COMMERCIAL AND FINANCIAL.

Evening Post, Volume LXXX, Issue 83, 5 October 1910, Page 4

COMMERCIAL AND FINANCIAL.

Evening Post, Wednesday. The advance in the Bank of England rate from b per cent, to 4 per cent, hardly came us a surprise to local observers of the course fi tinancial events. As a matter of tact, the rate went up from 2 per cont.. to 4 per cent, about tho same time last yeur. It cannot, of course, be ascertained at this end of the world whether the advance 13 due to merely normal conditions or is but a prelude to a further advance. In 1907, it may be recalled, the rate went up to 7 per cent.; as on 7th November. It had not been &o high boforo for very many years. Going as far back as 1884, the rate in that year in November was 5 per cent., and December, 1889, November, 1890, November, 1899, and October, 1906, it was 6 per cent. In 1907 the American financial crisis was evidently foreseen long before the storm burst upon tho whole financial world, affecting even remote New Zealand, for while on 25th April of that year the rate was 4 per cent., it rose to 4i per cent, on 15th August, to 5j per cent, on 31st October, to 6 per cent, three days later, and 7 per cent, on 7th November., remaining so until 2nd January^ when it was reduced to 6 per cent, and down to 2£ per cent, on 28th May. The rate barely affects that, of tho New Zealand banks unless there is such a good market for money at Home that it attracts coin there that might and would find employment here. Money in New Zealand is still both abundant and cheap, and the "quarterly banking returns for September are expected to show but little variation on those for the June quarter. The movement, it is understood, ' is likely to be a slight increase in advances and possibly in deposits also. Last year tnere wero fewer failures in the United Kingdom under the Bankruptcy Acts than/^in any year since 1890. \ Tho loss to creditors was, however, £7,777,412, which makes tho total loss for ten years £81,000,000, or half the- nation's yearly revenue. The chief figures for 1909, and the comparison with 1908, ore; — Loss to Number. Creditors. £ Bankrupts 4070 5,086,13] Deeds of arrangement 3491 2,691,281 Total ... ... 7561 7,777,412 The liability of certain trades to bankruptcy is shown in the following table: — Grocers, 1007; builders, etc., 660; metal trades, 377 ; licensed victuallers, 329 ; bakers, 310; farmers, 310; stockbrokers, 16. • Of the failures for over £20,000 each, 23 occurred' in • ordinary trading, with liabilities of £1,026,000; 8 were due to speculations, and 5 to extravagance and gambling. NEW ZEALAND OILFIELDS, LTD. —That the bottom has fallen out of the oil sharemarket for the time ' being is made apparent by the London correspondent of Thft Post in a despatch stating that 24tK August, the first settling day for tho 'shares of the New Zealand Oilfieldi.Ltd., showed quotations of Is and le .6dJ As the shares are fully paid to 2s, this was a discount' of Is to '6d. HANCOCK AND CO.— By this wepk's mail comes the report of ' Messrs. Hancock and Co., brewers (New Zealand). It is made up to the year ended 31st March last. The directors state that the profit for tho yeaiv after providing for all management, working expenses, and income tax, amounted to £23,428. To this has to be added tho amount brought forward, £8197, together £31,625. From this have to be deducteH — debenture interest, £7150 ; depreciation of leaseholds, plant, and machinery, casks, etc., £3398. Tho directors propose to pay a. dividend on the ordinary shares of 7 per cent, for the year, to place -to general reserve £500, and to carry forward £6327. WOOL. — The extremely satisfactory prices realised for wool at the September sales in London augur well for the Australian local season now in full, swing, and that of New Zealand beginning in Wellington' early next month. At present the local stores are "empty, swopt, and garnished;" but the wool " will ' shortly " be coming in, and growers will find it to their own and their brokers', advantage to gel; their wool well forward for tho various sales as the dates draw near. Catalogues for the November sale close r at 5 p.m. on the 3rd of "that month. Tlio local sales last scasop amounted to 265,184 bales, an increase of 57,195 bales over the 1909 season. Sales in Wellington amounted to 53,968 bales, an increase for the year of 12,044 bales. The wool freight rates for London are cxpocted to be announced next week. It is expected that they will be in the vicinity of 7-16 dor id per pound for, greasy wools. It has been estimated that the increase in Australia's clip this season will be between 100,000 and 200,000 bales. An accurate estimate, however, is exceedingly difficult to arrive at at the moment, and these figures should be taken with all reserve. Increases are_ expected in New Zealand and South Africa, but a decrease of South American wools is probable. HEMP.— There has been a slight reaction in the hemp market, and it is reported by the High Commissioner as "dull." Thero is a very slow demand from London. Millers are to-day making tho market. Australia and America are both inactive, and are making no enquiries. Ther.o is no forward demand at tho moment. The position differs from that of last year, as then millers sold very much ahead, and tho result was that there was not a vast quantity of fibre thrown on the market at one time. An present very little, if any, of that made this season has been disposed of. To givo an idea of the range of prices over a series of years, the following table is provided. (The average price for 1907 waa £30 por ton) : — 1908. 1909. 1910. £ s. d. £ s. d. £ s. d. Jan. ... 24 5 0— 21 7 6—23 17 6 Fob. ... 23 17 6— 21 0 0—22 12 6 Mar. .. 20 10 0— 20 2 6— 21 5 0 April . 20 2 6—19 12 6— 21 0 0 May ;.. 22 12 6—19 17 6— 21 15 0 June ... 22 15 0 —20 7 6— 21 10 0 July . . 22 10 0— 21 5 0— 21 5 0 Aug. ... 22 10 0— 23 10 0— 20 15 0 Sept. ... 22 10 0 —23 5 0-^-21 0 0 Oct. ... 22 10 0— 24 0 0 — — Nov. ... 22 0 0— 24 0 0 — — Dec. ... 22 ,0 0—24 15 0 — — Avyear £22 15 o' £21 19 0 £21 13 0 The Manila receipts, as will have been seen from week to week by cable, are keeping up; , WHEAT. — Beerbohm's preliminary estimate of the world's wheat would seem to show a deficiency for the year of 19,000,000 quarters, compared with last year — namely, 436,500,000 quarters, as compared with 455,520,000 quarters last year. Australasia's production is put down at 11,000,000 as against 12,000,00U last year, and the United States' and J Canada combined at 96,000,000, as com- i pared with ,113,000,000 last year. WOOL PACKS.— Thero is quice a local famine in wool packs, and long prices vulo. Orders cannot be adequately met. It would appear that there has been general short buying throughout New Zealand. DAIRY PRODUCE.— The butter market in London would appear to be rather quieter than this time, last week. An idea of the season's prospects may be gauged, by the fact that buyers' limits , are' 114 d per 1b for entire outputs. FacI tories, however, are still holding out for ! higher .prices, but business has been dorm at Hid. Reports from Australia are to the effect that rain was badly needed, as it was here up to Monday, when some relief to the hard ground wos afforded. In New South Wales, up to 24th Septem1 her, the need of heavy rains in almost all dairying districts was preventing the increase in the output of butter that ia usually looked for at this time of the year. Production was consequently almobt stationary. Nevertheless, the quantity of butter being sent into Sydney each week compared well with arrivals during the corresponding period of the last five years. The market was steady at 109s per cwt. for finest make*. In Brisbane bc=t quality was selling at from 107s to 112?. p.er fca.l.! and in Melbourne Jthe

price of choice Western districts butter was advanced to 112s per cwt. It is reported that there is trouble once more in the local butter committee, and this may shortly eventuate in some change in prices. The cheese market in London keeps steady. Factories aro asking s£d per pound for best brands for the seaeon's output, but buyers' prices are about Bid, with guaranteed without recourse terms from sad to 5 3-16 d. A North Island output of special quality has been disposed of this week at 5 5-16 d. Weddel's, in their circular 687, state: ''It is reported on good authority that the mako of Canadian cheese this year will not bo more than, if even equal to, last." MEAT. — Enquiries have been received from London (and aro not yet met) for Southland mutton at 3 11-16 d por pound c.i.f. There is little or nothing doing: at the freezing works at present. The season will open with lambs next month. All reports from pastoral districts co to show that the stock is so far clomp: remarkably well. Prices for all descriptions of stock, ospocially wethers, are very high just now, there being barely sufficient available to meet local trade requirements. Ih an address boforo the Insurance Institute of NeW.Soutlv Wales Mr. W. R. Ray recently referred to tho frozen meat export trade of Australasia, showing that tho New Zealand export of wool is in very close proportion to that of the Commonwealth. New Zealand has for many years made a, specialty' of breeding a particular class of shetD for tho frozen meat export trade, and has succeeded in producing an animal which provides a first-class carcase as regards weight,- -and of first-grade quality, which secures top market prices in England generally in advance of the prices obtained for Australian mutton. The merino is .bred, in New Zealand only to a limited extent, and of the 1909 sheep jSocks held hore a little over 8 per cent, are merino, nearly 92 per cent, being long, wools. Australia produces the merino chiefly, but its carcase is not so good for freezing and export as that of the longwool sheep. In Victoria, it has been estimated that 36 per cent, of the total sheep flooks aro merino, and in New South. Wales 82i per cent. In the other States, also, the merino large preponderates. A movement is on foot in New South Wales to extend the system of inland freezing. It has been found at Young that 2s per_ head more was made in lambs cooperatively frozen inland, and so sent to Sydney for shipment, than would have been the c».Be had the lambs been sent alive to Sydney and thero killed and frozen. The farmers of Young and the latest inland freezing works, Trangie, are now to ship under one brand in order to prevent confusion and superfluous labour, and also to establish the reputation of an article upon which the Home buyer can rely. It is also claimed for inland freezing that the system, so far as New South Wales is concerned, will greatly minimise the congestion of railway traffic and pressure on rolling stock. GROCERIES.— LocaI prices of all Mediterranean fruit continue very high. Carton dates are difficult to obtain. THcro is no slackening of the tension in all American canned and dried fruits. Pineapples (Singapore) are very scarce; other Eastern lines show no material change. The steamer Bielefeld leaves Patras today, and Symrna on tho 10th instant, for Australia, with new season's currants and sultanas. She will bo the second boat of tho season. Reports from the southern almond districts fail to give a clear idea as to the prospects of the crop, but it is thought that prices will rule higher thi3 season.