FINANCE STOCKS AND MINING

Free Lance, Volume XVIII, Issue 949, 19 September 1918, Page 6

FINANCE STOCKS AND MINING

NEW Zealand's revenue returns for the five months of the fiscal year, that is to August 31, shows that £5,509,782 was received as compared with £4,743,821 in the corresponding period of last year, there being an increase of £765,961- Increases are disclosed under all heads except marine and territorial revenue. The expenditure for the five months totalled £6,478,031, as compared with £5,353,097, an increase of £1,124,934. In the items of expenditure for last yea-r are the purchase of wheat (£71,270) temporary transfer to Rangitikei Drainage account (£7500).

The increase in expenditure far exceeds the growth of revenue, but no notice need bei taken of this, for it often happens that the expenditure is heavy when revenue is light. lhe figures are only interesting as showing what are likely to be the results at the end of the year, and from present indications a surplus of some size may be expected. It is, however, interesting to compare some of the items. us " toms revenue 1 shows - an increase or about £54,000, Stamp and Death Duties an increase of nearly ±-ou,UUU, Postal and Telegraph an increase or £162,000, while the expenditure in this department decreased by about £10,000 The increase in land tax revenue totalled £48,000, in income-tax £62,000, and in beer duty £32,000. The railway revenue increased by £240,UUU, while the railway expenditure increased by £220,000.

On. the expenditure side the Civil List increased by £1200, interest and sinking fund by £751,000, which is at the rate of about £150,000 per month for each of the five months, and this item will continue to grow month by month and will amount to a veiy substantial sum when the war terminates. The expenditure -under special Acts mcreiased by £350,000 or at the rate of £70,000 per month. In these special Acts would he included pensions, and this item also is destined to expand each month. The aggregate of thei permanent' l charges shows an increase of £1,108,429, and the increases m the annual appropriations amount to £95.275. The permanent charges cannot be reduced; on the contrary they are bound to increase, while the annual appropriations can be reduced and probably will b© rechie&d by strict economies. It.is obvious that in the peace years to come the Finance Minister will be troubled with the problem of providing , a revenue of about £20,000,000 so that the country may pay its way. ' „ &** • *

The directors of Huddart Parker, Limited, have . declared an interim dividend for the half-year ended June 30, of 3 per cent, on the preference

shares, and 4 per cent., with a bonus of 1 per cent., on the ordinary shares. Huddart Parker shares have been in very good demand during the past two or "three weeks, hut the supposition is that the rise in value was not due to the dividend prospect, but rather to possibilities of amalgamation. It is argued that the Huddart Parker Company is a comparatively small concern owning few vessels, and is surrounded by large and powerful concerns, so that it would be in the_ interests of the smaller concern to join forces with one or the other of the larger lines.

Lord Inchcape, the Chairman of the P. and O. Company, recently denied the amalgamation rumours and the stock dropped slightly. This was on September 6, when P. and O. stock was quoted at £445. Four days later the price dropped to £440. In Wellington on Friday, September 6, the stock was sold at £382, on the 10th a sale was made at £425, but now the stock is quoted at £410. If there is nothing in the rumours respecting amalgamation, it is difficult to see how the stock can maintain its present value. The idea that there will be an enormous, shortage of shipping must be greatly modified in view of the construction of new. shipping.

It is, of course, true that the submarines are still active and are taking toll of merchant vessels and transports, but their depredations are not so formidable as they were. In the United States construction is proceeding at a rapid pace, the output for the eight months to August 31 being 1,630,403 tons. Canada expects to build 500,000 tons of shipping this year, British yards have built over 1,500,000 tons, and Australia and Japan, besides France and Italy, are turning out vessels, and most of the new construction is on Government account. The U boat destruction will decrease because of the better methods of protection, while there is every prospect that construction will be accelerated. After the war, though perhaps not immediately afterwards, there will be a vast amount of shipping available, a good deal of which will be Government-owned.

The earliest demand for shipping at the close of hostilities will be for the carriage of foodstuffs, and this demand will come mainly from Australasia and the East and South Africa, but many vessels will be spared for this purpose, because many vessels will be relieved of the duty of transporting munitions. Merchandise will not ,be immediately available to any extent, and, therefore, shipping will have to rely upon oneway freight, and that must not be excessive for the > carriage of foodstuffs. There is no reason why the Imperial Government should not use its ' own vessels to carry Australian produce, which is also the property of the Imperial authorities. There are many possibilities in the situation which must not be overlooked.

Germany is to issue her ninth war loan on Monday next, September 23, and the issue will take the form of 5 per cent, bonds at £98 per £100 bond. Germany will, of course, get the money as she has with all her previous loans. There is tremendous inflation in Germany, taxation has not been imposed,

and intei'est on the* wax- loans is being paid out of war loans. Inflation creates a dangerous optimism in the financing of the war, for it lulls the public, and often the authorities deceive themselves into the belief that it is getting the necessary wherewithal for that purpose, more easily than it really is.

The balance-sheet of . the Canterbury Farmers' Co-operative. Association shows a profit for the year of £27,503. Dividends of 6 per cent, on preference and 7£ per cent, on ordinary shares are recommended, besides the usual discounts on purchases.

At Burnside, fat stock sale cattle advanced 15s to 20s. Extra prime bullocks realised £27, prime bullocks £21 10s to £24 10s, medium £18 10s to £20 10s, light £14 10s to £16 10s,, extra prime cows and heifers to £19, prime cows and heifers £15 10s to £17, medium £13 10s to £14 15s, light £11 10s to £12 10s., At Addington, the prices were: Extra prime steers to £35 15s, prime steers £21 to £27, ordinary steers £11 to £20 10s, extra prime heifers £19 10s, prime heifers £16 to £17, ordinary heifers £9 15s to £15 10s, extra prime cows £21 15s, prime cows £17 5s to £18 10s, ordinary cows £10 to £17. At Levin, fat bullocks made £16 10s and fat cows £10 2s to' £15 Is; at I>annevirke, fat cows sold at £9 10s. At Westfield, the prices were: Fat steers £15 5s to £24 10s, cows and heifers £8 7 s 6d to £16 12s 6d.

At Burnside, extra . prime wethers made 61s 6d, prime wethers 48s 6d to 535, medium to good 42s 6d to 455, light 36s 6d to 395. At Addington, extra prime wethers realised 635, prime wethers 42s 6d to 495, medium wethers 38s to 425, lighter wethers 30s to 37s 6d, prime ewes 4Qs to 46s 3d, medium" ewes 34s to ; 39s 6d, lighter ewes 26s to 33s 6d, hoggets 28s 3d to 38s 9d. At "Levin, prime fat wethers sold up to 51s 3d; at Dannevlke, fat wethers

made 42s 6d; at Levin, light fat hoggets made 24s to 32s 2d. At Westfiek? the prices" were: Extra heavy prime wethers 46s to 48s 9d, heavy, prime wethers 41s 6d to 45s 6d, medium to prime wethers 38s to 41s, light and Tinfinished 33s 6d to 37s Bd, extra heavy prime ewes 42s to 47s 6d, lighter fat ewes 34s- to -398, other ewes 29s to 33s 1 , heavy prime hoggets 35s to 41s, good 1 hoggets 31s to 335. * * * *

At Addington, choppers sold at £5 to £13, baconers £5 to £8, porkers 55a to 955. At Carterton, porkers realised' 47s to 48s; and at Levin, 48s to 555. At Westfield the prices were: Large choppers and heavy baconers £6 15s to £7 ss, light choppers and small baconers £4 to £6 10s, large porkers £3 10a to £4 ss, medium porkers 55s to 67s 6d, small porkers 45s to 525.

The demand for investment shares shows no slackening, and values aretending upwards. National Bank, buyers £6 4s; Equitable Building, buyer® £9; Metropolitan Building, buyers £11; National Mortgage, buyers £4 ss; Loan and Mercantile (ordinary stock), buyers £87; New Zealand and River Plate, buyers 38s; Christchurch Gas, sellers £5 17s fid; National Insurance, buyers £3 2s 9d; New Zealand Refrigerating, sellers 455: Huddart Parker (ordinary) buyers 43s 6d, (preference) buyers 20s 9d; P. and O. Deferred" Stock, sellers £405; "Wellington Woollen (ordinary), buyers £7 14s; Taupiri Coal, sellers 20s 3d: Westport Coal, sales 30s 9d: Waipa Colliery, buyers 15s9d; Kauri Timber (335), sellers 31s; Leyland O'Brien, buyers 275; NewZealand Drug, buvefrs £2 14s; New Zealand Paper Mills, buyers 22s 6d, Wellington Cordage, sellers 21s 9d; Wilson'si Cement, buyers 13s lid.

Recent quotations for mining shares: were: Talisman, buyers 9s 3d; Waihi, buyers 40s 6d; Westland Gold Syndicate, buyers 325. 6d.