FINANCE AND TRADE

New Zealand Mail, 20 August 1902, Page 18

FINANCE AND TRADE

Latest reports from the' Continent of Europe with respect to the wheat market state that after a long spell of wet and cold, the weather lias at lengh improved in the French agricultural districts. "Wheat has been coming into ear only slowly in France; if there should now, however, be some warmer weather the yield may yet be good. Bad weather is reported to have done some damage to the growing crops in Germany; but in Russia, Austria, Italy, and Spain the crop outlook is satisfactory upon the whole. "Wheat has advanced 2td to 5d per quintal upon a number of” French country markets. The advance of Paris has been rather more decided, coming out at od per quintal; the rise would have been more marked if there had been a continuance of bad weather. The Konigsberg wheat market has exhibited a quiet tone, but has since shown more strength. Fine weather has returned to Boumania, and has brought with it renewed hopes of a good wheat crop. The weather has been propitious of late in Southern Bussia, and an abundant wheat crop is anticipated in that quarter. A good deal, however, still depends upon the course taken by the weather during the next few weeks. The quantity of wheat now on the way to Europe is returned at 1,545,000 qr. as compared with 1,605,000q.r. at the corresponding date of 1901. The total of 1,545,000 qr., representing the quantity of wheat now on the way to the Continent, is made up as follows : —France, 90,000 qr.; Belgium, 370,000 qr.; Holland, 380,OOOqr.; Germany and the North, 330,000 qr.; and Italy, Spain, etc., 375,000 qr.

Buying m the iron trade has been slightly less contracted lately at Birmingham, but some time must elapse before traders experience any direct benefit from the conclusion of peace. There is a more' buoyant tone abroad despite the prevailing dulness of business, and great expectations are entertained of a revival after tlio Coronation. Meanwhile, manufacturers have been pushing forward the contracts in hand as rapidly as possible so as to be free to take advantage of any accession of new business. Inquiries for early deliveries are beiug received on a somewhat larger scale than has been the case for the past year or more. The movement develops slowly, however, and in the heavy iron and steel departments in particular operations are conducted with great caution on account of the dislocation which would result from any undue inflation of the market for raw materials. Makers of finished iron complain that the cost of pi-oduction is already disproportionately heavy, and the recent advance in the price cf pig-iron causes misgiving. Some anxiety is shown to cover forward commitments, but the comparative stringency of the pig-iron market renders this difficult. There is a very heavy demand for sheets, and large consignments of galvanised corrugated sheets are being sent from this district to the principal foreign markets. South Africa is also taking a good share, but there is no large export as yet. Values are very firm and inclining upwards. The demand for milling and pumping machinery for South Africa has set in on a limited scale. The brass trades show gradual improvement, and there is rather a better outlook in the metallic bedstead trade. Penmakers are well under order. Throughout the fighter hardware branches there is rather more activity. A movement is in progress for amalgamating a number of businesses connected with the manufacture of umbrella furniture. Local builders of motor-cars are fully employed.

The British refined sugar market has been steady, but a quiet demand prevailed. and only small sales were effected in cubes and pieces at late rates. Yellow crystallised, 13s —13s 4ld, as to make. Cane sorts dull. A generally dull tone pervaded the market for German granulated, and prices were again easier. Z il, ready delivery, sold 7s 6fd; first marks. June sellers,' 7s 6 ; ;u; July sold 7s 6|d; Aug., sellers 7s BJd; and Oct.-Dec., 8s f.o.b. Hamburg. The beetroot market remained very dull, and prices further declined. Transactions in German 88 per cent, included Aug. at 6s 2d—6s lid; Sept., 6s Bid; and May, 7s, f.o.b. Hamburg.

Latest reports from Home state that butter has remained steady, with :t moderate demand. Friesland, finest, 94s —90s; factories. 98s—102s; Danish, finest, 106s—--109s; fine, 100s —101 s; Normandy ordinary best baskets, 92s —945; seconds, 86s—90s; extra mild. 98s per cwt: Britanny rolls, 9s 6d—l2s 6d per dozen lb; Bussian finest, 90s—94s: good to fine, 84s—88s per cwt. Cheese: Market generally unaltered, with a better demand for Canadian new at 50s —sls for finest. Bacon steady, at late prices, and a fair inquiry was experienced. A very dull state of affairs pervaded the egg market; no change, however, being made in official quotations. French, of various marks—Extra, 9s; selected, 8s 3d; best, 7s 9d; Italian, extra selected, 8s 3d; best, 7s 3d; selected, 6s 9d; best seconds, 6s 6d; Hungarian. Vienna blues. 6s 3d; reds, 5s 3d; Bussian, 5s 6d—6s; Austrian blues, 5s 9d; reds, 5s 3d per 120.

In giving evidence before tire Steamship Companies Commission, Sir B. Giffen said: —“These subsidised German steamers took advantage of tlie freedom of trade within the British Empire, and plied between tire mother country and the colonies and between one colony and another —as, for instance, between Southampton and Singapore, Melbourne, Sydney and so on, or between Singapore and Hong Kong, or between Brisbane and Adelaide. That was to say, subsidised steamers whiolr were really part of the German navy were being nursed on the, internal business of the British Empire itself. Considering all these changes, he was satisfied that the problem of maintaining our merchant fleet was now a serious one for the Government. The desirable thing, of course, would be that tlie unfair competition should cease; fur, as that was unlikely,"it was necessary to consider the best course to take in the circumstances. The question was net

an economic, but a political, one. As i;4lanclers. we, were dependent on shipping for supplies in time of war, and.for that purpose neutral ships were not sufficient. They would not run the risk.of capture by an enemy, and there was, of course, an obvious .risk that- the leading shipowning countries, if we were not shipowiiers ourselves, would be the very countries to wage war against us. Bethought, therefore, we must have .our own ships, and that meant that in time of peace our mercantile fleet must be maintained.”

Travellers via Canada to Europe will learn with satisfaction that the now Imperial Trans-Continental train service of the C.P.8., using the short line from Montreal and the new inter-provincial bridge, lias now been perfected. The saving in distance effected reduces the time between Montreal and Vancouver to 96 hours. This is a distinct advance, but a good deal more is required to make this service perfect. There is a growing impression that this route may be made a favourite one with travelling New Zealanders, and lienee any improvements that are made in the way of reducing the period of passage overland or otherwise indicate progress, which, it is hoped, will tend to induce continued efforts in the same direction. .The L’nion Steamship Company of New Zealand is doing much to popularise this route.

If the information supplied by the New York “Times” regarding a contract alleged to have been entered into on account of the South African, De Beers, Bhodesian railways aud other affiliated concerns for freight prove to be correct it may possibly influence our frozen produce trade with South Africa. The Houston line at present is engaged in the Liverpool and Liver Plate trade, and the twenty steamers which form its fieet are fitted for the carriage of both frozen meat and live stock. It naturally suggests itself, if the arrangement mentioned has been made, that the idea of drawing supplies from the Argentine has not been overlooked. Tho Bhodesian rail port is Beira, and the other companies mentioned can all lie easily reached from any of the ports of the South African colonies.

The proposals the Canadian Government announced some time since in connection with Australasian trade have now been crystallised into two direct invitations for tenders. Tlie first- is for an 18knot steamer service from Vancouver to Australia, as suggested some time back by “The Age” of Melbourne,” and the second is for a special service of cargo boats from the Eastern p-orts of the Dominion to Australia, touching at all the leading ports. The result will be looked for with considerable interest, as it must indicate what the great shipping companies think of the prospects of trade between Australia. New Zealand and Canada in the near future.

Begarding the flotation of the “Colonial S.C. Company” in London, to work the New Zealand-South African direct steamship service, the “Australian- Trading World” remarks:—“The Colonial Steamship Company, formed with a capital of ,£400,000, is expected to be floated on the London market shortly after the Coronation holidays. It will be remembered that Mr ii. C. Sieigli, of Melbourne, recently sccuieu an important contract with the New Zealand Government, the latter guaranteeing a subsidy of Jt'3o,ooo per annum. The terms of the contract have already appeared, and there is little aoubt that the new company nas a splendid opportunity to develop a . most important business. The,capital of the company is divided into 200.000 7 per cent, cumulative preference shares of £1 and 200,000 ordinary shares of £1 each, but we understand that only a portion of the capital will be offered for public subscription. The company has been fortunate in securing the names of well-known and influential gentlemen to serve as directors of the new company, and although we cannot expect those who are prominently identified with rival shipping companies to associate themselves with this new enterprise, we think that when the names are published it will be seen that the company commences operations with every prospect of success.”

“Fair Play” is not so complimentary. One of its writers states:—“The company is said to be under contract with the New Zealand Government, the latter guaranteeing a subsidy of ,£30,000 per annum. This amount will not go very far towards the expenses of running a line between New Zealand, the federated States of Australia aud South Africa. Generally, the object of tbe prospectus appears to be to develop the businesses of H. C. Sleigh and Co., Limited, and Mill. C. Sleigh. Whether the businesses are susceptible of the developments necessary to make the company a paying concern is a matter for future consideration. I have been given to understand that the New Zealand contract has been offered to one or two well-known Loudon lines and declined.”

. Those interested in the bill of lading question will note with interest a new law which has passed the "United States Senate. It provides in one section that no master, agent or owner of a vessel transporting goods to foreign ports shall insert in a bill of lading or other agreement any clause relieving him of liability for loss or damage "arising out of negligence, fault or failure in the proper loading or the proper delivery of goods committed to his care, or any clause or agreement imposing on the consignee at any port or dock charges for the discharge or delivery of goods tlie payment of which by law is imposed on the master, agent or owner. A similar law is urgently wanted in connection with the Australian trade, and when the navigation laws come to be considered it may be hoped that this matter will receive special attention.

Tlie select committee of the House of Commons appointed to inquire into the general conditions of the British Savings Banks in respect of their capital and income accounts, with special, reference to the loss of income which will be incuircd by the 'reduction in the rate of

interest on consols on sth April, 1903, to 2£ per cent., has recommended that the rate of interest allowed to depositors be reduced by I-per cent. In their evidence, both the Controller-General of the National Debt (Mr G. W. Hervey) and the Secretary of the Post Office (Sir George Murray) favoured this course, which has been proposed on several occasions, lhe “Bankers* Magazine,” London, wrote oil the matter thus: —“The Government naturally hesitates to lower the rate of interest allowed to the depositors in the savings banks, owing to the complaints which are sure to follow such a step, however necessary it may be. It is understood that a draft bill on the subject was submitted to the committee, and that its main proposal was that the interest to be paid to depositors in the post office savings banks should be reduced next year by J per cent., and that at any time after Ist July, 1904 (as regards the postoffice bank), and 21st May, 1904 (as regards the trustee banks), the Treasury shall have power to raise or lower the rate according to circumstances. Till tho bill is actually published, it is hardly possible to express any very - definite opinion, except that the whole proposal appears a very feeble one. It involves a considerable risk of a deficiency in the ease of tlio post office savings hanks, and, as we understand the figures, the certainty of one of the trustee savings banks. .Any more detailed comment appears inadvisable till the bill is actually before us, with the further evidence which will doubtless be submitted to the House of Commons when the bill is introduced. And it appears likely that the proposal to vest such an immense power in the hands of the Treasuiy as the bill would give may not be agreed to without considerable discussion.”' The matter is one of considerable moment. ,