FINANCE STOCKS AND MINING

Free Lance, Volume XVII, Issue 913, 11 January 1918, Page 6

FINANCE STOCKS AND MINING

TSUSINESS has scarcely been -re- '-*-*' sumed, for the holiday feeling still holds sway. However, the Government offices were all opened towards the end of ilast week and the Stock Exchange was reopened on Monday. . It will be a week or two longer before people settle down to ordinary business. «• # * Owing to the-war there have been scarcely any reviews of the past year. There are so many items that it would not be wise to refer to, and there are a number of other items which are not available and will not be available for some weeks to come. Generally, however, it can be said that 1917 was an extremely prosperous year for New Zealand. Practically the whole of our produce sold at high prices, and, although the shipping problem presented some difficulties, stui the financial arrangements were satisfactory and the producers did w , eK. * * # . * . The outlook for 1918 is not less promising. All that can be produced will find a ready sale at high prices. Even the second grade stuff appears to be in good demand, for last week a quantity of whey, butter, milled butter, and second grade cheese was sold to the Imperial Government. It seems _ likely too thaira great deal more shipping space than was expected will be available; if this be so, the stores* ought to be cleared during the next few weeks. * * * * Mere shipping should be available to Australia and New Zealand, because there is not now the quantity of goods for export from Canada and the United States, it being winter time in the Northern Hemisphere. The Ship Controller would naturally divert all the shipping possible to these Southern Seas to lift the enormous quantities of foodstuffs that are now held in cold stores. * * ■ . * . * The report of Mr. W.. S. Wheeler, the liquidator of the Paparoa Coal Company,' is not pleasant reading. In his" report he says: "There is no> possibility . of any dividend' being paid to either the preference or ordinary shareholders, as there were insufficient _ assets in hand at the date ' of liquidation to meet the demands of the debenture holders and the ordinary creditors of the Company. The first debenture holders, who held a first charge over the mining property of the Company, exercised their rights under their se-

curity, took possession, and have been working the mine for the past. two years, but up to the present have not been successful in disposing of it. The amount due to the first _ debenture holders at the date of liquidation for both principal and interest was £94,490 13s lid, and the value placed on the security taken over amounted to £65,435, leaving an unsecured balance of £29,055 13s lid due to them. The second debenture holders, whose only security was a second charge over the property, had no alternative but to claim -upon the liquidator as ordinary unsecured creditors. The assets which came into my hands have been all realised and only produced an amount sufficient to pay the creditors of the Company 2s 7d in the £, and, unless the .mine is eventually sold e at a figure in excess of the value placed upon it by the first debenture holders there will be no further funds other than" the present cash balance out of which a dividend could be paid." . # * #. * The prospects of the. year depend a great deal, if not wholly, upon the course of the war. The termination of the war rests with the English-speak-ing races, and Britain and America, are not quite ready, but they are nearly so, to use the sledge hammer. The United States appear to have taken the war very seriously; and except for •a few officials", no one really, knows how many troops have been sent over to Prance. •» * * * Russia as a factor for or against the Allies may be left out of account. On the whole it would -pay Russia far better to keep in with the Allies, for they' can do more for her financially and commercially than Germany or Austria. .Russia, is in a parlous condition financially. For nearly twelve months,, no revenue has been collected, the country's debt is huge, and the note circulation is about £1,700,000,000. The rouble is at' a discount of 73 per cent., that is to say it will only buy a. quarter of what it would have done prior to the wax. •a- o • -a a One of the demands made by Russia on the Central Powers during the course of the negotiations was for a loan of £80,000,000. Neither Germany nor Austria can find this money because they are themselves bankrupt. How, then, is Rtussia to recover? Germany may be. able to introduce new commercial methods into the country, but, judging by. the . past, the . Germans would simply exploit the country and the Russians would be worse off than ever before. The political developments in Russia are by no means at an end, and we have .yet. to see the "strong man" show his hand and bring order out of chaos. & » ■» e The United States have already lent the Allies, more than. £800.000,000," the latest distribution showing £37,000,000 to Britain, £31,000,000 to France, £1,500,000 to Belgium, and £200,000 to Serbia. The loans to Britain.

France, and Italy are quite safe, but the sanie cannot be said of the moneyadvanced to Russia, Belgium, and Serbia. It is very probable that the. generous Americans will write off the loans to Belgium and Serbia, the two countries which have suffered most in this war. At the outbreak of hostilities Britain gave Belgium £10,000,000, and has since provided many millions, for the maintenance of the people and the reorganisation and equipment of the Belgian Army. * •» * * Britain's revenue for the nine months of the financial year ended December 31st, 1917, was £400,650,303, an increase of £69,000,000. on the corresponding period of the last financial year. The totall revenue for the year ended March 31st, 1917, was £572,800,000, so that to produce this amount the revenue during the first quarter of this year must yield £172,150,000 or slightly more than the average of the past three quarters. As the' March quarter sees the general, income tax paid, and as there, is bound to be a substantial increase in the excess profits tax, there is every reason to believe that the revenue will greatly exceed, last total. * # # « Britain's peace revenue was about £210,000,000. The 1914-15 revenue totalled £226,000,000, but this included a few war taxes. These taxes were immediately imposed by the Chancellor of-the Exchequer of that day, who happened to be Mr. Lloyd George. For every pound of debt incurred Britain has made provision for interest and sinking fund by imposing additional taxation, which' is more than the Central Powers have done or have been able to do. It is this fact that makes the Outlook so terrible, for Gerniany and Austria. . * i * ■» * Mr. F. W. Nicholson, manager in New Zealand for the National. Mutual Life Association of Axistralasia, Ltd., has received the following cable message from the head office, Melbourne: The forty-eighth annual meeting of the National Mutual Life Association was held at Melbourne to-day, when there was a good attendance of members. The. Chairman, in proposing the adoption of the report and. balance-sheet, congratulated members on the continued prosperity of the Association. The new-business for the year exceeded £3,500,000, being £270,000 more than in any previous year. The total income shows an increase over last year of £109,000, and now stands at well over £1,750,000. Payments to members during the vear amounted to £846,000, an increase of £83,G00 over last year, due to the heavy wax claims, but notwithstanding this, the sum of £750,000 was added to the Assurance Fund —the largest addition ever- made in one year. The total funds of the Association are now close on £11.000,0000—a record that the members" may well be proud of. The total expenses were a lower percentage of the premium income than in any previous year.

Very few, if any, stock sales were held in the Wellington district during last week, and the same may he said with respect to Auckland, but in the south sales were held at Burnside and Addington. - At Burnside, fat cattle were easier, the supply exceeding requirements. Prime bullocks made £19> to £21, medium £17 to £18 10s, light. £15 to £16 10s, prime cows and heifers £14 to £17, medium £13 to £14 ss, old and inferior £10 to £11 ' 15s. The prices at Addington were: Prime steers £17 10s to £2-1 2s 6d, ordinarysteers- £15 to £17., prime heifers £12 to £14 7s 6d, ordinary heifers £10 to £11 15s, prime cows £13 to £16 7s 6d, ordinary cows £9 15s to £12 10s. * . * * • ' * . — At Burnside, prime wethers realised 39s 3d, medium 35s to 38s 6d, others 34s 6d, prime ewes 33s to 37s 6d, medium 28s 6d to 32s 6d, others 27s 6d, extra prime lambs 33s 3d, prime lambs 28s to 30s, others 23s to 275. The . Addington prices were: Extra prime wethers to 38s Idj prime wethers 32s 6d to 36s 4d, lighter wethers 26s .7d to 325, extra prime ewes 37s 4d; prime ewes 32s to 34s lid, medium ewes 29s v to 31s 6d, lighter ewes 22s lOd to 28s 6d, extra prime lambs .to 28s 7d", prime lambs 24s 6d to 27s 6d, lighter 21s to 245. , *■». . * ■ # The la.test quotations, for investment shares on the Wellington Exchange were as follow : —.National Bank, buyers £5 2s 6d; Bank of New Zealand (old) buyers £12 Is 6d, (new) buyers £17; National Mortgage, - buyers £3 17s 6d; Wellington Investment, sellers lis; Wellington Deposit, buyers 6s 4dj Ohristchurch Gas (£5), sellers £6 Isj Wellington Gas (£10), sellers, £13; v South British Insurance, buyers £5 14s; Auckland Trams (ordinary), buyers 20s ;- Wellington Woollen (ordinary), buyers £6 10s; Waipa Colliery sellers 18s ; Taringamuitu! Totara, - sellers 255; Wellington Opera House (preference), settlers £5; W.P.C.A. (£5), buyers £6 ss. . - , # # * * In the mining market there is verylittle business promising. Murray Creek, sellers 35s;.Waihi, buyers 36s 6d; Grand Junction, buyers 15s 3d.