COMMERCIAL AND FINANCIAL.

Evening Post, Volume LXXXIII, Issue 109, 8 May 1912, Page 4

COMMERCIAL AND FINANCIAL.

Evening Post, Wednesday. Businew in the local stock and sharemarket has been dull during tho past week. At the time of writing National Banks are in .the market at £6 2b, and Bank of New Zealand have advanced to buyers at £11 10s, with no sellers. Insurance shares remain firm.nt quotations, but show no change in piice. Union Steamship shares have had a good rice over the lonnight, culminating in gales at £2 17s last week. , It is underetood that buying 1 waa chiefly done on account of orders from ' London. The collapse of V. and 0. stock was followed by a reaction in the case of the Union Company's. shares, and business in them was done at £2 7b 6d, at which 1 price the share* fell at the «nd of the week. The price has slightly recovered Bipoe then, and yesterday there were enI qunies at £2 10s. So far, no other cause, other than tho advance in tho . price of shipping shares generally in Lon- , don, is at present appaient for the rapid appreciation of the Union Company's I block. There is,.. however, the fact to be Bled for reference that the company's ■ shares ,are> firmly held by those in the inner circle at £2 10s, whereas 12 months , as?o they were sold at £2, and last month at £2 7s 6d. The former figure is considered to be a fair value apart from any Extraordinary reason. There has been an official repudiation of the suggested amalgamation of the Union line with any other line. The rise, then, may be due to some understanding arrived at between the company and companies operating in tho East, where the Union Company's flag is now seeri more' frequently. T^e demand for New Zealand Shipping shares • has slackened off considerably- Transactions have taken place at £16 10s, but the best buying bid at the moment is £14 10». A better ,demand exists in tho Wellington market for coal mining shares, Westports having changed hands at £l'9s lid, an advance of la on the week. There are more sellers than, buyers in the miscellaneous section. Business in th,e mining markefc,;ia stagnant. Quotations show little, " if any; change. ' The Occidental (Thames) ' has daily reported finds of picked stone, andfyhe shares have advanced 6d in consequents. The quotation ii buyers Is 8d and sellers Is 9d, Talismans, and Grand Junctions remain at about the sane level as last week, ' THE MONEY- MARKET.-After a long period of monecary ease conditions in Australia ar» becoming rather disturbed and rates are " hardening. Th» well-informed Australasian Insurance and Banking Record, in commenting on the situation, points to the rapid growth of • urban population, taking Melbourne as 1 un instance, stating that the herding together of two-fifths or more of th» population of a new country (Victoria) ,in one centre is not favourable to its progress. At present, tha Record proceeds, the snonßtary position is not one to occasion j.pprehonsion. The causes of tho hardening process are in the main quite natural. But imports need tp be brought into closer correspondence with exports of merchandise, if the outflow of capital in that direction is to T>e checked. . . . Generally, whatever may be the position of the primary .industries of , the Commonwealth during the coming season, whether good or indifferent, it is highly desirable that the disposition to extravagance manifested on every side should receive at least a mild check. BANK OF AUSTRALASIA.— Mr. U. G. Hamilton, presiding at tho 78th annual general meeting of the Bank of Auatralasia, observed that New Zealand ha,d had a prosperous season, but not quit© so prosperous as the preceding one. The net profits of the bank were £2d5,888 for the half-year, allowing a bonus of 10 per oent. to tho staff. The directors were also able to recommend an increased dividend 'of 14 per cent.' together .with a bonus- of 3 per cent.; making a total distribution of .17 per cent., or £3 6s per share; add £50,000 to the reserve fund, j and place' £20,000/ .to writing down of premises,, In bullion, coin, and Commonwealth- noteb the holding- was over i £5,178,000. Thau -was-'inp temporary ifeuTOj.-awoUeritfojithj!^ purpose of what jtfas known' afc'-rwMiow-dreissing," which was^tf^ppsaible in Australia. The September returns showed that the average .weekly holding,' of all banks was about 25 .per cent., of their liabilities. At that time the Bank of Australasia's holding of coin and notes was over 30 per cent, of their liabilities. This huge holding of , coin was a feature of great strength, be- , oause thereby t the interests of creditors were amply safeguarded. The directors had been steadily 'reinvesting a large proportibnof the profits in the business. Introduction of fresh capital had enabled th«^ directors to lend out -at a good rate of interest an equal amount of their deposits which would otherwise have had to be kept in ready money, earning no interest at all, and thus it was directly producing some £62,000 a year, or getting on for 4- per' c*nfc.' of their capital. But for that introduction of new capital the present handsome 'dividend and bonus -would not now be paid. Ten years ago the dividend was 11 per cent., now it was 17' per cent. ; ten years ago the market value ot their shares, was £80, now it was nearing £120. In other words, while during the l»3t ten yeara they had provided out of profits £1,227,000 of new capital, for that they were -getting £96,000 U year more dividend, or nearly 8 per cent, on such freeh capital, and the market value of the -shares had increased by over £l; 500,000. 'These figures were proof that the policy o£ reinvesting profite not only immensely increased the credit ot tha bank in the eyesof the. public, but also had a nuwt material bearing on dividends and on the market value of the shares. FILM FUSION.— AII documents and agreements with references to the proposed amalgamation of interests between tho larger biograph firms in Australia have, it is understood, been completed, and only detail work now remains to be carried out. The result of the amalgamation is expected to be an enormous saving- in organisation and administration, and also birder returns to shareholders, with a lessoning of competition. The public are pro* miseu a better film service-— higher, quali-' ty aad more variety. FREJGHTS.-The Union Steam Ship Company has raised the freight on coal from Newcastle, N.S.W., to N.Z. 6d per ton as from' Ist May. The Nordeutscher Lloyd and Dcutsch-Australian Lines have raked thoir freight* on goods for New Zealand by 2s 6d per ton for goods in tho Jirbt and second class. Is per ton on goods in otbar classes at per cubic measurement, or 1000 kilos at the option of the ship. 'TAL'LOWI— Dalgoty (London) report for the week that the tallow market is firm, and will probably advance later on in the year. Mixed good to prirao is 6d to 9d pt»r cwt higher. Other descriptions 3d to 6d per cwt higher. Low and inferior descriptions are unchanged in prko. HEMP.— There has been an improved demand for hemp during the week, and a rise of 5s per* ton is reported. The prices to millern on Monday were as follow: — Good fair, £18 5s per ton; fair grade, £17 to £17 5s per ton. Tow is still hard to obtain and prices quoted are out nominal. WOOL. — The London sales on the whole have closed satisfactorily for growers. Notwithstanding the industrial set-back which England has had, and which was confidently expected to operate aguin«t the wool grower, it would ueem lo be clear that British manuflictureri, whatever their own troubles -might be, werg not prepared' ito see thoir Continental competitors/ vrho had no labour troubles, competing in their market* with cheap wool. American buyers appear to have hardened prices for medium crossbred*, although the quantity lifted by them is not sufficient to seriously affect. Hip market. It would seeru thai nutwithtrtuiiding increased production ox wool in certain quarters, Jisert cdla «>ee very well ihut the consumption is outstripping the bupply. In Australia, for example, the latest figures available, show that while the flocks increased from 13,187 in. 1891 to 25,497 in. 1910, the sheep were loss, there being 61,831,416 £.hi»oj) in 1891, as compurrd with 45,560.069 Hbe^p in 1910. The really big flocks ot 100,000 and <>\pr were induced from Boveuty-threo in 1891 to six ..in, 101 ft vrhila the little floslu ( yao. t» ».

thousand, rose from 7606 in 1891 to 17,572 in 1910. So' far as New Zealand is concerned it is thought that next season .will see lighter wools and smaller quantities. The prospects bo far as they appear at present soem to tend towards decreased production in both Australia^ and New Zealand. MEAT.— The tone of the meat market is satiafactorj from the producers' point of view at the moment. There would seem to havo been a wholesale clearance of the store 3in the United Kingdom, for every shipment arriving is going at once into consumption. There iB a strong demand for lamb and light-weight mutton. Prices paid here this week ( on a o.i.f . basis were as follovr: — Lamb— \North Island, sid to sid per pound; Canterbury, 5Jd to sjd for May and Jupe shipment. Mutton — North Island, 3|d; Canterbury, 3|d to 4d. There wm a fair demand for prime ox beef at 3fd ca.f. average fores and hinds. • DAIRY PRODUOE.-The slightly improved position of butter in the London market will no doubt confirm factories in their demands for 113 d per pound on the trucks. In the Auckland districts up to 12d has been asked, but business has been done at ll|d. Cheese is somewhat easier in the United Kingdom markets, buirj locally remains unchanged at 63d to 7d for mediums for the domestic trade. A butter exporter, with a' taste for statistics, has been working out the difference that cheese and butter-makers who sold their outputs before the present expiring export season closed would have received had they consigned instead. He holds that they would have gained as a whole £350,000 difference^ between the price at which they sold their outputs and the price actually realised for the produce in the United Kingfdom by those who bought ' the goods. It is to be remembered, however, that the buyers took the rink, and stood to lose heavily had tho market gone against them. Whether factories will be more inclined to consign than tn sell next 1 season has yet to be deoided by tho directors. "Those who have beeq striving for ! a. cheaper butter market have found the I coal strike a powerful factor working on I their behalf," writes The Post's London correspondent. ''So strong a hold has the idea of a l«snened demand taken in Tooleyslreet that something; of a panic haa been raging ' there, arid prices have now (29th March) receded to }22s to 124s for choicest New Zealand, and 2s less for Australian. Naturally, this has given margarine its long-awaited chance, and large quantities of this product are being frushed forward to take the place of butter in cheaper markets. This is more or less of a disaster for butter, and some people are saying that things will not recover this (colonial) 6easo»." PRODUCE— Th« Southern potato market is very bri«k at the moment. Prices on Monday at South Island potts wera £6 to £6 10s per ton, but business was done during the week at £6 12s 6d. Onions were quoted at £9 10s per ton, f.o.b. South Island port*. Oatmeal remains unchanged at £13 per ton. Fowl. wheat has firmed, and 3s 9d per bushel is asked and given. Oats, in consequence of heavy demand from Australia are changing hands this week at 2b s£d to 2b 6d per bushel for B grade. It is found difficult_ to obtain freight for oats for Australia. A considerable amount of space has been asked for, but ie not available. Flour it unchanged at £8 10s per ton (associated millers). Bran and pollard are scarce at £4 10s and £6 per toa respectively. All the above prices ar« f.o.b. South Island ports. Maize i» quoted at 5s 3d to 5s 4d per bushel in Wellington. Japanese onions to arrive in Sydney in June, have been bought by Australian houses at £6 10s, c.i.f. Victoria's onion crop is the smallest since 1904-5 , being estimated to produce 20,911 tons, aa against 37,484 tons last year, *nd 31,715 tons the jear before. , TIN PLATES— CabIed adrica has been received of an advaHce of 6d per box on tin plates. The market is described as very firm, with every likelihood of » further rue. OILS. — Linseed oil for this market has' advanced during tlie week by tractions,) until it ii Id, per gallon, dearer to-day, than this tim« last week. l'Yom Calcutta' advices have been received 'to the effect that the linseed crops axe not at all favourable to a heavy yield. There were from 200 to "300 cases and 1700 drum* of castor oil for New Zealand shut out from the p.s. Waitemata from Calcutta, which left Newcastle lor Auckland on Monday list. ' The ' next direct steamer tails ffom Calcutta to New Zealand in July. The export price of pine tree turpentine has steadily advanced by <^d rises to a total of 3d per gallon on the past fortnight. Agents for Champion, Druco and L'o.'b white lead have been advised by cable that further orders for shipment earlier than Auguei cannot bo taken. PETROL— A small quantity of "Shell" petrol was shipped to Auckland by th« k.b. Ihumata last week, but tho motor spirit cannot be sent from Australia to New Zealand by the ordinary mail passenger steamers owing to Government regulations, and therefore supplies from Australia are entirely dependent on freight eteiimcrs pure and simple, and the amount of space they have available for the carriage of such carjfo. In connection with petrol prices the Financier (London) states that ''tho main reason for the advance in petrol prices is the high marine freight rates which now obtafci between all the principal European ports and the centres for oversea export of petroleum oils. A little over a year ago the United States-Europe freights were about 10s to 12» per ton; to-day these freights are more than trebled at 35s per ton, and, according to one recognised authority, with every prospect of being higher before they are lower again. The shortage in the supply of tank steamers is tho principal cauße of this advance^ and, unless the European consumptive demand for petroleum and motor spirit materially decreases in the near future, this nhortago can only be met in one way, whiph is the construction of additional tank steam vessels suitable for this trade. There is no reasonable grounds for anticipating 'any decrease in the consumption ot petroleum and motor spirit; in fact, the reverse in proving the case all over Europe* particularly in the mutter of petrol. To what extent enhanced retail prices will check this consumption it is aot easy to say, but it is improbable that the question of price will materially influences the quantity of spirit used. Ihere kno question whatever of any shortage in the output of petroleum either itt th« Uuited States or in the Far East. The available supplies at all the principal producing centre* are more than adequate to fill the world's present requirements in the matter of consumption, and_ were a sufficiency of tank steamers available the advance primarily in these marine freight rates, and in the second place in the price of petrol, would not have taken place." GROCERIES. — Quotations for bulk dates for shipment by first direct steamer due. at Frernantle in October have opened at about a parity on last season's opening ratea. Some prices have, been named for the new season's salmon pack at an advance of about 4s a ense on last yoar'a prices ut this time- of the year. Californian dried apricots, peaches, and prunes have advanced 2e per cwt. during the paat few days. Quotations have been named by one firm on new season's Mediterranean currants, bat the trade is waiting for oth«r sellers' prices, which are expected shortly. Seeded^ raisins and seedless raisins are firm in price, and I a me is expected. TEA. — Lait week's Colombo gales showed that common brokens advanced 2 cent*. ; mediums, 1 to 2 cents. ; fair to good leal, 1 to 2 cants. Higher prices are expected. Mr. Findley, of Fraser, Ramsay Proprietary, Limited (Australia and New Zealand), who has just returned from a trip to Java, stated that tea prices in the island •»«.« liigh, and ou the present basis of costa were sure to show heavy losrus in Australia. He found it. imposnible to obtain any authentic information with regard to the happenings up country. It was » matter of guesswork all the time. Tha Dutch Government had no statistics, and did not iieoin to know as much hjs (Im tea operator* themsplveß. Australian shippers were always expeoLod to pay ab loabt 2 touts advance on London rate*, or Ih'ip w#j) no busiiiriui, but. ut a general ,rule- ttutf piid ik'eo wuii, ntf p«li*p»

more. Thero were no experts in Ba.ta.via outside the four Australian buying firms. Last year's production \va9 about 50,000,0001b, but it was expected that thi^ year the crop would total 60,000,0001b. The chairman ot Joseph Trayers, Ltd., epeakinff at the annual meeting- in London on 18th Maroh, took a pessimistio view of the future of the tea_ trade. The demand continued to be artificjallyforced on to the common grades of-ti>»: He deplored that such a. trade as the tea trade should be co degraded as to.le*vo no adequate margin for wholesale or retail.