FINANCE AND TRADE.

New Zealand Mail, Issue 1681, 18 May 1904, Page 72 (Supplement)

FINANCE AND TRADE.

The trend of the London market continues on the down grade, last week’s cable message having reported the rate for hast three months’ bills as having declined by 3-16 to 2 3-16 per cent., the Bank of England rate being still 3 par cent. Alt the same time last year the market rate was 3|- and the bank rate 4 per cent., and the market was heavily affected by the displacement of fum/tis consequent on the huge volume of the applications for the Transvaal loan. The enormous amount of money that was absorbed at that time by Imperial expenditure, Imperial and South African loans, municipal loans and so on, and the extent to which these securities /remained undigested in the hands of the first purchasers appeared to mortgage the' future to such an extent that competent authorities ..thought that the market would require two or three year's to /recover iits normal state. The rapid rate at which capital accumulates in the Mother Country has, however, falsified these prognostications, and we now, within a twelvemonth, see the market regaining strength and rates for money again reaching a low level. The fear * of England’s being entangled in the Russo-Japanese war having now become very remote, this improvement, may be expected to continue, bat tb«re are, of course, many applicants, colonial, .municipal, etc.,' waiting to take advantage of the first opportune moment for raising loans at former rates. Our own Government is among this number, and it is chiefly the necessity which lias been imposed upon our Colonial Treasurer to raise in the local market the funds which he needs that affords justi-

fication or explanation of the rise in local rates of interest, though to this factor ought, perhaps, to he added the strong demand that exists in Australia. Another factor, by-tho-bye, its the amount of talk about dear moiiiqy which has been indulged in and which has helped to bring about the condition predicated. However, we think it may be assumed that as soon as the colony can get its needs supplied in the London market the local supply of money will be found ample for all local requirements, and rates will fall to the previous level.

This oil is in good supply, with further shipments on the way, the first of which, by the Trafalgar, is about • due. The spot price is lOd per gallon, at which it has stood now for about a month, after several reductions from 12|d, the price which was ruling in January. From the coining shipment of some 30.000 cases by the Trafalgar, sales are being made to arrive at 9Jd. The New Zealand price ds now regulated by the Standard Oil Company in America, whose representatives cable changes in the price from time to time as suits their operations. In adcJltioa? to their suprpiles, we also receive occasional shipments from the Columbia Oil Company, whose prices, however, usually follow the movements of tlio dominant company. A shipment was also recently imported from Sumatra., which . sells usually at Id Hinder the price of the American oil, but it does not seem to meet with as much favour as its rival. Reports reach us of new oilfields being tapped in the United States, which may eventually increase the supply of this illuminant and cheapen the price. There are also reports of discoveries of petroleum in Japan, where the Standard Oil Company -is said to have expended little" short of half a million sterling in sinking numerous wells in search of this valuable mineral oil. It is reported that success has at last crowned their enterprise, and that an abundant flow of petroleum has been attained. If this be so we may be sure that the search will be prosecuted further, and possibly a largo oil district be opened up. It is said that Hokkaido, where the find occurred, presents geological features very favourable to the carrying on of this industry. Such an event would also increase America’s interest in Japan, and possibly lead to a still more friendly attitude towards the Mikado's kingdom.

The “Journal of Commerce.” states tlhait the committee of 'the National .Board of Fire Underwriters intends to recommend at its meeting in May to advance the rate's for congested districts in cities of oveir 100,000 inhabitants. This action is considered necessary on account of the 10-sises sustained in the Baltimore fire and elsewhere.

The total gold production, of the world from the discovery of America by Oolumbus to the year 1900 is, according to 'the report of the United States mint, in .round figures, £1,962,200,000. Pure gold of this value would weigh about 16,272 tons. Graphically, this amount oould be represented by a solid circular tower of gold 20 feet in diameter and 86 feet high. The total yearly world’s production of gold since 1900 would increase the height of sueh a tower about three feet each year. In other words, the present annual production is some fourteen times that represented by the average of the previiofuSs 408 years.

The New York “Sun” on 7th March published the following telegram from Washington:—‘"The 40.000.000 dollars which the United'States will pay to the Panama Canal Company will be shipped in gold, as there is reason to believe that the stockholders desire gold to enable France to be prepared for the most serious emergency that may arise iin connection with the Russo-Japanese war/’

The Mutual Life Association of Australasia during 1903 improved considerably on its best previous results. The accounts to be presented to members on the 18th inst. disclose considerable progress. The new business completed totalled £704,254, and annuity bonds were granted for £2356 per annum. Th« new premitoums amounted to £33,015, showing a substantial advance on 1902, while the consideration for annuities reached £32,471. The total new business revenue amounted to £65,486, an increase of £19,177 over 1902; while the renewal premiums increased by £lO.873. The invested funds increased bv £129,660, to £1,768,600. The expansion was the largest ever recorded. The effective rate of interest earned was £4 tfe per Cent., while expenses were reduced by £1 13s per cent., as compared with 1902. The accounts will doubtless be regarded as satisfactory by members.

An adimirelr of Australian methods in dealing with the development of the Empire’s resource's advocates the payment by the British Government of a bounty {upon every bale of cotton delivered at any port in the United Kingdom that is the production of any part of the Empire. In connection with what class of cotton should be grown in various dependencies and colonies, the writer has come to the following practical conclusions:—!. Obtain cotton seed of all kinds ascertain the temperatures and

soils upon which each lias been grown, and then assimilate as nearly as possible to the district in which it is to be grown. 2. One oir more kinds of seeds might be grown, side by side, in one district, and fertilised, the seed from this cross being used in another district, and in all probability the yield would give a superior article to either. Experience alone can prove this. 3. The indigenous cotton, if treated in the same manner and sent from one district to another hundreds of miles apart, might show very superior .results. The fault of the agriculturist is that he saves seed of whatever he may grow for next year’s use, the inevitable result being deterioration. The result is exactly the same the world over, no matter what is sown, unless there be a change of £eed.

The cotton famine has had the effect] of bringing the climate and soil of Aus- ! tlralia into prominence as a future feource of supply. In 1864-65 a fair amount of planting was done in the neighbourhood of Ipswich, Queensland, but the fiancial results were-unsatisfac-tory. This was largely due to the ignorance of the managers of the co-opera-- j tive company, consisting mainly of Oov_ i entry ribbon workers, who had emigrated in consequence of the collapse of their industry. Since the date referred to a little cotton has been grown, and there are localities in Queensland that would be found highly suitable for extensive cultivation of this plant. Detailed particulars have been given by the “Englishman” of a scheme under which a number of experimental farms are to be started in Bengal, Assam and Burma for growing long-stapled cotton. The variety to which attention will chiefly be devoted is a tree-cotton from which the historic fine Dacca muslins were, there is reason to believe, formerly manufactured, and which it has been proved can be successfully grown in ; Bengal in the ordinary alluvial soil of j the Indh-Gangeitio plains. For some unexplained reason this cotton is unknown I commercially, and has only lately come j to the notice of the Agricultural Department in India.. It is expected that ( from 3000 to 5000 acres will be brought under cultivation during the coining season, and arrangements will then be made tor practical operations on a very much larger scale. The farms are to have ginning factories and presses in connection with them, and negotiations for their management are being entered into with planters and others. It might be suggested that fuller information from India might be obtained on this subject.

Writing on the Coffee market London, advices state : —Supplies have consisted largely of East India, for which only a slow demand prevailed, and a good proportion did not sell, although lower prices we're, generally accepted; other descriptions also show further weaknesses, and the tendency all round is disappointing. A small quantity of colony plantation Ceylon realised full rates but a good and varied selection of East * India met with listless support, and could only be partly disposed of at a decline upon late values. Scarcely any Costa Rica or Guatemala was brought forward, and being of inferior quality attracted no attention, whilst a good

supply of Now Granada and Colombian welre only in moderate request, and again show a reduction of Is to 2s per cwt. A few small lots of Salvador and Mexican mostly sold at easier rates, bub some fine bold Nicaragua commanded an extreme price; Jamaica and Mocha did 1 not sell.

“Dornbusch,” writing under date: of London, 11th March, makes the following references to the wheat market-:—■ During the past week there has been a siteadjy and almost daily lowering of value, as testified by advices from leading U.K. markets, and also by the offers for shipment. The chief cause of this declension was the inability of America to maintain a steady front; large shipments and liberal imports also helped to check buying, even at lower quotations. Australian, which this season is regarded as the leading quality, went down 9d to Is, while La Plata and No. 2 Calcutta, joined in the retreat, but were not carried so. far hack. Since Wednesday a steadier tone prepai'led, and some of the decline has been recovered. This morning sellers of all grades appear to be more hopeful, and the sale of New South. Wales, March at 31s 1-1 d, is evidence of tangible improvement. The railway strike in Argentine has not up to the present caused any diminution in shipments but cable advices to-day say that the outlook is becoming serious, especially on the Rosario lines. The American bureau estimates the quantity of wheat in farmers’ hands on Ist inst. aja about 132,600,000 bushels, or 20.8 per cent, of the last crop, in comparison with 164,047,000 bushels, or 24.5 peer cent, of the crop of 1902, on hand Ist March, 1903. This difference of 32,000,000, of which a considerable proportion is believed to be of inferior quality, may have an important bearing upon, the statistical situation, and it certainly leads to the conclusion that America cannot undertake to repeat the position she ocupiod last year as a contributor to European needs for the remainder of the: season. There is no occasion for apprehension respecting wheat supplies for the remainder of the cereal year, and barring political or a recrudescence of war fever, prices should remain with healthy movement one way or the other pretty much as they are at present—