COMMERCIAL AND FINANCIAL.

Evening Post, Volume LXXXI, Issue 20, 25 January 1911, Page 4

COMMERCIAL AND FINANCIAL.

Evening Post, "Wednesday. ¦The races aiid the public holiday on Monday have interrupted, business during the week. Prices generally have undergone but slight fluctuation. The money market has undergone no perceptible change, nor is there expected to be much movement thifl side of the first quarter of 1911. -¦ _ There is a bßtter tone in. the London ¦wool market, although local sales in the South Island have been unsatisfactory compared with previous offerings in the Dominion. Hemp is still a depressed market. Batter is improving in tone, and cheese is firm. There has been a slight set-back iv the price of skins, but the hides market is sferonsrer. The produco outlook, taken as a whole, is, however, generally bright and encouraging, the flax market being- the only dark spot. N.Z. AND RIVER PLATE CO.— The 27th annual report of the N.Z. and River Plate Land Mortgage Company shows the net profit forth© year, ended 31st October last, exclusive of the balance brought for,ward to be £45,723, compared with £4-6,500 for the previous year, being a decrease of £777. Adding £5565 brought forward from the preceding year, the balance to credit of profit • and loss account amounts to :851.288. BVam this- an interim dividend of 4 per cent, for the half year was paid, amounting to £12,000, and leaving £39,"288. The directors recommend payment of a dividend of 4 pet cent, (making with the interim dividend of 4 per cent. a. total distribution of £24,000, being 8 per cent, for ¦the year), £12,000; placing to reserve (making that fund £310,080) £26,000; and carrying forward £7288. THE P. and 0. and ORIENT.— The jp. and O. 70th annual report and bal-ance-sheet shows a surplus for the year of £275,931, including £66,488 brought forward from last year. It was f)roposed, in addition to the interim dividend of 2i per cent, on preferred stock and 3g per cent on deferred stock, paid in May, to pay 2£ per cent, on the preferred and p2 per cent, on th© deferred stock, the distribution for the year being equal to 9 per cent on the paid-up capital. A balance of £67,131 is carried forward to 1911. For a. great many yeaiji ( the company has * set' its • face against third-class or emigrant business, fait it would seem as if a change were pending, for the report states that the directors recently invited tenders for two steamers of 11,000 tons with adequate power, intended chiefly for the new Australian line via the Cape. They will jbave extensive accommodation for third-class passengers and emigrants. In the fleet list they are nam,ed as the Baliarat and Bendigo. Eef erring to the Lund line purchase, the report sets out that the P. and O. Company has for some years been engaged in the Australian carrying trade by purely cargo vessels, bu,t in a more or less ir;regular way. The- purchase of the Blue 'Anchor interest will consolidate a policy ;which circumstances have hitherto prejnented from being other than of a tentative character, and will enable the company to participate _in the emigration inisiness with Australia, which ip rapidly developing a-fc the present time. For the Land Line £25,000 was paid for the goodwill and £250,000 for the fleet. The 'Orient Company's balance-sheet showed a gipss profit of £270,492, or, including thp balance brought forward from last year, £297,778 out of the net balance of |£119,386 there was paid a 5 per cent, dividend upon deferred shares, £30,000 ,was applied to payment of expenses ;and £50,000 carried forward to general reserve account. . The chairman,. Sir Kenneth Anderson, in moving the adoption of the report, referred to -the revenne, which showed _ a healthy expansion. "•We welcome particularly the increase in fchird-class traffic," he said. " The direct return from this traiEc is not speci.aJ3y attractive, .because we have sought to" encourage it by the concession of exceedingly low rates, but a steady increase in the flow of settlers to Australia is the best guarantee of the country's develop-* mfent and of a permanent return to the lime in trade expansion. In saloon traffic we anticipate that a substantial -stimulus -will be gfvsn next year by the holding of the Imperial Conference and the Coronation celebrations." UNION BANK— The dividend of the Union Bank of Australia for the halfyear ended 31st August, 1910, with the bonus of 2 per cent., is at the same rate as for the preceding term. The total distribution amounts to £105,000, out of a total* amount available of £181,392. The nndivided profit brought forward is £39,922, and the net profit £141,465. The directors have again added £20,000 tp resorve, but, instead of writing- down premises, they have set apart £15,000 to cover the depreciation in the securities held. The bank has -large holdings of Consols, and the fall in the prioo o£ gold-edged stocks in Great Britain is responsible for ibis provision, having been made. Appropriations compared with those for the ibalf-year of 1910 are as follow: — - Feb. 28, Aug. 31, ' 1910. 1910. £ £ Kcfc profit ... .„.. 136,048 141,465 Brought forward ... 38,879 39,927 "Available 174,927 181,392 — Dividend, at the rate 10 per cent, per an. ... 75,000 75,000 Bonus, 2 per cent. ... 30,000 30,000 To reserve 20,000 20,000 Off premises 10,000 - Depreciation securities... — 15,000 Carriea forward ... 39,927 41,592 AUSTRALIAN BANK AVERAGES.— r Ansfcralian banking aggregate averages for the December quarter were as follows : Dec, 'o9. Dee., 'lo. £ £ Govt. Deposits ... 6,796,729 3,798,116 Free deposits ... 13,630,812 15,369,766 Fixed deposits ... 21,281,320 23,035,179 Coin and bulbon ... 3,491,775 8,884,980 'Advances 32,915,372 35,868,709 WOOL. — Tue tone of the London woolmarket is now more reassuring, and it does not seem at the moment that prices are to have the violent set back that some observers have predicted. At the same time it cannot be denied that wool prices are still high, and when they are in that condition, as history shows, their fall ie proportionately greater. In the earlier part of 1906, for example, 40s crossbred tops were 19^d per pound, after a long climb up from B^d per pound in 1902. They dropped to 16|d early in 1907, and in the first quarter of the following year were down to lOd, gradually creeping up until on Saturday last they were cabled out as at 13d. It is estimated that there will be some a 4,000. bales offered at the sales in Wellington on 7th February. The wool is coining steadily into store, but. a rush is expected before the catalogues close on 31st inst. SKINS AND HIDES.— The local skin and hide sales .on Friday last attracted the usual number of buyers. The offerings were unusually^ large, on account of the lines accumulated in store, consequent upon the wool sales. Prices for skins were about lower than those of the previous sale for the better lines. Inferior, lots, in which a drop was anticipated,, sold at prices about on a par with the previous sale. 'Hides wore firm, and the tendency was for them to harden. In gome 'case's they were Id dearer on "heavy" lots and £d to fd on cows and light ox, ' Calf skins were easier. Thero vnll be no sale .until 17th February, in consequence of the wool sales on the 7th .Messrs. Rocke and Sons, London, | report, by. mail:— There has been quite] an active demand during the past month for Hew Zealand freezing sheep pelts of good substance and quality, suitable Tor splitting, and if allowance is made for the poorer quality of the pelts -at this time of the year, prices must be quoted firm to a slight advance. Freezing sheep pelts of medium substance have met a fai* demand, prices being somewhat irresufar, but unchanged on average. Sheep pelts of mixed and inferior quality continue to sell at low prices in the absence of- the usual demand from tanners in the United States, and in sympathy with _the low' prices ruling for common basils. New Zealand freezing lamb pelte meet a rather Blow demand, and are barely price. The principal market -xor New Zealand lamb pelte is in the United

State 3, and tanners there claim that domestic Jamb pelts in that country can be bought at better value than the New Zealand article. However this may be business in the U.S.A. is still in very poor shape, and the result is that New Zealand lamb pelts have during the past month met a dragging- sale at prices favouring buyers, DAIRY PRODUCE.— Exports of New Zealand dairy produce for 1911, as compiled by J. B. AlaeEwan and Co., are as follows: — 1911 1910 inc. ' tons. tons. tpns. Butter ... 1514 1517 3 Choose ... 2255 2075 180 For the season as a whole the figures are:—; 1910-11 1909-10 tons. tons. Butter 10,770 9,774 Cheese 8,604 9,860 Butter shows an increased export of 10 per cent;., and cheese a decrease of 13 per cent. Australia's butter exports for the season are 45 per cent. Dalgety's (London) show that New Zealand cheese imports for the eleven months ended 30tii November increased by 81,764 owts; the Australian increase was 3710 cwts, and Canada's showed a decrease of 4188 cwts. Italy was the only other country besides Australia _ and New Zealand to increase her supplies for tue period to the British markets, having an increased export ail 8686 cwts, but the cheeses are specialties, and do not generally affect the markets for American, Canadian, and Australian i cheeses. A local firm on Monday purchased cheese for the season at s£d per lb, f.o.b. As high as 5 9-16 d has been paid for London.

MEAT. — "Spot" prices of lambs are privately cabled as easier than last week. Sales of Canterbury's have been made on a basis of 5d per pound for February, March, anct April shipment. North Island mutton has been purchased at 3|d per pound for January, and Gisborne mutton at 3gd. The season is expected to be very brisk by the end of next month. HEMP.— The hemp market is still in a parlous state, and there is no immediate prospect of improvement. Business 13 much about the same as it was before Christmas. Millers' supplies are coming forward in some strength, but there is but little if any demand Prices on Monday were : for good fair £16 10s per ton, and for fair £16 to £16 5s for mil- , lers. Tow was on a more satisfactory footing, realising £7 10s for first grade, £7 for second, and £6 Jm for third grades. Reference waiT made last I week to the deputation of millers who waited upon representatives of shipping companies with a view to a reduction of shipping rates in order to help the industry in its present condition. It is understood that the reply from the companies trading with the United Kingdom is to the effect that no further reduction in freight can be made at the present time. The rate to London, for example, is 45s per ton, out of this the shipping companies have to pay dumping, storage, trucking, loading and unloading charges amounting to 20s per ton, leaving the ship 25s a ton. The hemp is carried by dead weight. By measurement (40ft being the measurement per ton) it would amount to 120 ft. It works out, therefore, that the companies on a measurement basis are carrying the hemp at 8s 4d per ton, which is considered to be as low as the carriage could be possibly done for. There is yet to be ascertained if any reduction on flat freights is obtainable on the A ustra li all .and Vancouver and San Francisco runs. TEA. — Recent mail advices from Calcutta are to the effect that the season will close earlier, and consequently prices will be forced up. The position is reported to be very strong, and one of the principal factors to be taken count of in estimating its strength is the heavy Russian buying. The first sale after the Christmas holidays was 'to take place on 10th January. Shipments to Now Zealand from Colombo for the year 1910 (excluding December) were 4.336,5131b as against 4,731,4391b for the .whole 12 months of 1909. At th© Colombo sales of 14th December good medium broken Pekoes and finest orange Pekoes advanced 2 cents to 3 cents per pound, ¦whilst all common teas showed a riho of 1 cent per pound. The Russian demand was the chief factoi in iha market.