FINANCE STOCKS AND MINING

Free Lance, Volume XVII, Issue 924, 28 March 1918, Page 5

FINANCE STOCKS AND MINING

TinHE financial demands on the pub--fl_ lie or rather on a section of the public this month are extraordinarily large. The income tax was payable on the 19th inst. and a pretty big tax it is, too, especially upon those with fixed incomes. Then we have had the Red Triangle appeal for £100,000 for carrying on the Y.M.C.A. work at the front. The response of the public to this appeal was magnificent, for over £111,000 was subscribed in ten days. Now comes the most important appeal of all —the war loan for £9,500,000. This money must be found by the Bth April. ■'■'■■'■* * * * The Minister of Finance (Sir Joseph Ward) has been doing excellent propaganda work and in his address at the Chamber of Commerce he was able to assure the business men present that the loan would not involve any increase in taxation this year. He also dealt effectively with the complaints of those who insist that it is wrong to make the interest on the loan free of income tax. It is quite true that in eveasp ent country where war loans' lave been raised the concession of free income tax has been offered as an inducement, but this does not apply to all loans. -X- -34- * * Britain has been , raising huge sums by the issue of 5 per cent. Exchequer' bonds, which are not free of income tax. However, it is hardly worth While discussing the matter as the terms of the loan cannot now be altered. The compulsory clauses of.the Act dealing with "financial shirkers" are to be put in force. This means that those who are able and fail to subscribe, to the loan will be compelled to do so, and the justice of this cannot be disputed. When voluntary enlistment, was in force we had. numerous military shirkers and the same thing has been happening with respect to voluntary subscriptions to loans. ■ * ■'' * * * Sir Joseph Ward gave the business men present at the Chamber of Commerce meeting a great deal of very useful information. Since the wax commenced Parliament has authorised the Government to borrow £56,000,000 for war purposes, of which £46,000,000 had been raised, £19,500,000 in England and £26,500,000 in New Zealand. That leaves approximately £10,000,000 still to be raised, and the loan now on offer practically covers this. The total war expenditure

to February 28 last was £40,000,000, and there was, owing to the Imperial Government, several months' contributions at the rate of £650,000 per month. If three months' contributions are due it will mean nearly £2,000,000. We are paying the Imperial Government about £22,000 per day for the maintenance of our troops. * * * * The Minister also gave the 1 business men some interesting information regarding the revenue and expenditure. The revenue for the eleven months ended' February 28 showed an increase of £2,515,138 over the corresponding period of last year and the expenditure an increase of £771,398, leaving the net increase in revenue at £1,743,740. This month the revenue will be swollen by the income-tax payments, and it is safe to predict that the year will close with a surplus exceeding £2,000,000. It is to be hoped that the Minister of Finance will continue his policy of building up a reserve in London. * * * -self the surplus! is as substantial- as is estimated a million or a million and a-half should be invested in short-dated Exchequer bonds. We shall need all the money or credit that is stored away. No one can guess what the postwar conditions are likely to be, and with ample funds at the disposal of the Government will enable it to meet or guard against any financial crisis. * * * * Referring again to the loan, it is necessary to impress upon the public the fact that the money must be found, and found in New Zealand. We cannot expect to raise it in England. The British Government has quite enough to do to finance the war. The money is in the country and if everyone, big and small, responds to the duty cast upon all of us the money will be found. Tne first and second war loans were tremendously successful, and we feel certain that the third war loan will be over-subscribed. J * * ' * ' * The Commonwealth is at the present time engaged in floating a loan for an indefinite amount, on / practically the same terms as New Zealand, and it is obvious that special measures have to be adopted there to induce the public to subscribe. There has, been a "tank" week, and rivalries between Melbourne and Sydney and between the smaller towns have "been set up> _with the object of stimulating subscription. * # .. ■ . * * ■'' At a luncheon in Sydney the other day it was stated that Australia's war expenditure up to the close of the current month would be about £233,000,000 of loan money, and there had already been raised from all sources £105,000,000, leaving a deficiency of £128,000,000, which must be obtained voluntarily or in some other way. Australia is struggling with the, financial shirker as! well as with the military shirker, but then it must: be remembered that Australia is under the

peculiar Australian labour rule, which will account for a great deal. * * • * * The Industrial Corporation which happens to be a combination of the Industrial Association in Auckland, Wellington, and Canterbury held a conference of delegates last week and passed a great number of resolutions, and yet if one analysed the work it would be difficult to find anything of moment that had been accomplished. Passing resolutions is about the simplest thing in the world, and is, "therefore, not of any value whatever. The country needs some organisation as the Industrial Corporation, but it must be a live body organised on right lines and with a definite objective in view besides that of holding, an annual convention and passing resolutions. The Corporation should endeavour to secure a, good round sum, say £10,000, as an organisation fund, with a reasonable subscription from members and firms engaged in industries. It needs a good secretary, and this individual need not necessarily be a business man, or a practical man, or a hole and corner man, with kinks and prejudices, but a man who can handle statistics, analyse reports, organise the organisation, collect and distribute information, and should possess initiative and some knowledge of finance and commerce. :' ■ * ■ * * . * The chief trouble with our industries is waste. Waste of material, waste of time, and waste of energy, due to bad methods of operation, inadequate or out-of-date machinery, and in not a few •cases lack of machinery. The idea, too, of expecting high prices, and trying triv force the country into accepting high prices by a high tariff must be abandoned for a policy of reducing costs of production. The Corporation will do a lot of good when it decides to become a live organisation. * * * '*'■•", At Westfield, fat steers ranged in prices from £12 10s to £21 17s 6d, and fat cows and heifers from £6 10s to £17 10s. At Alfredton, light fat cows ruade £11 15s; at Taumarunui, £10 10s to £12 10; at Feilding, £13; and at Martinborough, £12 10s. Fat heifers were sold at Taumarunui at £8 10s to £30 10s; and at Martinborough, at £11 7s to £12 15s. At Addington, the prices were: Extra prime steers to £22, prime steers £17 to £20, ordinary < steers £15 to £16 15s, prime heifers £11 5s to £17 ss, ordinary heifers £9 2s 6d to £11, prime cows £12 10s to £17, ordinary cows £9 17s 6d to £11 17s 6d. The prices realised at Burnside were • — Prime bullocks £20, medium £16 to £18, prime heifers £15 17s 6d, medium £13 to £14 15s, light and aged £11 upwards. -* « * ■*....'. For sheep the prices were about equal to the previous week's rates. At Westfield, best heavy prime wethers made .36s 6d to 38s 9d, medium to heavy 33s to 35s 6d, unfinished and light 23s to 31s 6d, best heavy prime ewes 32s to 35s 6d, good ewes 27s to 31s, others up to 24s .6d. At Masterton, fat wethers made 32s to 345; and at Martinborough up. to 40s; fat ewes sold at Levin at 28s; at Feilding, at 26 s to 30s'; at Masterton, at 29s to 31s; at Palmerston North, at 27s 8d; at Taumarunui, at 28s to 325; and at Martinborough to 31s. At Addington, the prices were: Extra prime wethers to 43s 6d, prime wethers 36s> to 40s, lighter wethers 29s to 35s 6d, prime ewes 33s 6d' to 365, medium ewes 30s to 335, lighter ewes 24s 9d to 29s 6d. At Burnside, extra prime wethers made 45s 6d, prime wethers 40s to 44s 6d, medium 38s to 40s, extra prime ewes to 445, heavy ewes 41s, medium 38s 6d. a • * ...*■■ © At Westfield, best heavy prime lambs realised 26s to 31s, good prime 23s to 255, lighter 18s to 225. At Levin, fat lambs sold at 21s- At Addington, extra prime'lambs sold up to 34s 9d, prime 27s 6d to 30s 9d, medium 24s 6d to 275, lighter 22s lOd to 245, shorn fat lambs 21s 6d to 24s 2d. At Burnside, prime lambs 35s 6d, medium to good 28s to 32s 6d, lighter 20s to 265. » '■ * * * At Westfield, choppers and heavy baconers' made £4 15s to £5 17s 6d, others £3 17s 6d to £4 12s, large porkers £3 3s to £3 15s, medium £2 10s to £3, light 33s to 48s. At Addington, choppers made £4 to £6 15s, extra heavy baconers £5 15s to £6 8s 6d, heavy baiconers £5 5s to £5 10s, lighter baconers £4 5s to £4 15s, heavy porkers £3 15s to £4, lighter £2 15s to £3 10s. a # «■ ■» . « Investment shares do not appear to be affected by the issue of the third war loan as prices are exceedingly firm. National Bank, buyers £5 8s; Bank of New 'Zealand (old), buyers £12 7s 9d, (new) buyers £17 10s; Union Bank, £56; Equitable Building, sales £9 2s 6d; New Zealand and River Plate, buyers 375; Wellington Trust and Loan, buyers £5: 12s 6d; Wellington Deposit, buyers 7s; Hokitika Gas, sellers £4 12s 6d; National Insurance, buyers 60s 6d; South British Insurance, buyers £6 3s 6d; Gear Meat (£1), buy-

•ere £4 17s 6d; Meat Export (£5), sellers £5 15s, (£4) sellers' £4 15s (52s 6d paid) sellers 52s 6d; Auckland Trains (ordinary), sellers 21s; Huddart Parker (preference) buyers 20s 9d; TJnion Steam (preference), buyers 21s 3d; Kaiapoi Woollen (ordinary), buyers £7 2s, (preference) buyers £6 7s 6d; Westport Coal, buyers 30s 6d; Waipa Colliery, buyers 18s 6d; Leyland O'Brien Timber, buyers 27 s 9d; Taringamutu Totara, sellers 225; D.I.C. (preference), buyers 20s; New Zealand Paper Mills, buyers 19s 6d; Sharland (ordinary), buyers 28s 3d; Ward and Co., sellers £5 7s 6d; Wellington Cordage, buyers 20s 6d. * * ■*• * In the mining market the only demand appears to be for Waihis, which are wanted at 38s.