FINANCE STOCKS AND MINING

Free Lance, Volume XVII, Issue 914, 18 January 1918, Page 6

FINANCE STOCKS AND MINING

f 1 1HE banking returiis for the December quarter of 1917 sliow that New ZenJia.ncl continues to enjoy prosjjerity, hampered only by the difficulty of having produce transported to the Home market. The effect of the war loan issued by the Government in Aug-ust-September last is to be sen in the expansion of the Government deposits, which have grown from £6,358,863 to £9,905,324, an increase, of £3,546,461. The free deposits by the same comparison have increased by only £464,974, and the fixed deposits by £548,725.

In considering the deposits, it must he remembered that the principal in-, stalments of the Government loan, fell due during the past quarter, and, in addition to meeting these obligations, the people have added over a million to their bank credits. This is, a decidedly, good achievement under the, circumstances. Had the shipping problem not proved so difficult, the""figures, would have exhibited much more favourable results. -

Owing to the tonnage trouble the producers have been obliged to resort to the banks for accommodation, and so Ave. find that the advances have again expanded, the totals being £29,662,981 against £25,298,408, an increase of £4,364,573. In the past two years the advances increased much more rapidly than the free and fixed deposits combined. Thus, in 1915, the advances aggregated £22,589,136, and in 1917 £29,662,981, the increase being £7,073,845, while the deposits* in 1915 were £29,155,301, and in 1917 £32,274,517, the increase being onlly £3,119,216 or considerably less than half the increase shown bv the advances.

It was authoritatively stated not long ago that the shipping that will be available this quarter will be sufficient to provide transport for produce valued at about £5,000,000. If so, one can wefll understand what a, difference this will make to the Dominion. We may expect the banking returns to show abnormal movements sooner or later, but that will, of course, depend upon shipping facilities.

Tlie discounts have decreased by £330,888, showing that traders are giving and accepting fewer bills, and that business is being placed on a cash basis. This is as it should be, for those who pay cash for goods are seldom tempted to buy more than, they aetuallly require. The note circulation has gone up from £4,778,267 to £6,464,695, and the very substantial increase thus shown indicates that the people require more cash in pocket for th&ir every day expenses. This is obvious because of the higher prices ruling for commodities.

The prosperity of the country is undiminished and, although the Treasury possesses a huge credit balance with the banks, the obligations of the State are on a large scale, the war expenditure amounting to a million a month. The amount at credit of the State will be soon exhausted unless steps are taken to replenish the Treasury credit. The Finance Minister announced not so very long ago that another war loan would be floated in March, and the question is whether the country can provide the Government with another £10,000,000. On the banking figures it ■certainly can, and as a considerable amount of stored produce will have been realised by then there should be ample funds to subscribe for the new loan.

The London money market presents no fea.tures worthy of comment. There has_ heen a big drop in .the public deposits according to the Bank of England return, the aggregate falling from £158,411,000 to £123,534,000. This would probably be duei to the usual quarterly payments, which would take about- ten days to adjust. The Government deposits have increased by £5,800,000 during the week.

There are bound to arise many problems respecting currency and foreign exchanges during the period of reconstruction. after the war, and, as. this is a matter of vital importance to Great Britain, a very strong committee of eminent bankers and dealers in foreign exchange and bullion brokers lias been appointed to consider the matter. Australasian and Eastern interests are represented on the Committee.

The National Mutual Life. Association continues to exhibit most satisfactory progress. This was emphasised at the forty-eighth annual meeting of the Association held in Melbourne last month. The amount of the new policies issued last year was £3,505,162 or £270,000 greater than the amount issued in 1916, and the average sum assured under the new policies was much higher than any other year's average. The total income was £1,-

770,196, or nearly £109,000 more than in the year before. The amount paid for claims under policies was £846,497, of which £157,862 was for war claims to the. dependents of 784 men. The total war claims paid during the three years amounted to £323,645, through the death of 1379 policy-holders. At the close' of the year the assurance fund amounted to £10,869,000. The Association has assisted freely in taking up war bonds, and the total so advanced now exceeds £1,000,000. The National is now in the very front rank of British Life Companies.

The balance-sheet of the Wellington Trust, Loan, and Investment Company, Ltd., for the year ended December, 31, 1917, shows that the income from all sources, including £3886 8s 9d brought forward, amounted to £38,244 18s sd, and after deducting expenses under all heads, including £5509 12s 7cl land and income tax, there remains £13,261 8s 9d. The dividend for the year at- the rate of 7i per cent, absorbs £9375, leaving, £3886 8s 9.d to be carried forward, this being the. exact amount brought forward from the previous year. The year's business was thus just sufficient to meet the year's expenses plus the dividend.

The prices for fat stock are more or less stationary, and yet the. prices are excellent. At. Burnside, extra prime bullocks realised £23, prime bullocks £19 10s to £20 ss, good £17 to £18 ss, light £15 to, £16 ss, extra prime cows and heifers to £17 2s 6d, prime. £15 to £16 10s, good £13 10s to £14 10s, light £10 to £12. The Addington prices were: Extra prime steers to £22 17s 6d, primes steers £17 to> £21, ordinary steers £14 10s to £16 15s, prime heifers £11 12s to £15 2s 6d, ordinary heifers £9 2 S 6d to £11, extra prim© cows £17 17s 6d, prime cows £12 10s to £16, ordinary cows £9 17s 6d to £12. At Carterton, light fat cows . realised £10 to £10 2s; at Rangiotu, £10 15s to £11 Is; at Johnsonville, £12 to- £12 10s; at Levin, to £13; at Westfield, steers ranged in price from £11 to. £22 17s 6d, and cows and heifers from £8 10s to £16.

Fat sheep exhibited a downward tendency. At Burnside, extra prime wethers made 45s 6d, prime wethers 38s 6d to l 41s, good 35s to 375, medium 32s to 33s 6d, prime ewes 33s to 35s Id good 29s 6d to 31s, medium 26s 6d to 28s. The Addington market prices were : Extra prime wethers to 42s 6d prime wethers 31s 6d to 355, lighter wethers- 26s 9d to 31s, prime ewes 31s to 34 5 . 9d, medium ewes 28s to 30s 9d, lighter ewes 25s to 27s 6d. At Johnsonville, fa.t wethers made 34s- and fat ewes 29s to 29s 3d; at Masterton, fat ewes realised 27s 9d to 28s. . At Westfielld, extra heavy prime wethers sold at 38s to 41s, prime wethers 35s '6d to 37s 6d, medium 32s to 355, light 27s to 31s, heavy prime ewes 30s to 33s 9d, good 25s to 295. others 21s to 245.

Lambs sold at full rates. At JBurnside, best lambs'made 28s to 325, medium 24s to 26s 6d, light 21s to 225. At Addington, prime lambs realised 25s 6d to 27s lOd, lighter 23s 5d to 255; at Levin, light fat lambs sold at 17s 4d. At Westfielld, heavy prime lambs made 26s 6d to 29s 3d, o- o od 23s 6d to 25s 6d, lighter 19s to 22 s 6d.

At Addington, choppers made £4 to £8, baconers £3 to £6, porkers 50s to 70s; at Levin, porkers realised 33s to 575; and at Carterton, 40s. The prices for pigs at Westfield were-: Choppers and heavy baconers £5 to £7 17s 6d, light baconers £4 2s 6d to £4 17s 6d, large porkers £3 5s to £4, medium £2 15s to £3 3s, light 35s to 525.

Investemnt shares are very steady, with scarcely any perceptible change in values. Bank of New Zealand (old) buyers £12 2s 6d, (new) buyers £17; National Mortgage, buyers £3 17s 6d; Wellington Deposit, buyers 6s Christchxirch. Gas, sellers £6 2s 6d; Hokitika Gas, sellers £5 ss; Wellington Gas (£10), sellers £12 15s; . New Zealand Insurance, buyers £8; South British. Insurance, buyers £5 14s; Gear Meat (£1), buyers £4 15s; Auckland Trams (ordinary), buyers £1 0s lOd; Weiilington Woollen (ordinary), £6 lis; Westport Coail, buyers £1 9s 6d; Westport Stockton, buyers 9s; Waipa Colliery, sellers 18s 3d; T'aringamutu, Totara, sellers £1 ss; Manning and Co., buyers £3; Sharland's (ordinary), buyers 27s 6d.

In the mining market there were buyers of Talisman at 9s 3d, Grand Junction at 15s 3d, and sellers of Murray Creek at £1 15s, and Worksop Dredge at £1 ss.