FINANCE STOCK AND MINING.

Free Lance, Volume XIV, Issue 723, 9 May 1914, Page 11

FINANCE STOCK AND MINING.

THERE is ■ little that .can, be said . with respect to the London money market. There is a slight upward .movement in the rate for short loans, which indicates that there, is a temporary shortage in this market. The situation in Mexico and the.crisis ,in Ulster .have apparently had no influence on the money market as yet. The ease in the . money marget is reflected in the quotations of Government securities, all of .. which are firm. The gilt-edged market has been .favourable for some weeks, and .., the improvement that has taken place in ~ the, prices of colonial stocks has been a very good thing for Australia and New ■■> .Zealand. •* * . * * * This Dominion, has to borrow about .£3,000,000 for redemption purposes, and it is not unlikely that this loan will be issued within the next six or eight weeks. TTnder normal conditions, May and June are cheap money months, and therefore the most favourable period for issuing loans. "''■':'•''■; * ■ * . * * Local monetary conditions have'undergone no change, and a very fair idea of. the position is to be gained by the re-' marks of the directors of the New Zealand Investment, Mortgage, and Deposit 'Company at the annual meeting on Ist May. According to Mr. Biss. money had become more plentiful, but the rates for deposits had not yet been reduced. It is difficult to see how they' can be reduced while the demand for money continues as strong as it is. Nor is there any indication that deposits will increase largely in the near future. The last banking-returns disclosed the fact that advances were heavy, while the increase in the deposits was light compared with the first quarter of last year. * * * * •The fact of the matter is that the -country has been over-imp ortinst, or importing in excess of actual requirements, and until this ceases, there will not be much accumulation in the way of daposits. The Customs revenue for Wellington show that for the four months ended 30th April the total was £318,370, as against £324,187 for the corresponding four months of 1913; there is thus a -drop of £5817, and this may be the result of some curtailment in the imports. It is certain that the volume of imports must be reduced this year to bring about an adjustment between exports and imports. If this happens, theri bank advances will tend to decrease and bank deposits increase. * * * * There was a rumour about in the city quite recently that there was a parcel of £12,000 awaiting investment, but there was nothing tempting enough to invest it in, and it was consequently withheld. Thus the opportunity to get this amount into circulation was lost. This just reflects the lack of enterprise there is in business circles to-day. With any of enterprise at all, things in Wellington would almost boom.. "Still business continues on a solid basis, even though speculation is stilted. * * * * . A sure indication that things are improving au- the time is the building trade. There are no vacant houses, and this must relieve the property market slowly but surely. One architect alone reports that he has instructions for 14 or 15 new dwelling houses ? besides some large business premises, including a new six-storied private hotel on Lambtonquay, along by the Public Trust Office. Only a few days ago it was mentioned that another new building, for Mr. John Earkcaldie. was going up in the same vicinity. Another straw which shows how the wind blows is an advertisement in a local paper offering a bonus of £1 to anyone who will lay the advertiser on to a vacant five-roomed dwelling-house. It is about time the builders were made busy. * * * * The Bank of Australasia is one of the best known and most conservative of Anglo-Australian banks. The last balancesheet which is just out is for the half-year ended 13th October last, and shows that a net profit of £220,976 was earned, and, with £29,192 brought forward from the previous half-year, £250,168 was available. The capital of the bank is now £2,000,000, and the dividend and bonus of £3 8s per share, equal to 14 per cent, per annum, absorb £170,000, and £30,000 has bees, added to the reserve fund, which now stands at £2,690,000. The bank's resources are enormous. * * * * The Colonial Sugar Refining Company has a virtual monopoly of the sugar trade of Australasia, and its profits are accordingly large. The half-yearly report

shows that the net profit earned in Australia amounted to and in Fiji and New Zealand to £130.000, and there was a balance of £52,019 brought forward. The directors had .thus £315,780 to distribute. The dividend and bonus together , absorbed £203,125, and £112,655 is carried forward.'. The striking feature of the balance-sheet is the large profit secured in Fiji and iNew Zealand as compared with Australia with- its bigger population. ■ * * * # The values of the principal products exported from New Zealand for the year ended 31st March/last, aggregated £22,- . 049,650, which must be regarded as highly satisfactory, as "it is larger by £1,469,541 than .the total, for the previous year. Dairy produce and frozen meat account principally for. ,the increased exports, but it is disappointing to find that "wool decreased by £481,882. The true produce year ends on September :30th;. so- that -to '31st March only half the year has gone by. The half year's figures are not so satisfactory, as the total is £12,6.49,611, against £12.791,489 in the first Half of the previous year. There is a shrinkage of £141 878, which, thougb not large, is significant. From September to March is the busy time for exports, and unless we assume that trade has been disorganised by the strike, and shipments have been delayed, there is prospect that the year will end up disappointingly. * * * * The strike did cause a very serious dislocation of trade; shipping was delayed,.' and it is very certain that all the produce that could and should have been shipoed during six ' months was not handled, and therefore there is reason for believing that during the current half-year the deficit shown above will be overtaken and the year will exhibit ah appreciable gain in the total. Produce prices are still very good. * * * * The London wool sales are progressing, satisfactorily, and it is of particular interest to us to learn that the Americans are buying fine crossbred wool. The effect of American operations is out of all proportion to the quantity of wool they secure, but that does not concern us. The wool market is exceptionally strong, and prices have still an upward tendency. At Bradford there has been a distinct improvement in the quotation for tops, and at the moment the outlook appears to be that high prices will rule for some time to come. , * , * * * Fat cattle and sheep continue in excellent demand, and prices are therefore very high. The very large increase in the exports will account for the position. At Johnsonville, prime bullocks sold at £11 12s 6d to £12, and lighter sorts at £10 17s 6d to £11. At-Adding-ton the prices were —average steers £7 17s 6d to £11, extra prime to £16, heif- . ei-s' £5 10s to £9 15s, average weight cows £5 5s to £9, and extra prime cows to £13. The prices obtained at the Burnside market were —best bullocks £10 10s to £12, extra prime to £13 7s, medium £8 5s to £9 10s, light £6 10s to £7 10s, cows and heifers £7 to £8 ss, extra prime £11 7s 6d, medium £5 to £6 10s. * • * * * At Johnsonville, prime ewes made 18s 9d to 19s Bd, medium 17s 6d, prime wethers 20s to 22s 6d, two-tooth "wethers 17s 9d. At Addington, the prices were —prime withers 21s to 245, extra prime to 275, medium wethers 17s 8d to 20s 6d, prime ewes 17s 6d to 235, extra prime to 255. medium 14s 6d to 17s, aged and light 10.s 7d to 14s. At Burnside the quotations were—best wethers 22s 6d to 245, prj >.ne wethers 18s to . 19s, light 17s to 18s, best ewes 17s to 19s, extra prime to 23s 3d, good 15s to 16s 6d, medium 12s 6d to 14s, light 10s to lis. * * * * Moderate prices were ruling for lambs, the prices realised at Johnsonville being 14s. 9d to 15s. At Addington the quotations were —tegs 19s to 22s 6d, extra prime to 23s 6d, average weight 17s 6d to 18s 9d, light and unfinished 14s 6d to. 17s. At Burnside the prices realised were—best lambs 17s Cd to 18s, extra prime to 18s 9d, medium 15s to 16s 6d, light and unfinished 12s 6d to 14s 6d. * * * * Investment shares . are steady, and business shows a slight improvement. National Bank, buyers £5 10s, sellers £5 13s 6d; Bank of New Zealand (66s 8d), buyers £10 9s 3d; Metropolitan Permanent, sellers £12 • Wellington Investment, buyers 10s 9d. sellers lis 3d; Wellington Trust and Loan, buyers £7 7s; Wellington Deposit, buyers t!s 8d; Auckland Gais, sales 30s; Christehurch Gas, buyers £7 Is 6d; Gisborne Gas, sellers £2 2s 6d; Palmerston North C!as, sellers £10 10s; Wellington Gas (£10), sales £16 7s 6d; New Zealand Insurance, buyers £6 2s 6d; Meat Export (25), buyers £6 Is 6d, sellers £6 2s 6d; Union Steam, ordinary, sales 25s 3d; Wellington Woollen (ordinary), buyers £4 Is 6d ; Taupiri Coal, sales 20s 6d; Hikuran,i Coal, buyers 6s: Leyland-O'Brien, sellers 23s 3d; Golden Bay Cement, buyers 18s 6d: Sharland's, buyers 21s, sellers 225. * * * * The mining market is very quiet, and the only shares that exhibit any firmness

are Waihi Grand. .Junctions. .The Waihi Company's balance-sheet/which is not unsatisfactory, has not ; stimulated speculation in the shares, while Talismans are selling at about 365. The minor companies receive scarcely any attention except Waitangi, for which there is a speculative''demand. \