Finance, Stocks, and Mining.

Free Lance, Volume I, Issue 49, 8 June 1901, Page 5

Finance, Stocks, and Mining.

THE balance-sheet of the Government Life Insuiancc Department for the year 1900 is now available, and the pohcyholdcrs will not be displeased with the results of the year's working. • * • The new piemiums for the year amounted to £20,14.5, which is about £2000 less than the amount* so received in 1899 and 1898 The decrease is comparatively slight, but it is an indication of slackening trade. * * * The renewal premiums, which show whether the department is retaining its business, totalled £261,4/57, against £253,430 in 1899, and £2-17,025 in 1898 Tins side of the business it will be noted is entirely satisfactory. • • # The death claims, including bonus additions, amounted to £92,07."), as compared with £95,322 in 1899, and £109,090 m 1898. The mortality experience is very favourable, and compares satisfactorily with the experience of other life offices. Obviously, the department is showing excellent care and discrimination in the risks accepted * * * The surrenders show a decidedly abnormal expansion. The total for 1900 was £27,361, while in 1899 the amount was £18,937, and in 1898 £20,254. As the department confines its operations to New Zealand, this is not a pleasant feature. A decrease in the new business, and an increase in surrenders, indicates that the circumstances of the people were not as good as in 1899. ♦ • • The war in South Africa may account for this decline, for there is no doubt that hundreds of good lives were lost to the insurance companies by the despatch of so many young men from New Zealand to fight the battles of the Empire in South Africa. # * * The expenses of management last year foot up to £37,303, as against £35,803 in 1899, and £35,101 in 1898. The slight increase is mainly due to the extra amount paid in triennial expenses and in compensation. * # • The outstanding and overdue premiums for 1900 amounted to £39,959, against £39,073 in the previous year. There is very little difference in the figures, which shows that the premium collections have been well looked after. # • * The amount of funds at the close of the year is shown at £3,139,957, against £2,997,681, a gain of £142,276 in the year. The gain in 1899 over the previous year was £136,147. * # * The Shaw. Savill, and Albion Company had a fairly prosperous period last year. The accounts show a profit of £27,199, after paying all expenses, providing for depreciation, and providing £20,000 to the renewal, repair, and boiler fund. The company paid a dividend of 5 per cent, for the year, and the dividend equalising fund now stands at £20,000, sufficient to pay one year's dividend at 5 per cent. * * * The balance-sheet of the North Butish and Mercantile Insurance Company shows that the net fire premiums for 1900 amounted to £1,546,853, and the losses to £972,212. The total distribution to the shareholders amounts to 34s 6d per share and £383,033 is carried forward. ♦ » * The report of the London and Lancashire Fire Insurance Company for 1900 states that the net premiums amounted to £955,706, and the profit thereon totalled £137.529, which, with interest on investments, gave a gross profit of £179,252 After paying a dividend of 12s per share, the balance carried forward is £451,772. • • * The report of the Commercial Union Assurance Company for 1900 states that in the fire department the net premiums amounted to £1,412,030, an increase of £262,336, and the losses paid and outstanding to £711,748, or 50.4 per cent of the premium income. The piofit and loss account was closed with a balance of £156,023, out of which a di\idond of 35s per share has been paid. # ♦ * The Bank of New South Wales bal-ance>-sheet for the half-year ended 31st March shows a profit of £108,247 and, with the amount brought forward, the available balance is £126,896. After paying a dividend at the rate of 5 per cent, for the half-year, there remains a balance of £26,896 to be carried forward.

The dredging inaikot is in a shocking condition, mainly owing to the difficulties of dredging. For weeks past the rivers have been more or less flooded, and w ork of an intermittent character has given the poorest of results. *■ -x * The industry is none the less sound, and this will be show n very soon Theie is, of course, no known method by winch the accident of floods can bo overcome, and, theiefore, the present disappointments must be onduied. The law of compensation will operate in tins as m other things, and it will be found that when the weather does moderate, and work can be resumed, that the returns w ill be sensationally large Another good feature is the certainty that many of the wild-cat concerns floated in the boom period of last year wiU he slain A goodly number have already been cleared out, but a few more still remain to bo clubbed. *• * * It is usual for the w eather in Otago to be favourable for dredging in the months of June, July, and August, and unless the unexpected happens the di edges ought to be able to resume full operations very shortly. Already there are reports of more favourable conditions, and it is m the nature of things to expect a spell of fine weather now. * * * From the 20th November, 1900, to the 12th April last the Central Electric dredge, in spite of numerous stoppages, obtained 2610z of gold, valued at £1007. The dullness and dreariness in dredging are bringing out a crop of suggestions for improving the market. Overselling and the necessity, therefore, for "bearing" stocks, have had a good deal to do with the depression of the market, and it is suggested that the Dunedm Exchange should revise its rules so as to put a stop to the "bears." *• * * The plan suggested is that w hen a sale is effected the buying broker should add the buyer's name to the contract note, and the selling broker the sellei's name. Then to allow two days for settlements in the city, and seven days for country orders to be completed. * * * The plan is a good one, and will help to kill the bears, but there is just the possibility that it may accomplish too much. It would, perhaps, be better to have fixed periods for settlement after the style of the London Stock Exchange, stocks carried over to bear contango, and the committee of the Exchange to fix the makmg-up prices of stock that require such adjustment. The main thing is to have a settlement on a fixed date, with penalties for non-fulfilment of contracts. It is a v, ell-known fact that some transactions, even with the leading brokers, have taken months to complete, which should not be the case. * * * The Dunedin Stock Exchange can do a very great deal in this matter if the members were only sincere in their desire to bring about necessary and reasonable reforms. Speculation in dredging is at a standstill just at present, but it will not stop at that very long, and it would be as well to fix up the reforms suggested by the experience of the slump before the slump gives way to activity. ■* y- + The floods have caused no damage to dredges in the Shotover, Dait, and Airow Rivers. It was reported that the Dart River dredge had grounded, but this appears not to be true. At any rate, there has been no such announcement in the Dunedin papers. The Happy Valley dredge is in a very forward state, and most of the machinery is in position. This dredge ought to be in active service very shortly. The First Chance dredge has been floated down to the claim, and is now ready for work as soon as the state of the river will permit. * * * The pontoons for the Welcome Gold Di edging Company's dredge are neanng completion, and will be launched at an early date. The dredge is expected to be working within three months. Wo have received tho following note from the resident secretary of tho A M.P. Society — 'Dear Lance, — In your issue of tho Ist instant I observe >ou have kindly taken notice of the Society's annual report, recently issued. In the first paragraph referring to the New Zealand business, you state that 'for last year 1224 policies were issued, assuring £287,976 ' This should have been 2472 policies, assuring £592,850 The figures quoted by you represent tho net increase to the business after deducting all void ')> biness consisting of claims, surrender ( te -only the sum assured should have boon 1288,090, not £287,970."