FINANCE STOCKS AND MINING.

Free Lance, Volume X, Issue 499, 22 January 1910, Page 9

FINANCE STOCKS AND MINING.

TEE London money market is in a very buoyant condition, and as soon as the turmoil of the elections is over the bank rate should com© down, and then there will fee a rush of loans. The bank irate is not likely to go below 3 per cent., because with the revival in trade tlhe demands for credit for trade purpose© are likely to be large. • * * The banking , returns for the past •quarter show vei'y conclusively- that the Dominion is now on a fair way to prosperity. A wave of industrial .activity, originating' in, the United States, is now enveloping Great Britain and the Continent, and New Zealand must participate in this movement. The banking figures show that a change has come. . * * *" The salient features of the returns are the substantial increases in all classes of deposits, and the ''equally substantial decrease in advances and dis•counts. It may be argued that the shrinkage in discounts is an indication of slackness in trade, and SO' it would be if the fixed and free deposits disclosed adverse movements. It must be remembered that free deposits show a substantial increase, notwithstanding the fact that bank advances are very much less v than they were a year ago. The discounts are less because retailers have been better able to meet their •engagements in cash, and the wholesalers, being well in credit, have not troubled to discount all their bills. * » * The figures, we maintain, disclose a very satisfactory position. The note circulation, which is rightly _ regarded as the barometer of domestic " trade, shows a decrease, but. in view of the fact that Parliament has . imposed an additional tax on the' note issue, it is not unfair to suggest that the banks are inducing their clients' to> take gold in preference to notes. The tax was not operative last quarter, but' for-.'all that it is quite likely that immediate steps were taken to educate clients into accepting metal rather than paper. It is a fact that several large employers have recently'.-"begun to pay all. wages in.' gold. ■',■-.-*. * * The manipulation of the ootton market by New York speculators, and the consequent sharp rise in values, caused a number of soft-goods houses, to* place very large' orders in anticipation' _ of values of cotton piece goods ascending. There is 'now a slump in cotton prices, and some of the speculators are bound to lose heavily. A slight rebound may "be expected, but values are not likely to go back to' the high prices current a fortnight ago. . During the week the Wellington wool brokers paid out. approximately £300 000, and the Napier, wool brokers £225;000, or over £500,000.in the' aggregate. This comparatively huge sum must have a favourable effect on trade and industry, and help to keep New Zealand in a state of prosperity. Wool is our great national asset, and without it New Zealand would be in a parlous condition. ■'"'.* * * Nothwithstanding that 1909 was a year of more or less financial stringency and dull trade, the Wellington Trust. Loan, and Investment Company managed to' earn nearly as much as in ■W ; previous year. The income' from interests, rents, fees, etc.", totalled £28,852 7s Bd, as against £26,021 14s 2d in 1908. The net profit for the year, including £1106 5s lid. brought forward from 1908, totalled £11.566 2s lid and this has been appropriated as follows: —To reserve fund, £2000; to dividend,. at the rate of 8 percent., £8100; carried forward to new account, £1466 2s lid. . . * » «• The Union Bank of Australia has declared a dividend of 10 per cent.. and a bonus of 2 per cent. The sum of .£IO,OOO has been added to the colonial premises account, £20,000 has been added to the reserve, and £38,879, has been carried forwaird. ■ * • .■ . ■. * The Equitable Building and Invest- • m>ent Company has had an excellent year. The balance to credit of interest account is £9075 16s 7d,. other income receipts for the year totalled £901 5s lOd. and there was brought forward from the previous year £1940 3s 6d, making the gross receipts £11.917 5s lid. The expenses under all heads amounted to, £2167 16s, leaving an available balance of £9749 9s lid. Out of this, £2500 is added to

the reserve fund, tbe dividend for. the year, at the rate of 10 per cent., absorbs £5689 6s 3d, and leaves £1560 3s 8d to be carried forward. * * » There has not been much business don© in investment share® since tbe Stock Exchange re-opened, but there is not wanting evidence that presently brokers will have all the business they can handle. There is good inquiry in almost every section, and prices remain remarkably high. The fact is the return to the investor is coinpa,ra.tiyely small, and less than can be obtained on mortgage. '"••■■■■'• « National Bank, buyers £5 17s 6d cum rights; Bank of New Zealand, buyers £9 Bs, sellers £9 12s: National Insurance, buyers £1 7s 3d: South British Insurance', buyers £2 14s. sellers £2 15s; Equitable Building, buyers £9 5s cum div; Wellington Trust and Loan, buyers £7 4s cum div; Wellington Investment, sellers lis 3d ex div: New Zealand Loan and Mercantile, buyers 3s; New Zealand and River Plate, sellers £1 15s 6d. .-.■*.'. ■» ' *.' • Christchurch Gas, buyers £9 15sNapier Gas. - buyers £12 ss; Wellington Gas, £10 paid sellers £18 2s 6d, £6 15s :paid sellers £14 ss; New Zea.land Shipping, buyers £7 10s; Wellington Woollen, sellers £3 4s; Hikurangi Coal,' buyers £1, sellers £1 2s Gd- Taupiri Coal, seller's 18s 9d • Westport Coal, buyers £6 4s, sellers £6 6s: Westport-Stocktotn, sellers 7s d: Leyland and O'Brien Timber, 'buyers £1 3s 6d; Manning and Co., buyers £3 18s, sellers £4: New Zealand Drug, buyers £2 6s 6d: New Zealand Portland Cement, buyers £1 17s 3d; Sharland's ordinary. sellers £1 Is • Wellington Opera House, isellers £7 17s 6d. *.- * « There is certainly a revival in the mining market, and it is taking the usual course. The dividend-payers are moving up, Talismans in particular having had a substantial advance. Old Haurakis have kept firm, Waihis have sold readily at £9 15s, and Waihi Grand Junctions <at £1 15s 3d. Consolidated Goldfields ' have received more attention, and so also have Ross Goldfields. ~