Finance Stocks And Mining

Free Lance, Volume VIII, Issue 399, 22 February 1908, Page 18

Finance Stocks And Mining

THE Bank of England returns last week displayed considerable strength. The metal aeseorve was increased to the extent of £400,000, the note circulation' was larger by £700,000, and the reserve increased by nearly £800,000. The porportion of 'reserve to liabilities was less than in, the previous week, owing to the expansion of the deposits, especially the public deposits. In the current quarter the income-tax as payable, and this helps to swell the Government funds. • • • The open market is, however, feeling a temporary pinch, for the discount rate has been advanced to £3 17s 6d, which is rather close up to the bank rate to be pleasant. It us* not likely that money will become any dearer than it is at present, but that is presuming the financial situation in the United States does not develop into a pyrotechnical display. • • • Sir Fedix Schuster, an eminent London financier, in an address to. the Institute of Bankers, expressed a very favourable opinion as regards the world's financial outlook. This may be taken to mean that America and Germany have overcome their monetary difficulties, but it does not follow, however, that trade will go back to its old groove, or that there will be a recrudescence of the feverish industrial activity of the past. Still, to have the world's financial affairs in a satisfactory condition is something With the exception of butter and cheese, the produce markets are not very satisfactory. Wool continues depressed, and there is very little prospect of seeing an advance at the M arch sales. Frozen meat is selling at a lower range of values than a year ago, except lamb, which as at about par. Wheat is declining, oats are much lower than they were, hemp is fully £11 per ton lower than last, tallow is 'lower, and hides and sheepskins are also lower. Butter is bringing an esttraordinary price, but, unfortunately, the extreme shortage of supplies offsets the gain in value. A smaller income must be expected by the farmers, and when the man' on the land has little to spend, those in the towns fael it in decreased sales. • • • The report of the Standard Fire and Marine Insurance Company for the year ended December 31st, 1907, states that the income tor the year, including the balance brought forward from last year, amounts to £112,579 9s Id, and the expenditure to £92,693 7s 4d, leaving a balance of £19,886 Is 9d. From this amount an interim dividend was paid in June last amounting to £2812 10s, and £5000 has been added to the reserve fund, and the directors recommend that the balance be appropriated as follows : — To the payment of a dividend for the half-year ending December 31st, at the rate of 7i per cent, per annum, £2812 10s ; to pay a bonus of 2^ per cent. , £1875 ; and to carry forward to next year, £7386 Is 9d. • • • The premium income for the year amounted to £98,707 10s, interest on investments to £6653 5s 3d, and transfer fees £30 ss. The losses, including appropriations for unpaid and unadjusted losses, £34,434 12s lOd; re-in-suTaaices, discounts amd 'return premiums, £39,031 16s 9d ; commissions, expenses of management, and charges, £15,908 18s 7d. The investments of the company include: Loans on mortgage, £74,398 13s 8d; debentures, £43,901 18s- fixed deposits, £11,916 13s 4d : cash in bank, at head offices, and branches, £9105 14s sd. ■» • » The returns of the Post Office Savings Bank for the December quarter show that the deposits amounted to £2,246,446, and the withdrawals to £2,011,536, the excess of deposits over withdrawals amounting to £234,910. For the corresponding quarter of 1906 the excess was £299,877, snowing that in the last three months of last year less was saved than in the December quarter of 1906. There is not a very great difference in the figures, but it indicates the turn of the tide. • • i The value of the perishable produce :: — butter, cheese, and frozen meat — exported from the Dominion during last month totalled £526,037 as compared with £765,197 in the month of January, 1907. The quantity exported was 204,926 cwt., as compared with

320,371 cwfc., exhibiting a shrinkage of 115,445 cwt., equal to 36 per cent., and the value decrease is £239,160, equal to about 31i per cent. The smaller income of the farmers must reflect upon the general community. During the past fortnight bant shares have been in, excellent demand, and sales have been made of Nationals at £5 Gs, Bank of New South Wales shares at £43 10s, and Union. Bank at £59 10s. Bank of New Zealand shares have been in, good demand a*. £9 12s 6d, with sellers at £9 14s. Insurance shares have been compara^ tively quiet for some time, except National Insurance shares, for which buyers now offer 28s. Financial shares have had a considerable turn over. Loan and Mercantile shares have come m for a good deal of attention, probably due to the influence of Mr. Dawes, the chairman of the company, ttho is now visiting the Dotninuon. Whatever the cause, the shajres have been hi excellent demand at 4s 9d to ss, and sales have been made at the latter figure. New Zealand and River Plate shares sold at 30s, and more of the shares could be placed at the figure. Equitable Building shares were m demand at £10, and Wellington Trust and Loan at £7 Bs. • • • Gas shares have been somewhat quiet for some time, but during the past week or two Christclrarch Gas shares sold at £10. Wellington Gas shares (£lO paid up) are on sale at £19 17s 6d, and the second issue have been i>n demand at £9 10s. • • • With respect to other shares, there was a demand for Canterbury Frozen Meat shares at £7 17s 6d, with sellers of Gears at 50s, and Wellington Meat Exports at £6 12s 6d, £5 2s, and; £3 5s 9d for the respective issues. Maoiawatu Rails have been in steady d^m^d at 43s 6d, and Union Steam at 32s bd. There were buyers of Westpoort OoaJ. shares at £7 8s 6d, Doitaghy Rope and Twine at £6, Mountain Rimu Timber at 235, and New Zealand Drugs at £2 11s 6d. m In the mining section tbere is- little to be said outside of WaiSn aaid Talisman., as these two companies claim the most attention. Wailiis have firmed recently, and sales were made at £9 2s 6d. The anin© -prospects are good enough to improve the value o* the shares, and the same applies to the Talisman. Company.