COMMERCIAL & FINANCIAL

Evening Post, Volume LXXXIX, Issue 105, 5 May 1915, Page 4

COMMERCIAL & FINANCIAL

Evening Post, Wednesday. It might have been asked why the Governmeni went, to London to raise a loan of £200.000 for redemption purposes at 4 per cent, when there was so much unemployed money in the Dominion, when, in fact, tho bank returns to 31st March last showed nearly 2\, millions more free deposits than were declared at tho end of March, 1914. Why, in short;, could not the money have been obtained here ? Whatever tho reason for the Government's going to London j for further supplies, it does not follow I that if issued here the loan would have been over-subscribed. It is true that there is a very large amount of idle money in the banks, while importing, for obvious reasons, has been materially reduced ; bu*. there is also some uncertainty as to' the future expressed in a disinclination to lock money up for any considerable length of time. In fact, its owners appear to want it just where they can lay their hands upon it, and at once. On the other hand, the steady turnover of bank shares and shares in financial and fire insurance companies on the various stock exchanges of the country, also reported sales, show that investors have the money to dispose of, and are n6t ovor particular as_ to the return, providing it is being utilised with absolute safety but is available when required with tho least possible delay. There appears to be a general impression that freight rates oti Now Zealand exports are shortly to be materially advanced, but official confirmation is not at Ihe moment available. Not only in the overseas trade, but increased rates in the intercolonial trade aro also believed to be pending. So far as the import trade is concerned, manufacturers in both tho United Kingdom and United States are disinclined to quote c.i.f.e., which fact lends colour to the impression that rates are to be again advanced. The Argus (Melbourne) reports that "the shortage of freight from oversea countries is "how beginning to be felt, for slocks of several articles of Commerce are nearly exhausted. Bearing in mind the excellent shipping service enjoyed before the war, and the ' consequent absence of necessity for large stocks, it must bo a matter for congratulation that numbers, of lines have not failed before this. British manufacturers, labour, railways, and ships have been obliged to give first attention to the conduct of tho war, and orders for Australia can neither be executed as promptly in Britjsh factories^ nor brought to Australia with anything like the usual celerity. Manufacturers aro • therefore notifying that they _ are unable to accept uny orders I definitely, but will do their best to make and despatch any goods required, whenever opportunity^ offers. As may be expected, alternative sources i have been looked tor, but have been impracticable in many instances, owing to an absence of freight.,. Even as matters stand, it will riot be at all surprising, however, if the proportions of Australian trade dono with North America and Japan show material increases when the returns for the year are published." What applies to Australia applies also to this country. The Queensland National Bank has converted its pastoral properties into a limited liability company, to be styled the Queensland National Pastoral Company, Ltd. The capital is £850,000, divided into 250,000 7 per cent, cumulative preference and 600,000 ordinary shares of £1 each. Tho bank is retaining the bulk of the ordinary shares for the present, and portions only of tho 250,000 preference shares are offered to subscribers at 3s per share premium. General abstracts are furnished by the Commonwealth Bank of Australia, showing the average amounts of liabilities and assets in each, of the several Sfcatee during the quarter ended 31st March. The following statement gives the aggregate of the fivo individual returns in respect of the various items : — Liabilities— '£ Bills in circulation - ... -..-? 27,177 Bultofce^ due other banks :" 311,846 Deposits — Not bearing interest <•.- -- 2,832,410 Bearing interest fj> .... 1,010,158 Savings Bank ..<• £.-, '„. 5,105,859 Total liabilities rt, 9,287,450 Assets — Coin ,~ «;.- 887.424 Australian note 3 ... •... 412,422 Government and municipal securities 3,691,435 Landed property 59,990 Notes and bills of other banks 590,510 Balances due from other banks 2,368,886 Bilis discounted and^advances 1,784,699 Total assets 9,795,366 DAIRY PRODUCE— Enquiries from Aitslia continue to come to hand for butter, and offers of as high as Is 5d per pound f.o.b; Wellington have been refused, holders asking Is sid. The butter is wanted for . South Australia and Western Australia, as well as for the i Melbourne market. For cheese for local i requirements, factories are asking 82d per pound on tho trucks, but B£d has been Said. Tho announcement of the Prime linistor that the price of ' butter wns engaging tho attention of the Government,' and the prohibition of export, have caused some uneasiness on the part of thos-o vrho are endeavouring to facilitata further business with Australia. It is recognised, however, that the difficulty confronting the Government is that while the cheese-maker (where factories have consigned) is making a handsome thing out of the milk, the butter-maker is only just beginning to make profits upon the same Jiighly remunerative scale. This fact, it is believed, accounts for the seeming reluctance of the Government to disadvantage the butter-maker, while the oheese-makor is allowed to reap such rich returns. On Monday, private cables showed that salted New Zealand butter was realising in London '136s per cwt, and unualted 142s — a rise of 2s per cwt on the week. Cheese was up to 93s per owt. WOOL.— The first orutehings sale for Wellington will be held on lfth May. At the fortnightly sale held here on Friday last, wool came back in sympathy with London. A private cable received froni London on Monday stated that France and Russia were buying scoured wools freely at 2s 4d to 2s sj>d per pound for average 64's. SKINS AND HIDES.— Dry skinß were in good demand at the local sales last week, but salted were not so keonly wanted, although tho previous sale rates, were generally maintained. Some brokers report that ■■ crossbreds declined id, pelts 2J,d, and inferior skins Id. Ox hides (heavy) were wanted, and there was an advance of id per pound ; medium and light ox were down id to *d ( and inferior to |d.. Cows' were firmer, and in some lineß brought id. more. HEMP.— Tho, London market for the New Zealand fibre is particularly quiet just now, few if any enquiries being made. Buyers do not seem at all anxious about the future. The impression prevails here that if an endeavour to push business were made it would have tho effect of still furthor depressing prices. Free on board prices on Monday were approximately a? follow : — Good fair. . £23 15s per ton ; high point fair, £22 15s per ton; low point fair, £21 15s. The tow market is also quiet. Prices average £10 10s per ton for No. 1, £9 lOs for No. 2, and £8 10s for No. 3. PRODUCE.— lmportations of Cajifornian fodder, arranged for by the Victorian Government, amount to 22,950 -tons, being 7300 tons of lticerno hay and 15,650 tons of cereal hay. The first of the cargoes is not due before Ihe middle of June. Tho co«t of tho cereal hay on trucks at Williaimtown will bo £9 per ton. and for tho cereal hay £7 10s per ton. The firs!, cargo will bo of 4000 ton«. APPLES FOR EXPORT.-In addition to arrangements made for export of apples to South America early in tho bpa.«on, there aro now further onquiries from Rio, but it is practically impossible lo obtain refrigerated ■'P?cp. However, a fairly largo "shipment has iu«t been arranged for this market on the bafais of 6s per 4,01b cr^o f o.b. Motueka. TIN PLATES.— There has been no shipment of tin plates [rout the Unilud Kingdom einco November. Shipments alO novj^poniixj^ out by, the Ppawa and Som.er A

set. Cargoes by thoso vessels will afford some relief of tho local shortage. The difficulty hai hitherto been ono of freight, tho Imporial Government taking no less than three vessels at Bristol, which were bringing out tin plates with other cargo. Supplies aro being drawn from Australia to meet urgont needs in New Zealand. HESSIANS.— A local importing- house has been informed by cable that no freight is available for hessians by the steamer leaving Calcutta for New Zealand direct in July, and that for shipment by tho November steamer prices have advanced Is per hundred yards. TEA.— At the last Colombo sales all grades of (ea advanced to Id per pound. Cables from London privately received read that Indian Pekoe-Sou-ohangs have sold at ll^d per pound in bond. It is understood that the common grades of teas are now being withdrawn from this market, and that the 1b 6d packet line will become a rarity. The experience of a lar^e importing house has been that since December last common and medium teas have increased iv price by from 3^d to 3?d per pound. The finer quality teas are not so much dearer in proportion. Harrison's and Eastern Export, Limited, in thpir fortnightly tea report, state that in Colombo on 30th March 2,452,7431b was offered. Quality was slightly better than the previous week's. Demand for all grades was strong, Russian buying being stimulated by the presence in the harbour of steamers offering freight. AH grades of brokens," except choico, tippy kinds, were dearer, the advance ranging from 1 to 3 cents. Leaf teas were also firmer, as were dusts and farmings. Freight to London has been raised to 80s, plu& 20 per cent., which will have the effect of • attracting tonnage. Freight to Australia, should demand from that market during the next three months be normal, will, wo fear, be short. "Efforts are being made to arrange for further British-India vessels, bnt the Indian Government having the call on these ? prospects arc not very hopeful. Weather upcountry is normal, and tea doings well. Public offerings in Colombo to date are 24,803,9901b, against 22,064.7941b last year. Shipments to the United Kingdom for March were 7.000.0001b: the estimate for April is 11,000,0001b. Shipments to Australia and New Zealand to date are about 5.000,0001b, as against 5.750,0001b last year. The s.s. Itaura is on the point of leaving with bookings amounting to 700,0001b. GROCERIES.— Prices for California dried fruits continue low. Some think the bottom of tho market has been reached. The whole thing depends, however, upon the war. The war has also had its effect upon American canned ' fruit. Pears, however, are likely to be dearer, as reports to hand show that the crop is by no means well assured. Stocks > of the smaller sizes of Norwegian sardines are reported to be ample, but half-pound tins are said to be ver.v scarce. Norwesrian shippers have notified that supplies are likely to be irregular 1 on account of naval operations in_ or noar the fishing waters. The advancing price of sugar is given as tha reason for last week's rise of id per pound on preserved ginger in Hongkong. Chinese walnuts, of which large quantities find their way into this country, have advanced £4 per ton. The price of Australian dressed rice has undergone no change, but a different basis of quotation is now being adopted. GENERAL GOODS.— An advance in the manufacturers' price of clothes pegs is expected. Mason's jars, usually sold on c.i.f.e. terms, are now quoted at f.o.b. only, which is taken to indicate an advance in freights between New Zealand and the United States. English manufacturers of heavy chemicals advise that they are now only able to book orders for immediate shipment, and then subject to confirmation. No forward business is being entertained at present. Certain concessions , made by British toilet soap manufacturers supplying New Zealand havo now been withdrawn, which is tantamount to an increased price of 10 to 12| per cent. Certain New ' Zealand makes of candles hay© &d,vanced,,Jd, per pound. J. Kitchen and Sons, 'Ltd.," MJlbqurne, have advised customers that, owing to a shortage of paraffin ' wtfx in Australia (caused by the difficulty in securing, freight from America), manufacturers have_ been compelled to alter the composition of tho cheaper 'grade candles ; consequently it has been necessary to advance tho price by £d per lb of all candles which have hitherto contained paraffin wax. In consequence o£ active American competition the Samarang kapok exporters have advanced prices id per pound' for shipment by the August steamer. OILS. — Indian castor oil for shipment from Calcutta to New Zealand direct in July has declined >ld per gallon on the week. Kerosene has advanced 3d per case for Wellington and 2d per case for Christchurch and Dunedin. For Wanganui, TimarU, and Napier, there has been no advance. Petrol has been advanced 2d per case in Auckland, Wellington, Napier, and Timaru. No change Has been made in the current prices at Christchurch, Dunedin, and Wanganui. The Physa, from Singapore, Originally bound to Australia with 150,000 oases of Sumatra motor spirit, has been diverted to New Zealand, and is duo about the end of .this month. Blundel!, Spence's linseed oil is a little easier/ on the weok.