Finance Stocks and Mining.

Free Lance, Volume VI, Issue 303, 21 April 1906, Page 14

Finance Stocks and Mining.

THE Colonial Treasurer has the pleasure of onoe again announcing a surplus, and) tihis time it is a record. A co-edit balance of £775,000, which, of course, includes the £261,000 broughte forward from the previous year, is very handsome, and' will fully warrant the contemplated reductions in. the Customs tariff. The pleasing feature of the statement is the strong evidence it affords of the continued prosperity of the colony. • * • The receipts from Customs were £65,415 larger, and the railway revenue increased by £115,833, and 1 these two indicate that the spending power of the oommunaty has not been impaired, while the increase of £32,846 in the land tax, and £7648 in the income-tax, constitutes further evidence of the satisfactory economic conditions. The total actual revenue for the year just ended was £7,563,300, or £280,430 more than in 1904-1905. While thie Colonial Treasurer is able to exhibit such satisifactory figures, the insignificant number of croakers that we have in our midst may well give us a rest from prognostications of impending disaster. The momey markets of Europe are in a disturbed condtiom by reason of the large Bums to be raised by Russia and Germany. The former is placing a 5 per cent, loan of £92,000,000 with the issue price fixed at £85 per cent. Russian credit is at a low ebb when so heavy a premium and so high a rate of interest have; to be paid. The return to the investors will be in the neighbourhood of six per cent., and that makes the issue very attractive. France is asked to carry a heavy load, but the thrifty French peasantry can readily find the £50,000,000 allotted to their country. The French people already hold great stocks of Russian securities, and it is a question whether even with the attractive terms French investors will respond 1 as heartily as would otherwise be the case. Russian bankers are expected to provide an additional £30,000,000, but as the last domestic loan was a failure, there is no reason to anticipate any different result for the present. Of the remaining £12,000,000, London, New York, and Amsterdam are to share equally, but investors in the countries named will probably want some very tangible security. The German issue will be placed 1 easily enough within the German Empire, more especially as no part is being taken in providing Russia witlh money. These loans, aggregating £120,000,000, must cause a temporary disturbance, but this will be confined to the Continent. The conditions, in London make for ease, and the present low discount rate should! hold for some months to come. « * The increase in the supply of idlei money in the colonies is to be seen in the lowering of the rate for deposits in Australia. Money has been in plentiful supply in the Commonwealth, the excellent seasons already enjoyed and the present favourable outlook for produce have materially increased the national income, and! this is to be seen in the bounding revenues of the various States. The lowering of the deposit rate in Australia is bound' to extend to New Zealand, and the effect ought to be generally beneficial, for it will m a measure force the owners of capital to look around for new investments. This is sufficient to warrant the belief that renewed attention will be given to real estate as an invesment, for after all it is the soundest of securities provided values are not inflated. • • • The Bank of New Zealand entered upon dts annual balance a fortnight ago, and preliminary statements, or, rather, rumours worthy of credence, point to a record year. The economic conditions prevailing in the colony have been of a highly favourable character, and it would) be surprising indeed) if the Bank of New Zealand, which does the largest banking business in the colony, did not share in the prosperity. A good thumping balance will be welcomed alike by the shareholders and! the taxpayers, and such an exhibit will help to maintain the colony's credit in London. • • • The fire insurance scheme of the Farmers' "Onion does not make much headway. TEe Palmerston North branch has accepted risks %o the extent of £20,000, bttt Captain Hewitt, the chairman or the branch, was very

explicit when he said' frhafc they had had no losses, but should! they have a loss hie did not know where the money was coming from to meet it. Mutual insurance, which us the basis of the fire insurance scheme of the Farmers' Union, has been a failure wherever tried. It has received repeated and extensive trials m the United States, and failure has ever been the result. Mutuality in life insurance is one thing, but with fixe insurance the hazard is different, and the moral hazard is the greatest of all risks. What is the use of being insured, if when there is a loss there as no money to meet the loss? But that appears to be just the position with regard to the Mutuail' Fire Insurance scheme of the Farmers' Union. • » • The annual report of the. Wellington Opera House Company for the year ended 31st Maroh last is> very satisfactory. The balance at credit is £1883 Is 3d, and it is proposedl to pay the shareholders a dividend of 8 per cent., andl the directors are to receive a bonus of one hundred guineas. The Opera House Company is in a splendid financial position, and it is not surprising, therefore, to find the directors contemplating further improvements. The amount received in rent during the year totalled £3310 9s Bd. The shares of the company are rightly regarded as a safe investment. The holidays have caused a break in business for brokers. Still, the turnover m investment shares is rather good. Bank of New Zealand shares are steadily receding in value ; they are mow offered at £7 16s, a fall of over 20s, and there are no buyers at the reduced price. They will get back to their proper level, wh eh will be between £5 and £6. There has been fair business in National Bank shares, which had quittance at £5 11s 6d. • • • Financial shares maintain their values, snd are in good demand. Metropolitan Building are wanted at £11 17s 6d, Wellington Building at 12s 6d, and New Zealand and River Plate at 30s. Insurance shares are firm, with buyers of Nationals at 24s 6d, New Zealands at £5 14s, and Standards at 19s 6d. * • • Gas shares are much wanted, but difficult to obtain. Palmerston North Gas shares are in demand at £5 7s 6d, and Wellington Gas at £19 and £9 10s for the respective issues. * * * Woollen shares are in better favour. Wellington Woollens changed hands at £3 14s. Wellington Steam Ferry shares, 15s paid, sold at 15s 6d. Taupiri Coal were quitted at 20s, Leyland and OBrien Timber shares at 425. and Ward and Co. Brewery at £5 9s. There are buyers of Manawatu Rails at 375, Union Steam at £16 7s 6d, and "New Zealand Times" shares at 455.