LENDING BUSINESS

New Zealand Herald, Volume LXX, Issue 21471, 20 April 1933, Page 5

LENDING BUSINESS

QUIET CONDITIONS MORTGAGES UNATTRACTIVE THE SEARCH FOR SAFETY Lending business in.the city is very quiet at present, conditions being so uncertain that investors have no desire to commit themselves to any investments which cannot bo realised on quickly without great loss. Funds aro kept as near liquid as possible, money being invested at call or on short terms of deposit. Under the circumstances it is not surprising that the mortgage market has little attraction. When mortgage rates were fairly high lenders were inclined to take some risk, but the speculative element is totally lacking to-day. Securities have to be very sound to attract mortgagees and a wide margin of safety is required. On existing mortgages rates range as low as 5 per cent, but this is duo solely to legislative enactment. Those in touch with the market claim that a higher return is warranted, and new business is being done in {the city at from 5£ per cent-to 6 per cent. Only first-class business is finding accommodation.

The supply is limited, some of the regular channels in the city having been closed. In other avenues the business is not sought, but there is a constand demand. Accoinmodaticin is found as a rule only by those applicants contemplating some capital expenditure, but it is stated that tho number of theso is few, in spite of low building costs. One reason for this is the present low level of rents. The demand for farip mortgages has fallen off, probably owing to tho fact that many farmers have already encumbered their security. Any amount advanced would not pay off existing liabilities. It is stated money is being forced out of the mortgage market and tlijs is depriving many would-be borrowers of the financial help they would bo entitled to in ordinary circumstances. There is a tondeney, when mortgages fall due, to take the principal money out of the market and invest it elsewhere. This trend is reflected in the present firm demand for Government stock and bonds, it ip claimed, while many lenders arc placing their money on deposit with the banks. It is questioned whether money has not tho appearance of being cheaper than it really is.

COUNTRY STOCK SALES FRANKTON QUOTATIONS FAT SHEEP PRICES FIRMER [ FROM OUR OWN CORRESPONDENT] HAMILTON, Wednesday There was a smaller yarding than usual of fat sheep at tlie Frankton saleyards to-day, with the result that quotations, especially for ewe mutton, showed a decided firming tendency. Fat lambs showed no alteration in value. Ox beef came forward. in smaller numbers with practically no prime quality offering, and late rates were maintained. J he usual entry of cow beef was penned, with no alteration in values. A medium yarding of si ore cattle, comprising mostly Jersey heifers, sold at late rates. There was a smaller yarding of both fat and store pigs, values for bnconers and porkers showing a slight decline. Stores and weaners remained firm at late rates. The auctioneers report as follows: The Farmers' Co-operative Auctioneering Company, Limited.— Sheep: Heavy fat wethers sold at 14s to 14s 9d; medium 12s Gd to 13s 3d; heavy fat ewes, 10s; medium, 8s fid to 9s; light, fi 8 lOd to 7s 3d; heavy fat lambs, lis 3d to 12s; medium. 10s to 10s lid. Cattle: Medium fat steers, £4 17s Gd to £5 7s fid; heavy fat cows, £3 15s to £4 ss; medium, £2 15s to £3 8s; killable, 33s to £2 2s; boners, £1 to 30s; bulls, £3 10s to £4 2s; yearling Jersey heifers, 25s to 355. Pigs: Heavy choppers, 38s to £2 9s; lighter 2Gs to 3Gs; extra heavy baconers, £2 5s to £2 8s; prime baconers, £2 3s to £2 ss; medium, 39s to £2 2s; heavy porkers, 30s to 345 ; medium, 2Gs to 295; stores, 14s to 17s; slips, 8s to 12 a Cd; weaners, 4s Gd to 7s Gd. Dalgety and Company. Limited.— fat sheep: Extra prime fat wethers sold at up to 14s; medium quality, 12s; good quality young fat ewes, to 9s Gd; ordinary fat ewes, 8s to 9s; inferior fat ewes, 7s 9d ; fat lambs, 9s to 12s; a few store lambs yarded made 7s to Bs. Fat cattle: Ox beef, about 15s per iOOlb.; prime cow and heifer btfef, 14s i>er 1001b.; second-class cow beef 10s per 1001b.; good vealers made to 28s; small, 10s to Ids. Store cattle: Boner cows and stores, 22s to 355. Pigs: Heavy baconers, £2 2s to £~ .6s; medium, £1 17s to £2 Is; light, £1 138 to £1 16s; heavy porkers, £1 8s to £1 13s; medium. £1 3s to £1 7s; light, 18 s to £1 2s; choppers, £1 to £2 4s: stores, 14s to 17s; slips, 9s to 13s Cd; best weaners, 8s 6d; weaners, 5s to 7g Gd. , ~.. The New Zealand Loan and Mercantile Agency Company, Limited. —Cattle; Medium quality ox beef, £4 13s to £5 Gs; lighter, £4 7s Gd to £4 12s Gd; inferior. £3 15s to £4 ss; pen of quality heifers, £4 13s; prime quality cow and heifer beef, £3 lis to £4 7s Gd.; medium quality, £2 7s fid to £3 ss; lighter, £2 to £2 7s fid: inferior, 32s to 37s Gd; best store cows, 23s to 28s; medium, 15s to 22s- poor, to 14s Sheep: Prime wethers, 13s to 14s; medium, lis Gd to 12s 9d: lighter, 10s 3d to lis 3d; prime ewes, 8s 5d to 9s; medium, *7s fid to 8s 3d: lighter, fis fid to 7s 3d: good lambs, 10s 3d to lis 3d; medium, 9s Gd to 10s; lighter, 8s 9d to 9s 4d; torward, 7s 9d to 8s Gd. Pigs; Prime, heavy baconers. £2 3s to £2 Gs; heavy, £1 18s to £2; light and heavy porkers, £1 10s to £1 15s • medium porkers, £1 ob to £1 8s; light porkers, £1 to £1 3s; good stores, 15s to 18s; poorer stores, 12s to 14s; good weaners, 9s to 10s; inferior weaners, 5r to 7s. G. W. Vercoe and Company, Limited.— Sheep: Heavy fat wethers sold at up to 14s; light. 12s to 13s Gd; prime maiden ewes, to 10k Gd; heavy, 8s to 8s 7d; heavy fat lambs, lis to lis 9d; lighter, 10s to 10s Gd; light. 8 S Gd to 9s Gd; store lambs. 5s to 8s Cattle: Medium-weight fat bullocks. f5 to £5 7a Gd;. light, £4 12s Gd to £4 las; light and unfinished, £3 10s to £4; prime fat cows, £4 fo £4 13s; h® ft vy fat cows. £3 5s to £3 15s; /lighter, £2 10s. to £3 2s Gd: light, £1 10 8 to £2 ss; extra prime heavy fat heifers, to £5; prime, £3 10s to £4; lighter. £2 15s to £3 7s Gd; light. fl 10s to £2. Pigs: Heavy baconers, £2 2s to 7s: medium, 38s to £2: light, 32s to 375; henw porkers, 27s to 30s; medium, 24s to 2fis• light. 21s to 235; choppers. 20s to 355; stores. 14s to 18s: slips. 9s to 12s Gd: weaners, 5s to 8s; sows, in pig. to ±3.

VALUES AT .HASTINGS [BY TELEGRAPH PRESS ASSOCIATION] HASTINGS. Wednesday With heavy entries in all sections to-day's snlo at Stortford Lodge was uneventful. About 340 fat cattle were entered, and although tho quality showed improvement on last week's the prices obtained were slightly lower for lighter lines, prime entries selling on a par with late rates. Prune bullocks made fC to £' 15s (id; prime cows. .£3 10s to JM 5s- others, from £2 ss; prime heifers £i 5s fid to .£5 ss. Rates remained on a par with last week for fat sheep of which 0000 were yarded. Prime lamb made lis to 13.s 9d; others from 8s 7d . prime ewes, 7s to Ss 2d; others, from 5s 3d; two-tooth ewes, to 10s ; wethers. 10s to 12s. Store sheep .sold well. Ewes made un to 7s; lambs, 5s Cd to 12s- wethers, 8s 9d to lis 4d. EXPORT OF SILVER COIN BANK OF ENGLAND'S ATTITUDE [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Wednesday An intimation has been received by the Associated Banks from London that tho Bank of England will not accept English silver coin from Australia and Now Zealand.