Shares and MINING

Observer, Volume XXIX, Issue 12, 5 December 1908, Page 20

Shares and MINING

By Obapiah.

THE London wool market has maintained a firm position, and New Zealand wool growers must be feeling very optimistic about the prospects for the new clip. The trade conditions in the textile industry are not such as to warrant the improvement in wool, and the cause of the more favourable tone must be looked for in other directions. The Americans are buying freely, because general trade in the United States is much better, and a decided revival has set in. Some of the Continental operators are also free buyers of wool, and their purchases may have some connection with the Balkan crisis. Yorkshire buyers are operating with greater reserve than their American cousins, but still there is a marked improvement ail round, and things are far more hopeful in the wool market.

The London butter market has collapsed, and the news will cause a flutter in the butter trade of the Dominion. Those who sold at the fancy prices which the dealers were offering in August last must be feeling highly elated with their good luck ; while those who are working on a consignment basis must be exceedingly sorry. The consumers in Nejw Zealand, and in Wellington in particular, will not be sorry to see butter back to its summer price of Is per lb. The retail price of butter in Wellington at time of writing is Is 2d per lb, and it is not warranted.

The London money market continues easy and the Bank of England discount rate, which was reduced to 2% per cent, on May 29th, still remains at that low figure. There is no prospect now of the market hardening this side of the New Year, and in January there is generally a plethora of money with extremely easy rates. Cheap money in London is not necessarily a faourable thing for New Zealand. The Government may be able to borrow at a cheap rate, but this easiness in London is an indication that trade is dull, and that is reflected in the low price of produce.

Mr C. Ellison, the President of the Napier Chamber of Commerce, has ventured to descredit ; — or, rather, to question — the benefit of the Advances to Settlers' Office. In some respects, his arguments :<re sound. There is no doubt that this lending institution, has driven out the mortgage companies, and it is a question "whether this is altogether in favour of New Zealand. If we had some of these companies now, ; money would be in greater supply. i The mortgage companies were useful in securing cheap foreign capital 1 c r New Zealand. The Advances to Settlers' Office does the same thing, but by 1 itself it is not capable (f meeting all the demands. Mr Ellison charges the Advances to Setlers' Office with being the cause . of the inflation in laxid values. This is certainly not fair. Besides i/he cheap money introduced by this lending department, it must be remembered that New Zealand has enjoyed a series of prosperous years, and there was therefore an accumulation of capital which went into land as being the most desirable security, but land values are righting themselves. .

The report of the Australian Mortgage Land and Finance Company for the year . ended. JuneilOth, presented to the shareholders. in London on October 29th, stated that, after paying debenture interest,

there remained, including £24,826 brought forward, a balance of £171,079. The interim dividend of 5 per cent, absorbed £26,000 ; a similar dividend and bonus of 21 per cent, required £39,000, and £106,079 was carried forward to the new acoount. The reserve fund remained at £300,000.

The sharemarket is getting quieter, and this is to be expected, lor the nearer we get to the Christmas (holidays the liess inclination there ia to engage in. any investment. People prefer to wait until the N offYear to see how things shape themselves before indulging in rmy <. om mitmeiits.

The 1 ail-yearly meeting wi'.h lib interim dividend has < v '.t.J » .tie slight injiiovement in ilaiHv «i •*'*"%>■ Zealand snares (for which buyers have been nfterLug£B ss. Na •.-:•> I'nuk shares ha' a also- improves in i !••«• ••• the interim dividend. With the .extreme demand that exists for money, the banks generally must be doing exceedingly well, but it is hardly likely that there will be any increase in the dividend just at present.

Insurance shares are quiet. Nearly all the companies are finding the present premium rate inadequate in view of the increased charges and the increased losses through fire.

Nationals sold at £1 7s 6d and South Britishers at £2 6s 9d. New Zealanders are hankered after by some parties who offer to hand over £3 11s for them. Sellers are cruel enough to ask one shilling more.

Contributing shares in the Kauri Timber Co. sold at anything from 15s 9d to" 16s 3d, and- paid ups were at £1 12s 6d.

Old issue of N.Z. Portland Cement was sought after and found at £1 9s. New issue of same stock found a mafket at £1 Os 6d. Wilson's Cement; went off at £1 15s 9d.

It's too tot for coal, but one chilly customer dasked in recklessly and demanded Taupixis at 18s. He got 'em.

The market does not show any signs of recovering before 'Xmas. Waihi Grand Junctions should, prove interesting after the holidays. At present they hover between 31s and 325, but will be much higher when the next level is started. The number of shares coming out from Home and held forward will spoil any chance of a rise this year.

Nearly all the Thames shares are dul\. Even May Queens have come back to 2s again, which is low-water mark with this stock.

Waitangis have improved in price. They were done at 2s 3d and 2s 4d a f && days ago and are now worth about 3s.

• • * Golden Belt paid-up shares came down to sales Bd. The quotation at present is sellers Is Id, buyers 9d. Some contributing shares sold by auction at £d and Id per share. ■ • ■

Some very high assays are to hand from the Karangahaike mine. Arrangements have been made to get out a decent parcel of ore and get it crushed. The management hope to make 1 the mine pay its way after the next call. Sales, Is 5d and Is 6d. Shares show an upward tendency.

Talismans keep firm at over 435, which seems el good price considering all things.

Waihi Extendeds are >at about ,3s and are low in sympathy^with Grand Junctions, and in anticipation of another 2d call shortly. (

All Tairua mines are quiet, but will probably be the fxst to recover with the market.

.. The famous- Champion mine iscrushing at last, but the shares have not yet reached the pound that was predicted. In fact, ai^B for paid

and 3s for oont., they are a little less than, their average price for the last twelve months. a ■ ■

AH Coromandel shares are very quiet. There are rumours of some changes in the Old Hauraki.