Finance Stocks And Mining

Free Lance, Volume VIII, Issue 397, 8 February 1908, Page 18

Finance Stocks And Mining

THE London money ma<iket is getting easiei each week. Gold is flomtng into the bank, the increase since the beginnang of th© year being about £5,000,^.,. The position is becoming such that it seems impossible that the bank discount rate can be longer maintained at 4 per cein/t. But there is the American position, to be taken into account. Within, the past few days two important banks in New York have suspended, the hoard]m,g of money stiOl conitxiniues, and now we have further stringent legislationi proposed by President- Roosevelt. The Eesident's proposals are on> right ies, but none the less they sure bound to create a financial disturbance. * • • Because of the possibility of serious developments in the United States, it is umtikely that the Bank of England will lower its discount rate. There is even now a chance that America will press for godd, and America cam always get the metal by sacrificing h-ecr wheat and cotton, or her copper, steel, lead, and other products. In the meanwhile, money is cheapening in London, and gilt-edged securities are appreciating in value. The balance-sheet of the Wellington Gas Company, Limited, was circulated last week, and the documeart discloses a very satisfactory position-. The receipts for the year amounted to £80,678, and there was brought forward from the previous year £7988, making a total of £88,666. The expenses of management and' muscelliaaieous charges absorbed £64,411, leaving a balance of £34,255, out of which £10,000 has been taken for the works extension reserve, and the dividend for the year, at the rate of 10 per cent., absorbs another £12,457, leaving £11,798 to- be carri-ed forward. • • • It is obviously the intention, of the company to raise additional! funds, for the director® in their report say: "In order to provide for necessary funds for works extension a special meeting of shareholders wiH be oaiHLed at the earliest opportunity." The company shows such a strong financial position that it will experience no difficulty m securing all the money that may be required. The balanoe-sheet of the Napier Gas Oompany for the yeatr ended D^cembei 31st last, shows a net profit of £8159 16s 7d, and there was brought forward from the previous year £1017 7s Bd, making in all £8177 4s 9d available for distribution. Out of thus a dividend at the rate of 15 per cent , absorbing £7493 lls, has been declared, leaving £1683 13s 3d to be carried forward. • • • The belated balance-sheet of the Chnstchurch Meat Company for the year ended 31st October last was circulated a few days ago. The balance at credit of profit and loss is £59,036, as compared with £43,164 in the previotis year. The receipts were about £8000 less than in the previous year, but owing to some splendid economics the net results were better. The amount at credit of profit and loss has been appropriated as ioiloiws: — Written off for depreciation, £10,000; added to reserve fund, £9000 ; to equabsatiom of dividend account, £10,000; to provide for renewals, £7500 ; to dividend, at the rate of 8 per cen/fc. per annum, £13,005 ; leaving a balance of £9531 to be carried forward. • • • The recently-established industrial branch of the A.M. P. Society is- making very satisfactory progress. For the past year the amount written is over half-a-milkon sterling, and represents an increase over 1906 of rather more than £100,000. • • • The report ot the New Zealand and River Plate Land Mortgage Oompany, Limited, for the year ended October 31st last states that the net profit for the year, exclusive of the amount brought forward, was £30,960, as compared with £34,200 in 1906. By the addition of £2308 brought forward, the balance to the credit of profit and loss account totals £39,260. The dividend for the year amounts to 7 per cent., £14,000 is added to the reserve fund, hud £4269 carried forward. • • * By realisations at amounts above the previous valuations the investments in New Zealand were reduced in the company's books to £1074, a figure which was much below their real value. After consideration of the assets in New Zealand and the valuations of the

attorneys, the directors, with the approval of the auditors, have thought at right to place these investments nn the balajnce-sheet at £11,074. This entaaJs the carrying of £10,000 to the reserve. The addition, of ibhe above sum, together with £14,000 from the profits of the year, raises the leserve to £252,000. The bulk of the company's mortgages aire in Argentina, and amount now to £728,300, all of which are stated to be thoroughly satisfactory. • • » Business has, on the whole, been faia-ly good during the past month, and Wellington brokers have no> cause for complaint rega-rding the' amount of business done. In bank slhares, sales were made of Bank of New Zealand at £9 12s 6d, and National Bank shares at £5 6s and £5 6s t>d. • • • Insurance shares were quiet ; still there were sales of Nationals at £1 7s 6d, and of New ZeaJands at £4 Is 3d and £4 2s. Financial shares have had no transfer, although several of the building societies have had attention. from investors. New Zealajnd and River Plate shares have been, dm- strong demand at 29s 6d, but holders have shown no desire to unload. • • • Gas shares have been extremely quiet all through the mointh, -notwithstanding that several compaiuies atre just about declaring thear asnnual dividends. Palmerston Nortih Gas shares, which have been in fairly octave demand, sold at £7 7s 6d, amd Wellington Gas (£lO paid up) registered one salle during the month, at the high price of £19s 2s 6d. Towards the close of last week, amd just before the dividend was paid, they were offered for sale at £19. There has been a fair amooint of business done in meat shares Gears sold at £9 and 50s for the respective issues, and Wellington Meat Export

changed hands at £5 2e and £3 6s 3d for the second and third issues respectively. • • • Monawatu RaoHs wore sold at 43s and 43s 6d, Union Steam at 31s, West-port-Stockton Coal at 9s 9d and 10s. This company has not yet begum active work, and the shares are selflmng at a piemitim of 2s 6d. New Zealand J>rugs sold at 51s, Sharland's preference at 20s, and ordinary at 18s 3d, Donaghy Rope and Twitnte at £6, and Ward and Co. Brewery shares at £5. • • • In the mining market, Waihis have provided a great sensation. The new reef in the No.. 8 level having widened out and proved noh, the shares went up with a bound. Early last week they were selling at £8 ss, and at the close of the week they were up to £9, and still adyancomg. At the moment of writing they stand at about £9 ss, and London orders are coming mto move them .higher up. Talismains have been fairly 'strong, and have been very active all through the month.