FINANCE AND TRADE

New Zealand Times, Volume LXXII, Issue 4646, 26 April 1902, Page 8 (Supplement)

FINANCE AND TRADE

In tho United Kingdom much attention has recently been paid to tho question of increasing tho power and weight of railway engines and tho capacity or passenger carriages and goods waggons. The chairman of tho London and .NorthWestern Kailway, at tho half-yearly meeting in February, said that as a result of increasing tho power of the company’s engines 3211 trains a month had been saved, or 01)2,352 train miles, in spite of an increased goods traffic. They had for tho coal trade constructed two trains of thirty waggons, each waggon carrying twenty tons, so that each train carried 000 tons, arid there was a great saving in the length of the train. The chairman of tho NorthEastern Kailway said: —“Our present goods waggons go from about eight to ten tons, and our mineral arc about 10-ton waggons. Wo aro trying mineral waggons of 40 tons, and I need not tell you that tho wear and tear, which is so important a thing in railway traffic, is very much less on a 40-ton waggon than what it is on an eight-ton waggon. It is too soon to speak with confidence, but one of our largest customers in tho north is quite ready to try these 40-ton waggons, and wo have samples to order. There aro great difficulties in tho way of such changes. Traders' establishments have boon fitted for tho accommodation of 10-ton waggons, and not for those of 40 tons, but I believe that many of our customers, if not all, havo land round their works sufficient to accommodate tho larger waggons." Tho chairman of tho Lancashire and Yorkshire Railway told his shareholders that they had had trials with 30-ton waggons, and so great had been their success that 00 more had been ordered. Such trucks only paid with full loads, and then they wore a great success. So were their greater engines. Tho chairman of the Great Eastern Railway spoke of_ their suburban passenger trains of 15 carv riages, which provided for 00 first-class, 250 second-class and 290 third-class passengers, or 630 in all. They found that at a very small cost the seating accommodation could bo arranged to carry 768 passengers, or an increase of 21 per cent. The eighteen principal English railways in the second half of last year earned an average of more than an additional 3d per freight train mile, and that was duo to tho reduction in the train miles run.

Tlio fact that tho American Beef Trust is limiting tho export of live cattle in the hope of raising the price of beef in England may have had some influence in increasing tho price of frozen meat noticed during the last month. Possibly if the operations of tho Beef Trust wore confined to raising the price of beef in Europe, no such objection would be made to them in tho United States as to lead to the prosecution which a recent cable states is contemplated. ’ They are in that case none the loss reprehensible, bub interference by outsiders with monopolies that affect them could only bo possible by international conference, and as we have seen in tho case of the Sugar Conferences, it is only when there is loss to all the nations interested—to the United States in tills instance, as well as to others—that relief could be expected from general deliberations. The United States Government may intervene to protect its own people, but if the price wore not raised to them, and the monopoly only boro on European consumers, there is not much hope of relief. To let the graziers and middlemen of America raise the prices of meat as high as they can to the foreign world is quite in accord with the general beggar-my-neighbour commercial policy of the protectionist systems of the world: although tho developments of that policy very often operate rather to raise the prices at home than abroad, at any rate in those countries which have an open door like the United Kingdom. Where, however, the monopolists of a country furnishing so large a supply of the meat of Great Britain can unite as Messrs Armour and Co. are said to have done, they get a chance abroad as well as at home. Presently their proceedings will probably raise the prices for our producers who tender for tho corned beef and mutton they are asked to supply to the British Government. In its February number, “American Trade” gives tho following interesting resume of the United States output of pig iron:—Tho American Iron and Steel 'Association reports that the production 'of pig iron in 1901 was 15,878,354 gross tons, an increase of 2,089,112 tons over the output in 1900, when 13,789,242 tons were made. The production during tho last six months of 1901 was 8,203,741 tons, or at tho rate of over 16,400,000 tons per annum. How marvellously tho output of pig iron in the United States has increased is shown by tho following table of the product for the past eleven years:—

Of this quantity Pennsylvania last year contributed 7,343,257 tons, and Ohio 3,326,425 tons. Even the enormous production during 1901 was insufficient to supply tbe demand, for tbe stocks of unsold iron on hand were reduced from 442,370 tons at the beginning of the year to 70,647 tons at the close. This stock of pig iron is less than the output for 36 hours at the present rate of production. There was but little pig iron to spare for foreign customers in 1901, and the exports fell to 81,178 tons from 286,687 tons during the previous year. The demand for all forms of iron and steel never was as great as at present, and there is no indication of any decrease in the consumption. Exports of iron and steel from Great Britain during 1901 show a decrease of nearly £7,000,000 as compared with 1900. Exports of machinery fell off nearly £2,000,000 during the same year. The decrease was in quantities as well as in values.

How very different results are from anticipations is exemplified very often in the commercial world. Sometimes the realisations are better and sometimes , worse than looked for. In its monthly record tho Manchester Chamber of Commerce says that the English markets were depressed by alarmist reports as to a coming extensive flow of iron and steel from tho United States. Now what has happened is that there has been some little improvement this year, and tho most- significant alteration in the several groups of industries is the marked revival in tho iron and steel markets. Pig iron rose considerably raider the stimulus of increased demand from both home and foreign consumers. Some orders had been placed st Middlesborough and elsewhere for 'several thousand tons for immediate shipment to the United _State3.,gruLan L-- V

unspecified quantity of steel billots was also said to havo been bought for tho same destination.

Tho recovery in tho price of copper this year has been based largely on_ tho increased consumption in the United Kingdom. Germany also is absorbing a largo quantity of copper. Messrs Lewis and son are of opinion that the demand for 1902 will considerably exceed that for 1901. In tho United States the February contracts showed an advance of 25 per cent, as compared with tho previous year. As to prices, tho firm named in their monthly report say they understand that, though no definite agreement, had oeen arranged between tho principal European and American producers, the latter had expressed their willingness to co-operate in any movement for preventing the yield from outrunning consumption. Some of tho companies had already cut down their production.

Tho drift of British capital from Australasia is indicated by what tho directors of the Australian and New Zealand Mortgage Company propose. Their operations aro becoming increasingly unprofitable. On its ordinary share capital 'of £IOO,OOO tho company has not paid a dividend since 1895, though until this year it had a reserve fund of a few thousand pounds—a gradually diminishing amount—and, as our cable message advises, this is now converted into a debit balance of £6820. What is now proposed is a gradual and judicious liquidation of the company. To meet tho loans advanced by this company about £850,000 will be required, including £612,000 debenture stock bearing interest at the rate of 4 and 4,j per cent., £117,575 of 4 to 4J per cent, debentures, and £IOO,OOO of paid-up capital, besides about £IB,OOO of capital paid in advance.

Although tho banana is supplied in considerable abundance in Now Zealand, probably few have heard of its foodsustaining power when converted into flour and bread, which it seems is done in Chicago. “In tho tropics the banana is the staple food,of millions; but also, if properly treated, might take similar rank in Great Britain,” says “Longman’s Magazine.” “It is scarcely ever realised that, as a form of nourishment, it can claim first place among vegetable products that are food for mankind, for it is 25 times as nutritive as the ordinary whito bread eaten in England, and 44 times as nutritive as the potato, thus far outroaching either tho wheat or the potato in food value. Hence, on this count, its position as a fundamental food or breadstuff is amply justified. It is, of course, not suggested that the banana fruit in its natural form should be used as food. Like tho wheat, it would require , drying and grinding down into flour. Mills might bo erected where it is grown or within easy reach, and then at the suitable time the fruit could bo gathered, dried, and transformed into flour. The flour would possess all the nutritive properties of the fruit in its natural state and would further lend itself to easy and cheap transport, and thus it would furnish a valuable addition to tho food of Hie world. Banana bread has been_ voted excellent, and is now made in Chicago.”

1901 ... 8,279,870 1892 ... 9,167,000 1893 ... 7,124,502 1894 ... 6,657,388 1895 ... 9,446,308 1896 ... 8;623,127 1897 .... .... ... 9,652,680 1898 11,773,934 1899 ... 13,620,703 1900 ... 13,789,242 1901 ... 15,878,354