Finance Stocks and mining

Free Lance, Volume XVIII, Issue 972, 13 March 1919, Page 8

Finance Stocks and mining

THERE appears to be considerable business doing throughout' New Zealand in Inscribed Stock and War Bonds oh the basis of a discount approaching £3, which yields the investor a shade more than 4£ per cent. Tile money that is beinw invested m these gilt-edged securities is from trust funds, and there is nothing to stop this. It would -perhaps be better from one point of view if the money were lent to the Government . direct, that is to say, if the trustees applied for stocks or bonds of the pending loan. But in that case , the investors would be obliged to pay the value or par for the securities, whereas by buying in the open market they secure equally good security at a discount. The trustees cannot be blamed for doing their best for the estates they are administering. •35- * . * * We can gather some idea of the capital that may be available for investment in gilt-edged securities by noting the estates that have been certified for stamp duty. In 1918 a total of 4847 estates, of the aggregate net value of £11,272,375, were certified, as compared with 3873 estates of the net value of £9,742,977 in 1917. There is a substantial increase in both the number and the value, and it would be interesting "to know to what extent the epidemic contributed to the increase. * 4f * * It is interesting to analyse the estates. Thus last year there were 1732 estates of £500 and under, the aggregate net value beiing £438,785; between £500 and £1000 there were 1001 estates, aggregate value £671,878; between £1000 and £2000, 624 estates, value £883,385; between £2000 and £3000, 314 estates, value £716,774; between .£3OOO and £4000, 139 estates, value £496,787; between £4000 and £5000, 105 estates;, value £500,438; between £5000 and £7500, 138 estates, value £914,875; between £7500 and £10,000, 93 estates, value £769,074; between £10,000 and £15,000\, 78 estates, value £953,845; between £15,000 and £20,000, 34 estates, value £599,193; £20,000 and over, 89 estates, value £4,327,341. In the estates of £500 and under the average is £253, and in the estates of £20,000 • and over the average is £49,746, so that in.,the latter category some wealthy sons' estates must have been certified. * * * * The Trades Hall Council, Melbourne, has decided to move for the initiation of an agitation throughout Australia for the establishment of a 40-hour week in all industries. It is pointed out that the cessation of work since the armistice and the demobilisation of soldiers has increased the unemployment problem, afid it is claimed that the reduction of hours would facilitate the absorption of the civil unemployed. Of course, this reduction of hours is not to affect the wagesv, that is to say, the v Trades Hall wants 48 hours' pay for 40 hours' work. In the effort to find work for the unemployed the Trades Hall is not prepared to contribute anything, on the contrary: is desirous of profiting by the situation: ' r ' * •* * The suggestion of the Trades Hall is : that every man should do less and get more pay for it, and by following this policy more men would be employed and there would be employment for the repatriated men. This is an economic fallacy, but men swayed by selfishness and greed of wages cannot or will not face this aspect of the matter. It is conveniently overlooked that the world does not, live on the money that is earned but upon the goods it produces and consumes. If we produce the equivalent of 48 hours' work for 48 hours' pay, then the pay would ß be swallowed up in the higher cost of the smaller output. What is needed to-day is increased production, and if the efficiency of the worker is

such that he can in 40 hours produce what has hitherto been produced in 4b hours the position would be satisfactory. But is that possible or probable P * •» 45- * Forty-eight hours a week is not an excessive working time, more especially when we take into account the numerous statutory holidays. A reduction in hours to 40 would be disastrous to the worker himself, for it would reduce output,, add to his idle hours, and the temptations that go with it, and increase his living expenses. The whole community would suffer through the lessened output of goods, for we would have less to offer in exchange for those commodities that we require, such as tea, sugar, rice, etc. It is a pity that the socalled leaders do not give more consideration to the economic aspect and the economic effect of their proposals for reducing hours and increasing wages. -St The flax milling industry is in a bad way at the present time, and the mills in the Manawatu must close down or sustain very heavy losses. The position to-day is that there is about 40,000 bales of hemp in store worth about £225,000, and there is not much prospect of this being exported for some months. There is apparently no active demand for hemp. For a long time no business has been done with London, and the American market is now practically closed. As a mat*er of fact since the beginning of the year scarcely a ton of hemp has been sold for export. * * •* * It is at a time when the industry is in a parlous condition that the workers deem it expedient to insist upon an increase of wages. The millers have not been niggardly in the matter of wages, for 20s a day is not an unusual wage in the industry, and Mr Justice Chapman commented on the good wages being paid. Flax-cutters may be taken as the pivotal men. When the war commenced the cutters were receiving 5s 6d per ton on the average and now the average is 10s. Where the quality of the crop is not up to the standard lis 6d per ton has been paid. Latterly the cutters demanded 13s, and were offered 12s, which was refused. This happened at one particular mill, which immediately closed down. This was no hardship to the men, who were able to get work at the other millsi, but now the turn of the market is forcing all tjie mills to close down, and so a great number, of unskilled workers will be thrown out of work. They are not likely to get the same high wage at other work. * -x- * At the Burnside live stock market, fat cattle declined in value from 10s to 20s per head. Extra prime heavy bullocks £23 ss, prime bullocks £18 10s to £20, medium £16 to £18, others £14 upwards; best heifers £14 10s;" heavy cows £12 to £13 10s, others £9 upwards. At Addington, extra prime steers made £23 12s 6d, prime steers £16 to £19., ordinary steers £13 10s to £15, : 15s, extra prime heifers £15 2s 6d, prime heifers £11 5s to £14 15s, ordinary heifers £8 to £10 15s; prime cows £12 10s to £14 5, ordinary cows £8 17s 6d to £l 2 7s 6d. At Taihape, fat cows made £10 to £11 10s. At Upper Hutt, fat cows realised £9 12s 6d to £10 2s 6d; at Waikanae £9 12s 6d to £10 7s 6d; at Palmerston North, £9 17s 6d to £11 10s; and at Rangiotu, £10 10s to £11 2s 6d. At Westfield the prices were : Steers £13 to £20 10s, and cows and heifers £8 to £16 ss. * At Burnside extra heavy wethers made 53s 9d, prime heavy wethers 45s to 48s 6d, prime wethers 40s to 455, medium and light 35s to Sss ; extra heavy ewes to 44s 6d, prime ewes 35s to 38s 6d, medium 32s to 355, others 20s upwards. The Addington prices were: Prime wethers 35s to 425;, lighter wethers 27s to: 345; medium ewes 29s to 33s 6d, lighter ewes 22s 6d to 29s 6d. At Feilding fat wethers made 24s 9d and fat ewes 22s 6d to 265; at Upper Hutt fat ewes sold at 25s 9d, and at Palmerston North at 22s 3d to 24s sd. The Westfield prices were: Best wethers 35s to 38s 6d, medium 32s to 34s 9d, small 28s 9d to 31s 9d; best ewes 28s to 335, medium 23s to 27s 9d, small 18s to 22s 9d. # At Addington extra prime lambs sold at Ms, prime lambs 30s to 32s 6d, medium lambs 25s to 27s 6d, lighter

21s 2d to 255. At Burnside extra prime heavy lambs realised 38s 3d,, prime lambs 29s to 32s 6d, medium 24s to 275, othei's 15s upwards. At Feilding fat lambs sold at 17s 4d to 18s Bd. At Westfield best lambs made 25s to 29s 9d, medium 20s to 24s 9d, small 16s to 19s 9d. * * * At Addington choppers made £6 to £10 2s 6d, extra heavy baconers £7 10s to £8 Bs, heavy baconers £6 to £7, lighter baconers £5 to £5 15s; large porkers £3 15s to £4 15s, lighter £3 to £3 10s. At Westfield, heavy baconers made £4 17s 6d to £7 10s, small choppers and light baconers £4 2s 6d to £4 15s, large porkers £3 5s to £4 la,' medium £2 10s to £3 2s 6d, small 35s to 47s 6d. * * * -55Investment shares are very steady. Bank of Australasia, buyers £130; ' Wellington Deposit, sellers 8s 3d; Auckland Gas, sellers 27; Hok'-lva pas, sellers £4 10s-; Wellington Gas

(pref.), buyers 17s 3d: National Insurance, buyers £3 12s; South British Insurance,, buyers £7 9s; New Zealand Refrigerating, buyers £2 13s 6d; Auckland Trams (ord.), buyers 19s; Hud-dart-Parker (ord.), buyers 40s 6d; Union Steam (pref.), buyers 21s •3d:. Westport Goal, buyers 31s 4d: Kauri Timber (15s), buyers 15s 6d • LeylandO'Brien Timber, buyers 27s 9d; Golden Bay Cement, buyers l§s 9d; New Zearland Drug, buyers ; 535; Sharland's (ord.), buyers 30s. . ■ * -x-. * In the mining market there were buyers of Waihi at 43s 3d and Grand Junction at 12s 6d. Talisman's were on sale at 9s: •