Finance Stocks and Mining

Free Lance, Volume XVI, Issue 839, 28 July 1916, Page 8

Finance Stocks and Mining

THER.Fi has been no change in the Bank of England rate, which remains at 6 per cent., but the money and stock markets are unsettled, "*■ and until matters quieten down in the United States there will continue the risk of a further rise in the bank rate. The stock of gold in the bank has been reduced by £2,416,000 in the week, and this is probably due to withdrawals for America. The advanced discount rate may check any further outflow; at any rate the bank cannot remain passive while its metal reserve is liable to further attack * * * * New York financiers and bankers are finding it hard to supply the money required by persistent borrowers, who seem to be ready to pay any rate of interest demanded. France has just secured £20,000,000, and Canada is borrowing from ten to thirty millions sterling for railroad construction. The internal demands fo* credit in the United States involve large sums and altogether American bankers are experiencing a very trying time in endeavouring to accommodate all borrowers. « • » * .British financiers are ailso having anxious times in financing the war. The Government has just asked for another credit of £300,000,000, the twelfth of such votes since the commencement of the war, bringing the aggregate up to £2,682,000,000, a huge sum, but fortunately Britain can afford it. There were two credits voted in 1914, the total being £325,000,000. Last year there were five credits, the aggregate being £1,130,000,000, while this year there have been three credits amounting in all to £1,020,000,000. The latest credit "will be sufficient to about the 25th ' September. * * * « The Chancellor of the _ Exchequer stated (last week that the British expenditure is in the neighbourhood of six millions a day, owing mainly to the increasing demands of the Allies: We _ are in with the to the last shilling, and must meet their demands for money as promptly as possible. The British are subscribing very freely to the costs of the wax, but at the same time it must be- stated that the British Treasury _ is endeavouring to attract the small investor. The Post Office Savings Bank and private employers are helping as much as possible in interesting the workers,".and their money is coming in freely. ' * » * » - In France it is possible . to take up Government debentures for £4 and even less, and the thrifty _ peasants of that country are quick to invest their savings in this class of gilt-edged seouri-

ties. French rentes are known to the masses, but Britibii consols' are known only to the larger capitalists and financiers. The efforts made by the British Treasury to popularise the war loans will probably result in a very desirable change. The New Zealand Finance Minister will, no doubt, very shortly be placing a war loan on the locail market, and it is to be hoped he will carefully study what is being done in England, France, and even in Australia to attract the savings of the working classes. The Public Works Statement presented to Parliament last week is satisfactory to a. certain extent. There was no real economy in the past financial year, for this expenditure was £2,333,784 as against £2,565,019 in the previous year, the saving being u mere- trifle. The estimates for the current year are substantially lower, being about a million less. The balance-sheet of the Wellington Farmers' Meat Company, Ltd., for the year ended June 30th 'last, shows that the balance, at credit of profit and; loss, after providing £8446 for depreciation and a sufficient reserve for income tax, is £18,081 15s Bd. From this amount the sum of £12,500 has been transferred to reserve, and the balance, together with the amount brought forward from last year, a total of £6962 4s 9d, has been allocated as follows : —To dividend of 6 per cent. £4603 4s 2d, .leaving a balance of £2359 0s 7di to be carried forward. * » * * An extraordinary spurt in Union Steamship shares has occurred, based on rumours that the company was about to be acquired by the P. and O. Company. These rumours appear to have been denied by responsible officials of the company, but this has not prevented the shares rising rapidly. A similar movement has taken place in London, where the price is alleged to have touched 57s for the £1 paid up shares. For a. long time the shares of the company. were changing hands in the local markets at 24s to 255. Then followed similar rumours to those now current, and the price quickly mounted to 345, and hovered about that point for some time. There was nothing in the earlier rumours, and probably there is nothing in those current now. # • • « There appears to be a good deal of shuffling in shipping circles, and the larger concerns are watching one another rather closely. The Ounard Company has acquired an interest in the Australasian trade, and the P. and O. Company has secured a direct interest in the New Zealand trade by acquiring the New Zealand Shipping Company. It - is doubtful whether the P. and 0. Company wants an interest in New Zealand's coastal trade, which would be the principal effect of purchasing the "Union S.S. Company. * » * * However, the next few days should disclose the strength of the rumours. It is quite possible that some of the other large British shipping companies may be seeking to enter the Australasian trade. At any-rate the merges that have already taken place are satisfactory enough, for we are threatened with com-

petition from both America and Japan, and both these countries are not very liberal in their shipping taws to rivals. There is a distinct tendency for the prices of commodities to go downwards, and this is particularly tke case with regard to metals. Copper was recently selling freely at £95 to £100, while the present quotation is about £88. Tin was ruiiing at £173 to £174, and is now down to £166. Lead was £32, and has now dropped to £28. Spelter was at the fancy price of £80 and more, and is now procurable at £48, and is still tending downwards. Food prices axe still firm, but mainly because of the difficulty of transporting such commodities. - «■ * . * As the prospects of an early termination of the war become stronger, .the drop in prices will become more pronounced. bub food commodities are likely to remain relatively high even after the close.of the war. Europe will require revictuailling, and there will he a big demand for meat and wheat and butter and cheese, and also for wool and cotton. * ■ • * For fat, stock of aIJ descriptions the prices ruling are high, and stores are relatively higher because of the flush of grass and aJI farmers being short of stock. Fat. cattle maintain their values. At Levin, light-weight _;fat bullocks made £13 ss, and fat cows £9 to £11 2s. At Bulls, fat cows made £8 10s to £10 2s, and at Feilding £8 15s to £13. At Addington, extra prime steers realised £20 15s. ordinary steers £9 to £12 10s, extra prime heifers to £14, ordinary heifers £8 to £9 10s, extra, prime cows to £15 12s 6d, ordinary cows £7 10s to £10 At. Burnside, tins prices were: — Extra prime bullocks £25 10s to £27 10s, best bullocks £17 10s to £20 10s, medium £14 to £15s 10s, light and inferior £12 to £13, best cows and heifers £14 to £15. medium £11 to £12. inferior £9 10s to £10 10s. » ■» * ■» At Levin, fat wethers made 34s to 39s 3d and fat ewes 345. At Feilding, fat wethers sold at 33s 3d. At Waipoua, fat ewes made 29s 9d. At Addington, extra prime wethers sold up to 535, prime, wethers 28s to 355.. lighter 24s lOd to 27s 6d, prime ewes 27s to 335. medium 22s 6d to 26s 6d, others 18s to 225. At Burnside, the prices were : For extra prime wethers to 43s 9d,, best wether* 36h to 395. medium 29s to 30s. inferior 27s to 28s. * * * * For lambs, at Addington extra prime realised up to 365, prime lambs 25s to 295, medium 22s 6d to 24s 6d, lighter 20s to 225. At Burnside. for Best lambs 25s to 28s 6d was realised, medium 22s to 245, inferior 19s to 21s. In the southern markets, pigs were firm. At Addington, choppers sold at 80s 6d to 151s 4d; heavy baeoners 87s to 955, light "baeoners 70s to 80s, heavy porkers 56s to 625, light porkers 48s to 545. At Burnside, best baeoners realised 85s, medium 80s. best porkers 555. and medium 455. * *■ * ■ * ■ Investment shares are again very firm, -and there appear to be plenty of buyers about. Wellington Gas (£10), buyers £14 14s; South British Insurance, buyers £4 18s; Wellington Meat Export (£5), buyers £6 2s 6di; Union Steam shares are affected by the rumours of sale of the company to the P. and O. Company;, and prices have soared upwards. Wellington Woollen ordinary shares are wanted at £5 19s, and the px-eference at £3 15s; Westport Coal, buyers 28s 6d; Taupiri Coal sales, 13s fid; N.Z. Consolidated Dental, buyers 21s 6d; N.Z. Portland Cement, sales 13s. * * # * There is continued quietness in the mining market. Consolidated Goldfields are offered at 10s; Success Dredge at 30s, and Rising Sun at 4s. Talismans were in demand at 10s 3d.