Finance Stocks AND Mining

Free Lance, Volume XV, Issue 795, 24 September 1915, Page 9

Finance Stocks AND Mining

THE London wool sales have progressed very favourably, although prices have not been up to the highest level. There is, however, a .prospect of improvement. Some time ago the British Board of Trade made •enquiries as to the quantity of wool available in Yorkshire, and ascertained that fully 50,000 bales over and above what was required! for the British "War ■Office was available, and further inves- ' ligation made since has resulted in the discovery of larger quantities. It is snow proposed to release about 125,000 Dales, of which 50,000 bales.are part of -the English clip, o for export to approved " -destinations.

It can now be seen why the wool market has declined during the past two or three months. More wool was avail--able than was really needed, and, wibh tha new clip from Australasia shortly to he marketed, an enormous surplus was in sight. The release of 125,000 bales •ought to have a good effect, and if the wholtet quantity goes to the United States it will help in some degree in Tegulating the exchange problem. Prices ought to improve, too, under the stimulus.

Butter is once more on the move up--wards, and if householders are to pay Js 6d per lb now, when we are at the beginning of the season, it is. obvious -fchat, when winter comes round again, the price will be somewhere in the neighbourhood of 2s. The present retail price is almost prohibitive, and many workers must obviously go without but"ter, so that the dairy farmer may make a fat profit, and indirectly the workers contribute to the £6000 or more which it costs to maintain the Dairy Division. The National Government has got to tfape this butter problem, and can easily -enough do so by accepting the advice of the farmers themselves and commandeering, say, 10 per cent, or 20 per

cent, of the season's output, at, say, Is 2d per lb. This course has been recommended with respect to the cheese required bv the British Government, and it;can be applied to butter required' by '.tire people of New "Zealand.

Last week there was a shrinkage in the gold in the issue department of the Bank of England, . the decrease being £3,349,000, and' arises mainly from the fact that a large amount of the metal has been sent to the United. States. There is also a decrease in the Government deposits of about £8,000,000, which is comparatively small. The settlement of the exchange crisis with America is near, for the International Commission appears to have made satisfactory arrangements for a loan of £100,000,000. This will restore the American exchange to its normal level, if if does not go beyond the gold point; that is, lead to the' export of gold from the United States to London.

There is much to be said for this view of the situation. The organisation of the industries of Great Britain under the control of the Ministry of Munitions, and the setting-up of State munition works, will, to a very large extent, relieve the Allies of their dependence on America, and, consequently, the credits of the United States will diminish. Shellfe, otfi course, will still be needed, but even in this respect the Allies will soon be. self-contained. The Americans will be glad to release the gold, for its presence in superabundance will foster a boom, a condition of things calculated to drive the- Americans to extremes in gambling, and the slump that invariably follows a boom will be disastrous to them.

There is nothing that -can be said about the local money market, but we are likely to get some idea of the loose funds when the Government loan for £2,000,000 is placed on the market. The fact that there is <a large! supply of idle credit awaiting investment is beyond dispute, and it remains to be. seen whether the amount is equal to supplying the needs of the Government.

During the past week the balancesheets of two Farmers' Co-operative Associations were made available, and these were the New Zealand Farmers' Co-operative Association of Canterbury and the Wairarapa Farmers' Co-opera-tive Association. The former is now a

very large concern, doing an immense business in its own locality. The bal-ance-sheet of the New Zealand Farmers' Co-operative Association shows that the net profits for the year ended July 31st last totalled 1 £60,031 5s lOd, and there was brought forward £2801 12s 9d, making £62,832 18s 7d available for distribution. The preference shares . get a. dividend of 6 .per cent., the ordinary shares a dividend and bonus of 8£ per cent., and there are the- other usual bonuses. A. thousand pounds has been set aside out of pj-ofits for a special fund to provide for contingencies with respect to members of the staff on active service, a provision that is in every way commendable.

The balance-sheet of the Wairarapa Farmers' Co-operative Association shows that for- the year ended 31st Julv last the net profit totalled £14,113 19s lid, and there was brought forward £10,788 12s 4d, making available for distribution £24,902 12s 3d. The dividend and bonus to shareholders are 9 per cent., and there are the other bonuses also. The amount to be carried forward is £11,900.

Many will regret that the Paparoa Coal Company has gone voluntary liquidation, although this does hot mean the collapse of the company. It means that the shareholders have relinquished the concern to the first debenture holders, who propose working the mine on a reduced scale. The Paparoa has had a chequered if not an unfortunate career. Paparoa coal is of first quality, and for steaming purposes it is as good as the best. The Paparoa has had to fight against vested interests, and has met with many drawbacks, but perhaps the future under the altered conditious may be brighter. We in New Zealand cannot afford to have this mine shut down.

The British Government has secured: a further war credit of £250,000,000, the third voted since the financial year opened on Ist April, and this brings the total voted to £900,000,000 for the- current year, and to £1,262,000,000 sine© the beginning of the war. The debt of the United Kingdom is piling up, but the Empire- can stand and must stand it, in order to put an end to Prussian militarism. This gives an indication of the formidable cost of the- war, and, if we take tihe expenditure of France, Russia and Italy, .of Germany, and Austria and Turkey and of the neutral Powers, the total be staggering.

There is no sign, of any easing in. the live stock market, and prices are very firm. At Johnsonville prime, heavy bullocks realised £17 to £17 17s 6d, "prime bullocks £15 10s to £16 ss, lighter £14 5s to £10. At Addington the prices were—extra prime steers to £25 15s, ordinary steers £7 2s 6d to £12, extra prime heifers to £17 10s, ordinary heifers £6 5s to £8, extra prime cows to £17 10s; ordinary cows £6 to £8 10s. At Burnside extra prime bullocks' realised £17 2s 6d, best bullocks £12 10s to £14, medium £10 os to £11 l"ss, light £7 15s to £9 ss, extra prime cows and heifers to £12 10s, best £9 to £11 ss, medium £7 2s 6d to £8 7s 6d, light and aged £5 os to £6 7s 6d.

At Johnsonville prime heavy wethers mad© 37s to 38s, prime 35s to 365, prime heavy ewes 34s 6d to 35s Bd, prime ewes 33s 8d to 345. At Addington the prices were—prime wethers 27s to 37s 3d, others 19s lOd to 26s 6d, prime ewes 25s to 32s 3d, medium 19s to 245, 6d, light and inferior 15s to 18s 6d, hoggets 14s 6d to 26s 9d. The prices realised at Burnside prime wethers to 42s 3d, best 36s to 38s 6d, medium 27s to 29s ,■ light 21s to 24s 6d, extra prime, ewes to 38s 9d, best 28s to 325, medium 23s to 255, light 17s 6d to 21s. * * * * Prime spring lambs sold at Johnsonville at 6s 6d to 17s. . At Addington 21s 6d to 24s 6d was reahsed, and at Burnside up to 25s 9d. * ■* * * A fair business is being done in the share market. Bank of New Zealand (old), sales £10 ss, (new) bpyers £16 ss; National Bank, buyers £4 17s 6d;' Equitable Building, buyers £9 ss; Wellington Trust and Loan, sales £7 7s; National Mortgage, sellers £4 4s; New Zealand and River Plate, buyers 40s; Gisbome Gas, buyers 34s 6d; Gear Meat (£1), sellers £4 8s 6d; Meat Export (£5), sellers £6; Union Steam (ordinary), buvers 22s 4d, (preference) buyers 19s 9d; Kaiapoi Woollen, ordinary, buyers £5 ss; Wellington Woollen (ot> dinary), buyers £4 19s; Westport Coal, sellers 29s 6d; Westport-Stockton, sellers 5s 4d; Leyland-O'Brien, buyers 22s 3d; Manning and Co., buyers £4 12s 6d; Golden Bay Cement, buyers 19s.

Quietness continues in the mining market. Talismans were in demand at 18s, Waihi at 36s 9d, and Waihi Grand Junction at 21s.