COMMERCIAL AND FINANCIAL.

Evening Post, Volume LXXVI, Issue 143, 16 December 1908, Page 11

COMMERCIAL AND FINANCIAL.

Evening Post Office, Wednesday. The success of tho Auckland Harbour Board loan of £250,000 being now assured does not necessarily mean any relaxation of the stringency in the money market at the present momont ; in fact, it is scarcely likely that there will be any easing off until we fool the full benefit of the returns from wool, butter, and othor products. At tho same timo, it is only reasonable to expect that within the next low months we shall begin to roap some of tho benefits of tho money that is now being raisod by the Government in the London maiket. The iact of the Government and tho larger oi the public bodies in the Dominion drawing upon London for their monetary supplies is bound to have a beneficial effect upon the local market. Money-lending institutions, which in the past have been taking up Government debentures and debentures of public bodie , will presently be looking to private investors. 'I ho hardware trade is a fairly trustworthy guide to a right understanding of the situation as regards building. Here there is considerable slackness. The "small Bluff" required for domostio building is extremely difficult to move, owing to tho reduction, if not practical suspension, of house-buildins* in the city, suburbs, and vicinage of Wellington. Requirements for large business promises are' being fully mot. The price of pig-iron is not always an infallible guide to the values of anglo and bar iron, roofing, sheeting, and other manufactures, for there is about as much gambling done on the Glasgow pig-iron market as in other commodities elsewhere ; nevertheless it will serve. While early in 1900 it was £5 a ton, it dropped to £4 2s 6d and to £4 in 1901, rising to £4 2a 6d again in 1903, easing down early in 1904 to £3 15s, and touching £2 10s 9d at the end of that year. It lifted to £3 14s 9d in tho middle of last year, and went down again to- £3 Is 3d in February last, and today is £2 18s 9d. The price, has, it is true, some influence upon finished material, but it is by no means a safe guide to the values of such materials. THE BUTTER POSITION.— The unprecedentedly mild weather for the time of year in Northern Europe no longer holding good as a reason for the comparatively low prices for butter on the London market for the past few days, another cause for the drop has to be sought for. It is found. Several local firms have received cables from London making' it fairly plain that the market has been rigged. Speculators who bought in this country at from lid to llfd have been badly squeezed. Prices have improved, however, as the High Commissioner's weekly bulletin shows that New Zealand is quoted at Ills, as against 109s by last week's ©able. The price for Australian (107s) and 106s for Argentine indicate that these two competitors must not be neglected, and here reference is fitting to disquieting! rumours of grossly excessive moisture in New Zealand butter made this season. Enquiries made of Mr. Cuddie, the Dairy Commissioner, show that although there have been some cases of the maximum percentage of moisture baing exceeded, yet such cases were few, and factories were most anxious not to wilfully trespass in this respeot. No butter had been allowed to leave the country containing more than 16 per cent, of moisture allowed by law. At tho same time, Mr. Cuddie maintained that, although it might 'be difficult to avoid overstepping the maximum if that were aimed at, it was preferable to have the moisture well below lb per cent. In another quartor it was learned that as much as 25 per cent, of Water had been found in some butters sent forward for shipment. If such butter got Home it would do much to injure the good name of New Zealand butter, and to the injury insult would bo added, as British buyers are as capable as wo are of adding water to butter, and the supply is as copious as our own. The question may reasonably be asked : Where wjll this butter of which one-quarter is aqua, pura go to? li is manifestly too good for the pastrycook, ergo, the inference is it will pass into general consump' tion withiYi the Dominion. Retail purchasers will be none tho happier if they know, that they aro paying at tho rate oi Is Id or Is 2d per lb. foV water. So far as the export trade is concerned, however, samples are being taken daily at all grading stations of all butters for -shipment; and these samples are analysed. In this ■way it is hoped to keep a pretty sharp look-out upon excessive moisture. It is only right to emphasise Mr. Cuddies belief that any departure beyond tho 16 per cent, limit is unintentional. A reason given for any moisture at all is that it is present in order to prevent blending with Siberian and other lower grade butters and celling thfa mixture as the pure New Zealand article. CHEESE.— The market for cheese has slightly improved. With a view to bringing tho New Zealand article up to the Canadian standard, .the New Zealand Shipping Company, acting on Mr. Cuddies suggestion, raised the temperature j>f the cheese chamber in the Turakina from 45deg. tosodeg. to from 50deg. to 60deg.. and the result' has been a more maturo cheese than under the old temperatures, the Turakina's shipment arriving in splendid order for tho market. WOOL,— The tone of. the market for lower or inferior wools is rather weak at present,' buyers declining to take passedln lots at the hard limits sot upon them. At the last sales buyers went about 'as far as they could go., and they are now waiting No doubt lf-thoso growers who placed heavy reserves on wools that were not in eagor request by the American and Continental buyers had been a little less exacting, business wovdd havo been done in between sales. The Wellington sale on Bth January promises to bo a record so far as quantity is concerned, for from 10 000 to 12,000, possibly 15,000 bales are likely to be offered. From now up to 20th January, fifteen large steamers— New Zealand Shipping Co., Shaw, Savill, and Albion, and the Tyser linns— will load wool at various ports in the Donjinion for the March London sales. From 80,000 to 90,000 bales are expected to go under hatches HE3lP.— The hemp market . is still jrx;<* Good fair is quoted at £25 in "' tea, «ud fair from £22 15s to £23— 'fa rjr-JFebruary shipments. Only a %trmr week* ago good fair was worth from £5 Ift to £4 more than fair, but to-daj> the difference is strikingly less marked between the price for the two qualities. Bitter complaints reach shippers here of the quality of the tow. Brickbatg. old harness, dead rats, have been found in tow, and shippers here aro much disap pointed with the tardiness shown with regard to bringing the tow-grading regulation? into force. The regulations came out in July last, and it was hoped that long ere this they would have boon m operation, to the improvement of the quality of tow sent Home. The Hemp Comhiitteo of the Wellington Chamber of Commerce urged tho Government op. Monday to operate tho tow regulations aa from Ist January next. MEAT. — Reports from the country indicate that the frozen meat season of 1909 will' be a good one. The New Zealand Shipping Co.'a s.s. Kaipara is loading 18,000 carcases at Waitara, and the ShawSavill liner is loading at Picton. The F.H.S. steamei Devon will ateo talce a fair quantity of meat trom Waitan. tor Liverpool or Bribtol, after loading oats at the Bluff. Embarkation ot butter enterprises into cheese manufacture has been followed by a great scarcity of pork suitable for bacon and pigs are exceptionally dear j in consequence. There has been a steady decline in both Australia and Now Zealand for three years past. In Tasmania since 1905 there has been a decrease of 36 per cent. ; Victoria, 30 per cent.: N.S. Wales, 29 per cent.; South Australia and Victoria, 23 per cent., Queensland, 19 poi cent. ; and New /ea land 3 per cent. This result is difficult to understand in view of the attractive prices that have been ruling for pigs ■nd pis products in Australia and New Zealand.. EGGS AND POULTRY.— As is only tobe expected at this time of year, eggs and poultry are in strong demand, and are fetching satisfactory prices. There is

now practically no exportation of chickens and ducklings, yot last year the Auckland Government depot disposed of from 20,000 to 30,000 head, all for the London market. With butcher's meat dearer and poultry at 8d to 9d per lb, tho city markets can tako all that poultry raisers can supply, and that at remunerative prices for a first-class article.. GROCERIES.— WhoIesaIe houses report limitations of orders all round, extreme caution being exorcised by retailers in regard to stocking. All new season's Christmas ' fruit is selling well. Figs and currants are ready samples, and there is a marked improvement in the qualities. The market is bare of several sizes of packages of the former fruit. Stocks ire small »o fai ar Unlifornian seeded raisins, prunes, and ovaporated fruits generally aro concerned Holders aro reluctant to part in" view of tho fact that further supplies cannot arrive before Christinas. There is nothing new to report with regard to sugar, tea, coffee,, and other grocory lines. | The National Insurance Company of ! New Zealand, after a most satisfactory j year, has again made a present of a { month's salary to every member of the staff (managors excluded). This company has paid a similar bonus to its staff Since 1900, in all six bonuses in nine years. The Australian Widows' Fund has done £675,237 of new business for the financial year just concluded. Efforts are being made by a group of capitalists in the Eastern States of America to establish another trans-Pacific cargo line to, Australia aud Now Zealand. Tho Amorican ports will be Seattle and Tacoma. . The project is reported to be in connection with the Chicago, Mil 1 ■•'kee, and St. Paul Railroad, and the bulk u f tho outward freight will be timber, the return being wool or any other Australasian produce that offers at a reasonably payable rate. The "Great White City," as the FrancoBritish Exhibition was euphemistically described, is likely to be everything but a financial success. The Financial Times estimates that when the settling comes there will be a considerable deficiency, wluch guarantors will require to meet. The deficiency at the end of July was £235,400 — very little short of the guaranteed loan. Tho estimalod further expenditure thence onward wa3 £250,000, bringing tho total cost up to £857,700, or £236,700 in excess of the original estimates. Tho estimated, receipts wore, however, put at £254-,000. Of course, l'ententc cordiale has been strengthened, and the turnstiles told an eloquent' tale of tho popularity of the exhibition, but tho final results will be very interesting. Tho National Mutual Life booked new business during the past financial year amounting 1 to £3,090,227, or an increase of £10,099 over the previous year. According to returns of the Ffenoh Chamber of Commerce exports from France to Australasia for the past financial year amounted to £486,550, an increase of £23,928. i Exports from Australasia to France for the saino jjeriod amounted to £8,148,780, an increase of £2,595,925. The trade with Tahiti is not taken into account in these figures. Before the London branch of the A.M.P. was opened there were 2351 policies assuring £1,135,738 on tho society's London agonoy books. Correspondents with Portuguese South Africa will do well to remember that the postal authorities of that country will not accept letters addressed "Delago* Bay" after 10th October next. Letters intended for Lorenzo Marques will have to be so addressed, confusion having arisen over the possible mistake- of Algoa Bay being written Delagoa Bay, the former beincr in Capo Colony^ with Port Elizabeth its chief place. ,