Shares and MINING

Observer, Volume XXVIII, Issue 27, 21 March 1908, Page 20

Shares and MINING

By Obadiah,

THE London money market is easing, and it cannot be long before the Bank of England discount rate is further reduced. Money promises to be exceptionally cheap in the world's metropolis in April, May and June, but i fancy the Americans have settled down to the liquidation of their mass of inflated assets.

The more favourable condition of the London money market will, as was expected, lead to colonial borrowing being transferred from the local markets to the Old Country. New South Wales and South Australia have already made application for loans. The former has secured £3,000,000, half for conversion purposes and half for public works expenditure ; while South Australia has obtained £500,000 for conversion purposes. Some people think that New Zealand will be placing a loan also, but the Minister of Finance assured the country some time ago that he had obtained a'l the money he required. * * *

Money is dearer in Australia as well as in New Zealand. The banks in the Commonwealth have advanced their deposit rates, and their lending rates also. The Commonwealth is suffering from the effects of the lower values of wool, skins, and tallow, the shortage in the output of several classes of produce, principally butter and cheese, and also from the never-ending strikes.

It is very probable that the stringency noticeable in New Zealand may ease a little after the end of th..> month. On the other hand, the curtailment of the income of woolgr >wers and hemp-millers must seriously affect the situation. If the position becomes no worse than it is now, there will not be much cause for complaint, but many people seem to think that the approaching wintar will see a greater number of unemployed and more distress than for years past. * * *

The London wool sales have opened as was expected. The fall in values, while pronounced in all sections, Is heaviest on coarse wools. The chief sufferers are the unfortunate buyers. It is believed that there are several firms in New Zealand who have been badly hit by the decline in wool and sheepskins, and many of them will be hard put to avert embarrassments. 1 think, however, that all except the very venturesome speculators will pull through.

The situation as regards hemp is also very serious, and more distressing than the decline in the value of wool. Hemp has reached the point when the option to the miller is either to lose heavily or close down, and the latter course is being adopted. Most of the mills that are through with their contracts ha.-c also closed down, and the others will do likewise presently. It will be safe to say that by the middle of next month there wall be very few, if any, flaxmills at work, unless either there is an improvement in the price or the cost of production is reduced.

Royalties and labour are the two controlling factors. In the districts near Wellington the royalty has been reduced from 22s 6d to 11s a ton, but even that is hardly sufficent. A reduction to 5s 6d per ton is" possible, but not probable. Labour has refused to make any concession, and while this is so it is hardly fair to ask for any further remission of the royalties. If the export of hemp is materially lessened we run the risk of losing our jnarket altogether. •

The Manawatu Railway Oompa/17 has just finished a very prosperous year, and the directors have decided upon making the usual dividend distribution. The annual meeting of shareholders, to be held on Wednesday, Ist April, may possibly be the last of such meetings, if arrangements are made for the Government to take over the line before the expiry of the legal notice. The company, however, possesses so excellent a paying proposition that 'the di • rectors are not likely to facilitate such a movement Another year :s as long as the company can last, that is, supposing the Uovernment exercises the right of purchase, notice of which has been given.

The sharemarket continues to be exceptionally quiet. Sales of sound stock are, for the most part, made at a sacrifice. .

Bank stock is still neglected. B.N.Z.'s were placed the other aay at £8 14s, and Nationals at £5 8s and £o 7s 6d, while there are still buyers of the latter at £5 7s. J * * *

So\ith British is the only class of insurance stock that shows any activity. Sales have been made up to £2 19s, which is a rise of several shillings on last week, and more are asked for at £2 18s.

The coal miners' troubles in the South have not prejudicially affected stock in local mines, the conditions of working here being more satisfactory to employers and employed. There have been transactions in Taupiris at 20s 6d, Northerns at 16s 6d, and Hikurangi at 14s 6d.

Wilson's Portland Cement have reached 445. The strong local demand for cement, and good contracts, have made this class of stock popular with investors.

There have been several sales ol Wiseman's ordinarys at 13s. Those shares are paid up to £1, so that the discount is considerable.

Auckland das have been done at £14 14s. The tone of the market for this stock is firm. * * *

Waihi shares have risen to £9 Us, and 1 shall not be surprised to sot 1 them at £10 before June. The Edward lode at No. 8 has widened to 90 feet, of which (50 feet is worth £10 per ton, and the other 30 feet low grade. This development alone is sufficient to constitute another good mine.

Talismans are easier since it was reported that the lode going South at .No. 13 has split, and buyers offer 525. Before the division was reached, the width was 4$ feet, and the value £22.

Waiotahis are quieter at buyers 2s lid.

Crowns remain steady at about 7 s «. * * *

There is a good deal of selling in Waihi Extendeds down to 3s 4d, but buyers now offer 3s 6d. * * *

Rising Suns have been in some demand at 7£d in anticipation of the crushing. * * *

Golden Belts suffered a decided drop, sales being made as low as Is lid, which price is still on offer.

Tairua Broken Hills have also been weaker, sellers accepting 3s 3d. This is now quoted as the buying price.

Hoyal Oak continues to get parcels of picked stono. Ten pounds was reported from the cross leader.

The marvellous faith in Champions still continues. For paid tips, 5s has been paid, and for contributing 3s lOd.

Karangahakes have eased to Is, and New Waitekauris to s^d.

' Sarah Berrihardt will bring to Australia thirty players and a repertoire of twelve of her most powerful plays. The tour starts in May next year.

Miss May Beatty has made quite a, success as principal boy in the pantomime of v Dick W'hittington " at the-Newcastle-on-T"iie Theatre.

Edward Branscombe, who brought to the colonies the WestministerAbbey Grlee and Concert Party,, will descend upon us this year witb two new musical -venturer. The first is a company known as the "Scarlet Troubadours." They comprise twelve society entertainers (ladies and gentlemen) giving novel musical performances in character and costume, including an excellent male quartet. Amongst the party is an " art-humorist" whose quaint recitals, lecturettes, etc., are illustrated by him in coloured chalks in record time. The other attraction to* follow will be the "Cheniaviskis," three Russian boys, who perform in trios on the piano, violin and 'cello-

Reported in the South that Sarah Bernhardt's tour of Australasia next year will be extended to New Zealand, and that her work in the Dominion will consist of 10 performances in Auckland, 10 in Wellington, six in Christchurch and six in Dunedin.

Hugh Ward and Grace Falotta take out an English Musical Comedy Company to India next November. A visit to Australasia may follow, but that has not yet been definitely decided upon.

Miss Maisie Maxwell, a bright, forceful girl, who played soubrette parts in Anderson's touring company, has been engaged by Messrs Meynell and Gnnn, but will, it, is understood, in their company take middle-aged characters.