Finance Stocks and Mining

Free Lance, Volume VI, Issue 289, 13 January 1906, Page 5

Finance Stocks and Mining

A CHANGE for the better in the money market should make itself manifest this week. The Bank of England return for the week ended 3rd Januaiy shows a satisfactory improvement on the previous week. There is a slight increase in the bullion, and also in the reserve, but the most satisfactory feature is the increased volume available to the market. The total of the deposits is £59,666,000 showing an increase of over £7,000,000 on the previous week. But, the proportion of reserve to liabilities is dangerously small, standing at 29.87 per cent., as compared! with 34.94 per cent, a year ago. The return for the current week ought to put a different complexion on the position, and if there is no dynamite in the European political situation, things should fet back to normal very quickly. • • • The stringency now noted m the money market is largely dv« to improved trade calling for greater financial resources. Things have been pretty lively in New York, and at, one period in. November money at short notice was as high as 25 per cent. The pleasing feature just now is that rates for three months' bills have declined 5e per cent. in Lombard-street. The bank rate remains at 4 per cent., and' gives every promise of continuing at that rate for a week or two longer. • • • There is a marvellous improvement in the trade of the United Kingdom, the total for 1905 being a record. It is this expansion of trade that has discounted the claims of the preferential trade advocates, but this trade is proving of great benefit to us, by causing an «roellent demand for our produce. Simultaneous with the growth of industrial activity in Great Britain, the cry of the unemployed is heard, but itmtustbe remembered that any improvement take 9 time to make itself felt throughout the various sections of the people. «. • • In a month or two the unemployed will cease to have any cause for complaint. The prospects for a continuance of this activity are good, and that means that we shall have another year of good tunes. And the position is clear enough even mow. It we look to the prices of our produce, as noted bv the High Commissioner, it will be seen that almost everything we export is selling well. Butter in particular is realising remarkably good prices, and, although this is in a. measure due to shortage of supplies, there is mo doubt that the increased spending power of the people is in a degree responsible for the improvement. • • « The values of frozen meat show a decline, but the farmers obtain compensation in the splendid' prices ruling for wool. The next London sales begin on Tuesday of next week, and on present indications prices should be well up to those ruling at the July and September 6ales. Hemp is bringing in good money, and) the by-products of the freezing works are also in excellent demand. Altogether, we have every reason to anticipate a good commercial year, with plenty of business for all. The effect of this will be a firm market for real estate and Stock Exchange securities ; indeed, it is to be noted now that property is in better request with values up to the level of sellers' ideas of values. • • • The report and statistics of the Wellington Harbour Board for the year ended 30th September last, disclose a satisfactory condition of affairs. The Wellington Harbour Board is, perhaps, the best managed of our local bodies, but the point of interest is the trade statistics. The imports show a decrease of £121,063 as compared with the previous year, the total being £3,463,174, amd the exports to £2,986,246. The Customs duties collected at the port totalled' £669,800, against £672,677. The decrease is insignificant. The position of Wellington is unassailable, and, with the enormous expenditure going om for public works for the Board and the municipality assures us of plenty of work for skilled and unskilled labour and a generally busy time for our shopkeepers. • * The report of the Petninsular amd Oriental Steam Navigation Company for the year ending 30th September last states that the net surplus, including £10,535 brought forward, amounts to £219,746, which, after deducting the interim dividend on the preferred

stock of 2£ per cent., and 1 3£ per cent, on the defeired stock paid! m June, adnuts of a further payment of 2^ per cent, on the preferred and 6^ per cent, on the deferied stock, together with a bonus on the latter of 3 per cent. The return for the year is therefore- equal to 9 per cent, on the paid-up capital of £2,320.000. A balance of £10,946 is carried forward. • • • The Stock Exchange has scarcely opened for business ; m fact, some of the brokers have only just returned from their holiday tours, but it is very certain that when operations begin again there will be brisk business, with a general upward tendency in values. Banks and 1 insurance shares, financial, gas, meat, and 1 shipping shares, are all likely to receive attention, and to see some improvement in values. It is useless to expect to see any activity on the Stock Exchange until after the current month. • ■» * It is not unlikely that we shall see a "boom,"or, at least, very considerable activity m mining this year. The gold output of the colony for last year was 520,486 ounces, valued at £2,093,936,and this is a record! for thirty-four years. As a matter of fact, only eicht times since the records were kept, that is, sine© 1857, have the results of 1905 been exceeded. • • * It should! be pointed out, however, that the quantity exported), l^st year was less than in 1903, so that the increased value must be due to better prices ruling. It is a matter that calls for some elucidation at the hands of the experts. Dredging operations nave been resumed, and the retuims are fair for this time of year. Interest, however, will centre in the quartz-min-ing on the Waihi fields.