Shares and MINING

Observer, Volume XXVII, Issue 48, 17 August 1907, Page 20

Shares and MINING

!v -'.; BY OBADJ^fii

TB3_o>^i-'jtppears tqVbe a recriidrv escence of apanic.on the Ex-- . change, * The .'mGvement'^ be- ■- gan. witlj. 'Standard Oily stocky ' ifthe, . heavy fine's . imposed by Judge La&olis giving'- the be&rsr.-a splendid, ' : ospQv?A tiknity % for ' attack v; . -but Rpckfelter.,. . BiogerM, Shilmahfafld v Co.- were quite^ , e^ual to. jneeting. the onslaught, and in thfcCjarid prevented -0,- slump in the particular stock. Buf|£_ : there is a growing sentiment againsF"the big corporation in America, and naturally people are averse to dealing in their shares. A sentiment such as this does not, however, manifest itself in a sudden slump, but takes time to cause an impression on values. The cables tell us that ' ' furious bear attacks caused sensational declines in many stocks on "Wall-street." • ■» *

In March last New York suffered very severely from a Stock Exchange crisis, when <.all money went up to 25 per cent.,, and the Secretary to the Treasury was forced to place seventyone million dollaxs at the disposal of the New York banks. When matters quietened down it was discovered that several of' the millionaire ': stock gamblers were very hard hit, but Mr Pierpoint Morgan came but oh top with the control of the Union Pacific Railway. How far '< the present crisis was associated . with the panic of March last it is hard to say. Probably there is a ' clpse connection. The banks in New > York must be wanting considerable j siims to meet the demands from the . interior west and south to move the wheat' and cotton crops, and the blanks are tied up, for they have not only to finance the crops, but also ' there is the money to be refunded to the Treasury. New York is the banking centre for the whole of the United States and Canada, and the demands at this time of the year are fairly large. It is impossible that the present crisis can terminate* without bankrupting many firms and some of the national banks.

• • » The crisis has spread to London and the money market there is in a very stringent condition. The open . market discount rate is at £3 18s 9d, while the bank rate is at 4 per cent. ; but as there appears to be a drain on the metal reserve bf the bank and there is every likelihood of the Americans, wanting money to prop up th^ii* market, the f 4 per cent, rate of the $ank cannot be niaintained. The' Bank of England was forced to take ys^ern measures in March last to prevent the depletion of its metal • reserve, and the same course will have to be -adopted how.

. , .- . - 'f The London Stock Exchange naturally' reflects the stringent conditions ot tthe'inoney- market. • The gilt f edged securities are all' depressed. CjdhS'olsj went :■ down to £81 ss, but . i^doyered to j£Bl 10s. There was mdc-h cßncerh rj&hen this high class- . sedwity'fell to. l £Bs, but at £81 10s ■' thire will ! be' ai general scare. ■t V ;i' f • " ' • *' '•

'•' ; yZJbjlohial btoeks are not very much • affected, and while some exhibit a I downward tendency, no less than i four denominations are higher. It v; ■ iq difficult" to give a good solid reason :*:', foir these repeated financial panics, :lV for as far as can be ascertained, the Ji trade of the world is good and there yy is still considerable industrial acJ.^' tiyity* We must fall back upon the -&f ■ well-known theory of reaction. When prices reach a certain altitude there -jj^aa-r-a* strong.. jbendency for reaction, fe' ypeople lose confidence in the ability |?^ of the market to maintain values, a movement sets in to unload. ;y. So long as the financial storm is cony; fined to Europe and America, it ia na

concern of ours, but unfortunately we cannot hope. to altogether escape its effects, although we do not think the , effects; will, be in any degree serious for usv

■ : ; * * * The metal markets continue depressed. Copper and tm have Smiered upon their downward career, and yeach . week sees a further fall in values , v ' Copper has declined £24 from. the highest point reached, and tin has gone back £37. Most of the decline has been experienced during the past two months. Lead and pig iron show a slight recovery, and this is "a -vhopef uL sign.

-"Business on the Stock Exchange has. been brisk so far as mining transactions are concerned, but very little Dusihess has been done in standard stocks.

■ .». * * : ..New Zealand Insurance haye been dohe :<at 86s, .vthis being the only ttai__3actJQn.repqrted in that particular line^f"b"usihess. • .• •

Auckland Tramways (ordinary) sold at 248 3d, but later declined to 245. Preference were done at 23s 9d.

Kauri Timber contributings have sold at 7s lOd, which is the present price quoted by sellers. Buyers still offer 23s for paid ups. • .• •

N.Z. Portland Cements were done at 355; Wiseman and Sons (ordinary) at 12s, Auckland Gas at £14 7s, and D.S.C.'s at 6s ld.

ln mining stocks, Kuranuis had a sudden rise from 6d to ls ld. On Saturday sellers were asking ls 3d, but on Monday the price eased to 11 3 d. Seller^ now ask 9d, buyers quoting Bd.

Waiotahis firmed somewhat, and transactions were reported at lis 6d. Sellers are now asking lis 9d» • * *

Talismans have weakened considerably. Last week they sold at 495., but this was the maximum price reached and they gradually declined. The selling price is now 45s 6d, with buyers offering 45s 3d.

Waihis have firmed. The price has shown a steady advance right through the week. Sellers quote £8 18s 6d, and buyers offer ls less.

Grand Junctions were done at 41s 6d, and sellers are now- asking 425. This is an advanoe on last week's quotations.

Tairua Broken Hills have been done at 5s Bd, which is the present selling price, buyers offering 5s 7d.

Buyers of Waitangis are now offering 3s 3d, which is an advance of 6d on last week's prices. Buyers decline' to quit at less than 3s 6d, and no transactions have resulted.

Golden Belts (contributing) sold at 2s and paid ups at 2s ld. Buyers now quote ls 8d and ls 7d respectively. Sellers ask Is lOd for paid ups, there being no quotation of contributing.

Crowns were done at 7s ld, and New Waitekauris at Is ld. The selling price of the latter at latest was ls, with buyers offering ll^d.

There has been a demand ior Waihi Consols at 9d, but sellers have not quoted. * * *

Thames were done at 7-Jd, but 9d is now asked by sellers, buyers offering Bd.

• ■".?TJuj: .busihess^h^^y|t^|;^|iil other : . AaGowb ',l% pantomime cb^ „ Perth*:; Be*BP.ffi? . wSsj^ :'f^ss%s>be-AA nominal. y>Th y e febolk^ y^joightit' jOnufche; .di^tKa^itwSplansy i- Wiere: ; bpeiied f or -the: lfisilps^-^higfejbs of - the season qver?is<3o was st_fcep£.<|§:" • .._•'•' ■r-i.'. '.'•>-••■.':.•' y 'C^-'Am^'A^'^' ■•■.-.

" The Ragged EarljV : -avs strenuous, costume drjama^c^the^ eenth- century^ mO- -be? t!^- ■__i.st?6 : f t Mr Andrew Mack*s new ;; p|ayiita^Ki introduced to' Australiari " : "audiences.: The story centres round a bellied earl of Ireland, Gerald Fitzgerald by name, who never has -any money ow-' ing to his habit of lettihg off v.his_ ' debtors — to the detriment pf y his. creditors, but who manages -to spend a life of excitement in -spite OF^it. He is the soul of chivalry . where ; women are concerned,, arid this 'at- ' tribute leads him into many stirring incidents. . , .:,'.'