Finance Stock and Mining

Free Lance, Volume XVI, Issue 847, 29 September 1916, Page 8

Finance Stock and Mining

THE London money market exhibits some slight changes which are not of very great importance. The outflow of gold appears to have been arrested, or the inflow of gold from Prance under the pooling arrangement may be the cause of the metal reserve being stationary. The deposits of the Government have shrunk by over six .millions during the week, while the other deposits have increased by about eight millions. The London money - market is safe enough and the Bank of -..England is making profits.' -

According to a message of last week, the bank made a profit of half-ar-million during the half-year ended in August, and a-dividend of 5 per cent, for the period has been declared. The dividend is not a large one, as it amounts to only 10 per cent; for . the year, and is much smaller than that declared by many of" the other joint .stock banks. The responsibility resting on the Bank of England just now is very great, for it has to do all the financing of the Imperial -Government, and in a great measure that of the Allies also.

,A ' remarkable feature of British finance just now is ; the fact that although we have experienced, over two years of war, and the daily expenditure runs into millions., there have been only two public war loans floated in Great Britain. The first was for £350,000,000 at 3£ per cent., which was issued at the outset'of the. war by Mr. Lloyd George, who; was then Chancellor of the Exchequer, and another some time last year: when the' amount was unlimited and-the interest 4-5- per cent.

Both loans have since been exhausted, and as yet there has been no announcement of any fresh loan. The war expenditure is being met by the sale of Treasury bills, Exchequer bonds, and war loan certificates, the latter being exclusively reserved for small investors. The; Exchequer bonds, because of their short date, are extremely, popular, and are being' readily taken .up even by neutrals. In addition to these sources the, revenife of Great Britain is providing a million or more a day. Just what is being obtained through the increased n.ewi taxation we shall know presently, as *the first half of the current financial year closes this month. .

-The German loan, just issued is said to have been a failure,> and we have the announcement that six of the greatest

industrial and agricultural employers' associations have refused to help the war loan propaganda unless there is-fur-ther submarine activity. This may be taken with a grain of salt. Submarine "frightfulness" has not been stayed from any desire to respect international law, but for fear of complications with the United States, and until the Presidential election _jn America the Huns will not change their present policy. What happens' after that will depend upon the course of events.

These are busy days on the New York Stock Exchange. Wall-street has not witnessed such speculation for many years. The daily average of sales exceeds a million shares, and the, munition companies are receiving the most attention. This prosperity is temporary, for as soon as the Allies can arrange for their own supplies the help of the- United States will not be sought. There is a big 'crash coming in America notwithstanding the present prosperity, because speculation, and the mushroom growth of fortunes is part and parcel of American finance. =

In New Zealand the country is on the eve of profit-taking. Butter and cheese are already coming in, but the cheese factories are not so hopeful as they were when they turned down the Imperial Government's offer for the season's output. The Beef Trust of America were under the impression that they could exploit the British Government with Argentine meat, but they quickly came to their senses when they discovered that the British" Government had -control of the tonnage.

The cheese factories refused, to sell to the Imperial Government because they were offered better prices by the speculators, but now the Imperial Government\is to commandeer the produce when it reaches England, and the speculator is snuffed out. The producers here will get a fair price,, but that is quite a different thing from obtaining the fancy prices they were after.

The country will do well out of the season's products as values are still very high. The whole question is one of

tonnage, and . that is in the hands of the British Board of Trade. It is satisfactory to know that the stores will be xjleared of meat before the companies begin operations for the new season. The call is for beef principally, and it -is doubtful whether- the country can spare more than it did iri the past season.

The export and import returns continue favourable. Under both heads there are increases, but the excess of exports over imports promises to be exceptionally large. The trade year closes this month, and it is practically certain that the exports will exceed the imports by about £12,000,000. During the two years of war the exports show an excess of. nearly twenty-one millions, sufficient to meet our outside obligations, and the war loan will still leave

an ample margin for our domestic purposes.

- The London wool sales continue satisfactory, and all good wools are selling at late rates. As to the future of wool much depends on the course of the war. The European winter is now approaching, but we may be sure that the Allies have already anticipated their requirements for the season. There is,, however, the call for more men, and if, as is advocated another million men are called to the colours; there will be a fresh demand for raw wool. There is no reason to anticipate any serious decline in values, even when the war ends, for there will be a demand from the countries now deprived of the material, and we may also expect to see- inferior wools showing enhanced values.

The' firmness of the markets for fat stock is still a feature. At Feilding, extra prime bullocks realised £22 10s; and at Levin, £21. At Palmerston North, fat cows sold at £12 17s 6d; at Feilding, at £14 15s; and at Levin, at £9 to £14. At Westfield, steers made £11 10s to £20 12s 6d. and fat cows and heifers at £8 jss to £14 15s. At Addington, extra prime steers made up to £19 15s, prime £15 10s to £19 Is, ordinary £9 to £14, extra prime heifers to £21 10s, prime £12 10s to £16, ordinary £8 10s to £12 10s, fextra prime cows to £19, prime £11 to £14, ordinary £10 to £10 10s. At Burnside, the prices were : Extra prime bullocks, £24 2s 6d, best £18 to £20, medium £15 to £17, light and unfinished £12 10s to £14. extra heavy cows £15 7s 6d. best £12 10s to £14, medium £9 to £12.

Fat wethers realised 35s 7d at Palmerston North. 33s to 34s at Carterton, 41s to 42s 6d at Feilding, 34s lid to 35s 6dat Waipoua. Prime fat ewes sold at Feilding at 38s 9d, at Palmerston at 345. at-Carterton at 31s to 345. At Westfield the prices were: Extra, prime wethers 40s to 51s 3d, others 375-,'6d to 39s 9d, shorn wethers 30s to 34s 9d, prime ewes 36s to 40s 3d, others 28s to 35s 3d, hest hoggets 29s 6d to 35s 3d. others 24s to 28s 3d, small hoggets 18s to 235. The prices realised at Addington were: Extra prime wethers to 62s 6d, prime 32 3 to 39s 6d, others 27s 4d to 31s,' extra prime ewes to 41s, prime 31s to 375, medium 26s to 30s, others 17s to 255, hoggets 27s to 285.3d, shorn hoggets to 19s 6d. Fat lamhs 24s to 31s. At Burnside, extra prime wethers realised up to 495, prime 34s to 38s, medium 29s to 32s 6d, extra heary ewes to 36s 3d, best 25s to 30s. others 20s upwards. Prime lambs 28s to 30s.

At Levin, porkers sold at 345, 35s 6d to 455; at Westfield, choppers made £5 10s to £6 10s, heavy baeoners £4 Is to £5 Bs, medium baeoners £3 12s to £4, light baeoners £3 5s to £3 lis, large porkers 57s to 645. medium 48s to 555, light 35s to 475. At Addington the prices were : Choppers £4 10s to £7 lis 6d, heavy baeoners £o 5s to £5 10s. medium £4 to £4 15s, light £3 7s to £3 16s, heavy porkers 42s to 565, light 44s to 50s.

For investment shares the demand continues good, the latest buying quotations being: Bank of New Zealand (old). £11 4s 6d; Wellington Gas (£10), £15: Christchurch Gas (£5), £6 15s; N.Z! Shipping, £10 10s; Hud-dart Parker (ordinary) 26s 3d; Kaiapoi Woollen

(ordinary), £6; Westport-Stockton (preference), 10s 3d; Levland O'Brien, 225. 9d; N.Z. Consolidated Dental, 22s 9dN.Z. Drug, 465. / * * #•.;■* For mining shares- the demand is still very restricted. Talismans were- wanted at 9s, Waihis- at 36s 6d, and Grand: Junctions at 16s 9d.