FINANCE AND TRADE.

New Zealand Times, Volume LXXI, Issue 4313, 23 March 1901, Page 8 (Supplement)

FINANCE AND TRADE.

The disturbed state of affairs in China has led to a great falling off in trade between that country and the United States. The advance sheets from, the summary of commerce and finance), just issued by the Washington Bureau of Statistics, show that the exports from the United States to China in October amounted to only 579,005d01., against 1,824,314d01. in the corresponding month pf the previous year. Exports of cotton sloths to China fell from 15,029,453 yards in October, 1899, to 390,000 yards in October, 1900, while for the ten months •f 1900 they amounted' to but 100,968,632 yards, against 188,892,650 yards in the corresponding months of 1899. Next to cotton goods, mineral oils constitute important exportation to China, and these, like cottons, were seriously and unfavourably affected by the Boxer movemant. Mineral, oil for illuminating purposes fell from 3,122,034 gallons in October, 1899, to 86,780 gallons in October, 1900. In other articles, the reduction is not so great, and in certain articles, particularly provisions intended for the foreign troops in China, there is »n increase in October, 1900, compared with Octobetr, 1899. Taking the entire list of exports to China, the figures for October show a reduction; of 745, 809 dol., and _ for tho ten months ended with, October 2,196,144d01. While the Chinese War has net perceptibly interfered with the operations of the New England cotton mills, a different situation is presented in the South. There a very unsatisfactory state of affairs is reported, many ■mills (in that region depending solely on the requirements of the export to China.

Writing of "Trade and ite Revival,” in the "Financial News,’’ London, Mr D. Ourr says: —Thdro never was a time in history when the consuming power of the working classes in general, and the Wastage of war in particular, made so •large a drain on the productive resources of Great Britain. Why, then, is trade depressed 1 P Tha reason, in brief, is that tho wholesale huyeirs representing rail-, way, shipping, factory, merchant, andi speculative interests are en hloc holding their purchasing power in reserve for tha* critical moment when prices have touched bottom. Modem wholesale buying is done in spurts and en masse. If the time be supposed to bo ripe, a supply for twelve mouths will be bought in a week; up go prices, and many get left gaaing at a soaring market. The railway companies have been holding aloof, because they could not afford to pay £7 per ton for steel rails'. At a reasonable figure, there is £30,000,000 of purchasing power being held in reserve by English railway companies urgently required! for extensions and repairs. A similar condition of affairs exists in shipping circles. Merchants have exhausted their Stocks of iron, and are oversold in the' hear tack. Speculative purchases are non-existelnt. In fact, all the causes that go to make up a vigorous revival are crouching for the spring. In America they have already leaped 1 to tho'surface. It is out turn next. But when?

" How many people have any idea of the real magnitude of the Australian trade in hides and skins? That of New South Wales alone during 1899 represented a rabid of £1,719,094, the value of the imports, chiefly hided from Queensland, for re-export being £683,198, and that of the exports £1,035,896. The latter were classified! as follows: —l6 buffalo hides (from Queensland), £l6: 4094 horse skins, £1840; 497,998 cattle hides, £455,889; 1943 packages of kangaroo skins, £77,355 ; 4329 packages of other marsupial skins, £153,889; 1506 packages of rabbit skins, £7091; 26,849 packages of sheep skins, with wool, £321,704 ; 866 packages: of sheep skins,, without wool, £13,603; and 898 packages of father kinds, £4610. : In 1896 New Zealand exported 10,828,612 rabbit skins. Valued at'£66,599. In 1899 the export "Was Under eight million; skins, but the value had risen to £Bl,llß. In' the same years we sent away respectively £8,001,791, and 4,960,054 sheep shins, ■ The value, howevdr, was not expressed.

‘• One of the pleasures to the public ■front 1 thd-combine in the British thread trade is an advance in prices. The Manchester correspondent of the “Financial Times” says The rise in the price of sewing cottons was . established simultaneously and in harmony by the Coats and the English sewing cotton combina- ' tions, through the medium of the central agency in Glasgow, which now also conducts the foreign business of the English Sewing Cotton Company. While upon certain marks of the standard domestic sewing cotton (“six-cord”) the preeent rise is not very pronounced—-about 0d per gross up in the Coats’s “Chain” mark, 200-yard bobbins, which now stand at 18s per gross v Is up in John Clark, jun. and Co.’s same quality and size, which now stands at 17s 6d' per gross; 1 and 9d np in Jonas Brook’s six-cord, now . standing at 17s 3dJ—the increase is much ■ more marked in the “three-cord,” or ■ ‘'manufacturing” descriptions, • used by ■ the'makers of garments by machinery, the hemmers, etc. In this case thel firms in the Coats combination havo now raised the price 9d per gross of 100-yard spools ■ -—namely, to 18s^—which represents a rise of over 10 per cent., though,' when the circular announcing the! increased , -price was received, middling American cotton had fallen to 5Jd spot,, as compared with the recent, record of 7Jd per lb. On the 17th September the combinations put up the prices of several ' nnspoelod descriptions of sewing cottons ’ about 3d per lb. The circular also states that dealers are not in future to receive . allowances upon their stocks in the event . of a fall being established by the com- ' bines in their list pricesl This will tend in the direction of dealers' and big users ■of sewing cottons keeping smaller stocks in future; but this, it is asserted, is just what is desired.

The announcement was made at the date of mail services that the Indian Government had completed the purchase of another million sterling worth of silver, making a total purchase, of 8j crores of rupees since February. In round figures this means that India has purchased something like 30,000,000Q0b. of_ silver for coinage beyond the purchases in the 'bazaars for ornaments, etc. When the fact is borne in mind that this ydar has been one of comparatively great 'famine in India, causing depression in all directions, the. question is naturally suggested, What, will the requirements of India in silver be in good yebirsP It is evident that’ with" prosperity India"- must continue to be a larger piurcbaser cf. silver than has been the «ase since buying! temporarily ceased in, 1893, and therefore j it is probable^that the price of the white metal will be maintained at a higher! level than has been the case for some ) time past. j With the entrance of thei Union S.S.j Oampany of New Zealand into the traded between Australasia, and Vancouver, it may be anticipated that efforts, will bemade to attract more business to the route. Under now conditions the transcontinental service will be assisted, and hence it is gratifying to hear that for the last month of the old 1 year and the old century the Canadian Pacific managed to break its recent bad run, of traffic results. The revepuo statement

shows not only an increase of 19,0000c101. in gross earnings, but a decrease of 43,OOOdol. in operating expenses, so that the total gain to net profits was 62,000 dol., reducing the aggregate loss on the twelve months to 373,000d0l-

As particular attention has beten drawn, of late to new methods of life assurance, tho following from the ‘‘lnsurance Budget and Commercial World,” London, is of interest;—The Order of Chosen Friends, founded in Indianapolis, has shut up shop. In 1893, we learn from the “Economist,’’ Toronto, it had a membership of 33,892 and a death loss per lOOOdol. of 17.0; in 1899 the membership was 20,797 and the death rate per lOOOdol. 22.1. The financial state of the order at tho end of 1899 was as follows:—Assessments levied, 719,917d01.; claims paid, 722,122d01.; claims unpaid, 221,197d01.; and assets, 102,284d01., leaving a net deficit of 118,913d01. And now the concern is in tho hands of a receiver. Considering the recent history of these associations, it will almost seem as if the time had come when they should bd taken out of the hands of the insurance superintendents and delivered to tho tender mercies of the police authorities.

In the twelve months ended August 31 last tho Lake View Consols profit amounted to £387,718; but, owing to the fact that £230,381 was brought forward from 1898-99, tho directors have been able to pay dividends aggregating 225 per cent., and absorbing £562,500. The balance left over is therefore £45,326; but of this £40,812 has bean expended on capital account, in improvements, plant, etc., and has been transferred to additional capital expenditure account; eo that only £4514 is to be carried forward. From tho reports of the general manager which are circulated with the accounts the Board “consider that the mine is distinctly improving in value, and that considerably augmented returns may confidently be looked for.” In connection with 'this “company” it [might be rioted, says the “Financial ■News,” that a member of the House of Commons, whose name has been bandied about a good deal of late, and who is said to be a member of the Lake View Syndicate, was overheard discussing the situation with a friend. “I don’t care a Id !’’ said he, “what the Stock Exchange says, and I don’t mind much what tho Committee thinks; ibut what I do bar is to go up to my own office and find my clerks betting as to whether I shall get three years or five years.”

Some excitement has boon caused in financial and commercial circles in Paris by an article of tho new Estate Duties’ [Bill which has been adopted by the Chamber, and is now before the Senate. 1 Henceforth, all public credit institutions, agents del change, _ bankers, and I notaries with whom securities or moneys ■have been deposited will be) obliged to forward to the fiscal authorities, within a fortnight, a full list of these deposits. They will he held personally responsible for the payment of the tax, and will be liable in a heavy penalty if they do not comply with tho law. This is the first time that the French Legislature has disturbed a professional secrecy, which is traditional in France. Should the law really be enforced, as already adopted by the Chamber of Deputies, it is probable that French Capitalists and) others will entrust foreign banks with their de-

posits. The Brussels as well as London banks will profit largely by this change.