FINANCE STOCK AND MINING.

Free Lance, Volume XIV, Issue 720, 18 April 1914, Page 5

FINANCE STOCK AND MINING.

MONEY is apparently, verv plentiful in London, for the rates for both three months' bills and short loans continue very low. Yet the figures* of the Bank of England last week were rather adverse. There was a further heavy shrinkage in : the gold reserve, the decrease being nearly £3,000,000. Not many weeks ago the gold in the issue department of the bank amounted to £42,000,000, while now it is only £34,418,000, a .reduction of nearly £8;000.000, and yet money is very cheap in London. * * * * The explanation of this appears to be that the great joint-stock banks have their hoards of metal, which of course is well known, though no one appears to know the volume of this hoard. However, the main point is that money, is decidedly cheap in London, and that must tend to make money cheap here. "Unless something unforeseen happens, as, for instance, civil commotion in Ulster, money will continue cheap until about September. _ when the usual autumn demands begin. * * * * Locally, the monetary position is without change. The banking averages for the March quarter rather upset theories •and calculations previously held. There is an increase of £624.538 in the advan•ces, and £49,736 in the discounts, and yet the deposits show only a very small increase. The free deposits or current account balances are £15,241 greater /than they were a year ago, and the fixed •deposits £127,753' larger. The savings of the people are not equal to meeting -fche demands for money. * * * * The banks cannot continue to tolerate a pressui'e of this character without imposing a check of some kind. The demands for overdrafts appear to be mainly for the purpose of paying for imports— that is to Say the credits are being trans-' ferred out of New Zealand. Plainly •stated, it is apparent that imports are in •excess of normal requirements, and, while the goods are being held pending realisation, the money has been sent out of the country. * * * • * . _ Another adverse feature of the banking returns which tends to confirm the complaints of retailers that trade has ■ been dull. The note circulation, compared with a year ago, is lesß'by £36,379, the figures being £1,666,939, as against . £1,703,318; the decrease is less than 1\ per cent., and this shrinkage js too small to count. _ Notwithstanding this decline in circulation, the banks have strength- • ened their metal reserves, the total now being £285,706 greater than a year ago. .... * * * # ■•• Too much can be made of the drop in the note circulation, which should not be warranted by the facts. It must not be overlooked that most employers now pay wages in coin, notes being sparsely used . for the purpose. It is only in the country districts that notes circulate to any great extent, and there may be special circumstances of a very harmless character to account for the drop in the note circulation. . * * * * It was hinted some weeks ago that it * was likely the banks would reduce their lending rates, and necessarily their deposit rates, after the close of the March quarter, and, looking at the banking returns, it is difficult to see this 'can be done with safety. There is a way, and it rests with the volume of the Government deposits. -i The whole of the instalments of the New Zealand loan floated in London have not yet been paid, and when they do come in, the Government deposits within New Zealand "will be large. .But it does not matter whether the money is held in London or

here, the credit will be available, and the banks would be fully justified in reducing their rates. *.' . . * * * One thing is evident from the banking returns, and that is that New Zealand requires a very much larger sum to finance her trade and commerce and to develop her resources. Thus bank advances for the March quarter of 1910 totalled £16,178,128, while for the March quarter of this year the total was £21,- • 649,643, an increase of £5,471,575 in the shoßt period of four years. The demands will increase rather than decrease as the scope of development is practically without limit. e « # « Of the produce markets there is nothing that can be said of moment. All New Zealand products, with the exception of hemp, are selling at satisfactory . prices. The butter market is excellent, although the latest cable message re- ' ports a dragging sale. There is an improved demand .for New Zealand butter, and unsalted is scarce. New Zealand; butter is commanding very good orices in Vancouver, according to cable advices. Cheese is making good money in London, and the prospects are for a continuance of good prices. The prices for frozen meat continue good, and the demand for live stock, both fats and stores, is exceptionally good, and prices rule high. At Johnsonville, prime bullocks realised £11 ,2s 6d to £11 10s, lighter £10 10s to £10 15s. At Addington the prices were —ordinary fat steers £7 15s to £11 10s, extra good to £15 ss. prime heifers £5 17s 6d to £9 7s 6d. extra prime heifers to £12; cows, £5 5s to £8 ss, extra prime to £13 ss. Atßurnside best bullocks realised £13 to £14 17s 6d, medium £10 10s to £12 10s, light and unfinished £8 to £10, best cows and heifers to £10 10s, medium £9, inferior £5 10s. . * *■ * * At Johnsonville medium wethers made 20s to 21s 6d. prime ewes 17b 6d to 17s Bd, plain ewes 16s to 16s 3d. At Addington the prices were —prime wethers 21s to 23s 3d, extra prime to 255, prime ewes 17s 9d to 22s 9d, medium ewes 14s 9d to 17s 6d aged'and light lis lid to 14s 6d. 'At Burhside. best wethers sold at 27s to 28s, extra prime to 30s, medium 23s to 265, light and unfinished 19s to 21s. * * * # Good lambs sold at Johnsonville at 14s Id to 14s 6d. At Addington tegs realised 19s to 265, average weight lambs 17b to 19s Id, lighter and unfinished 15s . 2d. to 16s lOd. At Burnside there was no change in , prices as compared with, the previous week. * * ' * * The share market is still under the holiday, influence. Brokers resumed business on Thursday, but have scarcely had time to settle down. The quotations current before the holidays rule . now. National Bank, buyers £5 6s, sellers £5 7s; Equitable Building, buyers £9; Metropolitan Building, Sellers £12;. Wellington Investment, sellers lis 3d; Wellington Trust and Loan, £7 6s 6d; Wellington Deposit, buvers 6s; Christchurch Gas. buyers £7. sellers £7 2s 6d; Gisborne Gas. sellers 42s 6d; Napier Gas (£10), buvers £15 17s 6d: Wellington • Gas (£10), buyers £16 ss, sellers £16 10s. *".-.# # * National Insurance, buyers 51s 6d; New Zealand Insurance, buyers £5 15s 6d; Christchurch Meat, buyers £16; Gear Meat (£4), buyers £14 .7s 6d; Union Steam, ordinary, buyers 24s 6d. sellers 25s 3d; Kaiapoi Woollen, ordin-. ary. buyers £5 "4s; Wellington Woollen, ordinary, buyers £4 Is 6d, preference, buyers £3 ; Westoort-Stockton,. sellers 3s ' 7d; Leyland-O'Brien, sellers 245; Golden Bay Cement, buyers 18s; Manning and Co.: buyers £4; Sharland's orv dinary, buyers 21s 6d, preference buyers 21s 6d: Ward and Co., buyers £5; W.F.C.A, (£1), sellers 265. * * * *. • The mining mai'ket is exceedingly dull, prices showing a tendency to fall. The Talisman had a very good return last month, but even this has failed to have any stimulating effect on the market. - '