Shares and Mining

Observer, Volume XXVI, Issue 44, 21 July 1906, Page 20

Shares and Mining

By Obadiah.

THE London money market maintains an unusual firmness, and the expected reduction of the Bank of England discount rate seems as far off as ever. The open market discount rate was advanced last week, but the bank of England figures were of a more promising character than in the previous week. It is almost certain that the serious financial outlook in Russia is responsible for the stringency in the European centres, and it is not unlikely that the United States is in a measure answerable also.

However, the monetary conditions in London do not attect us in the colonies to any extoni, and there seems to be an abundance ot loanable credit throughout Australia. In this colony the position is all that could be desired, and the banking averages lor the June quarter emphasise this. There has been a phenomenal growtn in the deposits, while the advances are on a relatively smaller scale than last year. The note circulation is at its highest, and that may be accepted as a very good sign. The worst of the winter is now over, and on the whole things have been very satisfactory. We shall enter upon the newseason with the happiest prospects.

The ten-year statistical returns compiled by the Registrar-General, m continuation of previous scries, have ceased to have tne same interest as the earlier ones. We are getting accustomed to the knowledge that we are making progress, and substantial progress each year. There are some items on whicn we cannot pride ourselves. The imports lor 1895 and 1905 appear in comparison, and it is pot very pleasant to find that in ten years the imports have more than doubled, the hgures being £12,828,857 in 1905 as against £6,400, 12 am 1895. There is, oi' course, the natural expansion to be taken imto account, and also the probability that the figures are swollen by the advancing prices for commodities ; but, allowing for this, there is reason to fear that we are importing rather than manufacturing — that is to say., there are many things that we ought to manufacture locally tnat we are importing, which is not right. It displays rather a want of enterprise or a want of confidence.

The fourth of the series of London wool sales has witnessed a decline in values, which was expected, and now optimism has given away to pessimism. Some wool men talk about buyine fleece wool next season at the prices realised for crutchings this vcar. This is. of course, an extreme exaggeration, but it represents current opinion. The wool supplies are rapidly increasing. In the past season Australasia clipped over ten and a-half million more sheep than in 19C4, and for the approaching clip a further substantial increase in the flocks will come under the shears. Supplies are also increasing in the Argentine and at the Cape.

It was, of course, unreasonable to suppose that values could have been maintained at the high level at which the-' stood. At the same time, there is no reason to expect a sudden collapse. Prices will tend downwards, but the fall will be gradual, and on present appearances the clip of 1907---1908 will be most difficult to handle. The drop in wool values will tend to adjust the prices of broad acres, which have been rather higher than there was warrant for.

If the outlook for wool is discouraging, there are other products which hold out hope. Butter and cheese are both firm, hemp is selling well, and kauri gum, tallow, sheepskins, aad other items that go to make up the volume of our exports are all

satisfactory. Them we have the fact that the gold production is expanding, and so we may reasonably look for another prosperous year.

The Union Bank of Australia has enjoyed a prosherous half-year. The balance-sheet, shows profits which admit of a dividend at the rate of 10 per cent, per annum, besides which £10,000 is to be written off the bank premises, £4,000 to be added to the officers' pension fund, and £15,0C0 to the reserve fund, and £29,000 is to be carried forward.

The seventeenth annual report and balance-sheet of the directors of the Wellington Meat Export Company have been circulated. The report states that after providing for depreciation and for buildings and plant abandoned, there remains to the credit of the profit and loss accost a sum of £18,747 4s Bd. From this an interim dividend at the rate of 8 per cent, per annum has been paid, amounting to £4,280 13s. The directors recommend that a dividend at the same rate be paid for the second half-year, which will leave a balance of £10,285 18s 8d to carry forward. A sum of £7,351, being the total amount of the premiums received upon the last issue of shares, has been carried to the reserve fund. The profit on freezing, sales, manufacture, etc., totalled £30,P51 for the year.

There has been -very little doing in investment stocks this week, and values asc practically unchanged.

The mining market is practically dead. There certainly are buyers for practically all storks, but at prices that do not tempt sellers to trade. This is the best of all buying times, because the quietness must, at the worst be temporary.

Waiotahis have had a great deal of knocking about this week. One large holder put 40C0 shares on the market, and after 1000 of these had been placed, a syndicate took up the balance at a shilling or two under £8. This caused a good deal more selling, and stock dropped to £7 ss, but has since recovered to £7 10s.

Waihis keep very firm. Several parcels coming on the market from the South brought th& price down from £ ( J to £8 13s, but these having been absorbed, stock is again in demand at about £8 15s 6d. There is some talk of suction gas power being used instead of electricity from the Horahora Falls.

Talismans are being picked up as steadily as they come on the market at from 22s 3d to 235. This ought to be a very good investment at these figures.

The return of £1520 from 4CO tons from the Tairua Broken Hills mine was something; like its old focm. This yield gave a profit of £1000, and with the balance from the previous crushing, has wiped off nearly all the liabilities* It is expected that the next ret/urn will be nearer the old standard of £20001 Shares jumped from 2s 2d to 2s 9d, and are now at 2s 7d.

The Golden Belt yield of £1000 from 310 tons was again satisfactory, though shareholders would be glad to see more of the 40 stamps at work. Where the ore is being won at the No. 2 level, the reef is 14 feet in width, and occasionally yields picked stone. Strangely enough, the yield did not move the stock, ■ contributing being still worth only about 2s sd, and paid ups about 2s lid.

Since the recent poor return from the Omahu Mines, Malcolm Fleming has been shaking things up. For the last seven days he got 42 ounces of gold, value 32s 6d, which will be slightly augmented yet, and which appears to be satisfactory, if it is maintained.

The Thames crushing is still pro) ceeding, and will not be finished till the end of the month. In the meantime, shares have been steadily falling in value, and are now worth about Is lOd, which seems a very low price on the prospects.

In order to cope with the increase of his business, Charles Smith, the well known maker of perambulators, has been compelled to remove to larger premises in Waketield-streetafew doors from Queen-street.