FINANCE STOCKS AND MINING.

Free Lance, Volume XV, Issue 816, 18 February 1916, Page 8

FINANCE STOCKS AND MINING.

THE war has taught British manufacture! s many wholesome lessons, and the workers, too, have learned something. Better organisation, better mobilisation of plant and machinery, greater specialisation, more standardisation, and greater discipline in factory and workshop are some of the lessons that have been learned. And labour has learned the value of extreme effort in doings the best for the best of wages. The union rules demanded a minimum of output for maximum wage's, but the new rule is maxi.mum on both sides, and this is better. The -dilution of labour in the factories lias also opened up a new view for both masters and men, and the employment of female labour is another great factor. *-.#•» & Th e after-the-war problems are now becoming more important, and in all parts of the British Empire the matter is receiving close attention. In New Zealand various steps have been already taken; to conserve British trade. The 7 Patriotic Exhibition to be opened in the. Town Hall to-morrow (Saturday) is the first striking manifestation of the new spirit, and the Exhibition will do good and it is hoped will serve its purpose. The basic idea is to educate the; people into buying British-made goods in preference to foreign goods, and more particularly to- show a preference for New Zealand-made goods. «• •» * «•■ • . It is conveniently assumed that the whole fault lies in the ignorance of the. consumer, .and. that, therefore, it"is he who must receive. the principal attention ; this is- an entire mistake. The consumer is not without fault, but his faults are small compared with those of the retailer, the worker, and~ the manufacturer. Take the retailer and see how much preference he gives to local industries. Instances can be' quoted where retailers have insisted, when handling locally-made goods, that they- shall not be branded, so that they may be palmed off as imported. '-...-••'■# * ■ * * The. retailer's tricks are many, and he needs reforming. The manufacturer is to blame for tolerating the tricks of the, retailer, and for not taking a more direct interest in the sale of his product. "If we can place it with the retailer, he is bound to sell it" is the excuse put forward. The worker must be -educated -into giving of his best for the best wage. He must cease to be a shirker and become, in fact, a worker. Increased production means lower cost and cheaper goods. Unfortunately, the protected manufacturer, often starts out to fleece the public. He shoots, the consumer from behind the barrier of protection; he kills his business with high prices and inferior goods. The Patriotic Exhibition is excellent, but it is not all there is in this game of encouraging local industries. '-..'•■*• ■«• * * The London money market is in a very satisfactory condition notwithstanding the heavy- war expenditure, and this great financial strength of Britain, is going to prove the most important determining factor in the great war. All leading economists and financiers now recognise that this is a- war of attrition, and that, therefore, Germany must ue worsted. It is obviously incorrect to refer to financial strength as being the determining factor; it is a very important one, but men and munitions are also very necessary. The stringency of the British blockade is having its effect, and one by one the chief comniodfties are passing under Government control. The latest of the commodities to be mobilised is textiles. 'as wool and cotton are both needed by the Germans. * * * * -. It is a long time since the Germans have been able to secure any wool, for fortunately the bulk of supplies come from Australasia. The Germans long ago exhausted their own supplies of raw wool, but managed to secure some from Belgium and France. Now all this has been utilised, and there is another winter to provide for, besides the needs of the civil population. In effect, it means that the General Staff in Germany does not expect the war to end this year. The Huns have.been> receiving a _ certain amount of cotton from America, but even this is being greatly curtailed by the British Navy. The economic pressure on Germany must- be' extremely great, and if the armies of the Allies -exercise the same pressure, as it is hoped they will in the course of a few weeks, then the Huns will have something to remember.

The local monetary conditions are satisfactory, trade is good, money is m abundant supply, and work is plentiful. The war conditions are causing a certain amount of fiction and inflation of ideas. Some of the workers are earning good money, and naturally they are trying to improve their positions. This is causing a demand for houses, and rents have advanced. It rnust not be forgotten that those with fixed salaries, such as accountants and clerks, are finding the times very hard owing to the increased cost of living, and these men cannot afford to pay higher rentals. . - —I. * * # # ' The report of tb*> Wellington Gas Company for the past year is a very lengthy one, for it is in effect a review of the Company's affairs for a period of years. The manufacture of gas last year was only slightly larger than in 1914. This restricted increase is due to the war, which has affected the Company adversely in other" directions, notably in the increased cost 'of l materials and the scarcity of labour. Owing to the exceptional conditions, only absolutely necessary extensions have been mit in hand, and by a rearrangement of the accounts the sum of £50,000 is provided for writing down the obsolete •manufacturing plant. # ; # " a «• The profit and loss account shows a balance of £32,028 12s 7d. This is arrived at after payment of the interim . dividend in August last on the ordinary shares, and the dividend on the preference share 3 for the year and the transfer of £2911 15s 5d towards the £50,000 for writing down referred to above. From this it is proposed to declare a dividend that will absorb £10.214 9s lid, leaving £21,814 2s 8d to be "carried forward. The length of new mains laid during the year amounted to a mile, raising the total length of mains to nearly 131 miles. At the end of the year there were 15,140 meters in use; 466. services were laid during the year, and 831 cookers fixed in the district served by the Company as well as 292 bath heaters. &' * ' « # The annual report of the directors of the_ Standard Insurance Company for 1915 states that the income, including the balance brought forward from the previous year, amounted to £145.846, and" the expenditure to £100,621, leaving a balance of £46,225. From, this amount an interim, dividend was paid in June last amounting to £3750," and the balance is to be dealt with as follows:—To reserve. fund, £1600; to reinsurance reserve fund, £500; to guarantee and provident fund, £200- to depreciation of securities, £2500; to dividend for the half-year ended December 31, 1915, at the rate of Is 3d per share, absorbing £6250, and to carry forward £9225. •K- * «.■■•# The British trade returns for January show that the imports increased by £77,101,550. the exports by £8,509,575, and re-exports by £1,934,707, as compared with the figures for January, 1915. The increase in the imports is

very large, but this is due mainly to the imports; of munitions, and is inevitable under. - " present conditions. The interesting feature, however, is the increase, in the exports, "which, under the circumstances, is very substantial. If British manufacturers, who are suffering from so many restrictions just now, and who are affected by the scarcity of tonnage, can put up such a record, what will they be able to do when the conditions become improved ? * » ■» * The freezing companies are in full swing, and prices for fat stock all round remain firm. At Johrisonville, prime bullocks realised. £15 15s to £16 ss, and lighter sorts £15 to £15 ss. At Addington extra prime steers made up to £19 10s, ordinary steers £7 5s to £11;. extra prime heifers to £13 ss, ordinary heifers £6 7s 6d to £8 2s 6d,. extra prime cows to £14 12s 6d, ordinary cows £6 to £8. At Burnside the prices were : Best bullocks £17 to £18 ss, medium to good £13 to £15 10s, others £10 10s to £12 10s. best cows and heifers £13 to £14 7s 6d, medium to good £10 10s to £12. light and inferior £8 10s to £10 os. * # # «• Fat sheep and lambs were firm in all markets. At Johnsonville, extra prinie heavy wethers made 28s, lighter 255, good ewes 22s 6d, lighter 20s lid to 21s 3d, extra fine lambs 22s 3d, good lambs 17s to 18s. At" Addington the prices were: Pirime wethers -23s to - 28s 4d, others 15s lOd to 22s 6d, prime ewes 22s 6d to 26s Id, and medium 17s 6d to 225, lighter 14s 3d to 17s. prime lambs 21 s to 265, medium 18s to 20s 6d, lighter 13a 74 to 17s 6d. At BurnsideT extra prime wethers to 355, best wethers 27s to 30s, medium to good 24s to 265, light and unfinished 19s to 225, extra prime ewes to 33s 3d, best ewes 25s to 28s, medium to good 20s to 245, .others 17s to 19s 6d, extra prime lambs to 26s 6d, best lambs 20s to 225, medium to good 16s 6d to 19s, light and inferior 15s. Investment shares are quiet and very little business has been done. "It is_ a question whether the prices are not inflated in view of the quotations for giltedged securities. Bank of New Zealand (new), buyers £16 7s 6d; National Bank, buyers £5; Union Bank, buyers £50; N.Z. and River Plate, sellers 40s 6d; Wellington Investment, sellers lis; Wellington Trust and Loan, buyers . £7 ; Wellington Gas (£10), sellers £15 15s; Gear Meat (£1). sellers £4; Meat Export (52s 6d),_ buyers 54s 6d; N.Z". Shipping (ordinary) buyers £8- 5s ference) buyers £i 0 ss; "Union Steam (ordinary), buyers 26s 9d; Wellington Woollen (ordinary) buyers £4 17s 6d (preference) buyers £3 ss; Westport. Coal, buyers 28s 3d; N.Z. Drug, buyers 44s 6d: Sharland's, buyers 24s 3d: Ward and Co., buyers £5 10s. In most Standard stocks there are many buyers and but few sellers. Two wealthy South Australians at present in Wellington have been seeking investments in Standard stocks in view of the heavy taxation that is pending in Aus-

tralia, but the brokers are finding somedifficulty in accommodating them at -satisfactory rates. '';■/' ' * .' * * * ■ ■■-'' In the mining ; section no business'has, been done for many days, and yet there-' are.- several buyers about for Murray .Greek, Waihi. Dominion Developing, and Grand. Junction. Consolidated Goldfields are offered at lis, and no one can tell whether this a "fair price or otherwise, for the management take care that the shareholders get the 'minimum of information, and what they doget is months old. * . * *' # The wool sales held in. Wellington on Monday and Tuesday were, remarkable both for the qUaritity of wool offered and the excellent nriees obtained. Thecatalogues comprised nearly 39,000 : bales, which is probably a .record for ; New Zealand, and yet it consisted only of the wool intended for the January! sale. It will be remembered that originally thei January sale was to-have been held on the 25th ult.. but- owing to theshortage of tonnage the" sale Avas post-' poned indefinitely. Had the sale been held on due date, buyers would certain..iy have operated with extreme caution, and prices would in all probabilitv .haverallen. It. was undoubtedly a wise--. move postponing the January sale, and this was clearly 'indicated by the. freedom with which buyers operated. ,' * .. * * •» The space difficulty still continues, but not to the same extent as a month ~ ago. Shipping space for about 20,000bales is m sight, and the balance can be dealt with in the course of a month, perhaps what helped the buyers particularly was the" "indefinite* prompt" winch/ enables tliem to pay for the wool . when shipping space is available.. This was a great consideration, and vet it was the only reasonable course toadopt. There was a full bench of buyers, and they bought freely, paying full prices for "khaki" wools, which were in keen demand. . The embargo on exports to neutrals prevented the American representatives from operating, but, notwithstanding this, there'was an appreciable advance- in practically all' glasses of wool. Sliped lambswool sold up to 24£ d, Southdown greasy to 19-J-d, -Kromney crossbred to 18id, : and a-Jod crossbred prices to 16-i-d. " &