COMMERCIAL AND FINANCIAL.

Evening Post, Volume LXXX, Issue 5, 6 July 1910, Page 11

COMMERCIAL AND FINANCIAL.

■Erening Post, Wednesday. Tho reference in the Governor's Speech to legislation during the coming session to deal with silver coinage, revives the interesting question, of the circulation of Commonwealth silver in New Zealand. So far nothing has been vouchsafed of the result of the Now Zealand Government's ciommuncations with tho Commonwealth, on this important subject. Under existing conditions Australian Bilyer cannot circulate as legal tender in tliis country. As a New Zealand banker puts it, "Tho Dominion's silver is British currency, and worn and dofa-ced coins have, up to t'lui present, been oxchanged for nowly-minted silver at face value ny the Imporial authorities, who have thus borne the cost of manufacturing, tho silver currency up to tho Rlandard. There is a largo profit on the coinage of silver, as will be readily understood when the actual intrinsic- value of silver metal in a 2s-pieco is a fraction over 9d. As ifc was, no doubt, the prospect of securing this profit for itself that tho Commonwealth Government decided upon an issue of its own, so the New Zealand Government might make a similar arrangement to havo an issue peculiar to this country. "The stock of silver in band and circulating in Now Zealand is probably £500,000, representing, exclusive qJ* tho cost of minting a profit jof £300,000 — a sum sufficient- to cover the' oost of establishing and working a New Zealand mint. Possibly an arrangement might 'bo come to by which coin could be minted by tho British Mint.in Imperial dies, but bearing also some indication on the faoe of it identifying it with New Zealand. Some arrangement, too, might be made with tho Imperial Mint by which Now Zealand would derive some share in the seigniorage •on silver circulating here. If a branch of the mint oould be established in New Zealand to coin both gold and silver for Imperial as well as New Zealand currency purposes, the cost of working to bo borne in proportions fair to the Imperial authorities and New Zealand, it might be an arrangement holding out prospects of mutual advantage to both the Mother Country and New Zealand. "In discarding the British currenoy," the whoee views are above expressed, held that the Commonwealth had made "a. mistake from both a commercial and Imperial standpoint. The Home authorities would probably have been quite prepared to concede to the Commonwealth some fair share of the profit — if not tho whole profit — in the Australian circulation, tho British coins still remaining current legal tender within tho Commonwealth." Exports of produce from Auokland and Wellington for the past six months total in value £2,878,678, the individual values for tho period and that of 1909 being as follow : — Wellington. Auokland. £ £ 1909 ... 709,900 1,537,466 1910 ... 912,308 1,966,371 1910 increases 212,408 428,905 j Into the Auokland returns, however, are taken values of gum and gold, which products don't appear in Wellington ex- | ports. Torms adopted by the whole of the merchants of New Zealand with regard to acoounts are that suoh must be paid on or before the 20th of the month following that in which goods have been delivered, in order to secure the oustomary discount of 2^ per cent If the goods are not paid for until after the 20th, then the discount is only 2 per cent., and if settlement takes place beyond the end of that month," then the discount is forfeited altogether. The enforcement of these terms has had tho effect of making traders remarkably prompt in their settlenjonts in order to take advantage of the discount. This is taken to show that the money is available if the trader knowa that ne will obtain a good discount for cash A.S a. corollary to this it is reported that more than ono local association of retail grocers is endeavouring to bring in a rule whereby their customers will only be allowed a discount of 2£ per cent. if accounts are paid on or before the 10th of the month following that in which purchases are made. Although tho retailers are not federated it is evident that they are as much alive to the necosBitj of people paying cash aB are tho federated merchants of New Zealand. It is understood that the capital for the acquisition of the big tannery and grindery business of Bowron Bros., Christchurch, has been found by some prominent Sydney and New Zealand relidents. The capital of the new company is to be £175,000, of which the public, it is believed, has already subscribed £90,000, and a powerful sydnicato has underwritten the remainder. A prospectus haa been issued in Sydney wherein it is proposed to float tho company of Winchombe, Carson, Ltd., woolbrokers, with a nominal capital of £400;000 in shares of £1 each. Of these, 105,755 will be isSued as fully paid-up to the vendors — the old company — and 100,000 are being offered to the public, the balance of 194,245 boing held in reserve. The assets to be taken over are valued at £264.028, of which £41,983 is represented by goodwill. Tho liabilities total £148,019, which, \yith a reserve fund of £10,253, leaves the net estimated value of the business as £105,755, which is to lie represented by the vendors' shares. The company ia being re-formed with the object of giving wool-growera a voice in the management, and a share in the profite. WOOL. — By this time next week the London July sales should be wull under wav and cabled results of prices realised by New Zealand clips should be coming to hand. Our local sales of wools, crutchings for the most part at this time of year, are in some sort supposed to reflect tho strength of the London market, but the prices do. not always agree. However, last Friday crutchings, which have been fetching satisfactory prices this season were |d to id cheaper. But this may have been due" to two causes : the poorer quality of tho wool, and the withdrawal of Japanese competition. Before the last local soiling season opened it was suggested in this column that Japan was likely to be a buyer at tho New Zealand bales. This became an accomplished fact, the purchases being made through New Zealand agents on Japanese account. The crutchings sales in Wellington havo also been attended by buyers for Japan. The wool is required for' blankets and rough fabrics such as kahki clothing for troops. Japan's buying in New Zealand is so far comparatively small, but it is not at all unlikely that more will bo heard of buyers for Osaka and other milling centres when the New Zealand eales open in November next. United States Consular officials were recently instructed to look into and report upon the prices of wool in. Great Britain and the Continent, in view of tho high prices. The following are the London prices for New South Walee (grease) and Queensland (scoured) merinos and New Zealand (gieaee) crossbreds: —

The New South Wales prices yore for fair staple and condition, and tho Queensland prices were for good quality colour and condition. Tho New Zealand wools would spin a 46 top. The averages are for J a.nuary ldst. At the first 6al«s of the new 1910 clip in Melbourne GokUbrough, Mart and Co. report that at the sale on 24th Jurie, there was a decline of lid per pound on all wools compared with the corresponding aales of 1909, due entirely to tho absence of American competition. HEMP.— The hemp m«rkefc is still depressed, and there ie but very little "spot" business doing. Firm offers for forward shipment have been made of £18 10s per ton for fair grade and £21 for good fair for August onward. The position is p.ractioally tho e<uno as last week.- and very little businss has been done. MEAT. — The .prospeote of the London meat market are not so bright as they have been. Mutton and l*tnb are described as weak lamb having % downward ten-

dency. Beef comtimies duU, but the price,, although not bo high as shippers have been accustomed to of late, is far from unremunerative. The capital of the Wellington Farmers' Freezing Co. (Masterton), which has not yet started, is tO£39,500, and it is expected that before, the end of the month the £40,000 required will bo fully subscribed. All 1 tlio paid-up capital has been expended on the undertaking, and a liability for the buildings and machinery has- been entered into. The authorised capital is £60,000, and tho shares subscribed for amount to 6788 ordinary and 957 preference share*, totalling exaofcly £38,725; the uncalled capital, including unpaid calls (£1764- 7s 6d) is £24,381 12s. The expenditure includes £3957 7s 3d on the Wnignalda property, less mortgage (£600) and, unpaid purchase money (£814) ; £1582 for railway siding and crossing, lose £756 15s due to the Railway Department. The. expenditure also includes £2535 18s 6d, being progress payments on account of buildings. Thero has been paid 1 £810 on deposit on machinery ordered. Tho cash on deposit amounted to £5473 13s 2d. A contingent liability on contracts for the erection of buildings, plant and machinery provided for £29,000. Bacon-curing and canning 1 pl-anta are to be installed, tho money for which, it is proposed farmers shall find, tho company finding the buildings. If the money is not subscribed the buildings will not be gone on with. It is tinderstood that the company has already mada arrangements to enter into contracts with two shipping companies for their produce, and the Railway Department hoe undertaken to build ten specially-constructed trucks. The works are expected to bo ready by December noxt. , MIRY PRODUCE.— There is much excitement in tho local butter market at the present time, duo to cutting by both wholesale and retail firms. On Saturday two well-known brands were sold at 104 d net, fully |d per pound under what tho butter costs taking the current market price f.o.b. at the usual butter ports. It is not easy to find out how long tho •'cut" will last, but "for some weeks" is the assurance of those who have brought tho price down. Cable advices received by Dalgety from their London office under date 30th June, show that tho total imports of butter into the United Kingdom for week ending 25th June, amounted to 100,0P0owt, as compared with 82,000cwt for tho corresponding period of last year. Copenhagen official quotations is unchanged. Market steady at present prices. "We understand buyers have heavy Btocks in cold store to guard against high prices in the autumn. Large quantities of Siberian are expected in July and August." The market for oheeee is dull, but prices aro unchanged. Local quotations are— Wellington pats, iret^ Is to Is Id, bulk wholesale, 104 dto Hid; Auokland pats, 13id, bulk, ll£d ; Masterton pats, 14d : Wanganui pats I4d, bulk 112s. SUGAR. — The raising of the price of sugar in Australia to manufacturers by the Colonial Sugar Refining Company has been followed by an advance of £1 15s per ton to preservors and other sugarusing companies. Buyers of jams and other articles into which sugars largely enter must otcpeot a slight rise in such lines in order that manufacturers may recoup themselves for the rise. The only reason assigned for the increase in the price of sugar is the world's shortage. ■OILS. — Linseed oils, which recently mado_ a substantial drop, have now gone up with a bound, advancing 3d per gallon in the course of a few days, second brands rising in sympathy. All other oilß are firm, . and are likely to become dearer. PRODUCE.— There is no material change in the produce market for tho week. Bran and pollard aro still scarce, shipments of pollard frbm Australia, where it is fairly plentiful, have relieved tho pressure here. Onions have advanced 5s a ton since Monday, and potatoes 10s per ton. Oats aro firm at last week's

1901 1902 1903 1904 1905 1906 1907 1903 1909 1910 Per lb. d. d. ... 84 9 ... 10 11 ... 14 15 ... 13 13* ...- 14 15 ... 15 '16 ... 15 16 ... 14 15 ... 13" 14 ... 14 15 Per lb. d. d. 16 l&i 184 19* 224 23* 2l| 22A 23i 24J 23£ 25 25 27 23 24 21 22 234 254 Per lb. d. d. 64 7 4 5A 64 l\ 8 9 104 ii 12 124 12 13 84 9 74 84 11 111