Finance Stocks and Mining

Free Lance, Volume XVI, Issue 870, 9 March 1917, Page 6

Finance Stocks and Mining

mHE British loan has proved a huge success, the total new money received by the Chancellor of the Exchequer exceeding £1,000,000,000. The Treasury anticipated, obtaining £600,000,000, so that it will be seen that the estimate, has been exceeded -to the extent of 66 2-3 per cent; It is a wonderful achievement, and js without parallel' in the financial history of any country. Of the total only £130,711,-, 950 converted Treasury bills, and, as these bills had on the average four months to run, they may be right-' ly classed as new money. If there had not been this conversion the State would have been obliged to pay them off on due date? by fresh borrowing. By conversion theybecome a fixed loan for a definite period—about twenty years. The applications through the Bank of England, which, of course, means fresh tenders, totalled- the 'magnificent sum of £819,586,006,' while the working classes and others contributed £30,715,000 through tiie Post Office, and £19,300,000 by the purchase of -war certificates./ In addition to the magnificent total of one thousand millions, the Treasury received £196,000 from 87 individuals free of interest, and £64,000 from 44 otliers as gifts. There were gifts of jewels by ladies and others,. which the Treasury ha,s. politely declined to accept. - J There were 8,000,000 applications, for this last loan; that; 'is' to say 20 per cent. . of_ the entire population of the TJnited Kingdom lent - money 'to the ; State io carry on the war. For the loan floated in 1915 there, were only 1,100,000 appli- k cations. - So that the last loan, besides being a record in the 'value of money received, was also a record in the number; of applications. Germany has a much larger : population than . Britain, and subscriptions to -German loans are:, somewhat ; compulsory) yet for the fifth German loan there were only 3,810.000 subscribers. ' '•O -■» :' 9 ■ « . . Another .interesting feature about the British, loan is that the bulk of the two earlier issues ' aggregating £1,040,000,000 has been converted in addition to £233.000,000 of Exchequer bonds. This, of course, is not new money"; it-is merely deferring the date of maturity of old loans. Tlie floating debt, which stood at £1,652,000.000 prior to the loan being floated, was, -by the conversions referred to above, reduced .to £994,000,000. It is a- great record from whatever point --it-is viewed: -

lb is interesting to remember that in respect to all British loans provision is . by taxation for the due payment of the interest and also for sinking funds for the redemption of the debts on due date. In respect to this last loan a subsidiary fund is to he estate "Wished by the setting .aside of l-J- per cent, per-annum or to -bcv more exact ' half-a-crown per cent, per month, until £10,000.000 is accumulated for the purchase of the "stocks and bonds should they fall below the issue price. Assuming that the Treasury only takes account of the -new money subscribed, then for .this subsidiary fund, the monthly reserve will be- over. £1,250,000, so that in eight months the re- _ quired amount will be accumulated.. e « •» ■». . The German Minister' of Finance recently obtained a war credit- for £750,-000,000,-tlie sixth since "tlie war began, and as yet Germany; has done: nothing towards .providing for the loans. There have been- no .new " taxes - of . any im- ' portance imj:>osed. It was anticipated that "with - tlie announcement ,of the credit there would have ; followed proposals for raising xreveniie by new taxation,. but no such proposals have been made. Thpre is ho cover for the paper issues, and .the German people are. still being .deluded with the hope .'of; indemnities. ; ! • © » . •» • ® Germany; liasrindulged in unsound methods ..of .finance!. Through , so-called war banks. and other , mushroom institutions, the securities under one "loan liaye been pledged- to obtain tlie funds for subscribing-for the next loan. Advances have; been made on -such securities as; tea. and other -commodities, and the credit so obtained has been invested in the .loans. Germany's "finance; .is a paper - the currency, "is debased, and confiscation .of wealth or repudiation of liabilities" must be the inevitable result of this ' reckless finance. - The last French loan was a success, Italy has-'just raised a large sum without difficulty, Russian finance for. tlie v purchase of munitions in America and . Japan'has been satisfactori]y_a;rrangedj . so that :the Allies generally', stand; well as regards money, men, and • munitions, and with anything like reasonable luck should be able to force Germany to sue for peace before the year - ends: '■ * ' . •» -e •& . The people of New Zealand; will bo asked to supply more money for. war purposes "tliis yeaf. The Acting-Minis-ter of Finance has : .intimated that •Parliament will .beasked . to ..sanction another war loan, which will be placed on tlie market this year." Last .year's". ' issue 'was an unqualified success, ' and, as the' country's prosperity continues on a grand scale, 'tlie Government can make .'certain of obtaining ' all" the money that may Be required. New Zealand's war expenditure is now at the rate."of £1,000,000 per month, and the bulk of the money must be raised bv loan. •

' The generalimpression appears to be .that the Industrial Efficiency Board is composed of good men; that is. men ' capable of dealing with the subject with some degree of success. The Board has been entrusted" with wide powers, but ; the~multiplicity of questions they have to enquire into invites disaster, - for it will be years before they, can be en-- ■ quired into. And what happens when , thoenquiry is completed? Obviously the politician then comes in, and the report will make a fine "bone- of contention." However, the ."country is •hound to profit by "the labours of the . / Industrial Efficiency Board, and the cost will be trifling in view of the, fact that the-members are to receive actual travelling expenses only. «• • ® o The directors of the • Metropolitan vl-'ermaiierit Building and Investment , Society in their- annual report", which will be submitted to shareholders' on Monday next, recommend the. usual distribution, of profits, viz.. "7 per cent, per annum, and that a further sum of . .£SOO be-.added to the reserve • fund,which will then stand at £12.000. The profits. for - the year, including a.; sum." of £97 3s 4d brought forward "from; the preceding year, total £3765 5s 2d, J whichit •' is proposed to appropriate - as' fol- : lows: —Tocredit holders of "B" investment shares at 7 per-cent., £1637. 3s 3d; to payment of .dividend .at 31per cent, for six months ended February lo to holders of "A" £10 shares;.. £1050; and to reserve fund, £500. •» - The statement ,of the, 'State Fire Office for the year , ended > December - 31, 1916; shows that .' after , deducting £2577 . for unearned premiiuhs, and adding . £1000 to the in- " vestment, fluctuation reserye, there is a net profit: of, £35,697 as compared with , £25,652 in 1915: The net losses for the past year totalled; £21,897, being 28.22 per cent, of the premium income. The net increase of xjreinium is £6443. . The working expense ratio' is 27.3 per cent. 1 of premiums. The total. accumulated funds at the close of the year amounted to £155.958./ the increase for the year being £39,274. ' ■ y . '■ •» '• & ■ ■ During the first six years of its ex- . istence the average net income of the State Fire Office was. £26,692, and; the' Average ; profits £1174, ' working expensesand loss' ratio being 36.6 per cent, arid 51.06- pier ' cent, respectively! Foivthe second six years the average' net income was £65.542, the " average „ profits £19,145, working expenses and loss ratio being 27.3 and 40.45 "per .' cent, respectively. - \ .-O . , « ■ - ■' The demand for fat cattle continue . .strong/ and prices remain firm. At Le-v. vin. fat cows made .£l2, lighter, £10 10s to.£lo 18s, light fat heifers £7 9s; at Waikanae. fat cows sold-up 1 -to £12, and fat heifers to £11. ( At Addington, the prices were : .Extra'prime steers to . £21 10s, prime steers £14 '15s to ; £19, . ordinary steers £11 10s to £14 10s, extra 'prime cows to £18 ss, prime cow;s £11 10s to. £14 10s, ordinary cows £9 5s < to £10 10s', extra prime heifers £15 ss, prime heifers £10 5s to £14, ordinary heifers £9 12s 6d to £10 2s 6d. . The prices .obtained at Burnside were: — Extra prime bullocks to £21 2s 6d, best bullocks £16 to £18, medium £13 to £14 15s, others £10 to ,£l2 10s, .extr.-i prime cows' and heifers to'- £14 -17s 6d, best cows and heifers £11 to £13, others £8 to £10 10's. At Westfield. the prices were: For steers £12 to £25, cows and heifers £9 10s to £18 15s. : ' -, «• „■» *■—>•» .'-At Dannevirke,, fat- ewes realised 31s to 335; at Levin, 335. At Addington, ;extra prime wethers sold up to 43s 6d, prime wethers'32s to 39s 6d,: lighter 23sto 30s,' prime ewes 32s to 37s 6dj' medium 26s to 30s; lighter 24s to 25s 6d. ■ The' prices at Burnside . were : —Extra ; prime wethers to 465. best wethers 36s to 38s, extra prime heavy ewes to 46s 6d, best- ewes 32s 6d to 3os, others 255. At "West-field, extra ' heavy prime wethers 40s to 43s 3d, prime wethers 37s 6d to 39s 6d, medium 36s to, 375, heavy prime ewes 34s to 365, good" 30s -to 335, Others 27s to 29s 6d. At Himitangi, r fat lambs sold at 23s 3d. At Adding-, ton. extra prime lambs realised up to 30s, prime 27s to 295, medium 23s to «265, lighter 20s to 22s 6d.. The Burnside prices" were : —Extra -prime lambs 34s 6d. prime 26s 6d •to 295, medium 22s 6d to 255. others 21s. At West-field, fixtra heavy lambs realised. 30s to 35s "3d. prime lambs '26s 6d- 'to 29s 6d, lighter 24.s- to 265. - 9 » At Dannevirke. baconers sold for 475. At Addington. choppers realised up to £8 17 S ; heavy baconers £6 4s, medium baconers £5 10s. lighter £4 12s. heavy porkers 64s to 725. lighter 55s to 60s. At Westfield. heavy baconers sold at £3. 10s to £3 los. smaller £3-3s to £3 9s. large porkers £2 10s to £3 2s, small 35s to 48s. slips 20s to 30s. « * ■» » Investment shares continue; in gocd demand. Bank of New (old), buyers £11 2s; National Bank, buyers £o Is; Wellington Investment, buyers lis; Wellington Trust and Loan, buyers £6 14s 6d: Wellington Gas (prefer-

enee),. buyers 18s 6d; Union Steam* (ordinary), buyers 41s 3d; HuddarfcParker (ordinary), buyers £1 5s 6d;" Kaiapoi Woollen (ordinary), buyers £6 6s; Wellington Woollen (preference), buyers £3 los; Waipa Coal, buyers 18s-: 3d; Leyland and 0 Brien, buyers ;245; -Golden Bay Cement, sellers 21s. " ' In the mining market there were sellers of Consolidated Goldfields at 6s6d, and Murray Creek at 37s 6d, while • Waibi shares were wanted at 345. . •