Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 98, 17 May 1902, Page 20

Finance, Stocks, and Mining.

HOLDKRS ot shaies in the new monbund Wanganui Gas Company will be elated with the report and balance-sheet just circulated by the directors. The gasworks were sold in March last to the municipality for £19,07.5, but there is still the outstanding accounts and the freehold property to be realised. The directors anticipate that upon full realisation, the shareholders will receive £lo per share, or -30 pei cent, more than the face value of the shares. This is a very handsome return and goes to show that the company, dm ing its long career, has been well managed * * * The shaies of the Wanganui Ga& Company very seldom went beyond £12 10s, so that the sale to the borough has been effected on splendid terms. The borough has no reason to be dissatisfied with the bargain for, if well managed, there should be considerable profit to the municipality Municipal management in Wanganui is apparently of a higher order than we know of in Wellington. The municipal playhouse ot Wanganui has proved a very profitable venture, and the gasworks will be quite as good. # . . Wool has advanced To those who do not know the troubles and trials o* the wool-grower during the past two years this statement will convey very little, but to the pastoralists and woolbrokers it means a great deal. Ine decline in the value of wool was last vea,r equal to about 40 per cent, on the prices of the previous year. With the commencement of this year, there has been a steady advance and the recovery amounts to about 20 per cent or about haJf the estimated decline of last Mast wool-growers had to face heavy reclamations, and in many instances the advances on the ch'p now being marketed were not more than the amount of the reclamations, and the growers had httle to look forward to. The steady advance is 1 therefore very welcome, and means so much additional money in the pockets of producers • • • Farm improvements, that have been held over pending a more favourable period, will, no doubt, now be put in hand, and this means work for the people in various directions. The improvement in wool prices will aho give a stimulus to land settlement, which again w ill result in good to the community. * • « On the whole, the farmers' outlook ha& considerably brightened Most pastoral products are selling well, and New Zealand is essentially a pastoral country, uncommonly well endow ed by Nature The only real drawback to farming is the absence of roads and means of communication in the backblocks. Good roads and new markets ought to be the. rallying cry of the farmery, and every effort should be made to stop the squandering of money on post-office' clocks in country towns. Clocks are meie ornaments, while roads are an absolute vital necessity • • * The question of new markets should be kept well to the front, lest the authorities forget all about the subject . Tenders for the South African service closed on the 14th February last, and, alter three months' negotiations, the colony does not yet know officially whether a direct service will be established. If peace is restored, as seems likely, this colony should hustle for a share of the increased South African trade which is bound to follow. • ♦ • Accouhng to Mr. Chapman, of Johnsonville, who has apparently made the best use of the time spent in South Afnca, theie is an opening for trade but Mr. Chapman suggests that a resident Government agent should be appointed at the Cape That agent should, of course be Mr. Chapman. The colony might do worse * * * It is well to remember, in connection with South African trade that very gieat efforts will be made to settle farmers thioughout the new colonies. The Boers are to be helped to rebuild their homes. In a year or two, South African farmers should be doing well, for, in addition to a large military population, there is bound to be a big: influx of miners to develop the known mineral wealth of the Transvaal. * * * But South Afnca must necessarily impoit a large quantity of foodstuffs for two or three years, and the question w ill be one of cost, and not of sentiment. If we can offetr better" goods, at cheaper rates, than our competitors we will command the trade, but if others can sell at lower prices the merchants of South Africa will not trouble themselves

about the fact that New Zealandeis hmght the battles of South Ah lea * * * The people oi South Atnca must, m then own mteiestb, buy m the cheapest markets, and this question of cheapness is, one that New Zealand will have to stud> it theie is any expectation of getting a shaie of the trade. Theie is, of course the uuestion of prefeientiai tiade within the Empire, m Inch is one of the academic Questions to be discussed a,t the approaching conference of Premiers in London. But what preference can we offei South Africa? We take nothing 01 practically nothing, horn that country, while we expect to expoit to it a considerable ciuantiU of produce Attei all, thetaade with South Africa, a.s with other countnes, will ha-ve to be conducted on business lines which have for their basis mutual benefit. The South Africans will buy fiom us if it stuts them, and we will sell to them it it suits us If they eaai buy cheapei elsewhere, or we can sell to bettci advantage, to others, theie will be no great trade between the two countnes If we want a, 4iare of the South African trade, we must make it worth their while to trade with us. * ♦ * The London market foi frozen mutton is very firm, and prices are advancing. The reason for the movement is explained m the cabie message iecene<3 by the Department of Agriculture , there is a shortage in supplies amounting to (>30,000 carcases, as compared with the corresponding period of last year. The quotations received earh in the week show that North Island mutton is on the average id per lb higher tha,n at the corresponding date of last year. The freezing companies that have stocks on the spot, or neanng the terminal port, ought to do well now * * • The news of the unpioved condition of the mutton market, read in coniunctaom with the advance in wool, is very cheering. It must not be thought, however, that the market will continue firm for any length of time The hieh prices will attract increased shipments, and, as there is a great excess of lambs m store, the fall in values of lamb is bound tosteadv the mutton market. * • • The diversion of shipments to South Africa is piobablv one caus^ of the nnpiovemenit m values. If so, it pro\ es> that even if New Zealand does not contribute to the meat trade of South Africa the diversion of supplies fiom other nroducing centres raises the London quotations, by which we benefit directly •*• -Jt * The shaiemaiket is faiil} active, biners being more numerous than selleis,. All the better class of investment stocks are in good demand, at full rates but holders are very firm. * • • Bank shares are very stead^ . Nataonal& are m good demand at 7 .'5s The brief details of the balance-sheet of this bank for the year ended 31st March last, should be cabled to the colons very shortly. It is believed locally that the bank has had a splendid year, and an inci eased dividend is expected. * * * Bank of New Zealand shares meet with rcadv sale, and the latest transaction lecoids the price at 625. Two \ears ago the shares could have been bought for a& many pence, and this crocs to show the vast progress made V> the State-guaranteed institution * # • Insurance shaaes are neglected. Theie are free sellers, but buyers aie scarce. The fire hazard is still very perplexing, and, although there has been no sensational fire losses, the number of small losses have been more numeious than usual, and, on the whole, the losses for the year will be as great as ever. * ♦ • Gas shaies are very firm, as they neaily always are, being regaided as the safest of investment shares. _ Wellington ga.s shaies are up to £18 "ss. * * * Interest in dredging show s no material change. The returns are wanting m sensationalism, but they aie nevertheless, very satisfactory, both from Otago and the Coast. * • • This w inter promises to be exceedingly favourable for dredging, especially m Otago, where the rivers are said to be as low now as they were in July of last year. If this continues, the output of metal ought to be \en r large. * * * For the past four weeks, the letums from Otago have approximated to £8000 sterling per week, and this should be greatly exceeded during the next eight or ten weeks. It is this increasing weekly output of metal that will eventually impress speculators. * • * The gold won by the dredges is so much additional capital to liquidate debts of one kind and another. The

liquidation of diedging companies has not ended, but the worst of this business is to all appeal ances, o\ ci . The conditions aie again making foi a ie\i\al m diedging, and piesentlv it will be lealised that the shares of most of the dividend-paying companies are below their ieal value The publication of the Haitle\ and Riley tiansactions is a \ei\ good move foi this comnany dominates the- position.