Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 96, 3 May 1902, Page 20

Finance, Stocks, and Mining.

THK annual loport of the Law Union and Crown Insurance Company foi 1901 has just been circulated in the colony, and, although theie are. no shareholders here, the bal-ance-sheet will be read with interest by those who insure with the company. We are concerned here only w ith the fire department, and the figures of this branch show that the fire premiums foi the j ear amounted to £187,722. The losses b> fire including a liberal estimate for outstanding losses, amounted to £104,108, or ■>) 4(> per cent, of the piemium income. ■* * ■* The expenses of every descnption, including commission, amounted to £03,023, being at the rate of 33.89 pei cent, of the net pi emium income. The net profit on the fire business for +he a ear amounted to £19,990. The life and accident departments also show satisfactory leturns, and the directors were able to recommend a dividend of .50 per cent on the paid-up capita]. As showing how e\ en the laige and carefully managed Bntish insurance companies suffer occasionaJly, it ma\ be mentioned that the Law Union and Crown Company found it nece«saay to write off for depreciation on Stock Exchange securities the sum of £34 287. The Law Union and Crow n Company lias not been in operation, very long in this colony but, under the management of Messrs A S Paterson and Co of Dunedin and Wellington, a faar amount of business is beang obtained. • • • The failure of the Balser Kiedit Gesellschaft, in. Switzerland, lepoited during the week, is said to have ruined many thousands of persons resident in South Germany The wreckage is due to speculation on the Pans Bourse. Stock Exchange securities have been rather dangerous investments for bankers and underwriters. There has been a steady fall in values for the past two or three years, and even the best giltedged securities ha\e not escaped from the adverse movement. Imperial Consols have declined from £113 to £94 and the fall has caused bankers a good deal of trouble. * * * There' lias been much tiouble m Geima'iy with bank failures during the past twehe months, and it was hoped that the woist, had been o\ercome, but the failure now under notice will piobably bring down other institutions The unrest m Europe is m a great measure due to the slackness in trade and the scarcity of employment and this new bank failure will accentuate +he troubles. * * * There is not much likelihood of the banking troubles of Europe being felt further afield. The British Empire, at anj rate, will not be drawn into the mischief. Since 1894, colonial Hankers have cleaned up their institutions, and, with few exceptions, the banking position is strong. * • » Recent h , the Australian Banking and Insuiance Recoid"' dealt w r ith the AustiaUsian banking position, and the analysis proved to be eminently favouiable The total amount distributed in dividends in 1893 was £600,014, while foi last yeai the aggregate was £928,922 The net profits showed that, while in 1893 onh £908,930 was earned, m 1900 the net profit was £1,304,441, and last year the amount increased to £l,)0(i,30'). These are convincing figures, and very gratifying, for they bear testimony to the determination of the colonials to overcome troubles. * * * All the banks trading m New Zealand have done splendidly since the great banking crisis of 1893-1894. The dividend of the Bank of Australasia is now 10 per cent., as against 5 percent . the Bank of New South Wales also pays 10 per cent now , as against 8 per cent. , the Union Bank 8 per cent , as against ') per cent. , and the. National Bank 10 per cent., as against 5 per cent. * * * The Bank of New Zealand has not, of course, paid a dividend, but this year the shareholders expect to receive o per cent, on the paid-up capital, and they will get it A good deal was said in Parliament last session in adverse comment on the proposal to pay a o per cent, dividend as suggested by the then chairman of the Bank of New Zealand, but since then. Ministerial opinion has undergone a change, and no opposition will be offered to the payment of the dividend. « » * From the point of view of the public, it is desirable that this dividend should be paid, and other dividends in the yeans to come if the profits admit The position is this The dividend distribution tends to enhance the value of the

shaies, and as the bank holcls a laige number of roifeited shares it is obvious that these can be sold, and their sale will mean a further lessening of the liability of the bank to the State * * • Tlie Got eminent is wisely encoui aging — or rather, is not offering any opposition to the dividend, but when the forfeited shares are issued a different attitude may be assumed. It the bank can place the forfeited shares, it w'U mean a gain to the Stato of neai ly £200,000, if not more. * * * Millers of hemp are expenencing nicMiy troubles, and several are behind in their contracts. Owing to tlus fact, hemp is at an inflated pi ice, mci chants and millers being obliged to buy at any pi ice to cover their contracts. Hemp is depressed in the London rnaiket, but the position locally is firm. The mills aie ail woiking on orders tha.t will keep a,ll the mills fully employed until August, even if no fresh orders come in. * * * Frozen meat is fi/in, but the Wellington freezing companies are coming in for an unnecessary and unwarranted amount of abuse. It seems that one Woodville farmer, disgusted with the offei made bv the Wellington companies for his sheep tuod the Canteiburs market with Jjreat succe^ He leahsed os a> head moie than was offeied locally. -^ ¥■ * The Wellington heezmg companies do not contiol the market for sheep, and cannot be accused of doing so whom the farmers are able to take ad^ antage of thei Canteibuiv maiket a.s m the case of this Wood\ die fanner. Intel es,t in dredging is steadily mcrexismfir. The expansion m the ■weekly leturns, and the fact that the majority of the dredges are woiking on a piofitable basis will account for the renewed act*i\itv of speculators * * » West Coast dredging ventuies aa - e turning out well m the majontv of instances, and had this improvement been shown a ear ago, the market Mould ne^er have slumped as it d;d Howe\er the sobering influences) of the slump will in the end, prove beneficiaJ, foi it is reasonable to assume thatwild cats" will not be given an oppoitunitv to exist * » * Otago dredgng is now on a satisfactory basis. The nveis are at a low le-\ el. and most of the dredges are able to operate. Given fair conditions the weekly returns from this district ought to exceed 3000oz per week The steihng value of this output must favouiabi\ affect the Stock Exchanges. The Ganbaldi dredge (West Coast) is practically completed, and active operations vhould be started in a few days. * * * The poor return of the Lady Charlton dredge was not unexpected bv the dredge mastci, who, however expects to get on better wash soon. It will, however, be four or five weeks before the dredge gets near the shaft where excellent tests weie obtained Many of the Coast di edging companies aie dissatisfied with the prices given for gold by thebanks, and talk of sending the metal direct to the Sydney Mint.