Finance Stocks And Mining

Free Lance, Volume V, Issue 215, 13 August 1904, Page 5

Finance Stocks And Mining

THE Australian Mutual Provident Society is now among the fii st of the ordinary life assurance offices in the Biitish Empire. The giowth in the last fifteen yeais of this premiei ooionial ofhce has been indeed 1 eman liable. The assurances in toi cc, including the bonus additions, have expanded by £27.500,000, and now total over £b2,75(J,000. The cash, bonus dining 1903 was £082,168, or sufficient to provide reversionaiy bonuses for much more than £1,000,000. The stalking economy with which the Society has beien managed, and the large bonuses that have thereby i&sulted, have in the main proved the attraction to the msuiing public. The Napier Gas Company is one of the well-managed concerns of the colony, and the proof is seen in the steady ieduction m the price of gas. The further reduction pioposed will make the prices to consumers the lowest with one exception m Australasia. It is an excellent record, and it is doubtful whether municipal management could ever accomplish as much, and 1 Napier is not a big town. The Suez Canal, though a long way from here, is of special importance to these colonies. The trade of Australasia and the East lias mad© the canal a commercial success, and the continued free navigation of the canal is imperative to our trade. The last report, of the Suez Canal Company, being for the year 1903, shows that, notwithstanding a reduction of 5d per ton in the tolls, the earnings were substantially the same as in 1902. # . . In addition the expenses weiei educed, enabling the directors to declare an increased dividend, the rate being per cent, per annum, and the amount £1,833,664. At the annual meeting the chairman expressed the hope that it would soon be possible to make anotnei reduction of 5d per ton Although it was French engineering that gave us the canal it is British trade that maintains The London money market is hardening, and there seems every likelihood of an advance in the bank rate m the oourse of a few weeks The open market rate has moved up during the past month somewhat rapidly, and is now on a par with the bank rate. A 4 per cent, bank rate is usual in the autumn months, and the only difference this year is as to the possible effect® of the RussoJapanese wan-. Finance is so inextricably mixed up in the matter that it is difficult to say how the monetary conditions will be affected. * * * However, this much seems evident, and that is that the colonies will not be able to tap the London market this side of Christmas. This view is coming home to the people, and the demands for economy in Government expenditure are pretty general throughout Australasia. Locally, there is a hardening tendency. The banks have raised their deposit rate for two-year dleposits to 4 per cent., and the budlding societies and other institutions must correspondangly raise their rates. * • • The Post Office Savings Bank, too, may have to make its rates more attractive. There is a fairly strong demand throughout the colonies for bankers' loans, and the institutions can well afford the increased rates. Money will be relatively dear, but nothing to cause any inconvenience to trade. It will fall hard upon those with heavy commitments and no resources. * * * There has been a certain amount of activity in the sharemarket, and business has been done at full market rates. It is possible that the movement m money rates will affect the sharemarket, for it is not to be expected that investors will be content with the small returns to be obtained from share investments. * • * Bank of New Zealand shares changed hands at £5, and this must be regarded as an extreme price for shares that can yield only 5 per cent, for some time to come. At this price the return is less than 4 per cent., and it is difficult to see what attraction there is in the stock at the price. National Bank share* are offered at £4 17s, with no buyers. * * * There has been a little more activity than usual in financial shares, and sales are reported of Metropolitan Building

at £11 15s, Wellington. Building at £9 ex dividend, and New Zealand and Rivei Plate at 245. * * * Gas shares aie singularly quiet, the only demand being for Feilding Gas shaies at 21s. This does not imply that business is not possible in othei gas shaies. The fact is that holders aie letluotant to part except at extieme rates, and, in the present uncertain state of the market, extieme rates aie not likely to be paid. + * * Insurance shares are quiet, but fiim. The first fears of competition from State fire insurance have been dissipated, and the knowledge: that the State Department will not go below the present cunent rates renders the competition harmless. The prolonged delay in setting the State Department in action is perhaps another reason for discounting tie probable effects of the competition. Standards changed hands at 18s 9d, and Nationals aie wanted at 225. Other insurance shares are without animation. * *- * Meat shares are very much neglected, and not without cause. New Zealand must qo 1 slow in exporting mutton and lamb — much slower thain Avas the case last year — and the shrinkage in exports will mean smaller profits to the companies. Gear shares are, however, firmly held Buyers aie offering 355, while holders ask 36s for the £1 paid-up shares. * • • Manawatu Rails continue m. vei y firm demand at 29s 6d, but there are no sellers at the price Wellington Woollens sold up to £5 4s, and more are available at the price. Other Woollen shaa es are neglected. Leyland and OBrien Timber shares had quittance at 39s 6d. New Zealand Candle shares are mieetang with inquiry, buyers offering £9 without bringing any response. New Zealand Drug shares' are also in d<emand at 455. Palmerston North Sasih and Door Factory shares are offered' at £6, and S'harland's ordinary at 22s 6d. * * * There was a shrinkage in the gold exports of the colony last month. Thp quantity exported was 48,0130z, of the value of £180,027, as against 55,9020z, valued at £216,578. The decline islargp, but a monthly return affords no safe comparison. it * * The Waihi Extended mine is affording northern mining speculators considerable excitement. The scrip changed hands at as high as 12s 2d, and speedily fell away to under Bs. An upward movement has agadn set in, which may or may not be checked by further developments. The glorious uncertainty gives the punters a fine opportunity for gambling. * *• * The dredging returns for the past week were poor, and a steadily diminishing output may be expected as 1 the weather becomes warmer and the riven s rise with the melted snow from the ranges. Speculation is very feeble and fitful.