FINANCE STOCKS AND MINING

Free Lance, Volume XIV, Issue 695, 25 October 1913, Page 10

FINANCE STOCKS AND MINING

LONDON • money market shows no material improvement on Hhe previous week; if anything, there is ; a slight improvement. *. The Bank of ■ England has been able'to secure an addi-. . tional £216,000 in gold, and the reserve . of notes and coin has increased by £631,r 000. If this improvement s maintained, there' will be no danger, of any further hardening of the money market rates. ' There" has been no in the quotations for Government securities, except that Queensland fours have- dropped 20s. - This;may mean that the' Queensland Go- ; ' vernment is going on the London market 1 for a loan. ; - : "v - ' v../. <,/-«£... t : - The- sli^t' improvement : money,' market affordsVno 1 excuse-for- attempting .to raise money. -'".The 'experience •of too :• New Zealand 'Government ' was tuiforfcu- „ , nate. The loan was'f6r'"£3,soojopo'at .4; i -per cent., and. was .offered for • subscript •tion at £98. The however, were_ forced to - take up-. 92, per.. pent: of.- * the \issue. /The underwriters have' re- , cently experienced a very bad time, for practically every losin floated has had to be supported ,by them, t and under the oircumstances it. is not surprising that-, they have entered into a compact not to underwrite any further, issues for some time.'

The market certainly wants, a rest, so that credit may accumulate. "The -demands on. credit have been in fexcess of the supply, and, while a rest is needed, it is difficult to. see how it is-to be obtained. because there are so many conntries wanting money. There will be .increasing difficulty , in borrowing,' aind some of the borrowers will have to pay higher rates than are current now.

So far as New Zealand is- conoerned, there is just now more money about, because- the active period of farming lite is now on. - The farmery are beginning to take in £heir profits, and the ddbts incurred during the dull months of winter will be liquidated. Thus a-.good, deal of money must get into circulation' during the. next five-, or six months, and the dullness ! be" conveniently forgotten. But New Zeatancl's exports and. imports are not suoh : as to .encourage :the nope that trade will be very active.'

There has been over-importation during the past two years, and quiet liquidation with "strict economy must follow* The exports for the year ended September 30th were valued at £24,172.303, as compared .with £20,775,447- in the .pre-; vioua - year, exhibiting an increase of £3,396,856, while the imports totalled £23,403,022, as against £20,104,647. an increase of £3,298,375, Thus it will be seen that the., expansion in the imports has been nearly equal to the increase ' in the exports, that is to say, that * we have spent almost the full amount of our income. The excess of exports over imports for the past year was . £769,281, while for the previous year such amounted to £670,800. If we had no obligations "of interest on' public and private jndebt- , ednesa to meet, this showing would be extremely satisfactory",' but, unfortunately for U3, our commitments for interest may be safely placed at £3.500,000, and, when this is taken into account, it will be seen that we have had to rely upon borrowing_to 6quare accounts.- The Government has this year' gone, on the market for close upon and, although a good deal of this was for conversion purposes, still a very large amount represents new debt. , . * ' "* * ■»

The position is not at all satisfactory, and there is nothing to be "gained uy blinking the fact. If the Government is obliged to hold aloof from the London money market for a twelve-month, there would be very serious trouble in New Zealand, and the same thing applies to the States of the Commonwealth. Trade is quiet in Australia as well as in New Zealand, and is likely to become quieter.

The balance-sheet of the D.I.C. for the year ended August , 20th last, shows that this popular Department Store, under the highly efficient management of Mr. 'W. Simm, -has had another prosperous 'year. The net profit totalled £24,357 6a lOd. •which, with £8498 17a 2d brought forward, makes available for distribution a sum of £32,856 4s. An interim dividend at the rate of 6 per cent, was paid on preference shares for the half-year ended February 20, which absorbed £3750, leaving £29,106 4s for distribution now. The directors propose a farther dividend of 6 per' cent, on preference shares, absorbing

£3750; "a dividend at the rate of 7 per oent. on ordinary -shares, absorbing £7701 4s lOd; to add to reserve fund £542 V"; and to carry forward the balance, after allowing a bonus of 2£ per oent. to the holders of ordinary shares'on the amount of their purchases" durine the year. ' * '

During the year .15,730 ordinary shares were' allotted by the directors of - the D.1.C.. fully paid' to 10s, at the price of._ 12s_ per share; the premium realised; "am- - ountmg to £1573, i has been added to the reserve fund. . .The assets "of''the company include stocks aiid" ' shipments afloat £131,674, ■ warehouse. fixtures and plant in the three establishments ' £162.764'. The disbursements' in l salaried Swages, etc., for the year totalled £93,110. - ; ; /... J ' It the weather keeps fine, shearing will be pretty general throughout the district", and a' fair- quantity of-' s wool should - be available for the'opening sale of the season, which willi. *be- at - Wellington, -on As"> matters , stand y ->'that the -tvllhhave.frdm 10GO-to 2000 ' ',)E>aKs to' catalogile'r Xiast-year.'owing to vunfavourable climatic conditions delaying, /. shearing, no skle was • November. The prospects for wool " but not so good ae at one time seemed ";lik<ely;. Much will "depend, however, .upon the attitude of America. -If Aineridan buyers oome market, ■ ;'an impetuswill be given to -competition which may result in an improvement in values/ " - "V' : . . . • - V. : • ' • ~ • Pat stock still rales high, and beef in . particular • is making good money. At Johnsonville. prime heavy bu'locks sold at .£l2 7s 6d to £12 12s 6d, .lighten £li 12s 6d to £11. 17s 6d, light: £11. At Addington, fat steers made £8 5a to £11 10s, extra/prince to £17 15s, heifers ;£7-

15s to £11-'l2s -6d. cows £6' sar to, £iO, extra prime to £13 17s 6d. At Burnside, extra prime bullocks realised £18 to £21, prune £12 10s to _£13''lUs,~ medium" £9 los to £11, cows -and heifers, . prime £12 10s -to £13 10s, medium £9 Vto £11, light .£6to £8 10s. £ -: - v ' At Johnsonville, prime wethers made 29s lOd to 30s, prime wethers 28s 6d to 295,-prime shorn wethers 21s 2d,- ■ extra 3QsT7a to 31s 3d,-prime ewes 26s 7d to 27s 2d. At- Addington, extra" prime wethers realised 31s 3d. prime- 25s' tid to 295, others 22s to 255,. shorn weth-ers-18s 9dv to 22s ,6d, shorn ewes 16s to 19s.lid, woolly hoggets 21s to'-22s\ At __ Burnside, extra prime wethers aold iip to' ,'3cs 9d, prime wethers 27s to 30s, medium' 23s Gd to 2os, light 21s to 22s 3d, extrsC prime ewes to 31s 6d, good ewes 225"~t0 24s 6d, medium .;18s to 205." • —**" .■#'/ * • Prime .lambs at Johns6hv3lle ma.de 17s 2d to 18a- I'd; and good lambs 16s 9d to 16s lOd. - At Addington, best lambs rea- 1 lised 21s. to 22s 3d, lighter I4sfol7s 6d. : At Burnside, the_ prices w;ere. -2s : a head » lower than in the previous;, week- ■■■■ . . - V',. '» "* •' " » * . V. ; *- : - Investment/shares have been somewhat. quiet.recently, and this will be a.feature , of . the next few weeks, beeause of the* ' Christmas holidays. ' Values, keep " firm.- l Wellington-Irtvestment, sellers lls* 9d* . v ChristchurcK"Gaß, sellers £7: Wellington . - Steam Ferry, buyers 15s j Union Steam, " ordinary, sales 25s ,9d, preference, sales -,19s 6d; Mosgiel Woollen, buyers £3 12s fid; Westpprk. Coal., sales 30s • 9d; NewZealand Consolidated Dental, sellers 225. ' V; .- The mining market * has exhibited - a great deal of activity, and a fair, amount " .of ; business has been don«u. Waihis have fluctuated, bat the tendency has been upwards. v Talismans t keep . firm^/and

Junctions meet with a "good demand. Ross Reconstructed - fluctuate a good deal, and "wll continue Jo K 4° .'so^