Shares and MINING

Observer, Volume XXVII, Issue 47, 10 August 1907, Page 20

Shares and MINING

By Obadiah

THE London money market is beginning to exhibit signs of approaching stringency. *'or three weeks in succession the open market discount rate has been maintained at 3§ per cent., and it is a comparatively high rate. The bank has apparently full control of the situation and it is no doubt preparing for the pending demand. During the past week there was a shrinkage in the metal reserve of £615,000 and it is likely that there will be a further reduction this week. The Bank will endeavour to stave off any advance in the rate because 4 per cent, is in itself a high rate for money, but the Bank's efforts may in the end prove unavailing, and we may witness a recrudescence of the stringency that was experienced in the second half of last year. The United Kingdom will have to pay more dearly for wheat and cotton, and besides these staples, there is the Australasian wool clip to be provided for, to say nothing of other products, such as butter and cheese, frozen meat, etc.

The Stock Exchange fully reflects the clearness of money. Imperial Consols are down to £82 12s 6d, having dropped 15s during the week. This weakness may he due to the unrest in Ireland, or to some other political disturbance, for Consols are very sensitive and quickly reflect such changes. Colonial securities, with one or two exceptions, disclose a downward tendency. Still, the position is not unsatisfactory.

The metal markets appear to have been greatly disturbed during the' past week or two. Nearly all the industrial metals are depressed ; silver is an exception, for the white metal is moving upwards steadily. Copper and tin are very much below the highest point reached durthe boom period, and the pronounced fall of the past few days will probably bring about the collapse of some of the speculative buyers. It is very likely that forced realisations are even now the cause of the trouble.

At the annual meeting of the Dunedin Chamber of Commerce last week, the President issued a warning note. There was no pessimism in his remarks, but just sound commonsense. He pointed out that the increase in our exports is mainly one of value and not quantity — that is, production has not increased in the same ratio as the values ; so that if our market failed through ' any international troubles, or any other cause, we might happen on troublous times. A similar warning has been given by other representative men, and it is to be hoped that due heed will be given to the subject. There is, of course, no danger of an immediate slump, but we must look forward to the steady shrinkage of market values, and increase in production may not prove a complete set-off to the deoline in values, but that it will minimise the effects is certain.

The bankruptcy returns «f the June quarter are not very pleasant to reflect upon. There were 57 bankruptcies in the Wellington district as compared with 27 in the corresponding quarter of last year — an increase of over 100 per cent. The increase is rather startling, and it is attributed to the wholesale houses carpeting small tradesmen ; that is to say, the prudent business men are acting with caution and are curtailing credit in ©very direction

where there is the least suspicion of danger. In Wellington city there were seventeen bankruptcies in the last quarter afc compared with five in the June quarter of 1906. There was thus an increase of nearly 250 per cent.

That trade is s^ill good in the colony is evidenced by the import returns for the June quarter. The imports were valued at £3,921,510 — an increase of £988,727 over the corresponding quarter of last year, a gain of over 33& per cent. This is very big expansion indeed, and it is a question whether there is not just a suspicion of over importation. There is, of course, the fact that prices are higher, and it may be that the quantity imported is no greater, but the higher values account for the expansion. The exports for the June quarter totalled £4,841,983— an increase of £35,339. This is a very moderate growth, and out of all proportion to the increase in the imports.

The London and Lancashire Fire Insurance Company has purchased the business of the Standard Marine Insurance Company, Limited, by ..ie terms of which the former entered into control as from 30th June. The consideration to the Standard Marine shareholders is at the rate of £2 per share as goodwill over and above the net assets of the company, after deduction of all ascertained liabilities. The payment is to be made in London, and Lancashire shares taken at £24 per Bhare (£2 10s paid up). The Standard Marine was established in 1871, and has been very successful in its operations. The premium income for 1906 amounted to £100,899, and in December last the total assets, including paid up capital and reserves, amounted to £373,442, of which £315,000 was represented by investments. The London and Lancashire recently purchased the Law Accident Company, and this second acquisition is further evidence of the progressive spirit of the London and Lancashire.

Business on the Stock Exchange maintains an' even tone, and the mining market is fairly brisk. • as

Bank of New Zealands have sold at £10 lls 6d and £10 11s. The selling price is now £10 12s, with no buyers offering. Buyers offer £5 6s 6d for Nationals, but sellers ask 2s more.

New Zealand Insurance have been done at £4 6s, which is the present buying price. Sellers ask £4 7s. Standards have been done at 22s 3d, and are now wanted at 225. Nationals are asked for at 265, sellers requiring 275.

Auckland Tramways (ordinary) eased through the week, the latest sales being 245, which is the present buying price, sellers quoting 24s 6d. Preference are asked for at 23s 6d, with no sellers quoting.

Kauri Timber contributing sold at 7s lOd, this being the present buying price, with sellers at 7s lid. Paid ups are not quoted by sellers. Buyers offer 235.

D.S.C.'s have been done at 6s 2d, Northern Boots at 10s 3d, and Toneon Garlicks at 19s 9d.

The yield for the month from the Waiotahi mine was valued at £8,979 9s Bd. This is a decline of £6,802 9s 8d on the return from the previous month. Buyers now offer 10s 6d, with sellers at 11s.

Talismans rose as high as 49s 6d through the week and are still asked for at 495, sellers asking 49s 3d. • • ■

Waihis maintain a steady level, buyers at £8 13s and sellers at £8 13s 6d being the latest prices. Business has been done through the week at £8 14s.

Tairua Broken Hills have fluctuated. Early in the week sale's were effected at 5s lid, gradually reoediug to 5s sd. Sellers now quote sa 7d, with buyers at 5s 6d.

Waitangis, whieli rose to 4s 6J owing to good reports from the luine, did not maintain tnat figure long. They fell rapidly, and the latest quotation was — buyers 2s 9d, sellers 3s 2d.

Thames shares lave tinned. Selling was effected at 91. Sellers now ask 10^d, and buyers offer 2d less. This is a decided improvement on last week's quotations.

Buyers of Grand Junctions offer £1 17s 6d, but sellers decline to quit uuder £2.

Mf-Clarence Brune^revivea'^^ialst Lynne" at the Melbourne Bijou recently. . The piece drew th« 'gentler Bexin large numbers. C --v

For the-first time in fiye years, Oellier's charming opera " DorothjH" was revived by the Royal Coi^ie Opera Company at Her Majesty'^ Theatre, Sydney, on Saturday, July 20, succeeding "The Spring Chicken," which has had a most successful run of six weeks. •, V.

1 Mr Allan Hamilton has a newcompany coming to tour New land about Christmas time with r' H ? m^' Sweet Home " and " Littta Lord Fauntleroy." For the latter piece Mr Hamilton has secured Ruby Watson in the title role. Ruby Watson, it will be remembered, was .her* last year with Mr Rickards'B Vaudeville Company.