Finance Stocks and Mining

Free Lance, Volume XV, Issue 801, 5 November 1915, Page 6

Finance Stocks and Mining

THE' Bank of England figures are getting down, and the deposits, other than . Government deposits, are now about £99,670,000. This is still large compared with normal times, but is very much smaller than it was earlier in the year. The Government deposits are down to £42,885,000, equal to a little more than ten days- war expenditure, and unless , there ar§ still large amounts. of "the* last loan instalments to come in, or the'revenue comes in in larger volume, further borrowing on the part of the British Government will be necessary. It is obvious that further borrowing is contemplated, for the cable told us a few days ago that the interest on Treasury Bills at 9 and 12 months is now 1 to be 5 per cent.

This is an attractive rate, and should draw the money from the larger institutions which have spare funds for temporary inyestment. The money that was borrowed in the United States is to be spent there in purchase of foodstuffs and munitions. The financial _ position of the Allies should not occasion the least concern, because they are wealthy enough to meet.a far greater expenditure than they have as yet been called upon to bear, and they are better able to stand the financial strain than the Central European Powers. .

The heavy sum borrowed in -the United States has not prevented the exchange rate from falling" still'lower, and for this movement, which is apparently _ artificial, "we must look to the manipulations of the pro-Germans in America. The increased- taxation on luxuries" im-" posed in Great Britain has not yet had time to become fully operative, but when it does there will be a substantial decrease in imp.orts from the - United ■■ States, and this will tend to steady, the Exchanges.

Very, little is being heard of the local loan, applications for which close. tomorrow (Saturday), November * 6th 1 It is believed that the sharebrokers have not 'done much " business with' their clients, and, it is doubtful whether the private subscriptions—-that is, from individuals and firms —-will amount to very much. The loan, if it is taken up at all, will have to rely largely on the support of the banks, insurance companies, and other financial institutions. * * * *

An indication .of what may be expected in the is given in the latest insurance policy issued by Lloyd's. The underwriters of that famous institution have underwritten a policy of insurance at a premium of £5 5s per cent, against Tsar Ferdinand being on the Bulgarian throne after June 30, 1916. This looks very much like a gamble, but really it is no more so than air-raid insurance or submarine insurance, and Xiloyd's underwriters have been underwriting such policies for some time.. Thei fact is that Lloyd's underwriters, have marvellous sources of information, and, furthermore, they are trained in estimating .possibilities and contingencies, and it may be found in the finish, that they are not very far wrong. Once the Russian forces get into Bulgaria it . will go ' hard with the Tsar Ferdinand and his German flatterers. The Lloyd's underwriters may win their bet, if we choose to regard their latest insurance as just pure gambling.

Messrs. Abrahams and Williams, Ltd., auctioneers and live stock salesmen, have had an excellent year. The net profit for the past year, after making full allowance for all expenses of management, bad and doubtful debts, etc., amounted to £13,346 Is Bd, and, adding the amount of £2074 17s 6d brought forward from last year, the total available is £15,420 19s 2d. The interim dividend paid for the half-year ended March 31st la§£ absorbed £2742 5s 6d, and out of the balance a further dividend at the rate of 6 per cent, per annum has been declared/ The §um of £5000 has been added to the reserve fund, bringing that _ fund up to £25,000. The company is in a solid financial position. * * * *

The first of the series of wool sales to be held at Wellington is fixed __ for Wednesday, November 17th, when it is anticipated a fair number of bales will be offered. Shearing has been pretty general, and, what with wool coming in for shipment and also for sale, quite a large number of bales are now in the wool lofts and Harbour Board sheds. The prospects for wool appear to be of the very best, and brokers look for record prices for the best class of wools. Private buyers who are scouring the country districts, are offering very

tempting prices, and no doubt a.; good deal of wool will thus change hands, but the demand is not likely to be satisfied in this way.

The call for morei men- throughout the Empire is being responded to most heartily, and we have the statement of Lord Rosebery, .who is not given to talking at random, that Lord Kitchener wants another 3,000,000 men from the United Kingdom, and, if there is no prospect of recruiting being up to requirements by the end of _ November, then conscription will come in. Another 3,000,000 men in Great Britain will call for many million yards of woollen goods and khaki cloth, and so we have in this alone the prospect of values being well maintained. But it is only good wools that will sell at high prices, and sell quickly; faulty and inferior wools are not in demand, because the trade cannot spare the time to handle this class of wool, which requires special treatment.

The - woolbrokers in Wellington are feeling the effects of .the numerous" enlistments from their establishments. The wool season is a busy one, and even with their .trained staffs, the pressure has been very great, and how they are going to overcome their difficulties this season, with depleted staffs and untrained men, remains to be seen. If the country were organised, and everyone "under orders," a certain number of men unfit for military service could be lent to such establishments and the work carried through.

The demand for fat cattle ad sheep is very strong, and prices are well maintained. At Johnsonville prime heavy bullocks made £19 to £19 7s 6d, prime bullocks £17 7s 6d to £18, lighter £16 7s 6d to £17, prime heifers £9 3s to £9 Bs, prime cows £9 8s to £9 9s. At Addington the prices were —extra prime steers to £24 10s, prime steers £7 10s 6d to £13 10s, extra, prime heifers to £16 ss, ordinary heifers £7 15s to £12 10s, extra prime cows to £18 10s, ordinary cows £7 to £11. The prices at Burnside were —extra prime bullocks to £27, prime bullocks £20 10s to £23 10s, medium £16 to. £18 10s, light £13' to £14 ss, extra prime cows and heifers to £17 10s, best cows and heifers £14 10s to £16, medium £11 12s 6d to £12 7s 6d, light and aged £9 to £10 2s 6d.

. The : prices --for fat sheep-were as follow : —At Johnsonville, medium woolly wethers 325, prime heavy shorn wethers 27s 2d to 27s 9d, lighter 26s to 26s 6d, extra heavy ewes to 28s 3d, prime ewes 25s sd, lighter 22s 6d to 23s 6d. At 7 Addington-—woolly wethers 31s to 41s 6'd, others 19s 6d to 30s, shorn wethers 20s to 30s 9d, prime woolly ewes 29s to 35s 6d, others 16s. lid to 28s, shorn ewes 20s to 285,. woolly hoggets 21si 3d, shorn 'hoggets 18s 9d. __ At Burnside—prime wethers 46s to 51s 3d, medium 33s 6d to 36s 9d, light 26s to 295, extra prime ewes to 39s 6d, best ewes 32s 9d to 36s 3d, medium 26s 9d to 27s 9d, light and unfinished 19s to 21s 3d. At Johnsonville prime lambs sold at 16s 6d .to 17s 6d, and lighter at 14s to 15s. At Burnside best lambs made 25s 3d to '26s 6d, and medium 18s 9d to 22s 6d. "

Investment shares are firm at full market rates. Bank of New Zealand (old), buyers £10 Is 6d; National Bank, buyers £5; Weilirigton Trust and Loan, sellers £7 7s 6d; Auckland Gas, buyers 295, sellers 29s 6d; Napier Gas (£5), sellers £9; "Wellington Gas (£10), buyers £15 18s 6d, sellers £16" Is; New Zealand Insurance, buyers £5 15s 6d; Wellington Meat Export (£5), sellers £6; Union Steam (ordinary), buyers 23s 9d, sellers 245; Taupiri Coal, sellers 15s 6d; Westport Coal, sellers 295; New Zealand Drug, sellers 43s 6d; Sharland's (ordinary and preference), buyers 235; W.F.C.A. (£5), sellers £6.

The mining market is deadly _ quiet, and one cannot see how it iis possible there can be improvement. There is no money about for such speculation', and the gold returns are not such as to develop enthusiasm among those who follow the market. -