Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 74, 30 November 1901, Page 5

Finance, Stocks, and Mining.

THE New Zealand three pea: cent, loan for £1,500,000, floated in London last week, must be reckoned a success The minimum price of £'94 per cent, was high as compared with other colonial issues floated this year, and tor this reason. The Bank of England discount rate has been advanced to four per cent . or one per cent, more than xt stood at when the other loans were floated

+ # * All the issues have had to be underwritten, which merely emphasises the adverse state of the London money market. But in. the comparison it will bo seen that New Zealand stands well the credit of the colony being good. The Lasb time New Zealand issued a subscription loan m London was in February, 1899, when £1,000.000 was raised, the minimum price being £96, and the average price realised was £96 11s With the announcement of the New Zealand loan, the registered three per cents, dropped 50, which was to be expected, still, the present quotation compares favourably with the quotations for the stocks of other colonies. The New Zealand Government issued £300,000 of Treasury Bills in London early last year, and in tJie June quarter of this year debentures to the amount of £500,000 were floated i- * ■* The loau money obtained bv New Zealand tlus year, including the loan floated last week , is as under — Kor Public Works 2,000,000 Advances to Settlers Lands for Settlement 524,250 Loans to Local Bodies 86,200 New 7ealand Consols 6,770 £3,207,220 • • • In addition to this £476,000 of Treasury Bills were issued for the redemption of guaranteed debentures, making the total loans £3,(383,220. Out of the £2,000,000 raised for public works, £200,000 was applied to the redemption of short-dated debentures, and it is very likely that of the half-million now raised for advances to settlers the temporary loan of £90,000 obtained from the Bank of New Zealand will be repaid.

The Go\ eminent dad quite right in pi efernng the London market to obtain ing the monej locally. To have adopted the latter course would have placed a strain on the local money market, besides the loan, would have cost four per cent, and over When commissions, discounts, and charges are deducted from the London issue, the colony will nett £92 per cent., which means that the actual interest payment will be equal to about 3-J per cent * * • The British money-lender makes a fine profit out. of our loans There is the underwnting premium, the commission on the issue, the discount for prompt payment, the difference between the face or redemption value of the issue and the price tendered, all of which amounts to about eight per cent which mi the New Zealand Loan means £120 000 Tim does not take count of printing stamp duty etc » * * The money does not come out to the oolony in sovereigns, but in goods, so that, there is the profit on the merchandise, the freight and the insurance, all of which goes into the pockets of the Britisher The loan will place* the Government in ample funds to carry on until Parliament meets m June next, and the various votes for public works will no doubt be expended * # * The bdlancev-sliee-t ot the Bank of New South Wales for the half->ear ended 30th September submitted to the shareholders last week, is very satisfactory The net profit totalled £104,646, as against £100 462 for the corresponding half of last year and the amount available foi distribution totalled £131, 043, a« against £126,743 * • • The Bank of New South Wales has done remarkably well in this colony, and the directors have been generous ( lough to make official acknowledgment of the fact. * * • Insurance companies are having the usual summer experience. Singular though it may seem, there are more fires in New Zealand during the summer than in the winter, and the losses in the North Island are greater than in the South. The loss ratio for the current month will be heavy. The Willis-street fire and the fire at Dannevirke will account for fully £15,000, and there have been numerous small fires to swell the total. * * * There is a very strong feeling amongst the* Wellington underwriters that it is desirable to have a night watchman. The alarm system is efficient, but a watchman would be a very great assistance. The matter will probably receive special attention now, and old Peter Johnston may again take hi? place in the watch-tower * • • Frozen mutton ls once again very much depressed, and the outlook is not promising. Our Argentine rivals have sent forward hea,w shipments, and are forcing sale*. River Plate mutton

has dropped an. eighth of a penny, but, so far, North Island mutton has not moved downwards. If the River Plate product is pressed for sale, then New Zealand mutton will have to be reduced, otherwise buyers will take up with the cheaper meat. There is not much to choose in quality. • • • The price of fat sheep has fallen 2s per head, which is another loss to the sheep farmers. The fall in wool, and the fall in mutton, represents a loss to the farming community of about £2,000,000 as compared with a year ago, and the lessened spending power is going to be felt by the cities. • • • Wellington merchants declare that the Christmas trade is, so far, well up to expectations, and ib nearly, if not quite as good as last year. This is very satisfactory indeed, Retailers and others, however, complain of the tightness of money, and the difficulty of obtaining settlement of accounts. This is probably the result of people saving for the holiday season. Many people have a holiday trip at the expense of the butcher, baker, and grocer. • • * The returns from the working dredges in Otago continue satisfactory, but what is of more importance is the fact that most of the dredges are able to resume operations. During last week fifty-two dredges obtained 11770z. or an average of over 220z per dredge. • • • Dredging on the West Coast continues to show improvement. The return from the Pactolus was exceptionally good while the Bullei Junction and Greenstone Junction di edges did very well. • • • The directors of the Waimumu Extended Dredging Company paid a dividend (the second") of sixpence per share last week . • • • The First Chance Gold Dredging Company is not to be wound up. as the additional capital required is nearly all subscribed. • • • The Prince Albert Company's dredge is now ready for work, and the pontoons for the Riley Beach Company have been launched. • * ♦ The Lady Charlton dredge has been working stiff ground ever since starting, but the dredge-master now hopes to get into more favourable ground. The dredge is working towards No. 3 shaft, and is about two chains off. The return of 12oz last week was 50 per cent, better than in the previous week. • • • The pon too na for the Commissioners' Flat dredge are nearly completed, and the machinery is expected to be ready for delivery in two or three weeks. • • # Almost the whole of the machinery for the Shellback Company's dredge is completed, and about half of it hae already been delivered at the claim.

Work in. connection with the Garibaldi dredge is to be reoommenced shortly. • • • The Wareatea dredge is temporarily shut down. The dredge has for umt tune past been working in a network of boulders with poor results. It is intended to call up the rest of the capital, and prospect the claim before proceeding with any further work.

Date March >eptember September )ctobei October Colony \ n tona New Stli \\ alts W est Australia i,»ue(.n^land Tasmania New Zealand \mount i £ i.00d.000 ■4,000,000 l,O(K),0(Xi 1,574 00(1 450 (>OO 1,500,000 Minimum £ 8 d W 10 f 04 0 I 01 0 f 01 10 C 92 0 (J 04 0 C

The three per oent. colonial loans floated vi London this year, and the minimum price fixed for each, show as under —