Shares and MINING

Observer, Volume XXVIII, Issue 26, 14 March 1908, Page 20

Shares and MINING

Uv Übadiah.

;'|>HE London money market coni I tinues to exhibit an easier tenciency. The Bank ot Jiing- ' land^ discount rate has once more .been reduced, coming down to $i per cent. At tlie beginning ot t^ie year the rate was t per cent., so that a long step has been taken m ten weeks towards easiness.

But this cheapening of money in London is not a good thing lor .Australasia, except, perhaps, in one recept, and that is in translerring Government borrowing irom the locai market to .bonuoii. Uheap money in the Old (Jountry means dullness in trade, and that is where the colonies will lee! it. Y\ hen trade is dull the prices ol produce go down, and consequently the incomes oi the producers are curtailed, and their spending power likewise. Hie smaller income leads to increased demands lor bank accommodation, which in turn causes money to rise. It also has the ellect ot curtailing the wages tund, with the result that there are relatively more unemployed.

Many people anticipate that the approacning winter will be a severe one, in a comparative sense ; that is to say that there will be less enterprise exhibited, and consequently less demand tor labour. We know that the values of all, or nearly all, the primary products ol JNew Zealand are depressed. • Wool is exceptionally low, and hemp has reached, the non-paying point on the present cost of production. We also know that the banks have raised their rates for deposits, with a corresponding advance in the rates ior overdrafts, and it is well known that the demands on the banks are very pronounced. These are conditions that cannot be considered favourable, and traders and others must look for a shrinkage of business and smaller profits. There are any number of adverse possibilities in the situation, but there is no need to dwell upon them or to anticipate them, for we may be sure that the country will come through the worst of them with a degree of ease and comfort.

The hemp market, as already stated, is very much depressed, and tue price ruling now does not leave the miller any margin of profit. Many mills have closed down, or are about to do so, because of this. it is difficult to see how millers are to economise in the cost of production. Those who are paying royalties based on a sliding scale have secured all .that is possible in this direction. In any case, we may be quite sure that the owners of flax areas will meet the millers as much as possible, because it is to their interests to do so.

It is another thing, however, to expect labour to acquiesce in a reduction of wages. Millers must accept some blame in this matter, for, labouring under the delusion that the market would remain buoyant for years, they agreed to an advance in wages, which scale was fixed for two years. The agreement has another year to run, and the first effort of the millers to obtain a concession from the workers has proved futile. The worker is generally shortsighted in such matters, and he cannot see why he should forego an advantage secured to him by the Arbitration Court. As there is no probability of the market showing any immediate improvement, there is thus much reason for believing that the mills will be obliged to close down this year much earlier

than usual, and the market will be flooded with unskilled workers.

The Bank of Australasia has apparently had a remarkably fine halfyear, judging from the brief details sent by cable from London. Besides paying a dividend at the rate of 14 per cent, per annum, a bonus of 8s per share has been declared, £60,000 is added to the reserve fund, £18,000 placed to the premises account, £17,000 is to be distributed in a 10 per cent, bonus to the staff, and £16,074 is to be carried forward.

Reports from Wellington state that the sharemarket there has been rather quiet during the past lew days, and this may be attributed to the dearness of money and to the tact that three banks will be balancing at the end of the month. It is somewhat strange that money should be dear in New Zealand when the public finances show to such advantage. The year will yield a record surplus, and the revenue returns will be a record, and yet there is a tightness, and many people look tor a dull winter, with plenty ot unemployed.

Another quiet week on the Stock Exchange. Business in investment stocks has been almost a missing quantity, and mining shares have made little movement.

insurance stocks show increased steadiness on the week. The only transactions reported are lines of .New Zealand at 75s and 75s Gd, but this stock are still asked for at 755. South British are in demand at about last week's figures.

.National Banks have been done at £o 7s Gd, and can still be placed about that price. New Zealands have dropped slightly, and are called for at £9 13s Gd.

Taupiri Coals continue readily exchangeable, and have been steady at "20s Gd. .Northerns are asked ior at slightly improved prices, and have been done as high as 16s sd. Hikurangis have fetched 15s Gd.

Some business has been done in Auckland Tram ordinaries at 24s del.

Kauri Timbers show a further slight easing-off. They have been quoted at 10s, and there are buyers at a shade less.

Wailii furnishes another splendid return — £68,860 for four weeivs' work, which is within £1000 of the highest on record. The reports from the low level workings are still excellent, and the market is firm in the neighbourhood of £9 ss.

The Talisman return of £16,662 from 3638 tons is £1,500 less than that of last month, but the drop is accounted for by 60 hours' stoppage of the battery through a breakdown. The outlook in the mine was never better than at present. Shares remain at about last week's values, the latest sale quotation being 535. The conference between the AVellington and Auckland shareholders as to representation on the London Board failed to result in any adjustment of their differences.

Waihi Grand Junction return of £4756 fro h 3527 tons shows no noteworthy improvement upon the January ore values. Shares are easy, with buyers at 20s.

Komata Iteefs obtained £2900 2400 tons, which is just about the ordinary return.

New Zealand Crown return of £3640 from 1891 tons is a distinct improvement upon that of January. Shares can be had at about 7s.

Tairua Golden Hills have seen a fair share of business and are still called for at Is 6d for 9d paid-up and Is 4d for the 6d paid-up.