FINANCE STOCKS AND MINING.

Free Lance, Volume XV, Issue 815, 11 February 1916, Page 6

FINANCE STOCKS AND MINING.

LONDON finance is quite satisfactory, and the war from its monetary side is quite satisfactory so far as the Allies are concerned. The coin and bullion in th e Bank of England . last week totalled £52,289,000,- an increase of over half-a-million. on the pre- ■ vious week. The Government deposits have decreased by a little over four millions. French finance is a.so in a very satisfactory position, and Italy l'fij. Just secured £80,000,000' by way of loin. Russia is heavily' in debt, but is rich in resources; and can easily meet a much larger expenditure than she has already incurred. ■» «• * It'is unnecessary to speak of the . monetary situation in New Zealand for that is quite good, but the Govern- . ment, particularly the Defence authorities, must be less extravagant. For instance, the parade of troops in Christchurch some weeks ago and the parade in Auckland must have cost the country a good, round £8000, and this is equivalent to a year's interest at 5 per cent, on £130,000, We cannot afford a waste of this kind. " The British Government is financing our war expenditure, and it is not playing the game to waste money in this fashion. Even if it is that it was intended to stimulate recruiting, it _was a waste. If we were doing as Australia is doing, and raising money for war purposes within the Dominion then there might be some excuse for such an extravagance, but even then severe criticism. would be justly levelled at "the Government. This £8000 would have gone some way towards . relieving the necessities of returned soldiers, who are loud in their complaints of unfair treatment. It is to be hoped the country has seen the last of such extravagance. «•.*** The balance-sheet of the New Zealand Insurance Company for 'the year ended November 30, 1915, is extremely satisfactory, and it is obvious that the war has no way interfered with the profitearning capacity of the Company. The net premium income for the year totalled £7227646. The losses for the year amounted - to £423,844, equal to 58.66 per cent, of the premium income, the expenses, including' an allocation of £7500 to patriotic funds, totalled £2507-• 951, equal to 34.72 per cent, of the premium income, leaving the binderwriting profit at £47,851, or 6.62 per cent: of the premium income. - J '* _ » *• V- ■' The total amount available for distribution on the year's " operations wa5£122,201, £122,201, made up as follows : —-Under-, writing profit as above £4:7,851, interest;. and rents £50,258, and brought forward from the previous year £24,092. This total has been allocated as follows: Dividend, equal to 6s per share, £45,000; added to reserve fund, £40,000,.; leaving £37,201 to be carried forward.. The results are magnificent. « * * * • The paid-up capital of the Companyis £450,000, the ' reserve fund totals , £29,000, the reserve for unexpired risks amounts to £300,000; investment fluctuation account, £25,968"; appropriation for unadjusted losses, £150,725, and sundry creditors £162,142. The assets include: Mortgages, £197,134; shares, £390; freehold property, £376,652; Government securities, £567,650; fixed deposits, £68,662; accrued interest and rents, £14,316; agency balances, £99,795; remittances in transition, £37,000; cash, £76,937. The Government securities are well spread: £117,867 is invested in the British War Loan; the investments in Government and municipal securities total _ £171,192; the investments in Australia total £71,786; in Africa, £23,912; in Canada, £12,893 ; in North- America, £84,748; in South America. £35.662, and there are investments in other sound securities. «• •» j The report of the New Zealand and Biver Plate Land Mortgage Company states that after making due provision, the net profit for the year ended October 31, 1915, including £10,739 brought forward amounts to £77,549. The directors recommend a dividend of_ 5 per cent., free of income-tax, making 10 per cent, for the year, placing to reserve £25,000 (making the reserve v £485,000) and carrying forward £17,549. * ■» ■& The report of'the Auckland Gas Company for the year ended December 31, 1915, shows that profits after all deductions amounted to £61,837 15s 9d, to which is added £54,508 3s Id balance from 1914. Deducting the dividend

paid in February last year £20,691 8s lid, there is left £28,816 14s 2d, which, added to the profits, totals £90,654 9s lid at credit of profit and loss account. The interim dividend paid in July last amounted to £25,718 14s 7d, and a further dividend absorbing £25,737 10s 6d has been declared, leaving £39,198 4s lod to be carried forward. « * *. flit was only a few days ago that the committee of the London Stock Exchange abandoned the regulation with respect to minimum prices for Colonial Government securities, and the result has been that Australasian securities have fallen very heavily, more heavily than was expected. Compared with the previous week New 'Zealand fours declined £8, three and a-half per cents. fell £11 ss, and threes £12 10s. * «• » * Investors are now looking for a return of 5+ per cent, to 5f per cent, on ' such securities, and viewing the present conditions, this is not a high rate. The same investors can obtain 5 per cent, hy taking up the five-year Exchequer bonds, which are obtainable to any amount. The point about' this is not so much that existing securities have declined. but that future loans floated by New Zealand and the States of Australia in the London market must carry at least 5 per cent., the rate will probably have to be higher. The New South Wales Government a few weeks ago placed a. loan for £2,000,000 in London at 5 per cent., and the underwriters had to find most of the money. » » * The States will find it very difficult to borrow in London except at high rates of interest, and therefore the Treasurers will find it necessary to curtail expenditure on fancy legislation. Public works must be cut down to actual needs, and then only works of a reproductive character must be ' undertaken. This is going to be one of the serious post-war problems for Australasia, where the Governments, have for years squandered money ■Ar ■» ■» Trade questions have loomed large during; the past few days, and it is _ decidedly interesting to note that serious attention is being given to the future trdde of the Empire. In Wellington we . are to have a Patriotic Exhibition to illustrate the excellence of British and New Zealand goods. It may be conceded that these goods are- excellent, but the auestion of price is what interests people. The labour problem at the back of the production of goods' must be solved first. When labour does its utmost for its wage, we will succeed, but if the Trades Union policy of doing as little as possible for the largest wage obtainable, and to strike on the slightest provocation or on no provocation is to continue, then British and New Zealand manufactures will make ho headway. e @ * However, after the war new; ideas and new sentiments will- prevail, and perhaps labour will be more reasonable and more amenable to discipline." .The anti-

German League N is making big efforts, and. will no doubt succeed in securing public sympathy and support, but a year or two after the war is ended it will be probably one of the first leagues to suffer from "that tired feeling." AntiGerman Leagues and anti-Chinese Leagues, and we have had many of, the latter, are not stayers generally.

The live stock market continues active, and all the freezing companies are going practically at top speed. Fat cattle liave been in good demand, and at Johnsonville prime bullocks realised £16 15s to £17; fat cows £8 17s 6d, and vealers 30s to 355. At Addington extra prime steers realised up to. £20 ss; ordinary steers £6 10s to £11 17s 6d; extra prime heifers to £11 ss, ordinary £6 os to £8 ss; extra prime, cows-to £14 ss, ordinary £5 10s to £8 ss. At Burnside the prices wei'e: Prime bullocks £16 tc £18, medium to good £12 10s to £15, light and inferior £10 to £11 os, prime cows and heifers £12 os to £14, medium .to good £10 to £11 10s, light and inferior £8 to £9 las. ' .

At Johnsonville prime heavy wethers made 275, prime wethers 26s 3d, prime heavy ewes 24s to 24s 3d, light ewes 19s to 21s 4d.' At Addington prime wethers sold at 23s to 295, others 17s Id to 22s 6d, prime ewes 22s 6d to 26s 3d. medium 17s 6d. to 225, lighter 12s to 17s, prime lambs 20s 6d .t0..23s 3d; medium 17s. 6d to. 20s, lighter 14s 4d to 17s. At Burnside the prices were: Extra prime wethers to 335, medium to good 23s to 265, inferior and light 18s to 20s, extra prime ewes to' 27s 6d, medium 20s to 245, light 15s to 18s, extra prime lambs to 28s 6d, good 21s to 23s 6d, medium 18s to 19s 6d, light and inferior to 16s.

The business in investment shares is very restricted, but t>rices remain firm. Bank of Mew Zealand (new), buyers £16 9s; National Mortgage, buyers £3 17s; N.Z. and River Plate, buyers 40s. Wellington - Investment, sellers lis; "Wellington Trust and Loan, sellers £7 is; Wellington Gas (£10), buyers £16; South British Insurance, buyers £4 17s 6d; N.Z. Shipping (ordinary), buyers £18; Union Steam (ordinary), buyers 26s ;• Kaiapoi Woollen (ordinary), buyers £5'.55; .Wellington Woollen (ordinary), buyers £5 2s (preference), jbuyers £3 8s; Westport Coalv buyers 28s; N;Z. Prug, buyers 44s . 6d; Sharland's, buyers 24s 3d; Ward and Co., buyers £5 10s.

In the mining market buyers have been in evidence, but the prices offered have not attracted sellers, and consequently there has been no business. doing- ' ' .

Apropos of those German air-raids, the following is a piece of saucy comment from a London weekly: "I was recently told that the condition of eggs nowadays is rotten, and that the shooting by the anti-aircraft section during the last Zepp raid was unfortuate as Well." ' '