COMMERCIAL & FINANCIAL

Evening Post, Volume XC, Issue 83, 6 October 1915, Page 4

COMMERCIAL & FINANCIAL

Evening Post, Wednesday. The prospectus of the Public Works Loan of £2,000,000 to be raised in. New Zealand is expected to be published shortly. The uncertainty which has been felt by some investors should be dispelled with its publication. Jt is probable that a fair amount of the issue may be taken by local institutions, and by Australian undertakings having established interests in this country. Private investors, too, are expected to apply for comparatively large amounts; but it is understood that their applications would bo increased if the stobk were acceptable by the Government for the payment of death and succession duties, as has-been provided by, the Commonwealth Government as a. condition of subsciiption to the Five Million War Loan . just issued, and for which much over £13,000,000 was subscribed. The freedom from, income tax will, of course, be [ an attraction to intending subscribers to out £2,000,000 loan, as was proved in the case of the great Commonwealth issue The £2,000,000 loan, it is held by some financial authorities, would undoubtedly have a better reception if it were (as the Australian loan was) issued as exclusively for war purposes; but providing the Government receives the full amount for which it is about to ask the public, it will, perhaps, be content in the meantime. At the same" time there is no denying the fact that an opinion is held by those intimately connected with considerable business undertakings that the Government should keep a most vigilant lookout in regard to all expenditure that may not only be superfluous, but that can wait until the financial horizon is a little clearer. The quarterly bank returns will shortly be coming 1 in. They should be of exceptional interest. They will show how the country has stood the strain of a year of war. The war began on 4th August, 1914. The quarter ended 30th September, -1915. The corresponding quarter of 1914. with -which it will be compared, included but two months of the war, when thet enormity of the subsequent expenditure and the expenditure yet to come upon war and all connected with it was practically undreamt of. One thing, it seems, is inevitable "as a result of the flotation of the £2,000,000 Publio Works Loan, and that is dearer money. Already 6 per cent, appears to be the minimum rate for first-class mortgages. The Banking and Insurance Record shows that, as a sequel to the issue of the £5.000,000 Commonwealth War Loan, the Victoria State Savings _ Bank raised its interest rates ;_ so did the Hobart and Launceston Savings Banks — both old-established, wealthy, and conservative institutions. South Australian and Tasmanian Government securities were sold over the counter at 4£ percent. According .to the Bankers' Magazine, the effect of the issue of the Great British 4£ per cent, war loan on the market value _of 387 representative gilt-edged securities was a depreciation of £98,589000 for the month ended 20fh July. As contrasted with market values on 20th July, 1914 — a fortnight before the war — the depreciation of these etocks is actually £460,720,000. DOMINION TRADE.— A. bird's-eye views of the trading conditions of the four centres shows that Auckland is quiet, but by no means dull; although the turnover on land dealing has been materially reduced of larte. Christchurch ia about normal, but some anxiety is being felt there with the future of tlje grain yield. The crops which promised so well are sorely needing rain, and the whole of Canterbury, the pastoral districts included, would regard a fair rainfall as a sign of divine favour. Otago is likewise hoping for a heavy _ and fairly continuous downpour. Dunedin itself is not particularly brisk, but it continues "solid." It is doing all the trade that its well settled surroundings justifies. Wellington, besides the potential wealth realised on wool and other produce of its back country, has the. added advantage of being the military centre, and the port of the city is that for the supply of the transports. The presence of such large numbers of men in the camps in the Wellington district puts _ a considerable amount of money into circulation, which not only finds its way into the metropolis but also into the smaller towns in th© vicinity of the camps. _ _ t All through the Dominion the accounts of traders appear to be well met, speaking generally, and this applies more particularly to hardware, drapery, anjL clothing, and' grocery and general dis- | tributing houses. The world's markets are_ keen for the principal products that this country has to export — wool, cheese and butter, flax, skins and hides, and tallow Meat, under the Imperial purchase scheme, is returning a remunerative price to the primary producers, notwithstanding the high level whxch British retail prices have reached and appear likely to maintain. The < produce export year opened most auspiciously with butter at a phenomenal level, and the first instalment of the new season's make, now on its way, should reach a hungry market, where Danish at the present time is realising 198s to 202s per cwt. Cheese is to follow shortly, for which high, prices are practically assured. The ' export_ meat season, it is hoped, will open with all freezing stores in this country cleared out. Hemp is keeping up well in price. A strong wool market is believed to be certain. A MELBOURNE MILLION. — The Melbourne Board of Works, having exhausted its borrowing powers, has had prepared a draft Bill for submission to the State Parliament to authorise the board to borrow £1,000,000 for sewage and j water supply works It is stated that tho ruoney is not wanted immediately BIG SHIP EARNINGS.— During the fir3t half of the present calendar year the Holland-Amerika Steamship Company could have paid 80 per cent, dividend on its ordinary shares, making 160 per cent, tor thejear. The usual 15 per cent per annum dividend, however, was adhered to,_ and the money was put into strengthening and -renewing the fleet. | BRITISH TRADE.— The Board of Trade returns for July completed the returns for the twelvem onths of the war. They showed as follow : — 1 £ ■ '£ Imports . . 766,813, 713 Inc. 2,779,927 Exports . 348,712,133 06^172,392,258 The increase and decrease are for the corresponding twelve months, 1913-14. Exports for July laet were the best since the war started/ The total -was £34,721,511, but this was £9,683,869 below the value of exports for July, 1914, and £12,442,697 below those of 1913 Food and raw materials accounted for the great increases in imports — meat alone being £9,698,982 for July alone. DAIRY PRODUCE.— There is some excitement in tfo& minds of all concerned in milk products throughout the Dominion. Confidence in tho future of the cheese market has been shown by the high prices paid for outputs in the South Island— up to 7£d per pound. Even 7fd has been mentioned, but is unconfirmed. In the North Island consigning is almost exclusively adopted as the method of disposal of ouputs, and factories which have elected to take this course* would appear to be fully justified by the prospects of | the market. Another winter campaign now seems inevitable, and even should tho war cease almost immediately there will still exist the necessity for feeding vast numbers of men engaged on military duties. WOOL. — Buyers for the new season's wool aT© already in th© country, representing mainly British houses. The first of the big sales will open in Christchur.ch on 11th November, and Wellington will follow on 17th November. Competition is expected to be particularly keen, as notwithstanding the heavy demand for wool for khaki the requirement® for civilian purposes aro necessarily very heavy, and on the suspension o£ hostilities would only bo intensified. London mail advices show that, as much as 5d per pound under July rates had been bid for scoured wools and 2d tc 3d per pound for greasy wools. The War. Trade Department has decided that slocks of crossbred wool in Yorkshire are more 1 than sufficient for immediate requirements: hence it was decided to allow the «xppri of 125,000 to the Allies and the United SiHton- Tlic Amoricun <Ipxiand ituty be * /eaiur* in ths opening

sales, in New Zealand^ this Reason that will beneficially influence prices in the room. I HEMP. — Approximate f.o.b. prices for •hemp are practically unchanged for the week, and^are as follow: Gooa fair grade, £25 15s to £26 per ton? high point fair, £24 15s to £25 ; low point fair, £23 15s to £24. Tow is weaker, and prices may be taken as £11 10s to £11 15s per ton for No. 1 ; £10 10s to £10 15s for No. 2, and £9 10s to £10 for No. 3. Tho quantities graded for export for tho twelve months ended 30th September are as follow: —

During' September last 11,330 bales hemp and 2891 bales tow were- graded, being increases of 5514 and 1526 bales respectively over the corresponding month, of last year.

±Vi.U, iOXt. Bales. Temp ... — 99,836 fow 26,796 Stripper Slips 2,323 Bales. Dec. 121,124—21,28 38,524 — 11,72? 3,239— 91f