Finance Stock And Mining

Free Lance, Volume III, Issue 147, 25 April 1903, Page 25

Finance Stock And Mining

THE report of t.lie triennial actual lal investigation of the Government Life Insurance Department i& very satisfactory. In dealing with the department it is important to bear in mind that it is quite unfair to compare its operations with those of Me insurance societies, because the business of the department is restricted to New Zealand, while the others have the whole of Australasia to work upon. The \aluabion as at 31st December last show s that the funds at that date totalled £3,382,817 and that after the investment fluctuation reserve had been stienethened by the addition of £22,783. * ■* * The life insurance and annuity contracts totalled £3,214,409, thus showing a surplus of £168,408, of which £167,932 10s has been distributed among policy-holders representing additions to the. sums assured of £290,074. At the previous triennial valuation, the surplus vas £126,600 cash, equal to £220, <90 additions to policies. There has been a, distinct improvement during the past triennial period. The total cash surplus divided by the department amounts to £1,001,285, a very fair record indeed for the department. * * *■ Some details of the other iigures shown, by the valuation are interesting. The ratio of commission and expenses (excluding taxation) decreased during the tnennium from- 14.4 per cent, to total income, and 20.2 per cent, to premium income in 1900, to 11.3 per cent, and 16.8 per cent, m 1902. The new business of the tnennium consisted of 9919 policies, insuring £1,973,578, the new annual premiums being £66,945, and the annuities £15,762 per annum. The business in force at the end of the triennial period (December, 1902) was made up of 42.406 policies, insuring £9,896,572, or with bonus additions, £10,734,660, and with the new bonus the amount payable on death or maturity on all policies is now over eleven millions sterling. * * * The reversionary bonuses attached to the policies now totals £838,088, the annual premiums on policies amount to £296,873, and on annuities to £36,392. The total income received during the tnennium amounted to .£1,319 ,049. The average rate of interest realised was £4 9s 3d per cent, in 1900 ; £4 8s 5d per cent, in 1901. and £4 8s 6d per cent, in 1902, thus showing that the downward trend of the interest rate has been, arrested. The total assets of the department at the end of last year amounted to £3,474,133. The department shows a very good record, and fully reflects the piosperity of the colony. * * * About a year ago the Wanganui Gas Works were municipalised, and the Gas Company received a very fair price for the property. Since then the undertaking has been carried on by the Borough Council, new machinery and plant has been added, and the results achieved for the twelve months are very satisfactory to all oomicerned. The works cost the Borough £18,500, the amount paid to the Wanganui Gas Company, in addition to which £11,500 has been spent on plant, making the total capital cost £30,000. The gross earnings for the twelve months under municipal management' showed an increase of £1562 over the previous year under the company's management, due entirely to the installation of modern plant. * ♦ ♦ The net earnings amounted to £4484, being equal to nearly 15 per cent, on the capital. Thus, after paying 4£ per cent, interest., and 2 per cent, sinking fund, there remains a surplus of £2534, which may or raav not be added to the general account, and go towards relieving the rates. It is at all events, a very satisfactory result, and in striking contrast with what is being done in other boroughs. But for one municipal venture that turns out so satisfactory there are scores that are bad, but the failures are kept in the background, and the successes paraded before the public. # Canada is booming. To a bountiful harvest in Manitoba comes the mews of a magnificent national surplus. A credit balance of £2,670,000 is a splendid result, enabling the liquidation of all capital expenditure- for the year, and the reduction, of debits by £1,130 000. Canada is attracting population from England, from the Continent of Europe, and the United States. New settlers

aie encouraged to come, and every facility is offered tihem to acquire the freehold title to farms. Many millions of acres have been taken up for bona fide settlement, and the progress of the futtue promises to be even greater than in the past. The development of the country is beine: pushed forward in an intelligent manner, and the erreat influx of sturdy settlers lightens the load of debt and taxation. It is to be hoped that the Canadian example will prove infectious. * * * Canada also appeals to be setting an exaanple with regard to preference m trade. Long ago a substantial preference was accorded to British merchandise, and now it seems that "made m Germany" is to carry a surtax of onethird additional to the present duty on German goods lmoorted into the Dominion. Germany is apparently not or is unwilling to indulge in reciprocity, and perhapsTthis severe turn of the Customs screw may cause sufficient injury to make it worth while. The position of gilt-edged securities in London and New York is very unsatisfactory. Imperial Consols are dow-nto £91, while in 1897 the price was £113. Of course, the rate of interest has been reduced from 2f per cent, to 2V per cent., but this has not been the sole cause of the decline. There is now a plethora of high-class securities, thanks to the Boer War and the admission of colonial securities to the Trustee List. * * * The available securities 1 have increased much faster than thet pubfoc were able to absorb them, and they remain in first hands, and are a source of danger. The position is worse in America for there the undigested securities consist for the most part of the stocks and shares of the various combines and trusts recently engineered by Mr. Morgan and other Yankee financiers. The danger in the -resent position, is that at any moment the markets may be seized with paralysis, and brine widespread ruin and a further tightening of the money market. * * * The first, step towards dearer money has been taken by the Queensland National Bank, which has substantially increased its rates of interest for fixed deposits. Other banks in Australia may be compelled to take a similar course , if so, there will be a general advance in the lending rate®, which will prove very inconvenient to the colonies as a whole. However, there is no- need to anticipate trouble, and at present the conditions are favourable in New Zealand at all events. * * • Thei sharemarket continues quiet, though not quite so dull as a week or two ago. Bank shares are in fair request. Nationals are wanted at 85s, sellers asking 88s. Bank of New Zealand shares ohiamged hands at 75s but have since weakened, with sellers now at 73s- Insurance shares command a little attention. Nationals are wanted at 22s 3d, and Standards at 19s New Zealand Insurance shares are offered at £4 7s 6d. * # * In other shares there are little or no variations. Manawatu Rails are wanted at 27s 6d, and Union Steam shares at £12 10s. There are buyers of Mosgiel Woollen shares at 80s, Donaghv Rope and Twine at £12 10s-, and New Zealand Drug shares at 465. * * * The dredging returns are beginning to look decidedly healthy, particularly the West Coast dredges, while from Otago some of the dredges that were eixpeeted to be in the forefront two years ago are only now beginning to give satisfactory returns. Dredging will presently command favourable attention from genuine investors.

Messrs. Stewart Dawson and. Co. wish to draw attention to their magnificent stock of sterling silver and plated ware, for the dining-room.