Finance, Stocks, and Mining.

Free Lance, Volume I, Issue 23, 8 December 1900, Page 5

Finance, Stocks, and Mining.

THE balance-sheet of the Kauri Timber Company, Limited, for the year ended 31st August, 1900, issued in Melbourne, is now available ' and shows that the trading profit for the year totalled £35,667 2s 4d, which, added to £33,505 18s 3d bought forward from last year, gives a total of £69 173 0s 7d available for distribution, and this has been appropriated as follows:— To payment of dividend for the year at the rate of 3 per cent, per annum, £17,550; to carry forward to next year, £51,623 0s 7d. *■ * *■ Owing to the uncertain value of the shares held by the company in the Kauri Freehold Gold Estates Limited, which recently reconstructed, £W,UUU was set aside out of the amount carried over from last year as a special provision against depreciation in value ot these shares. ■f * * West Australia has met with another rebuff on the London money market. The colony borrowed £1,000 000 early in the year at 3 per cent, the average price being £93 12s lOd, making the real interest £3 8s 2d per cent. The loan ust issued was for £380,000 at 3* per cent., at the fixed price of £100. The issue was underwritten on the usual terms, say 1} per cent., and, ot course, the usual charges have to be paid. * * * Nearly all the loans floated by West Australia in London have been at 6 per cent., and although i per cent, was oifered for the last issue it was a failure, as only half the amount required was offered. The golden West is piling up a public debt very fast. Nine years ago the total was £1,514,269 ; in June 1897 it was £7,105,178 , and m June, 1900! £11,297,479, after deducting sinking funds in hand. * * Most of West Australia's borrowed millions have been expended l in reproductive works, and only £6d,8/o Has cone on public buildings , railways have absorbed £6,636,236, and the net earnings of the railways covered the entire intere&t on the debt last year. The failure of the West Australian loan is an indication of the stringency of the London money market, and the terms upon which the issue was made shows that the day of 3 per cent, colonial loans has gone by not to return for some time. This, if it proves correct, will affect the colonial Governments m their commercial undertakings, as, for instance, advances to settlers, which are based upon borrowing at 3 per cent. In any case, the market is distinctly unfavourable for colonial loans, and although it is not likely that any more will be issued this year, there is no promise that the conditions will be materially improved in the spring as is hoped. * * * Loan issues are being postponed, and during the past few weeks further borrowing bills have been passed by the Legislatures of New South Wales and South Australia. It seems probable that the Governments of Australasia will require to borrow about £10,000,000 if not more next year, and as other countries are also waiting their opportunities it does not look very healthy for any one. If a financial or commercial crisis is experienced in Europe, and the outlook is none too favourable in Germany and France, the colonies will have to pay very dearly for their loan money. * * * Masterton is no further advanced in its efforts to establish new industries. The municipal freezing works proposition is favoured by many because it means that some other fellow finds the money, and if there is a loss the ratepayer's bear the burden, while if there is a profit the producers will grab it. * * * The Bruce Woollen Manufacturing Company did not experience quite a good time during the past twelve months. The balance-sheet for the year ended 19th October, 1900, shows a profit of £116 12s 2d ; not enough to make a dividend, and, consequently, the shareholders get nothing. * *■ * The company appears to have bought wool early in' the year, when prices were high, and has not been able to get corresponding prices for the manufactured goods, hence the shrinkage in the profits. The Bruce Company has been three years in existence, and is therefore quite an infant, subject to the usual infantile ailments. There will be anxious times for the woollen industry when the trade slackens, and price-cut-ting becomes necessary to push business.

The Dunedin people are signing a petition praying the Government to subsidise a line of steamers to South Africa. The Hon. J. G. Ward has already publicly stated that the Government has decided to invite tenders for such a service for a period of two years, but the canny Dunedin folk evidently think that this is mere bluff — hence the petition. * * * The petition looks as though it were being engineered in the interests of the Union S.S. Company, for it is apparent that the company will have a cut at the trade if the subsidy is big enough. Well there is no reason why this New Zealand concern should not secure the job ; better the Union Company than a Yankee or a German company. * * * There is a general consensus of opinion that good will result from establishing the service with South Africa, but that is because it is assumed that all that is necessary is to put on a steamer and there you have your trade. There will be a big fight for the South African trade, and New Zealand may win by paying a heavy price. * * * Business in investment shares 7011tinues fairly active, and there L ;i steady demand for most of the safe d'yi-dend-payine stocks. Bank shares maintain a favourable position, and Na^mal Bank shares have advanced slirbtly. The intpnm dividend for the halfwear ended 30+h September is jus+ about ilu«. * # ->r Gas sharp? are very firm, and if is satisfactory to note that Palmenton North gas shares are at £3 10s. Wanganui gas shares are firmer at in view of the prospect of the Borr> , h tuking over the works at a satisfscivv f <rnre. Insurance shares are receiving moi " attention and several sales are reported at the four centres. Financial shares, too, are exceptionally strong, but no business is passing, as sellers are scarce. * * * Meat shares have been, and continue to be, very firm. Wellington Meat Exports changed hands at £8 17s. Gears, £4 paid, are offered at £12, and Christchui'ch Meat at £12 also. * * * Manawatu Rails are in active demand at 235, but sellers are not to be tempted. Coal shares are in request at slightly better prices. It remains to be seen what effect the Coal Commission will have on the market. The return of 51 oz from the Grey River dredge is very satisfactory, as showing an increase upon the previous returns, and also because the dredge has not yet bottomed. The returns are certain to show considerable improvement, and some enthusiasts look for returns of 300oz and 500oz. f * * The increased return from the Grey River diedge is groatly improving the market value of the shares of companies whose claims are adjoining. Jones's Flat are in demand again, and moving upwards. Grey River Extended, a Cnristchurch company, has also seen its shires actively inquired for. * r- " The Dobson No. 2 dredge is giving a surprise to most people. It was not expected that any appreciable return would be obtained for weeks, instead ot which almost at the first attempt good results have been obtained. The Dobson No. 2 may upset all calculations after all. Next month the following dredgo*. ought to be operating on the West Coast. — Greenstone Junction, Greei stone Creek, Foleys Creek, Nelson Creek, and Pactolus, and all the claims are reported to be first-class. * * * In Otago the following dredges are waiting for a fall in the river to get to work, viz. — Sailor's Bend, Electric Ex tended, Merrimac, Upper Magnetic, Central Filectric, and Second Magnetic. r- * * The pontoons for the Foleys Creek (West Coast) dredge were launched on Thursday of last week. The machinery is all on the ground, and the work of erection will be pushed on with all speed. Tlip Mokoia Gold Dredging Company's dredge has been raised, and the caulking is being thoroughly examined before launching. The dredge should be afloat again in about three weeks. Most of the machinery for the Bald Hill Flat Company's dredge has been lying on the ground for some weeks, and a start has now been made at fitting up. The New River dredge, on the West Coast, will, in all probability, be in commission next month. The Alexandri Lead pontoons wore launched on Thursday of last week. The erection of machinery will be taken 1 i hand promptly.

The Wairoa, between the Eclipse and the Metallic, is engaging attention. Most of the brokers in Wellington have buying orders, but shares cannot be picked up very easily. A strong advance in these shares is not unlikely. * * # The brokers on the Dunedin Stock Exchange are holiday mad. Last week, because of the A. and P. Show they shut up for three days. The Christmas holidays are to extend over a period of seventeen days. The brokers niust be coining money to be able to indulge themselves like this. * ■* The Wellington brokers are not so keen about holidays, but then the share pushers in the Empire City have' to hustle for business to feed the Dunedin brokers. The frequency of holiday is annoying to speculators.

The Kelly and Casey dredge is in an advanced stage. Nearly all the machinery is oil the claim, the pontoons have been launched, and a staft of engineers are now busy fitting up the machinery. West Coasters are not feeling very pleased over the recent reports of alleged salting of dredging claims. Premier Seddon gave them a lesson on the immorality of such proceedings, and it is time the more honest in the community took seme steps to put a stop to the swindlers and the swindling. * * * Two or three West Coasters who were in Wellington last week on business experienced a most uncomfortable time in listening to the opinions of city men on the morality of West Coast miners. It is to be hoped they will inform their friends when they get back as to the state of feeling outside.