FINANCE AND TRADE

New Zealand Times, Volume LXXI, Issue 4319, 30 March 1901, Page 8 (Supplement)

FINANCE AND TRADE

A 4000 acre tract of land has been purchased in South Carolina by a corporation that proposes to start a tea farm lo miles from Charleston. The lands arc expected to yield annually about 000,0001 b of tea for the American marker, climate and soil being equally ■well adapted to the undertaking.

A great change has lately come ever tho German money market. One of the most remarkable features during tho month of January was tho arrival of money in Berlin from industrial centres seeking for Investment in a market where tho rato was only 2i per cent, for call money. This is commented on by tho financial press of Germany as an unhealthy symptom indicating a great diminution in the demand for money in German trade. One effect is to create a demand for Government securities 1 which in consequence have risen in value. In fact there is a very great eagerness in the desire to buy giltedged securities. So great is the demand for low interest bearing stocks, says the Berlin correspondent of the “Economist” of January 20, that every new loin of that description is heavily over-subscribed. The Saxon 3 per cent, loan of '£3,500,000 was subscribed very heavily at tho fixed price of 83.50. So eager was the general demand for State funds that Stock Exchange price lists gave in nearly all cases only tho prices bid, there not being enough offerings to cover tho demand. Various German boroughs were taking advantage of the situation to raise loans, generally un stock bearing interest at the rate of about 4 per cent. Plentiful, however, as was money for investment on these securities, it was not so cheap as in England, where ordinary bank rates representing money for business purposes was higher than in Germany. Not only was there money available in Berlin for German Stale, and bdrough loans, but foreign securities also were commanding attention.

A now company has recently been organised, known as tho Colonial Steamship company, which will despatch steamers monthly from Seattle, Washington, direct to Manila. The company has traffic arrangements with several railroads, and is prepared to quote low rates, competitive with routing via Now York city and Suez. This line will materially increase America’s hold on the Eastern markets for foodstuffs.

The grain market in Mark Lane, on February 4 was disappointing throughout ; tho cold weather failed to impart animation to any section of trade. A good deal of English wheat now arriving was of secondary quality, hut the condition was dryer ' than at the January 7th markets. Some 641 b white wheat was sold at the moderate price of 30s Cd per qr; red was seldom sold for more than 295, and 28s Gd was often taken. Foreign was irregular.' Fine North Russian was looked after at 31s 6d, and German at 30s found buyers, but American was dull for rod, and Californian white was 6d down. Maize was again 3d lower for American, and neither Argentine nor Odessa were a good trade. Oats were neglected at currencies. Some finp Azof! barley weighing 4161 b made 21s 9d per qr, hut most sorts of barley hung fire, the market being, on the whole, disappointing. Beans and peas were steady. The market for town household flour and other London makes was rather reactionary than otherwise, despite the frost. In country flour 3d decline was sometimes admitted. Fine Minneapolis Hour was scarce on spot, and 6d advance was made. Tho present holders are not threatened with any large supply of fresh stuff for some weeks, and they anticipate a genuine increase on inquiry before the month is a fortnight older. Oregon flour- w r as rather lower. There was a reactionary feeling for nearly all Hungarian samples.

Tho directors of the South African Supply and Cold Storage Company cannot bo accused of undue haste in tho publication of tho accounts which made thoir appearance recently. Tho accounts cover the period from January 1, 1899, to Juno 30 last. The purchase was not completed, however, until July 17, 1899, and tho balance cf profit to that date remaining after payment of interest to the vendors has been carried jto reserve. The actual trading profit from July 18, 1899, to the end of June last amounted to £426,272. Out of this sum it is proposed to carry £250,000 to the general reserve, to pay a.bonus of 5s per share on the ordinary capital, and to carry, forward £38.422. Twenty per cent, has already been paid on the ordinary shares, and the bonus rais-os the distribution to 45 per cent, for the year ended June last. It is added that the trading for the six months to tho end of December compares favourably with the corresponding period of last year. Considering the conditions prevailing in South Africa, the results obtained by tho company are eminently satisfactory.

The Bovril directors announce that tho not profits for the past year amounted to £180,600, and they propose to make up the dividends on the preference and ordinary shares to 5,} per cent, and 7 per cent, respectively, the stipulated rates, and to pay 3,r per cent, on the deferred shares, adding £40,000 to reserve, and carrying forward £14,182. For 1899 the deferred holders received only 2 per cent The increase in the ptofits has no doubt been largely duo to tho war in South Africa. Another modern instance of tho wiso saw that it's an ill wind that docs nobody good.

According to a Lisbon correspondent, the Minister of Marine has laid before Parliament various projects, amongst' which is one referring to concessions of land in Portuguese colonies. The Minister insists that concessions should be granted only to Portuguese or naturalised subjects, or foreigners who have resided at least two years in the Mother Country or one year in tho colonial district where they aro petitioning for a concession. In any case, tho last-mentioned foreigners have formally to declare that they submit unconditionally to Portuguese jurisdiction, and must take up their abode in Portugal. The concessions once granted cannot be transferred.

Tho next two or three months will be the critical time in connection with the European and American crops. The autumn sowings were generally conducted under favourable circumstances, tho weather during winter has been on the whole of a suitable character, and the only report at al{ unfavourable is that Hessian fly lias ynade its appearance in some parts pf the United States, though it is uncertain whether much damage if any has resulted. The work of spring sowing should now he starting, and within tjlo next few weeks it will ' bo : scon whether tho spring wheat is doing well and whether the autumn - sown wheat maintains its present condition. Stocks in various countries aro on a fairly large scale. The Argentine shipments to Eurone will prooamy he smaller thjs year than last ; but it re-1

mains to bo seen whether tho decrease will make itself felt before the next European and American harvests. The mail advices continue to speak favourably of the condition of the growing wheat crop in America. The “Cincinnati Price Current” of February 8 re viewed tho situation as follows: “During the past week there has been an abundance of moisture either in the form of snow or rain over the entire wheat belt, and in many places has come at a very opportune time. Snow covers tho wheat as fur south a.s the Ohio lUver and westward over the northern part of Missouri and most of Kansas. The condition of the wheat plant is much more favourable now than at this time last year. The fly factor is largely an unknown quantity in the situation, and the coming two months are tho most trying period of the plant’s growth. However, the general situation is quite favourable.”

The right of director-: of public companies to seek to enforce the payment of fees which by resolution they hud decided to forego, has been the subject of a legal decision. Deporting on a decision of Mr Justice Wright in the case of tho London and Northern Bar,lt. the “Financial Times” says the law appears to ho as follows:--“If the resolution was passed in respect of remuneration already earned by the directors, it rlocs not constitute a binding contract as between them and the company, because the latter have given no consideration for it. But it must be remembered that a salary of so much per annum is nob earned until the end of the year, and with _ respect to any salary thus corning due in the future it is competent to the directors acting on behalf of the company to modify by agreement with themselves as individuals the terms of their remuneration. It scour.-, ‘ i nr,: the observations of Mr Justice U right that such a resolution (tint is, relative to future fees) will be regarded as an enforceable contract.”

The difficulty of securing additional life assurance business in jlio biiitod Kingdom is so great that those who are not content with the moderate increase which will replace the discontinued policies arc at their wits’ end to devise now and Mu-active forms of assurance. A writer iu the Loudon “Bankers’ and Insurance Journal” commends tho scheme of tho Sun Life Office started a few months ago, as an experiment of assuring lives on the payment of monthly premiums, at rates 10 per cent, in excess of the annual payment. Ho states that it had already met with so much support that its success seemed beyond doubt. Tins, of course, represents business approaching tho character of that done by tho. industrial offices.

There is a continued improvement in the movement of wool at Boston, says the “Wool and Cotton Report or” of February 7, but it has been at the expense of prices, which have ruled weak ,and lower, except on a. very few grades, such as washed delaines and j-blood unwashed combings. Some houses were willing to sell at lower prices than others, so that the market was, to a considerable extent, an irregular and uneven one, but it was possible to buy nearly all grades of wool at material concessions from tho prices ruling a month before, and each week saw some shading in values, especially ju low territories. Aside from the sale of an old speculative line of Australian merino, amounting to about 700,0061 b, which was held over, as was reported, from 1897, spinning 60s to 70s, and understood to have been taken within tho range of 33c. to 30c., there had been very few transactions in foreign clothing wools. A small amount of crossbred had been taken at 30c. to 31c., but there was no life in the demand, and the market favoured the buyer.