FINANCE AND TRADE

New Zealand Mail, Issue 1715, 11 January 1905, Page 70

FINANCE AND TRADE

The ““Statist" remarked on the monetary outlook on November 19th: —“‘Today there has again been a strong demand, the apprehensions excited, by alarmist rumours having passed away. If uneasiness returns, and business, therefore, is checked, the demand for money AA'ill be small, and there is no likelihood that the Bank of England avlll have to raise its rate of discount. On the other hand, if, as A\ r e hope and expect, the negotiations Avith Russia are soon brought to a satisfactory close, business will again revive, and money AVili be in strong demand. Nevertheless, even in that case it is quite possible that we may get over the remainder of the year with a 3 per cent, rate."

As the result of the sugar convention countervailing duties are imposed by France against the importation i>f Australian sugar, because a bounty is given to our producers. A clause of the sugar convention of 1902 stipulated that countervailing duties might be established in each country, in addition to those of their Customs tariffs, on importations from countries that continued to grant bounties on their home production. The countervailing duties were to be fixed by the Permanent Commission sitting in Brussels. The Paris “Journal Official” now publishes a decree of the President of the Republic, countersigned by the Ministers of Commerce and Finance, establishing these duties on importations into France and Algeria from different countries, among which are several British colonies: —Canada, jp<er 109 kilos (two cwt.) refined, 8f 63c; the South African Union, raw sugar 2f sc, refined 3f 89c; the Australian tion, raw sugar 94 centimes, refined 5f 62c,

Either last year must have been a healthy one in ESurope and America, or people must be living longer than they did when the current annuity tables were formed, for, as we learn from the ‘‘lnsurance Monitor/' with three exceptions all the leading life assurance companies of the United States recorded losses on their annuity business, and it is believed that nothing but an increase in rat.es will change this state of affairs. It is said that the bulk of the annuity business of the three leading American companies is written on their European risks. Proverbially annuitants are long lived, and any extension of the business included in the figures giving the mortality results of these companies seems: to show that the race even of the longlived is becoming still more aged. People may point to plague and cancer and appendicitis, and all the newly discovered forms of disease and decay; but the counteracting forces of the day inherent in men or in medical skill are more

than sufficient to neutralise them. Annuity results as Avell as life assurance experience seems to show that human life is being prolonged.

The Cunard Company lias come off with success as the result of the Atlantic rate Avar initiated by its rivals, and which it is said has cost them £500,000. Nevertheless, the settlement of the rate Avar has given unmingled satisfaction on the German stock exchanges, and the Paris correspondent of the “Economist" says that a marked improvement in the quotations of steamship shares has followed. HoAvever, the tact is not disguised that the German companies had to make such large concessions to the Cunard Company as to amount practically to a surrender. While the exact nature of the agreement lias not been published, it Avas known that the German companies had consented to discontinue the line Avhich they had established between Scandinavian ports and America to compete with the Cunard line for the immigrant business; also the Cunard line seems to be left in full possession of the emigrant business from Hungary.*

Financial enterprise is not by any means played out in the United Kingdom. A new departure in banking has been taken by the Lancashire and Yorkshire Banking Company, causing, it is said, mild surprise and not a little curiosity in the financial world. It proposes to enter on savings bank business, accept deposits as low as Is, and pay the current rate of interest. Leading men in the banking world doubt the success of the experiment. The opinion of one is given by the “Westminster Gazette." He says:—“For one thing, the Pest Office Savings Banks take in money of this kind all over the country,* and the expenses of a bank are dispensed with by the payment of a small sum to local tradesmen for receiving deposits. If, oil the part of the large banks, a special staff were kept the expenses would be prohibitive. But, to my mind, the strongest argument of all against any adoption of “shilling' customers by the largo banks is to be found in the fact that, in spite of their extra facilities, the cost per transaction to the Post Office Savings Banks comes out at '5.8d —that is to say, if Is is deposited, it practically costs the community 6d to manage it. And in the case of the Trustee Savings Banks the average cost is even higher—every shilling costs 7d to manage. What bank in its senses is going to take up this kind of business?" The critic says that the object of the bank must be au advertisement to extend its ordinary business. A rather important statement is made by the principal of the bank, who gives this opinion. He says that “Bankers are at present considering this question of the protection of their own deposits. Something is very likely to be done soon by tho banks to increase their competing powers against municipal bodies and Trustee Savings Banks. I am not at liberty to disclose the nature of the contemplated action, but you may rest assured it will not be in the direction of opening shilling accounts."