Finance Stocks AND Mining
THE feature of last week's Bank of England return is the increase in gold, the total being £61,208,000, as compared with £59,941,000 in the week. Responsible statesmen have advised the people .-to exchange '• their gold for notes, and pro"bab!y the response to this .appeal has had something to do with the improvement. But apart from this ■it must not be forgotten that England .jhas control of the principal gold supfilies of ithe world. The South African, ndian, and 1 Australasian gold invariably .finds its to the United Kingdom, jand it is in London that the bullion operate.
Just now the exchanges are- operating in -favour of the United States. Britain. France, and Russia aire making heavy purchases in America, hence American exports are very extensive, while itlie imports are comparatively small. >the balance of trade thus being very much in favour of the United States. The surplus of exports over imports have to be paid for, and the Allies can pay for this by the sum derivable from America as interest and dividends, ■freight, etc, on , the money lent and the rendered America. In addition there is the volume of American securities, mainly railroad bonds, and shares in breweries 1 and other enterprises which -can' be exported to America in settlement of debts. This applies mainly to England and France, and, as thei Americans are doing a big business with Russia, it is in the settlement of Russian •accounts 'that America secures the power to draw gold. During the past few months a fair amount of gold has ;gone from Paris to New York.
A further. examination of the Bank of return shows that Government •deposits have declined by £30,600,000 during the week. There was on Wednesday of last week a Government credit of £147,000,000, which, at £3,000,000 p. day, represents, sufficient money to pay the war expenses for a period of 45 *days. Before the expiry of this period further instalments of the war loan will be due, but in any case we have to remember that the British Goyeroment's financial arrangements are sufficient to carry on the war until March 31at, 1916.
Just now tli© London money market fis inclined to stringency, but that is the pormal feature of the market at this time of the year. The harvests of North America are now available for the markers, and' there must be heavy buying -of wheat, etc., just now. In spite of this, however, short loans axe being ■done at per cent., and three months' at 5 per cent., which cannot be regarded as oppressive rates.
Finance and war go together, and, •during the. past two or three weeks, the outlook has been very serious for the Allies* Russia has been pushed back ■by the weight of artillery and the want •of munitions for her millions of soldiers. Everyone anticipated that a diversion •would 'have been created on the western front to relieve the pressure on Russia, .but nothing happened, from which wc may conclude there were very good reasons for the inactivity of France and England. The Allies are not yet ready ■to take the offensive, but this operation vcannot long be delayed. The Balkan JLeagu© will be re-established, if it hats aiot already been accomplished', and' that will mean the collapse of the Turkish resistance and the rejuvenation of Russia. When the Allies begin operations there will be fireworks by land and sea, and the enemy will be struck _ from all sides. Another winter campaign looks very probable at the moment, and yet there may be a collapse before the beginning of Novembei.
The cost of the war is appalling, and t'he mind staggers at the _ magnitude of the figures. An accredited statistician' places the aggregate for six of the European nations, not including Italy and Turkey, at £9,147,000,000, but this, of course, does nob mean merely the expenditure of the war but includes damages. Belgium has not spent £526,000,000, or anything like it, but the fcnaterial damage suffered by ©elo-ium would account for the greater parfc of the total. _ In whatever way it is viewed, war is a costly affair, and many responsible newspapers are discussing t'he possibility of repudiation. Some of the smaller States cannot stand the strain, and may be obliged to compound with their creditors.
In view of the enormous expenditure on the war, responsible statesmen are
consistently warning' the people to exercise rigid economy, and to a large extent this advice is being followed in England. New Zealand is' more happily circumstanced than any other part of fclie British Empire, and, while our position inspires one with confidence, it dossn't allow for any wild-cat schemes. The war is costing us a little bit, but we are getting it all back in the high prices for our products, and there will continue to be a good demand for our produce long after the war ends.
•* * -Jr * The Wellington Farmers' Meat Com-
"an;,-, like all other meat companies, has had a wonderfully good year, the bestin the history of the concern. This Waingawa company lias done well almost from the start, clearly proving that the resources of the Wairarapa were equal to maintaining a meat company. * * * * The local butter markejb affords food for thought. The retail price of butter in Auckland is, Is 7d per lb, while in Wellington it is still Is 9d per lb, unless it has been altered during the week. New butter has made its appearance in Auckland, consequently the price has been reduced. New season's butter is coming; to Wellington also, and in increasing quantities, but there is not the same disposition to reduce the price. Why? It is probably due to the fact that the trade is under better control hei - e than in Auckland. Surprising the •people here accept the position without kicking.
The price of butter is. a question for the Food Commission, but this august body cannot take a sltep unless there is a complaint. Who is to make the complaint? The 'plaintiff must produce evidence to prove that the price is excessive , and the average householder is unable to do that. The Commission operates differently in Australia. There, iifc ■is the ■ merchant who has to satisfy the •Commission that there is ample justification for an advance, and the advance \ can only be made with the consent and aoriroval of the Commission. If the same procedure had been observed here, butter 'would never have risen to Is 9d, and bread, too. would be cheaper.
The rise in the price of mutton seems •to be justified by the high prices ruling in: all' markets- for fat wethers and ewes. ■At Johnsonville last week extra, prime heavy wethers realised 37s prime wethers 32s 9d to 33s 9d, prime lighter wethers 31s 9d, extra heavy ewes 35s ,to 38s 6d, medium ewes 26s 6d to 275. At Addington the prices were —prime wethers 25s- t3< 355, others 19s to 24s 6d, extra prime ewes to 52s 6d, prime ewes 24s to 32s 6d, mxlium ewes 19s 6d to 23s 6d. others 16s to 19s. At Burnside extra prime wethers realised to 42s 6d, prime wethers 30s to 335, good wethers 24s to 265, light -21s to 22s 6d, extra prime ewes to 40s, best ewes 27s to 30s, good '22s to 245, medium 18s to 20s.
At Johnsonville prime lambs sold at 18s 4d to 19s 6d, and lighter at 17s. At Addington extra prime lambs realised to 435, prime lambs 22s 6d to. 27s 6d, lighlter 12s 6d to 18s. At Burnside the prices 'were —extra prime il'amhs to 345. prime lambs 24s to 26s', good 20s to 225.
At Johnsonville prime heavy bullocks made £15 10s to £16 2s 6d', prime light bullocks £12 to £13 ss. At Aldington the prices were—extra prime steers to £40. ordinary steers £8 10s to £13, extra prime heifers to £14 10s, ordinary heifers £6 5s to £11 ss, extra prime cows to £18 17s 6d, ordinary cows £6 to £13 10s. At Burnside the prices realised were—extra prime bullocks to £20 os, prime bullocks £16 to £18, good £12 10s to £14 10s, light £10 to £12, best cows and heifers £12 to £14, good £10 to £11 10s, light and 1 inferior £6 to £8.
A fair amount of business has been done in investment shares. National Bank shares changed hands ait £5 2s: .Bank of New Zealand (new), sellers £16 10s: Union Bank, sellers- £51 15s ex div. ; New Zealand and River Plate, buyers 40s 6d: Wellington Trust and .Loan, buyers £7 6s 6d; Christchurch Gas, buyers £7 12s 6d; Gisborne Gas, ,buyers_34s: Wellington Gas (£10), sales £16 17s 6d: Wellington Gas (preference), buyers 19s 3d, sellers 20s; Union Steam (preference) buyers 20s 3d, sellers 20s '■d: Kaiapoi Woollen, buyers £5; Wellington Woollen (ordinaryV buyers £4 His; Wellington Meat Export, sales (£5) £6, (£4) £5, (52s 6d) £3; WestportStookton, sellers 5s Id ;Leyland-o'Brien, sellers 22s 6d; Golden Bay Cement, sellers 21s 3d; Ward and Co., buyers £5 12s 6d cum div. ; D.I.C. (preference), sellers 20s 6d.
In the mining market there are more fluotaitions' hut very litt'fe business doing. Jilackwater shares are wanted at 13s .6d: Murray Creek, buyers 325, sellers 345; Murray Freehold, sellers 255; Ross, buyers Is 2d'; Talisman, buyers 19s 9d ; Waihi Grand Junction, buyers 21s 9d.
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Bibliographic details
Free Lance, Volume XV, Issue 789, 13 August 1915, Page 9
Word Count
1,558Finance Stocks AND Mining Free Lance, Volume XV, Issue 789, 13 August 1915, Page 9
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