COMMERCIAL & FINANCIAL

Evening Post, Volume XCIV, Issue 112, 8 November 1917, Page 4

COMMERCIAL & FINANCIAL

; Evening Post, Thursday. The latest information., received as to the fifth Commonwealth War Loan — for £20,000,000—is to the effect that the issue was fully taken up, that two institutions had subscribed £1,000,000, .and that another had taken, up £1,350,000 of the loan. This £20,000,000 loan is raised under the authority obtained by the C'omjnonwoalth Treasurer to borrow £80,000,----000 this year. Mr. Denison Millar, Governor of the Commonwealth Bank, holds that Australia can furnish the £80,000,000 j required, -and he has stated that this latest loan "will be followed by others—how soon the next one will be in coming will depend; of course, upon the amount that 16 raised now." The Commonwealth Trea- i purer has to find £64,000,000 for war pur- I poses this year. The following- are particulars of the Commonwealth's previous War Loans: —

The flotation, expenses of these loans were as follow: —First loan, 5s 2id per cent; second, 4s 7|d per cent.; third, 4s SJd per cent.; fourth, 4s 3id per cent. The maturity; of the above loans is 15th December, 1925—eight years hence. The fifth loan is redeemable in 1927.

A significant statement • was made two days before subscription to the loan closed by Mr. Cook as Minister for the Navy. It was this: "If you don't do it willingly [subscribe to the lean] we shall take it in taxation. That is one thing we cannot let you off: we will take ib from you in taxation, and you will not get any interest, so you had bettor give generously."

• Trade in Wellington appears to- be fairly steady. It is not yet noticeable that the high prices of not absolutely essential goods nas had much restrictivo effect upon their sale. Stocks are very short in sonio lines; in others they are ample. Considerable business \ has been passing be-, tween merchant and merchant and centre and centre. Also Australia has had many enquiries from New Zealand for lines.usually t imported direct from countries of origin. The effects of the late Australian strike on shipping are still being felt in the slow delivery of accumulated transhipment cargo for New Zealand in Australian main porte. This will take some time to obtain and distribute.

There are Tather more than suggestions of tightness in the local money market. Normally rates on first-class broad acre securities) arc 6 to 6^ per cent.; but it is by no means easy to obtain considerable amounts at even advances on these Tate3. r It is not expected that an easier tone of the markot may be looked "for this side of March or April, possibly a more Teniote period. The tendency is not so much for lending rates to substantially advance as to take an extremely conservative view in. meeting Tequcsts for accommodation in view of tne limited funds available, until relief is afforded by the realisations on wool and other produce begin to make their influence felt. *&

.WHEAT VALUES.—As instancing the rise in American wheat values during 1916,_ "Bradstreet's" states that farmers received an average of about 6s per bushel for their 1916 crop, which compares with 4s Id for 1915, 4s lid for 1914, and 3s 3£d for 1913. During 1916 tho price advanced steadily from 3s 10-, d per bushel on Ist July to 10s 4d on Ist June, 1917. Sales were heaviest in August and lightest in June. Total sales during- tho year are estimated at about 615,000,000 bushels, a3 compared with about 850,000,000 bushels in the preceding season.

DAIRY PRODUCE.—Details as to storage charges, insurances, and other matters have yet to be settled with respect to the Imperial Government's purchase of New Zealand butter and cheese. Cables are passing (at the time of writing) in order to facilitate the business. According to the Montreal 'frade Bulletin of Ist October, indications show that Canadian exporters are doing business on Micawber principles. The journal states: —At prices paid for cheese at country boards there is little or 2jo money for the middle man, as one exporter said it scarcely covered the trouble and expense of handling the goods. . "Then why continue to buy them?" rejoined the writer. "Simply to take the goods from the factories have been dealing with us for years," was the reply, "in the hope that something will turn up for the better, and enable us to keep our business connections until the war is over, or until the expected improvement happens." What was expected at that date was a rise in values, which are—No. 1, 21J cents peri pound- No. 2, 20J cents; No. 3, 20^ cents. American cheeses were in heavy supply but reported to be well held at 24i to 24J cents in New York for Wisconsins ''Young Americas" were quoted as high ,-s 26 S cents to 26£- cents. The Trade Bulletin also reports that Canadian factory men will stop making cheeso unless advanced to 24 cents per pound, but regards tma as a throat. It costs them less than lo cents to make at present, and returns of profit on an 851b box of cheese at 21a cents per pound are put down at 5 dof-" lars 10 cents. Production when the' last mail left Eastern Canada was heavy. In view of the decision by producers of the Dominion to accept the prices of 9UI per pound for cheese and 1575. per civt for butter offered by the Imporia! Government, it may be of interest to set out the imports of New Zealand butter and cheese by the United Kingdom for tho year ended 30th April, 1917, compared with thoso for the year ending the same date immediately before the war and when shipping was normal. The figures are compiled by the National Dairy Association, New Zealand:—

At the time the 1917 returns were made up there were approximately 200,000 cases of cheese and 240,000 boxes of butter awaiting shipment in New Zealand The export values of New Zealand butter and cheese to all destinations for the year ending 31st March were as follow: —

This year production is expected to be ■rery heavy, but the shipping facilities occasion some uneasiness. '

BRITISH CHEESE.-The. Imperial Government's maximum prices for Britishmade cheese when tho last mail left were as follow: —Cheddar make, Cheddar loaf Derby and Leicester make, each 132s per cwt; Caerphilly, 113s; Dunlop, 130s; Cheshire, Stafford, and Lancashire, and Wensleydale Flat make, 1295; partially skimmed 115 a, less 2d in the £1 discount cash in seven days, and Id in £1 cash in 30 days.

WOOL.—The wool valuing season may now be said to have fairly opened, and clips are coming into the stores. A large quantity of last year's clip (as given out in detail last week) is awaiting shipment. Ihe quality of the wool so far received is described as in fairly good condition, and prices are coming out very much the same as last year. The price schedule, of course, remains unchanged, but the condition of the wools will account for any variations in the values put upon them.

HEMP.—The, market is dormant. This is attributed to the prolonged negotiations as to the U.S. Government price o£ sisal fibre, which will govern that for New- Zealand hemp. Buyers are but little inclined to do business. Free on board values may be regarded as local, £51 per ton for g-ood fair, £50 per ton for high fair, and £48 per ton for low fair. London is at present out of the market owing to the shipping tonnage difficult;-. Australia, is not buying at the moment.

AUSTRALIAN BUTTER-The secretary to the Federal Butter Advisory Committee has notified Viotorian butter factories of the completion o£ tho sale of butter to the Imperial Government. The circular letter states that enquiries are being made as to tho quantity of unsalted butter required, and it was hoped that 3s per cwt above the price of 151s per cwt would be obtained. Further efforts would be made to procure an additional Is per point per cwt for butter grading over 90 points. It has also been suggested that Australian ■producers should participate m any profit' which tho Imperial Government may make on the sale in tho United Kingdom or olsowhere. Melbourne reports were for "fair orders for tinned butter for the East. Large quantities placed in cool store for export. Quotations: First grade, Is 4d; seconds, Is 3d; thirds, Is Id; prime dairy separator lots, Is Id to Is <*d; stored and mixed, lid to Is.

. FROZEN MEAT.—Lord Rhondda has issued new orders fixing maximum prices for meat. The following are the maximum prices, for wholesale dealings in imported meat, at per stone of 81b: —

DRIED FRUITS—Tho Australian Dried Fruits Association reports a falling off of the total production as compared with tho 1906 crop of 3113 tons. The dried fruits are not on the preferential export list, but it is hoped that shipping space will bo obtainable. The Commonwealth Orovernment offers to take 150,000 cases of dr.ed Australian apples this season to return 5d per pound to growers. It is expected that the purchase will run into £175,000. Tasmanian evaporated apples are to-day distributing in Sydnov at IOAd per pound in bulk and Hid" per 'pound in lib cartons, the samo having been offered to the Commonwealth Government at 5d per pound.

SUGAR.—At the last annual meeting of the Colonial Sugar Refining Company it was stated that fin Fiji there had been unusually wet, cool weat"her during tho autumn and winter, and they had, in consequence, a marked deficiency in the crops, both as to weight and sugar contents. . . '. The Fiji company had again undertaken to supply New Zealand with sugar for twelve mouths at a stated price, the consumer being free to procure it elsewhere if he could do so more cheaply. The Board of Trade, in drawing attention to tins arrange -non!;, expressed its satisfaction at obtaining- supplies for the Dominion at a much lower price than the cost of similar sugar in other countries "

GENERAL GOODS.—Tasmania expects to pick a record pea crop for drying this season. The manager of the Cheethara bait Proprietary, Gcolong, is the authority tor the statement that abnormal rainfall spoilt the Australian salt harvest of 1916-17 I hero was, he added, plenty of salt obtamab o m Australia, if it wore profitable to g3tlier it. In the- meantime increasing supplies of Californian salt at high prices are being imported into New Zealand Owing to the high prices of American glucose, the Australian article is now coming fairly freely into this market. Only a, limited amount of business is being done in lmseed oil, and that from Calcutta at high rates. Practically all space for kapok for IS^ew Zealand, December and April shipments, is taken up. Limited quantities ot new season s American canned fruits are expected shortly. Private reports by mail from Vancouver indicate a serious time ahead for traders in British Columbia on account of the paucity of the salmon pack. Japan is endeavouring to meet the general scarcity of carbide of calcium, and supplies in limited quantities are coming to hand from that quarter, also from Canada.

TEA.—The Calcutta tea market this week is cabled as "irregular;" useful hquonng teas were offering. Last week's uolombo market was reported .as steady.

£ Applioante. First issue 13,389,440 18,748 Second issue 21,655,680 28,939 Third issue 23,587,440 102,042 Fourth issue 21,484,020 66,191 £80,116,566

Imporbs. hitter (tons) !heese (tons) 1914. 16,600 34,250 1917. 11,001 24.001

Butter. £ 1914 2,140,019 1915 2,299,473 L 916 2,764,945 1917 2,787,487 Cheese. £ 2,195,278 2,387,828 3,033,227 3,100,168

-fcieei and Veai. Mutton. Pork. ,„„_ Hinds. Fores. Carcase. Carcase. 1917. s.a. s. d. s. d. s. d. >ept. ... 84 70 78 86 >ct 80 68 78 86 J°v 78'i64 78 86 )ec. ... 78 64 78 86 1818. an 70 58 78 86