Finance Stocks and Mining

Free Lance, Volume IV, Issue 174, 31 October 1903, Page 5

Finance Stocks and Mining

THIS week commenced the new month for merchants and retahlers, and the out-turn of business is generally reported satisfactory. The outlook for the immediate future is very good for internal trade, and the yeai will close in r>rosperity. With regard to exports, and the prices for produce, in some quarters there us an optimistic feeling w hile obheirs jiuolme t(O the view that prices will exhibit a decline under the pressure of increasing supplies, and the lowering conditions prevailing in the Home markets. However, if there should be a fall m values, tho declension will not be serious enough to cause any inconvenience, so thai, on the whole, we may take it that the produce year which began this month will prove satisfactory. * » * From the country districts the reports are very encouraging. The spring has been very good, and tihe output of butter is already considerably in excess of the corresponding period of last year. This means added profit to the producers, and so much gain to the community. The whole position is dependent on the state of the money market. Tho report of the Labour Department for last month voiced the opinion of retadeis in stating that there was apparent a shortness of cash. This is the usual complaint at this time of year, and is due not to any stringency in the money mairket, but to the numerous 1 race meetings. The butcher, baker, and grocer are set aside for the tot&lisator. * ♦ * Aoart from this, there is no change in the money rates, and no indication of any immediate change. New Zealand is not free in this matter, and much will depend upon how Australia is affected. The banks in Oueensland have raised their rates to 4 per cent, for de>posits for one year, with, of course, a corresponding advance in the lending rates This hardening tendency was expected to spread to Victoria., and the other States of the Commonwealth., and it is only a matter of time when instructions w ill be received m New Zealand to iaise the rates. * * * In New South Wales, the position has been affected by the Government mvitmg applications for 4 per cent. Treasury bills for an indefinite amount, and there is an expectation in Melboui no and Sydney that New ZeaJand Government 4 per cent, debentures will be offered for sale there. It is this pressuie on the part of the Governments that is affecting the markets, and wall eventually lead to the stringency that w ill disturb trade. * * * Australian papers to hand by the last mail discuss very fully the loan conversion scheme now before the English debentures. While it is deplored that so high a price has to be paid for the conversion, it is agreed that there are certain points of merit in the proposal. The establishment of a sinking fund in connection with all State loans has been strenuo<uslv urged, and Victoria will have such a fund in connection, with the present £5,000,000 conversion lo^n, and in less than forty-four years the sinking fund will exceed the amount of the loan. The interest on the loan is £189,000 per annum, and £54,000 per annum is requiied for the sinking fund The total annual chatrge is thus £18,000 more than was paid previously. ♦ » 4 The sharemarket is quiet, and values remain unchanged. During tlhe past few days, the registration of Lyons Limited and the Plantekoa Medicine Company has been effected, and later on the market w ill have more stock to operate in. ■*■ -f- * Bank shares are ouiet, with no business passing. Nationals are offered at £4 12s 6d. but the price seems to be above buyers' ideas of value. The interim dividend of the National should be announced in a few weeks. There a«re buyers of Bank of New Zealand shares at 795, which is a little lower tha/n the price h'therto ruling. But holdeis are not anxious to quit. The uncertainty as to the banking legislation is perhaps affecting the market value of the shares. * * * Insurance shares continue to be neglected Theie is a ca,U for New Zealand Insurance shares at 85s, and National Insurance at 21s. The balancesheets of these two companies are due

shortly, and it is to be hoped some details will be given either in the reports of the directois or an accompanying memorandum showing the premium income derived from outside New Zealand. This informataon is necessairy to ooirect prevailing misconception's as to the amount of pi ant earned in the colony. It would also be advisable to give the amount of losses in the colony, distinguishing marine from fire insurance. * * • The Government has consented to take up Mr. Kirkbride's Mutual Insurance Bill, and the companies are not averse to the faimers tiying the insurance business for themselves There is one farmers' fire insurance company already in the colony, but the operations of this company are insignificant, and its premiums are based an the accepted tariff. As soon as the full extent of the disturbance of proposed legislation is known, it is most likely that insurance shares will firm, far, as far a« can be seen, there is niothimig formidable jn the proposed competition. There is a feeling that the State Fire Insurance Bill will be dropped. # •/• * There is but slight enquiry for Gas shares, and bids of 20? are made for Feilding Gas, and £4 15s for Palmerston North Gas. Wellington Gas, new issue, changed hands at £13 ss. In miscellaneous shaires theie has beem some slight movement. Mamawatu Rajls sold at 27s Gd. Ward and Col Brewery shares changed hands at £4 17s 6d, with buyers offering £4 16s Gd. These figures show a finning tendency, which is due to the favourable Licensing Bill now before the Legislarture. New Zealand Drug shares are in demand at £2 Bs, and Donaghy Rope and Twine at £13 cum dividend. Westiport Coal shares aie offered at £6 16s Gd. Meat and Woollen shaae? are nfeglected. The dredging returns last week ■« ere comparatively small, and if the piesemt dry weather continues work will have to cease, as the nvers will be t.oi» high to allow of dreclsing. The improvement in the returns for the year will, no dc-übt, make an impression upon speculators. * * * A company is in course of formation, and is being well suppoited in the Hawke's Bay and Manaw atu districts, to work a dredging area in Brazil. The capital of the company is £60,000, in £1 shares, and 45,000 shaires are 1 being issued to the public. Judging by the influential support, the conceirn is receiving, it is evident that very complete and satisfactory reports have been received from competent men Other countries are now getting the benefit of the engineering skill for which this colony has had to pay very dearly.