Finance Stocks and Mining.

Free Lance, Volume II, Issue 101, 7 June 1902, Page 20

Finance Stocks and Mining.

THK ie\eniK' account and balancesheet of the G-o% eminent Life Insuiance Department for the 3 ear ended 31st Docomhei last aie\erv satisfacfcoM The new premiums including instalments of fust voar's piemiums tailing clue in the veai . totalled £'20,296, as against L 20,145 m the previous year Theie is thus a small mciease, winch is e\ idence that the Department is well maintaining its position in the competition ■* * * The consideiation toi annuities amain.ted to £11, <)1">, as compaied with £4634 Di 1900. The enormous increase shown under this head is not surprising for it !<•. obvious that the security of the State, which stands at the back of eveiv contract entered into bv the Department, very favouiably influences tl.ose who desire endowment .assurances And this is a cla&s of business that is bound to a earl v increase with the Depaitment and it is- business that is not unprofitable. The total i onew a 1 premiums last ear amounted to £266 816, as aeamst £261,458 in the previous year. The increase is not very large, but it is sufficiently so to show that the risks accepted bv the Department are well selected. There is apparently no desire to catch business at any price The revenue recened from interest last veai totalled £142,449, as against £136,9.5"), which is very satisfactory. « ♦ • The death claims totalled £122,471, as compared with £92,675, an increase of ne&rlv £30,000 which is somewhat large The Department must expect to see its death claims comparatively large for the reason that the Department is now thirty years in existence, and the maturity of the earlier policies is but natural The endowment assurances matured a.ie smaller than, in 1900, being only £41 212, as against £57,357 ♦ * * The siureudeis tot up to £23,919 as against £27,361, and the reduction heie shown is satisfactory But against tins must be set the increase in the amount of bonuses surrendered for cash which, for the past year totalled £16,277, as compared with £10,497 in 1900 The working expenses totalled £34,968 as against £36,975 This is a substantial reduction, and is equal to about H per cent deciease. * ♦ • It is necessary to press home the fact that the addition of the accident branch has not an the least mterfeied with the ordinary life business It was never intended that it should and the oreatest care has been taken to keep the one distinct from the other. Had the life and accidents businesses been mil together, the working expense& would have been much greater than they are, and much in excess of the previous year, because the accident branch was opened last year, and establishment charges arc always very large. ** ' * Another feature in connection with the expenses that many people o\erlook wh^n*cntiCLS3iig the Department is the iact that the Department does not escape the ordinary charges such as wastage, telegiains, exchange, etc. These amount to a, substantial sum in the aggregate. Thus, last year, postage amounted to £1191, telegrams £446, exchange £105, and advertising £988 • » The amount of the funds on the Ist January of last \eatr was £3,139,957, while a year later the amount stood at £3, 28). 416, show ing an increase for the year of £14"), 459 which is substantial and satisfactory. * * * The lm estnients of the Department a-s may be expected, a<ie well spread in gilt-edged securities. The loans on policies totaJ £602,189 New Zealand Government securities £728,910, municipal corporation debentures £91,884, harbour board debentures £39,000. mortgages on property £1,614,479, landed and. house property £123.563. At the date of the balancing the Department held £61,508 in oash. * * * Viewed on the whole, the Government Life Insurance Department has had a successful year. The business is well maintained, risks are carefully selected, the working expenses are moderate, and the support of the people is highly satisfactory. The Department fills a very important niche in the economy of the community. The security it offers is undoubted and unapproachable bv any private concern The Department is well managed, and the chiefs of the De-

paitment aie conscientious men, anxious toi success on <i business basis. * * •* The London and Lanca&hiie Fne Insuiance Company (Messrs. Johnston and Co , agents) received in 1901 net me picimums to fclie amount oi £1,134, 213, and i><ud losses, to the amount oi 1384,774, tlieie be^ng a surplus, after pas ing eN-pt'ii&es, of £148,473 This, with t.hosuiplus horn the accident fund and inteiest, gave a clear balance ot l-K)\) 001 Dividends ot 13s per shaie absoibed £."57,000. The financial po&ibion included £1,4i)0,4~>b of funds, icpiosonted by £222,887 of paid-up capital 17 ' A 000 ot r&M?i\e, £20,000 accident fund, and 4497, 0(>9 camrd toiu ard . t The wai in Smith Africa lias come to an end and one of the most cxpensn c campaigns foi the Bntisli nation is closed The nation is not financially exhausted because £2,")0,000 000 has been expended in guns, ammunition, horses, mules, and khaki The recoid of new \entures of industrial and comde\elopment is against such a theory. The Chancellor of the Exchequei in his Budget statement, showed that, the total dea~d-w e-ight debt was £747 870,000 on the 31st Maicli last, oi t "59,884 000 moie than at the ooiiespo-ichns date of the pievious year The inciease was due to the issue of the Consols loan of £()0,000 000 The unfunded debt, had not been increased dii'-mg the voai Lai go as the Bntisli National debt appears, it is only about £18 pei head of the population, while our own debt is neaily £70 per head. With the continuation of the wai taxation imposed last year, and the operation of the annuities, the debt will be matenallv reduced in a few a ears, besides which there is very little, doubt but that the Tiansvaal and the Orange River Colony will be> made to beai a shaio of the costs of the war. » • ♦ That the opinion of shrew cl nuestois belies any supposition that England is financially prostrate is shown b\ the free investments of Yankee capitalists in Imperial Consols The quotation eailv m the A\eeik foi this security was 9/, against about 93\ early in Apiil. A big expansion of business in South Africa m«v now be expected Tlie restoration of the farms will mvohe tlie expenditure of several millions sterling Besides that, the expansion of railways, Mid the developme-it of the mineial lesources of the Tians\aal will all mean heavy expenditure, and this will help to attiaet an enoimous population * * * Hundreds ha\e gone from the colonies, and when the lestuctions imposed upon lmimgi ante, are removed the exodus ftom Australasia will mi into thousands. The feeding of this population should be our particular care for it ncans money To secure the cieam of he business we must push and hustle, and now is the time when we more than e\er want that direct steam sen ice so long piomi^ed Tendeis foi this duect scnice closed on the 14th Febiuaiv, nearly foui months ago, and we ,u-e still in doubt whether the Goi einme.it has been successful vi arranging for a seivice On occasions it was announced that, the Agent-General had been authoilsed to sign documents with the Blue .Stai line, but the inordinate delay gnes eoloui to the belief that nothing satistactorv has been achieved * * * Di edging is quiet, but the returns continue to be satisfactoi\ Some of the big bullion-winners of last year aie again showing up well, and if the weather conditions remain favourable some di edging records should be put up this season. # The. Commissioner's Flat diedge, and Mie Leviathan Freehold diedge aie nearing completion, and a trial spin is expected within a month * * * The Trafalgar and Victoiv dredges aie e\]>eeted to sf.nt in <i few days The mortgage of ClhOO, bearing lo per cent interest, on the Gieenstone Junction dredge and olaim, is to be paid off The loan, with six months' internet, will amount to £1720, and the company ha.s the money in hand It is reported that the Ross Day Dawn Company has satisfactorily arranged its finances, and woik on the dredge is to be proceeded with immediately t The directors of the Notown No. 2 Dredging Company have forfeited all shares upon which arrears of calls are due.