COMMERCIAL & FINANCIAL

Evening Post, Volume LXXXVIII, Issue 140, 10 December 1914, Page 4

COMMERCIAL & FINANCIAL

Evening Post, Wednesday. LOWER WAR RISK RATES.— Marine underwriters have lowered thoir war risk rates as from sth December as follows: — Via Java and Singapore, out and homo, from 3 per cent, to 2j< per cent. ; Cape Horn ajid Straits of Magellan homewards, from 4 por cent, to 1 per cent. ; via Panama, from 5 per cent, to 3 per cent. ; Australasian and Pacifio ports and Islands, from 4 p«r cent, to 2 per cent. ; Islands other than Fiji, from 3 per cent, to 2 per cent. ; Fiji, unchanged at 1 per cent. AUSTRALIAN NOTES.— The Sydney Telegraph understands that up to the end of October tho Australian note currency has been increased by upwaxda of £5,000,000. In three months to that date, the lesue of Australian notes had been increased by £4,404,000, "and the gold held in reserve by £2,388,000.^ There was a jump of over £2,000,000 in August, and of something over £1,000,000 both in September and October ; and it is understood that the process of inflation is still going on. In August ail the gold received was oarried to the gold reserve, but very little since then. The figures are below ; — Notes Gold ProIssued. Reserve, portion. July 29 ... £9/712,700* £4,245,730 43.70 Aug. 26 ... 11,812,762 i 6,345,792 53.72 Sept. 30.. 13,066,966| 6,567,49b 50.26 Oct 26 . . 14,117,169 6,633,698^ 46.99 Now, suppose this inflation of tho nota issues is carried on to the extent of another £10,000,000, which would in all nearly give the additional £18,000,000 Mr. Fisher has referred to (states the Sydney paper), can its convertibility be maintained ? Those note* will accumulate in the banks, and their gold reserves must in consequence be depleted. In only a small part wilJ the Treasury gold reserve take the place of the banks' reserves. Th© aim of the Treasury is that the notes shall bo expended— not exchanged for gold. Anyhow the process of inflating our paper currency is going os. jM.Z. SHIPPING CO.— From the bal-ance-sheet of the New^ Zealand Shipping Company, which has just come to hand, it is learned that the year closed on 30th June last. Reserve fund amounted to £100,000, insurance fund £120,000. The value of the fleet (less depreciation) is set down at £1,144,097. Investments (including shares in the Federal Steam Navigation Company) are valued at £574,728. The sum of £27,770 was carried forward. The net profit, after making all provision, is £88,524. /The loss of the Kaipara was covered by insurance. HOWARD SMITH AND CO.— Details are now to hand of the proposed reconstruction of the Howard Smith Steamship Company. It is proposed that in the new concern the nominal capital should be £5,000,000, consisting of 5,000,000 shares of £1 each. It is proposed to issue 500,000 6 per cent, cumulative preference shares in exchange for the existing 500,CC0 5 per cent, cumulative preference shares. The company will issue 1,250,000 ordinary shares, and they will be allotted in proportion of five ordinary shares for each ordinary share now held. Tho company •will go into liquidation, and for any excess of net assets over £1,750,000 mentioned the new company will allot ordinary shares to members prorata to their respective holdings of ordinary shares. An extraordinary meeting will be held on 10th December for the_ purpose of considering motions to give effect to the directors' proposals. KAURI TIMBER.— After makiug provision for depreciation, the Kauri Timber Company cleared a net profit of £64,122 on its operations during the ye*r ended 31st August. The balance available is £84,077, of which- £15,000 is transferred to the dividend equalisation fund, raising that account to £25,000 The dividend, which is at tho rate of 8 per cent, per annum, absorbed £46,800, and a balance of £22,277 is carried iotw&td. MEAT. — Gilbert, Anderson, and Co. in their annual report just received, dose their year on 30th September. From tho growers' ppsition, it is held, that the season. 19134914 must have 'been exceedingly satisfactory The high prices anticipated by the trade led forward buyers to offer prices much in advance of former years. This resulted in a basis of values being established in the colonies which mado 'business difficult. Supplies during the last months of the season 1913 were restricted, and stocks were exceedingly light. At the beginning of the new season, Australian, lamb; which opened at s|d, rose to s|d ; Mutton 3|d to 4 13-16 d. , Canterbury mutton and North Island lamb tfere off the market. North Island mutton was selling at 4i<J to sd. South American mutton and lamb at proportionate high prices., New Zealand beef fores rose from 3!d to 4d, hinds 4-id to 4W, Australian at one-eighth lower. River Plate- same as Now Zealand. Chilled beef fores_ 3gd to 3|d, hinds 4|d_ to s£d. It ig shown that Australian lamb shipments totalled 1,662,784 carcases, an increase of 282,959 over 1912-13, as compared with New Zealand's contribution of 3,456,000, a decrease for the year of 18,000. With respect to the future, the report states: — "There are no signs of any shortage in tho supply of meat generally. Lamb prices for next season will be governed by the supplies and the purchasing powers of the public. It will not be wise to look for extreme, prices, but rather to meet_ the market demand by steady and _ persistent selling from day to day." While this war lasts there will be a great demand for beef, but " there does not seem to be any indication that tho demand -will exceed the supply." '*Lambs may be _ slightly higher, but extreme prices will put these out of consumption, as has^ been the caso with all the more expensive articles of food." Homo supplies, according to the , latest _ advices, show an increase for Great Britain and Ireland, viz. : — Catt1e— 12,143,638, an increase of 247,160. 5heep— 27,882,668, an increase of 330,528. Pig 5 —3,694,312, an increase of 726,341. "The opening up of the American trade has been disappointing, and does not promiss much for New ZoalatT*!. It h&f already been proved that Great Britain is a better market on the average, and that the U.S.A. can only buy when prices aro low. A better trade, which is likoly to 'expand, has been done with Australia, tho lower price and the earlier soason falling in with American requiroment3i The large trade with tho River Plate, -where the jU.S.A. have their own houses, has 'not 'come up to expectations. 'It would not be at au improbable if values were a, shade lower than those obtained at th« first sale of the season here in November. German and American competition will be eliminated. WOOL.— Tho second Wellington wool sales will be held on Friday. A catalogue of over 17,000 bales will be offered. Competition is_ expected to be very keen for all "khaki" or coarse wools. Tho prices to bo realised should be indicative of the London position in February next, and, referring to the embargo on wool for other than British and allied countries, the_ Sydney Morning Herald points out that it is natural that the prohibition of export from the United Kingdom, the Commonwealth, and Dominion to countries neutral in the war, yet anxidue to do business with the enemy in wool or any other commodity, affords occasion for a little uneasiness. There is a disposition in some quarters to court the Amorican demand at tho present time. It is done, of course, in the hope that none of the wool will get through to Germany or Austria. But to suppose that the astute Germans in "America could not got wool by hook or by crook in tho United States, once it got there, for the Fatherland, to clothe the hordes of soldiers that are being hurled against the Allies on the Franco-Belgian frontiers and the Prus-sian-Polish frontiers, i= absurd. The United States Government could not possibly follow m> wool in private hands in America, and if tho authorities asked for vouchers from wool owners that neither tho raw material nor the cloth should go to Germany, they would get all the necessary declare tions they required; especially if the owners were Germans, or agents acting for the German mills. DAIRY PRODUCE.— Butter ex 'Corinthic is ren Using in London 133s to 133s 6d per cwt. and cheese 75s 6d per cwt, which is equivalent to 7d per pound f.o.b* , a most satisfactory return to the pro- , ducers who have elected toconbign. To-day butter is yurckasablo at 12^d f.0.b., aoid

I business has been done on. thoeo terms. Cheese is well beld at 6fd f.o.b. Vancouver is taking very little butter this soason compared with last, that market being quite unable to look at London prices. San Francisco is quite out of the market A comparison of tho total sliipmenfcs o£ Australian, butter to tho United Kingdom from Ist July to 20th November, with tho two previous years for the corresponding period, ia as follows: — 1914-15 1913-14 1912-13 Boxes. Boxes. Boxes. New South Wales 85,134 85,381 64,416 Victoria ... 95,751 194,687 144,185 Queensland ... 41,219 61,100 41,390 South Australia — 1,200 6,775 Tl. Commonwealth shipments ... 222,104 342,368 256,715 In its comments on the butter market as in tho middle of October, the Grocer, referring to high prices, states that so long *b butter remains*de«r the margarine trade must flourish. Siberian butter, -which usually went in large quantities to Germany, was then being_ exported all to Britain via. Archangel, which would bo ice-closed in November. Prices were expected to rule high until December, when Australian amd New Zealand supplies would reach London, i HEMP. — Tho hemp market has again gone back on the miller, there having been a substantial fall in prices during fchovreok. Prices (f.0.b.) were £18 15s per ton for good fair grade and £17 5s for high point fair grade. 'On Monday they were £17 15s for good fair and £16 15b for high point, and £15 15s for low point. Tho ] quantity being produced is very limited ; j roughly 1000 tons a month, as against 2600 a month for this time last year. For tow there is practically no demand. , BEET SUGAR.— Some interesting figliros relative to Germany's and Austria's beet sugar trade are furnished by Mr. E. Russell Taylor, chairman of the Council of tho Incorporated English Beet Sugar Pioneer Association, in t a letter to the Grocer. Ho urges tho immediate taking up of this industry on a large scale in the United Kingdom, and then goes on to show that during 1912, the last year available for an actual statement of tho industry, the quantity of beet sugar imported into the- British Isles from six Continental centres was as follows: — Refined Raw Sugar. Sugar. Country. Tons. Tone. Germany .. 453,500 440,600 Austria ... 175,700 148,500 Holland ... 189,400 28,400 Belgium .. 64,900 27,700 s France ... 35,200 634 Russia 9,200 — Denmark ... — 35,500 927,900 681,334 Refined average price for 1913, f.o.b. foreign ports, £12, equal to £11,134,800; average price for raw sugar," £9 10b, equal to £6,472,673. Grand total value based on above average prices, £17,607,4'?3. GROCERIES.— Owing to tho . belated arrival of tho Union Co.'s Wyandotto. from San Francisco, bringing Christmas fruits for this market, it is doubtful if tho goods will arrive in time for places past Auckland — tho first ' port of call, where she is due on 23rd December The steamer has been delayed, and our local houses are quite baro of stocks,' having counted on the much_ earlier arrival, of this vessel. The position is rendered all tho more acute by .the interference with supplies of Mediterranean fruits through the war. The Wyandotte was to have left San Francisco on 28th October. Greek currants in London have declined 4d per cwt. on the week. Dates for prompt shipment have advanced 2£ per cent. An advance in all American evaporated apricots of 7£ per cent, on previous rates was made on Ist December On all February shipments. Prunes ( are 2s per cwt. dearer on the week. Seedless sultanas (oil bleached) have advanced Is 3d per cwt., and Thompson's seedless raisins in bulk 2s 6d'por cwfc., bleached and unbleached for February-March shipment. Soft-shell almonds, Jordan almonds, Barcelona nuts, and mnscatels from Italy and Spain are due in Australia this week, via London, and certain quari&MeaT"w'ill be"transßipped for this market. Brazil nuts are very firm, and latest quotations for shipment via London are fully 15 per cent, higher than when war broke- out. Supplies of English cream of tartar are understood to bo below requirements, and only a limited quantity is available for April, May, and June shipments. Tartaric acid is also very dear, .fully 50 per cent, above end of July prices. SUNDRIES.— There is no change in redent prices of carbide, but the latest advices go to show that the war may interfere witb supplies available for shipment in January and February. American G grade rosin has advanced 7s 6d per ton. Cotton seed oil for prompt shipment has declined Id per gallon. Blundell and bpences linseed oil dropped l£d per gali lon for immediate shipments. There b ! no change reported in the price of kapoc for December steamer from Samarang, ! but quotations for the later vessel are not yet obtainable. There has been no alteration during the week in the price of tmplates, but makers are not disposed to quote for shipments beyond June next.