently performed, nor could they withstand the hardships and exposure. Thoir places" have been taken by men. Twenty women in training as public "chaufleuses" heive also decided to seek eomo other occupation, as thc^ police have bcaun to think that- women drivers do »ot contribute to public Security on the streets.