Finance Stocks and Mining

Free Lance, Volume X, Issue 500, 29 January 1910, Page 10

Finance Stocks and Mining

THE London money market is easier, and the Bank of England discount rate has. been reduced another half per cent.,- and now stands a,t 3|- per cent. It is usual for money to become relatively cheap in London during the first quarter of the year. The Bank of England benefits by the ■ heavy payments into the Treasury by taxpayers, which, give to the Bank complete control of the money market. ! Last year, in January there were numerous reductions .in bank rates throughout Europe, but then trade was depressed. Just now there are> mdi- - cations of a world-wide trade_ boom, and the demand for credits is likely to be very pronounced. The. Bank or England rate will, in all probability, be further reduced to 3 per cent., buts is not likely to go below that for some time. ' . * * ** ■ A disturbance .to. trade, and therefore to the money market, is likely to occur when Germany .and the United States commence their taxiff war on February 7. Germany will feel me pincn seriouslv and this is bound, to have an effect on the German monetary situation. The Germa.ru Treasury is sure to be seriously affected, and the Budget deficit may be much larger than is anticipated.- » » Money, has become decidedly cheaper in . Wellington: THe building societies have plenty of funds available for investment. and th© banks are m mucn the same position. The building societies have reduced their rates for deposits from 4^-' to 4 per • cent., wnic should -result in the owners or i* ll ® capital seeking investments. The .Tost Office Savings Bank is sure to benedit. and very lively the _ Stock Exchange 'will see'increased business. ■ * *. * " Borrowers on good collateral securities have no cause for complaint now. Loan's can be obtained on real " but fancy values will not be entertained, wbich is really a good thing for the ' whole .'community. . High values lead to high rentals, and dear living, 'in the past this has proved detrimental!, to Wellington.. . The. city would now be showing considerable progress but for the- fact that many; people are nursing land speculations, while others are nursing businesses wM show _ a shrinkage in turnover. The is, however, righting itself rapidly. * . * . .* The. London wool sales continue to be very satisfactory. The advancerecorded at the opening is being well maintained, and growers ot cross- - bred- wool have much cause to. be pleased with results. Crossbred wool pro- . mises to be an exceedingly good asset - for some time to come. The- rise in price means so much more income to the • people of New Zealand, and that means, -more expenditure on labour . and commodities and more- business for the retailers. Last week the local freezing comparties advanced t&eir price for some grades of fat sheep. Wethers and wooEy lambs are a shilling per head. ..* bio-her and shorn lambs > sixpence niigneiv In: the three months, February — . April last .year, 1,102,593 lambs were exported from New Zealand, and. ix only a million are sent out .during the - next three months, the gain at sixpence per head means £25.000. ' 7 ' « « ■ ® • The gold yield of Australasia . for 1909 was approximately 3,429,549 fine ounces, as against 3,552,325 fine ounces in 1908, and.3.661.505 ounces m 1907. Every; State in the Oommonweailt]; shows a reduction. Victoria exhibits a decline of 29,974 ounces, due in c large measure to the .shrinkage! in tiw - output of some of the larger mines, li New South Wales the decline is aboul 25,000 ounces, the cause being the ex haustion of several of the claims. In* • decline of over 50,000 ounces m West ern Australia is attributable to tin lower grade ore handled. Queensland V keeps up its yield fairly well. Th only increase recorded in the past- yea. is shown by New Zealand, thern-creas* being 13,100 ounces. • The Dominioa is likely to show even better results thi year, because- a great deal mOTe atten .. tion.' is being- given to the industry. V * ; «. »■. The Wellington _ races interfere! very much with business on the Wei V - lington Stock Exchange. Such die . turbanoes are likely to' be felt for i little time, but presently everyone wil .settle down to business. Brokers looJ for a big increase in tutn-over. , Th

cheapening of money is in favour of Stack Exchange iny estments, where the returns on sound securities are now over 5 per cent. The improvement in wool has also favourably reflected on. the .Exchange, some of the larger wool-igrowers being forced to -look for an outlet for their money in good share securities. Very little business has been done during the past ten days. : National Bank shares changed 'hands at £6 3s cum rights, which is about the highest price touched for some time-. lington Deposit, sellers, 8s : Christchurch' Gas. buyers £9 17s 6d, sellers £10 ss; "Wellington Gas, £10 paid, sellers £18 ss, £6 15s paid sellers £14 ss: Wellington Woollen, sellers £3 4s ; Hikurangi Coal, buyers £1 ss; Westsellers 7s 3d; Leyland and O'Brien Timber, buyers £1 3s 3d; New Zealand Drug, sellers £2 7s od; Sharland's preference, buyers £1 Us 6d ; Wellington Opera House, sellers £7 17s 6d. * •» * Business in mining shares is restricted to a few shares. . Talismans touched 455, and seem to stick at that figure. Old Baurakis iare fitful, rising and falling _ with the changing prospects. Waihis keep ' steady at £9 16s to £9 17s. Grand Junctions are weaker. - Waitangis have had .inqxtiry* a-"fc 2s sdi Blaxawa-'fcer slia-r-os ha/vo firmed buyers offering 245. Consolidated Goldfields are also firmer, with buyers at 19s 3d, The market is very slow.