COMMERCIAL & FINANCIAL

Evening Post, Volume LXXXVIII, Issue 25, 29 July 1914, Page 4

COMMERCIAL & FINANCIAL

-. Evening Post, Wednesday. Brief sw is the official news so fa/r received, the disquieting turn which European affairs havo taken has already made somo improsfeion upon local finance. The stock and share list does not show it, but from enquiries made in trustworthy quarters it has been ascertained that somo nervousness is being felt as to the future, and that this is likely to result in the withholding for a little time of a fairly largo amount of money th*t was already awaiting investment. So far as could be seen the prospects for the coming produce year, together with the oxcellent returns for wool, meat, dairy and other produce sold, had put the investor in good heart and inspired the producer himself to put forth greater energy in the development of his own particular enterprise. The banks, too, together with otlier large lending institutions, had taken a larger view of the immediate future, and were acting accordingly. The war cloud has overshadowed all for the time. Hesitancy to make heavy commitments, and to enter into any considerable financial engagements, it is only natural to expect. For somo days to come, then, tho European cablea will mire to be most carefully read, scrutinised, weighed, antf, if need be, acted \ipon. IN NEW YORK.-Dun's Review of 14th June, in dealing with the monetary situation in New York, states that much significance has attached to recent development* ; gold is still being withdrawn fom this centre in substantial volume without exerting any material effect upon rates for accommodation. Obviously this l^iSS^ nn n°'lnal n °' Inal condition; when somo 17,000,000 dollars' worth of tho precious metaa is engaged for export in a single week it might logically be assumed that lenders would restrict their offerings to a considerable extent. Yet, money is exceptionally cheap because requirements, both in speculative and mercantile channels, are comparatively mlagre, and the local banking position is unusually strong. The latter fact means that ooe essential stimulus to business expansion is nob lacking, and there now are several signs of reviving activity in commercial and industrial channels. Absence of uniformity continues to characterise trade advices, but, considered in a broad sense, favourable reports predominate. Retail distribution at leading points is widening, and some improvement is aJso manifest in jobbing and wholesale departments, while rather less complaint is heard as to collections. In. cotton 1 goods, transactions are quite fair and prices have recovered on certain lines, with special sales of wash goods last week being very successful. Woollen mills are still in need of orders, yet, on the whole, sentiment is more optimistic. ■> AUSTRALIAN , INVESTMENTS. - The excitement on the Sydney Stock Exchange caused by the trouble in Eagtern Europe was short" lived, but it was sufficient to show how very sensitive the investment market is. At the end of June, it was shovra what a great advanco had been made in the values of what may be regarded as gilt-edged securities. This may be better understood by a pesusai of the table hereunder. The valuation was confined to Australian undertakings having their head offices in Sydney. The valuations (the market price of the shares of the undertakings) were made at 31st December, and again at 30th June, and were as follow : At At » 31st Dec. 30th June. Increase. £ £ £ Banks .. .. 13,412,000 14,757,800 1,345,800 Insurance Co.'s.. 1,108,100 1,274,000 165,900 Shipping Co.'s.. 1,891,200 2,168,200 277,000 Breweries . . • 3,983,(100 4,764,400 780,800 Gas Companies 3,185,000 3,438,300 273,300 Collieries "■ .. 628,800 827,300 198,500 Various 11,234,700 12,533,700 1,299,000 'The shipping companies war© New South Wales coasting and ferry lines, and the "various" companies ranged from selected picture palace undertakings to hardware houses, from wool brokers to sugaj* refining. The /comparison was made by T. j. Thompson and Co., Sydney, who, reporting on 14th July, stated : "When a month ago we showed how remarkable had been the advance in investments on the Sydney; Stock Exchange, there wero those who said that we should spoil the market. There had been a pause in the advance earlier in June, but almost imrrieiLliatel,y after our state ment of tho 'position the improvement took a fresh start, and prices have been going up steadily ever since. It is evident therefore that our -comparison of prices did riot spoil the market- in the leust. ' - - "Buyers aro not scared by prices advancing, and we have had no reasons for any set-back \n ma-rket values. On the other hand, there have been good rains, good prices for wool, and there is evidently plenty of money -seeking investment. Tho business in investment has been_ active, and we should do more of it still 'if wo could get the stock. Bank shares have been specially in favour dtfring>the month. The new debenture issues have been special features recently. First oame the £125,00Q by the Electric Light and Power Company, and now tbe £600,000 by the Broken Hill Proprietary. Both were substantial, successes, 'and we shall doubtlesa see similar issues in the early future." ' . . , WOOL. — Locally, wool men are "resting" — in theatrical parlance. Bag lots were offered^ at last fortnightly sale, crutchings being generally held until the sal© to be held c next month, at whioh a lajge offering of this description of wool will be made to buyers. Dalgety's invaluable _ Wool Review is now to hand. Considering that it is brought down to 30th June and to-day is but the 29th of July, it is a remarkably smart piece of trade journalism, taking into account the vast area to be covered and the~gigantio character of the wool industry of Australasia as a whole. There is not space to refer even briefly to the many wellwritten, well-thought-out features of the Review, but opportunity only to mention a few facts and figures of general rather than, particular interest. Of the Australasian clip, 78 per cent, was sold in the country of origm. Number of sheep and lambs shorn, 109 million, producing an average of 7.871b of .wool, ac against 71b last year, and yielding wool worth be lOd average per head. Total value of Australasian/sheep exports Twool, tallow, skins, meat, etc. )_ was £49,461,140, cay 50 millions sterling ip round figures. Bradford tops average price — 1912, 21.65 d; 1913, 22.9 d; or a rise in price of 5.78 per cent., or 1.25 d per pound. "The outstanding feature of the Now Zealand Gales was the strength of the Continental demand.-" Australasian sales — Commonwealth, 1,703,744 bales; New Zealand, 264,834 bales; total, 1,968,578 bales; total increase over 1912-13, 163,777 bales. SKINS AND HIDES.— Thero wag 1 a good attendance of buyers at the local wool, skin, and hide sales, although there was a marked absence of that keen competition that haß characterised these sales of late. The offering of wool was very small. Sheepskme sold well for superior lines.- but inferiors wero down id to gd on the immediately preceding sale. Ox hides were about on a par, except for well-conditioned lines, whioh were a shade dearer. Cow hides showed a weaker tendency. The opossum skims offered were of only poor to medium quality. t Talloy made a heavy drop in price. DAIRY PRODUCE.— So far as-oan-be ascertained, there has 'been nothing definite done up to the present "with regard to the disposal of next season's cheese and butter outputs, directors having yofc to meet to setjjle the quostiop. It does not Beem likely that tho distribution proposed- and adopted by the Pulmerston North conference can be sot in operation this season. .Vancoutor ii 1 * making a fuirly heavy draft upon New Zealand for buttor supplies, considering" tlm time of year. The lqpat ' leaving ■ Auckland at tho ?tr<l of the week will have her bultar chambers pretty w6ll filled up this trip, and some of tho butter hu» cost tin jnuoli acs 12d and 12i<l free, on board in Wollinglon. Special Kales to 'Africa havo been made j at 12id, f.o b. Wellington, but it is j understood that this is not to be taken ' as an indication of the actual state of the market. MEAT.— The Delphic is to load for New York »omo 50,000 to 60,000 carcases of Canterbury and .Southland lamb, purchased on behalf of American interests. .The pries is reported to bo within the vicinity 01 §•& Ike wot zpJI b&nsssM-m ita ,

Horn. Gilbert Anderson and Co., reporting on 19tU June, stale that during the past five days fivo steamers from Now Zealand alone havo arrived, bringing: 226,000 pheop and 327,000 lambs. Coining at a, time when the trade at all centres is very depressed, the effect has been to lower prices. Frozen mutton — Tho dearer tendency hae^been somewhat ohecked by plentiful offerings on the spot. Canterbury bheop, 48-56 4fd, 56-6+ 4 3-l6d, 6*-72 3£d ; selected North Islands, 56-64-4 Ad, ordinary 3 15-16 d; owes, 48-64, 3jjd ; Australian wethers, 42-62 3|d, second quality, 36-55, 3-Jd ; ewes, 32-50, 3 11-16 d; South American weth<nvs, 56-72, Sjd ; evros, 48-64, 3 b<l. Frozen lamb — Mediums and heavy weights have declined fully id and small lambs are a fraction lower, although tho good demand for theee continues. Carcases weighing about 261b aro at a premium. Canterbury lambs under 36 61d, 36-42 6d, 42-50 s£d ; second Canterbury small, 6£d ; best North Island, 28-42, 6£d; Southland, 28-42, 6 l-16d; ordinary North Island, 28-42, 6d; AustraUsm stocks are light, but can still b» obtained at be.«t 28-42 5 11-16 d. fair up to 36 53d, inferiar s|d : South American, 28-36 ssd, 36-42 sid. Beef — Large supplies chilled, and a bad trade. Chilled fores, 3£d ; hinds, sd. Frozen New Zealand fores, 3|d ; hinda, 4 7-16 d. Australian crops, 3 5-16 d; hinds, 4 5-16 d. South American fores, 3gd ; hinds, 4 5-l6d. TEA.— The report of the sales at Colombo last week was to the effect that common teas were ©osier, and that quality generally was improving. Th« market was very strong. GROCERIES.— Buyers ar« holding off new season's dates in consequence of high prices, notwithstanding that th« market opened at 6d per owt. lower than the opening price& of last season. Hongkong cables that this eeason's orop of peanuts will be short, also preserved ginger has dropped £d per pound on the week. Cream of tartar hits advanced 15s per ton on the week. Californian_ dried fruits quotations are still very high, and possible business is restricted. A local importing house has received the following information from Smyrna with reference to the fig market:— "The reason, of our having increased prices is due to th« fact that we fear political and economical complications at this end. , There is considerable uneasiness owing to the attitude adopted by the Ottoman authorities towards the Greek element! of the population. The Turk is following a regular set policy to turn the Greek out of this country, and to populate the coast opposite the islands ceded over to Greece witli Mussulmans. Greek refugees are leaving this country by thousands, and the usual labouring hands that come over during the active season from the islands will not be allowed entry into the country thi6 year. These are questions of grave economic importance to the trade, hence our deciding to raise prices by 2s for th« boxed figs and Is for the naturals."