FINANCE STOCKS AND MINING.

Free Lance, Volume XV, Issue 802, 12 November 1915, Page 6

FINANCE STOCKS AND MINING.

THE London money, marketappears to be very steady—that is to say, there are no fluctuations of .any startling character. The Government deposits, after receding to £42,885,000. have now come up to £45.537,000, and the gain is reassuring. **" * * There is perhaps some consolation in the fact that Germany is suffering a great deal more than we are. Apart from-, the monetary trouble, Germany is suffering from a shortage of food. The scarcity of meat is very real, although we cannot believe - everything : that is cabled out to the Dominion. London papers with connections with neutrals, have , obtained sufficiently reliable information to be able to state that Germany's food problem is a very serious matter. * However, the British nation must continue to spend a great deal of money before the hour of peace arrives, and to maintain this expenditure there must continue to be care. The scarcity of gold can scarcely be felt among the Allies, for Russia and France have immense stores of the yellow metal. and, as their finances have been co-or-dinated, they can draw upon one another for supplies. In any case, should the position become desperate, the Government has but to call for old gold ornaments to be put irito possession of vast supplies. The French Government did this, and secured a great deal of gold.; Germany has had its wool week and copper week, and so has accumulated/supplies. *. * * * Thie worst featurel of the financial situation is : that the Allies aie compelled to buy munitions very largely from the United States, and the payments for these have to be financed by London. The average monthly excess of imports over exports in normal times is about ten millions sterling, but now the excess amounts to about £30,000,000 monthly, and it is this that is causing the difficulties of exchange with America. However, the war is going steadily in favour of the Allies, and its duration may not be quite so long as most people think.

Locally, "the conditions are decidedly satisfactory. For. the year ended Sep-t-ember 30th, 1915, the : exports exceeded the imports by nearly ten millions sterling, which means that we have been able to meet all our outside x obligations and have a substantial sum left. This big trade balance accounts for the expansion in the deposits shown by the banks, and other financial institutions. There is plenty of money in ■ the country, and there is plenty of work to be had by all who want to work.

Besides this we have also the pleasure of knowing that the current export < season will yield a profit, and a handsome one at that. Meat, butter, cheese, and wool are certain to realise high prices, and so credit, will "be piled up on credit, and we should be able to finance our own undertakings without feeling any pinch whatever.

The success of the two million loan, which was never in doubt, reflects most vividly the extreme prosperity that is now being enjoyed by New Zealand. The total subscribed is approximately. £3,500,000, or about 75 per cent, more than the amount asked for. Had this been purely a war loan instead of a public works loan, the Government could easily have got in four or five millions sterling. However, the country cannot do without public works, for improvements in roads, cutting up of estates, extension of telegraphs, etc., all help in the development of the country. What the authorities will have to do is to be very careful in their expenditure on public works. No one recognises this more thoroughly than the Minister of Finance, Sir Joseph Ward, and it is to be hoped that the_ people will endeavour to modify their demands for public works.

* * T * » The success of the loan is excellent from another point of view, fotf it shows that later on, say, in March and- April, when perhaps it may he necessary to issue a purely war loan, the country will he able to find about five millions sterling. The past seasbn has_ heen very profitable, and has left us with a trading balance of about £10,000,000. The current produce season is likely to be more profitable than the last, and 'there will be a larger credit balance to draw on. A loan for a large amount issued later on will undoubtedly prove a success.

■ The report of the National Insurance Company, for the year ended 30t'h September last, states that the net revenue amounted to £177,543 15s 2d, and, after paying an interim dividend, there is a surplus of £33,346 16s 2d, to which has to be added the balance from last year, : £29,573 4s lid, making a- total of £62,929 is id. The directors have added to th* reserve fund £15,000, and they recommend the payment of a further dividend of Is and a bonus of 6d per share, making the, total distribution for the year 2s 6d per share. The directors also recommend* a vote to the Sick - and 1 Wounded Soldiers' Fund of' £1000, and to carry forward £31,920 Is- Id. * -55- * * .The report of the Mosgiel Woollen Factory Company as at, 6th October, 1915, states that the profit and, loss account, after writing off £5000 as . depreciation,. shows a balance,,of profit available for appropriation of £9918 13s sd. The directors recommend that a dividend of 7. per cent, be paid, absorbing £5842 0s 6d, leaving £4076 12s lid to be carried forward. The amount received on goods account totalled £25,932 8s 5d,~ while the expenses amounted to / £12,998 ,7s sd. This,'company, like <the other woollen companies in New Zealand, is doing rather well, the demand for woollen fabrics for the soldiers being extra good. * * * * The London wool sales show that the staple is making good money, and the demand appears to be excellent. This applies only to the best descriptions of wool, faulties and inferiors being more or less neglected. The Americans are operating to a limited extent, and it is obvious that the British Board of Trade is affording facilities for export to neutral countries. The prospects for the new clip now in sight are decidedly good, and, apart from the London; sales, there are indications available locally by private buyers' operations. The prices now being offered farmers for parcels are exceptionally high. Wellington's opening wool sale will be held next -week. * * '* * Since the London butter market receded to a reasonable level, business has been brisk. Danish butter was forced up in price by the operations of the Germans, who, it was stated, were buying butter to be used in connection with the manufacture of "munitions. The Danes, however, with an eye to the. future, took steps to maintain their British connection, and, by increasing their exports to England, steadied the price. Australian and New Zealand butter should now begin to reach the market in increasing quantities. * * * * 7 The position of cheese is decidedly good. The London price is about 84s, but the most interesting feature is the direct sale to the British Government of a considerable quantity, about onefifth of the total production of New Zealand, which would be about 8000 tons. This will mean a return of £1,000,000 to the cheese factories, and that without any deduction for commission, etc. - - * * * * The meat position, too, is very satisfactory. The stores are nearly clear of the past season's stock, and several of, the meat companies are just about to begin operations. The outlook is _ for high prices for fat stock, . and this is seen in the quotations at the saleyards, beef in particular being exceptionally high. At Johnsonville prime heavy bullocks sold at £18 12s 6d, prime bullocks at £16 to £16.,155, lighter at £14 15s to £15 12s 6d, prime cows at £10. At Addington . extra prime steers made up to £24, ordinary steers £9 12s 6d to £12 15s, extra prime heifers to £18 ss, ordinary heifers £7 15s to £11 10s, extra prime cows to £16 12s 6d, ordinary cows £6 15s to* £10. At Burnside the prices were—extra, prime bullocks to £23 12s 6d, prime bullocks £20 to £22, medium to good £15 10s to £18, light £12 10s to £13 15s, extra prime cows and heif- ■ ers to £16 17s 6d, best £14 to £15 10s, medium to good £11 to £12. light and aged £9 to £10. 4 # * . * * For fat sheep and lambs there was a good demand at all centres. At Johnsonville prime heavy wethers realised 28s 2d, light wethers 23s lOd to 245, good ewes 235, 6d, lighter 21s 6d to 225, prime lambs 16s lOd to 17s, lighter 15s to 15s 6d. At Addington prime woolly wethers brought 30s to 60s sd, others 19s to 29s 6d, shorn wethers 17s Id to 365, prime woolly ewes 28s to 40s Id, others 18s 7d to 27s 6d, shorn ewes 16s 9d to 375, woolly hoggets 25s to 425, prime lambs 19s to 23s Id, others 13s 7d to 18s 3d. The prices obtained a 1 Burnside were—extra prime wethers to 50s, prime wethers 44s to 47s 64, medium to good 32s to 38s, light 24s 6d to 28s, extra prime ewes to 51s, best ewes 32s to 365, medium 24s 6d to 275, light and unfinished 19s to 21s, prime shorn ewes to 35s 3d, heavy ewes 365. Lambs sold up to 245. * •* * ■ * ■ Investment shares are very firm, and there are more "buyers than sellers. Bank of New Zealand (old issue) changed hands at £10 7s, (new) buyers £16 ss; Wellington Trust and Loan, sellers £7 7s 6d; Auckland Gas, buyers 295; Christchurch Gas, buyers £7 7s 6d;

Wellington Gas (£10), buyers £15 18s 6d; Union Steam (ordinary), buyers 245, (preference) buyers 20s 9d; Kaiapoi Woollen (ordinary), buyers £5 4s 6d; Taupiri Coal, sellers 15s 6d; Westport Coal, buyers 28s 9d; New 'Zealand Drug, buyers 445; Golden Bay Cement, buyers 19s 6d; Sharland's (ordinary and preference), buyers 235.

In the mining market there has scarcely been a transaction recorded on any of the exchanges. Quietness is to be expected so Ion" as the output of the metal continues as small as it is.