COMMERCIAL AND FINANCIAL.

Evening Post, Volume LXXVIII, Issue 84, 6 October 1909, Page 4

COMMERCIAL AND FINANCIAL.

Evening Post, Wednesday, 6th. Ootober, Trade is dull, and money continues somo--H7ha.t tight — more so, in fact, ' than some two or three months ago was thought would bo the case at this time of the'year. In some quarters the situation is attributed to the banks not having been so liheral with their olients as they might have been in their desire to balance their books at the end of the quarter. But enquiries in trustworthy" quarters show that this theory is soaroely tenable, inasmuch as those entitled to accommodation have been encouraged to make application for advances upon, of oouree, good seonritios. Some other cause, then, it seems evident, must be sought for the extreme inactivity— to exprees it mildly— which haa charaotarised trade during the past quarter. As has been pointed out in this column from time to time of late, extreme carefulness has been displayed by the public in. regard to buying, and this cautious, conservative polioy, which seems to have been very general, has no doubt had much to do with the stringency. Moreover, the searching investigations made by wholesalp houses generally into accounts on their books and the reduction of those accounts, together with the restriction of, supplies, which had previously been fairly b'beual, have had their effect. There is not, as a matter of fact, -according to those well qualified to judge, the slightest warrant for tho assumption that the banks are keeping a tight rein over advances. Ample money ia and has been available for meeting ordinary requiremonta. Further, if sheep farmers have attractive collateral *o offor the banks in tho shape of wool and other | produce consigned through tho banks for j realisation in London, they will find no difficulty, it is understood, in getting advances on broad acres without time commitment. With respect to the Prime Minister's million — half of which is to be for Advances to Settlers and half for public ■works — it is believed in financial circles that the money has been remitted to the Dominion for the departments concerned to meet expenditure to which they have ibeen committed, i.e., the advances to settlers especially, and to meet liabilities due by the Government. Therefore the million t6 which reference has been made is not likely to materially appease the financial hunger which still exist* in certain quarters. However, as Sir Joseph. Ward has indicated in his* speeches' already delivered in New Zealand, if speoial legislation is passed during the present session of Parliament he will havo no difficulty in obtaining such sums as may be required for the Advances to Settlera Department and tho pros<*cution of publio worlts, and ako for public bodies' needs, in the' Echemo outlined by him. Raising 'the money on j favourable terms should not be difficult, i bearing in mind the fact that day-to-day j jcaoney' Si ' London haS been as low as to 2 per cent, per annum, and li per cent. per annum for fourteen day loans. This etate of affairs, it is believed, must have an appreciable effect upon the Australasian, banks, which find employment for the larger portion of their funds at a' certain period of tho year. It will be remem"Tiered that only a. short time ago money was earning in London en behalf of these banks as much as from 6 to 7 per oent. per annum. The well-informed Australasian Insursnoe and' Banking Record, referring to •_New-2ealand,' in relation to the Commonwealth silver, coinage, regards tho fear that the silver coin (or a portion of it) being "damped" with the Dominion as very real and highly justifiable. 'The Record suggests that New Zealand has two measures at hor command in the ' contingency. Shecan forbid silver coins having an Australian design being circulated • and she can also ask the Imperial ; Government to treat her on exactly the same footing as Australia and provide a Dominion currency, _ tho seignorage to accrue to the Dominion. .The action of the Commonwealth authorities in ignor.antly or designedly ignoring New Zea- ~ land in the matter, and assuming that the seignorage would be secured to itself is •trongly condemned by the Record, •rhiGh describes the "whole business as a miserable one." WOOL.— The healthy tone of the wool market is, as may be supposed, giving complete satisfaction in financial as well as pastoral circles. The prices at which the September London series closed were high, and there is always the danger that the next series^ may see a much lower range, with disastrous effects upon the basinees morale, to say nothing at all .^bout the- monetary aspect of the situation. However, the hold-over, 4000 bales, was extremely light, and of that there ,was but 1000 balo3 of New Zealandwool, the market closing firm. There ia not i much wool about, it would seem, and i probably the wool held over is thus un- j cold because the holders are content to < wait for an even better market. -The i price is high, but the clip, so far as 'Australia _ and New Zoaland are concerned, promises to be very heayy this soa«m. The first of the Wellington sales will be held noxt month, 12th November, and brokers expect larger offerings than «ver. Farmers, it is held by brokers, will do well to accept the good prices > which are expected to ba offered at the , series. The November London sales ' open on 23rd November. Shearing has already bog-un in some parts of the Wei- , lington province, and supplying houses , are busily engaged in despatching stores I for shearing requirements. Wool buy--:ers aro already in the country, and talcs ■are reported to have beon made privately 'in tho Hawkos Bay district at from 7d up ;to Is per lb. Tho precise localities • J aro not* yet disclosed. • The . November J," sales . h|re are dxpscted to attract a ; larger number of buyers than usual. Re- " ports fronr'all parts of tho country as to •the flocks tend to show that they aro in '"a nioet flourishing- condition, and the lambing has generally booa exceptionally heavy. Of course there is plenty of "Weather to ba mot with between this and December, but so far tho pastoraiist has had very good reason to be grateful to the elements for their kindly treatment • of his flecks. » • : SKINS.— Tho next fortnightly Welling-J-fcon ekin tales aro set Covrn for Fritlr.y "next. The market ncvor looked better. ", 37ha iisual quantity of 9JOOJo 10,000 skins are osviected to come forward, together . with romo 2000 hides aad tho usurd quantity of cowtails, horsehair, etc. In conT^oction with tho=e f-ilcs, it may be of inter3st to fiate that few Ncr,- Zealand pro- ( ducts have assumed in so eliorl a time so imporfani a position a3 tha^ occupied by- _ skins and hides. A few years ago, soma | .ten cr twelve, there would be an offering j "of soma 30(5, which was then eonsicloroj —a. quite big affair, and ths buyers would {^timber four, even' five. Now the fortVnightly skin cales attract a strong body of £3>uyars, and coitipctition is exceedingly -■Jcecn. A Cana '.ian firm, which has beon ! '/operating in the Dominion for the past I twclva months or so, ha? bacn making tho .pacs of late fo far as priccre are concerned. In tho time abova referred to, the wday of email tliingj, -bd to b^tl per lb for skins waT considered j. \ery gocd ...price. Lost taks fhay wci-aVwantod vX 10(1. £f>Jiipnieprs to' Canada, hotwithstandiir; the r3ieavy rate" between this p*brt and Vancouver, .with - trrjvhioaieiit at Sydney, 'k%a\o bseuj comparatively t peaking, vei-y 7Jbrge So imnorcmt Jiavc the operations •^bf this particular firm hecome that pcrraa- ! ■"aent 'quarters are to be tTkan in Wei- | lington. T!ie pldn= and hides" that come ■>nto the=e Falcc aro, of coui'se, independent of the freezing 1 companies' by- / products, which are dealt with by the con panics- themselves,' - BiJTTEK.— Very* little, if," any, hutter is b^ffig sold in tho"'Doniinion, ' and not Erich is being consigned in the ordinary way. The attraction "of consignment on terms of jruarantr-o, without recourse, together with tho guarantee 1 of prices as cabled by the High, Connniscioncr »veek by week, has proved too f.tron^ for many factories, who readily accepted them. Neodlesn to say such terms impose a very heavy responsibility upon the firm or iirm? offering them, and these are not vioived with anything like ploasuro by theso houzoß who are prepared to act aa agents- in the ordinary way and on the ordinary, cpmmis'uon. It is folt that much busiiiW whioh in the ordinary course would bo given to thorn is not for them this year. Business has been offered on the new- terms but declined by all but ono or two h/UEce as being for themselves al-

together too risky. As the High Commissioner's prices, or rather the prices as cabled ou6 weekly, aro to be such an important factor in tho ensuing butter export season,, it is not unnaturally felt in certain quarters that tho members of tho High Oommiesioner's staff who are entrusted with " acquiring information as to tho sUto of the -butter market should not confino their attention to ono or two scprcea of £UEply. but, to exercise more than ordinary care, considering how much depends upon it, in ascertaining tho actual prices obtained on the market for our butter. DHEESE.— The cheeso situation resembles that of butter at tho moment, and consignments are being made on the samo terms, ako buyers of outputs and con signers on the ordinary commission basis are standing- apart, unable to meet fao'tories' views either as to terms of consignment or pri'ca for outputs. Offers for outputs of s|d have been rejected, and there is a disinclination, it would seem, to accept less tian, sgd and 6d in some cases. The Arawa., sailing to-morrow, will be the first ship away witb tho new season's dairy produce. HEMt. — Hemp has been very firm during the week, and the London market has been firm. It was reported by the High Commissioner s (a3 on. Friday, the date on which the information is obtained) that the market was firmer nominally, and that spot prices were £27 10s for good fair and '£26 for fair grade. Since then, however — on Saturday, as a matter of fact — the market fell by 10s, as it is understood a local firm was -advised earlier in the week would bo the oase. , It is expected that there will yet bo a' fall of 15s on the High Commissioner's quotations for Dsoember- April elements. The fall may not last long, however, as it is probable that it is but ono of those fluctuations that those in the trade are fully aeeuetomed to, and it may be .followed by a restoration of-<he recent Eatisfactory rates. Millers are complaining "of the weather, which has been very much against them "of late, making it difficult to turn out an article r>p to the good fair standard. This trouble is, however, merely a matter of time. MEAT. — Indications at the moment all seem to tend to lowßr prices for stock this coming season. Thore has beqn a slight improvement in mutton, but it is now reported dull, and beef is difficult to move. Lamb is nbout tho same as last week. Stocks must, . however, by this time be running low. The whole troublo seams, as Mr. F. Waymouth, of Christchurch, put it in an interview in. tho Post, attributable to abnormal supplies on our part and greatly reduced :| ending power on tho pert of the British working classes. The season never looked' bettor for fat lambs: the birthrate i has been enormou?, the mortality very ! slight, and feed unusually abundant. The i j meat will have to be disposed of, what- ' ever the price, either, here or at Homa, I may bo at the time, for such a huge matter as the profitable disposal of it cannot be settled in ono season. v Prices as cabled speak for themsetTes. # SEEDS — The spring demand for seeds indicates that there will be a very large area in this^ provinoo under rape this eeason. Prices for seeds are higher than they have been for some time past owing to a very unfavourable producing season in Europe. All imported seeds therefore are dearer. PRODUCE.— There is no change to report in regard to flour, which remains at £10 10a (Associated Millers) f.o.b. South Island. Offal may .be dearer, as it seams that millers have' disposed of large accumulations. Bran, however, remains at £3, and pollard £4, although cutting continues. Oats remain practically unchanged. Potatoes are quoted a X £ r? £ s to £3 lOs for Up-to-datea with ! ,£o7s6dup to £4 for Derwents. VieI tonan onions' are quoted at £6 f.o.b. Melbourne.