Finance Stocks and Mining

Free Lance, Volume IX, Issue 456, 27 March 1909, Page 15

Finance Stocks and Mining

r*\ HE naval scare in Great Britain I lias affected the money market. A It has created a feeling of uncertainty. There will have to be a huge expenditure in Dreadnoughts, and the apparent lead secured by Germany must be overcome. Wai-ship building means money, and plenty oi it. and, as the Chancellor of the Exchequer will close the year with a deficit: variously estimated at £4,000,000 to £18 000,000, heavy borrowing on tne part of the British Government is inevitable. . The Queensland toan suftered through the naval scare, and the unfortunate underwriters are left with 84 per cent "of the issue. Money is in, plentiful supply in London, but the unrest and want of confidence in the outlook will tend to Testnct investment, and borrowers will have to pay higher .rates. If the naval question is satistactonuly settled, as it can be by increasing and accelerating the building programme, there would be a speedy return of confidence. # , Gilt-edged securities we<re more or less affected last week. Consols declined 7s 6d, and most of the colonial denominations were lower. The naval crisis is bound to have a far-reaching effect. Ultimately, the effect ought to be good. It should provide Germany with a salutary lesson that British naval supremacy is not to be Jagntiv challenged. In its economic aspect, it will mean an increased expenditure in ship-building, and that wall .reaction general trade, and bring about an improvement in the prices of produce by creating a demand. • * * In the meanwhile, there are indications of an. improvement in the trade panospects. There is a slow but steads .revival in the United States, and the recent revision of the tariff is calculated to be of benefit to Australasia. Id respect of wool, the tarofi is reduced on coarse crossbreds> which, we take it, as the third-class wool. It may mean., however, mohair and alpaca, in which case we should not benefit. The admission of the hemp duty may or may not result in good to the New Zealand product. The remission is more likely to favour Manila hemp. In any case, New Zealand hemp will still have to compete against Manila, and, as the latter is more cheaply produced and supplies are ample to meet present requirements, there does not appear to be any prospect of an advance. • * • The London wool sales which closed on Thursday, March 25th, hav-e proved exceptionally good. The opening advance was well maintained, and throughout the series there was great firmness, nieunos coming in for special attention. Fine wools are evidently in fashion. Still, coarse wools have participated in. the firmness. The Bradford Top market has been excited but there has been no advance in values. What the excitement is about it is hard to say. Probably, it has something to do with the revision of the American tariff. • * * The wheat outlook is very encouraging, and means a great deal to New Zealand. Tile agriculturists throughout the Dominion have harvested big crops of cereal's, and if the quality of the wheat is good, there is a good price to be obtained for whatever quantity may be available for export.. During the past two or three yeaTS the export of agricultural 1 products has been, in frnitesimal, and this has made a difference to the aggregate value of our exports. If w« can this year sell wheat and oats to t3ie extent of half-a-miHion sterling, it would materially help to restore the tiade balance. • • • The local conditions show no change of imoortanoe. The dullness is ac cepted as an accomplished fact, but people have not lost confidence. It is generally agreed that it will take some time to Testore the equilibrium, and nothing is to be gained by labouring the point. On. all sides it is made anparent that people are economising in their expenses, while importers ire meeting the situation by cutting down their indents. It is a question whether imports have as yet been sufficient' lv reduced, but" that is a matter that may be safely left to those directly interested. • • • The danger at the present time is that people may take an extreme pessi-

mistic view, just as in a period of pi (asperity exaggerated optimism prevails. A sane and sober view of the situation is desirable, but it is not everyone who can take such a view. There is no doubt considerable trade dullness, and possibly ft may be worse an- the winter. On the other hu-nd, there aie factois operating which may easily bring about a change for the better We prefer to take a cheerful yiew cf the situation/, believing that the eneigies of the people are equal to coping with the demands of the times. New Zealand will pull through satisfactorily, and wdl be all the better for ha\ ing suffered a temporary reverse. * • * A fair business lias been done in investment shares, considering the scarcity of money and. the relatively high Tates Tuling. National Bank shares continue firm, and sales were made at £5 3s. Bank of New Zealand ©hares have shown a drooping tendency, buyers offering £8 7s 6d, with sellers wanting £8 10s. Insurance shares are very quiet, and this is not surprising in view of the enormous losses sustained by insurance companies during the past few months. • • • Financial shares are steady, with a slight tendency to lower values. Equitable Building, buyers £9; Wellington Trust and Loan, buyers £7, seller® £7 3s; Wellington* Investment, sellers 11s 6d; Wellington Deposit, sellers 9s; New Zealand and River Plate, sellers £1 13s 6d. • • • Gas shares continue quiet. Auckland Gas, buyers £13 15s; Ohristchurch Gas, sellers £9 10s; Wellington Gas, £10 paid, buyers £17, sellers £17 10s; new issue, buyers 16s 6d, sellers 17s 6d. Meat 'shares are unaltered. Gear Meat, £4 paid buyers £10, £1 paid buyers £2 10s: Meat Export, £2 12s 6d paid, sellers £3 Is 6d » • • New Zealand Shipping shares have had quittance at £7, and there are further sellers at the same figure. Union Steam, sellers £1 15s 6d; Wellington Woollen, buyers £2 19s, sellers £3; Westport-Stockton Coal shares changed hands at 8s 6d. Kauri Timber. 15s paid, sellers 15s ; Leyland and OBrien Timber, selers £1 2s 6d ; New Zealand Portland Cement, buyers £1 14s Sd, sellers £1 15s; Maiming and 1 Co., sellers £3 17s 6d : Ward and Co., sellers £4 12s 6d. Shariand's preference shares sold at 18s. • • « The mining market has been very dull, and very little business has been done. Talismans have had sales at £2 as 9d and £2 6s. Wadhis, which have been steadily rising, are quoted buyers £9 0s 6d, sellers £9 Is 6d. Other mining shares are quiet and weak.