Shares and Mining

Observer, Volume XXIX, Issue 44, 17 July 1909, Page 20

Shares and Mining

By Obadiah.

THE exports from the Dominion are increasing by leaps and bounds, due rather to expansion in production than to improvement in prices. For the first half of the year the value of the exports, according to the leaflets issued by the Department of Industries and Commerce, totalled £11,668,232, as compared with £9,589,428 in the first half of 1908, the increase being £2,078,804, or about 21.78 per cent. In the first two months of the year there was a shrinkage of £84,793, but in the following months there was an increase of £2,163,597, making the not increase £2,078,804.

The increase, as already stated, was due mainly to the greater volume of produce exported. Thus in the six months the quantity ot wool exported totalled 146,626, 8421 b, as against 119,434,843 lb, showing an increase of 27,181,9991 b, equal to about 25 per cent. It is obvious that in this increase there has been a lot of wool delayed in shipment, and it is singular that in March, April and May, the exports should have been so heavy, amounting to over 71,30U,0001b, as against 41,500,0001 b in the corresponding months of 1908. The total value of the wool exports for the six months was £4,664,124, as compared with £4,268,761.

In mutton and lamb there is an enormous expansion. The mutton shipments for the half year amounted to 1,289,254 carcases, against 901,377 carcases in 1908, giving an increase of 387,877 carcases. The lamb shipments were 2,665,253 carcases, against 1,993,641, an increase of 671,612 carcases. The total shipments of mutton and lamb were 3,954,507 carcases, against 2,895,018, an increase of 1,059,489, which is phenomenal. There was a substantial increase in the shipments of beef also, and although the values of niutton and lamb are desperately low the expansion in output provides a satisfactory recompense.

Since it is certain that the imports are decreasing, we may reasonably hope that the margin between exports and imports will be sufficiently wide to enable the Dominion to meet all foreign engagements and have a surplus in hand to meet the trading deficit of the previous year. In other words, we are fast working towards the timo when prosperity, with all that it means, will be with us again. With the increase in the output of produce we secure a bigger income, enabling the community to provide more work for everybody, and that makes prosperity .

With the close of the current quarter the outlook should take on a very cheerful aspect, and that is but another way of saying that July and August are our worst months. With the opening of the new season on October lst, the prospects promise to be really good. There are various indications that we have turned the corner of the bad times, and are on the up-grade again. One of the Southern investment societies received in the last three weeks more advances in small parcels for investment than for the whole of the preceding three months. This is a sign of returning confidence. A banker : told a well-known business man the ' other day that the banks are going now to relax the screw. It is fully expected that the Premier will have - some welcome financial news to cable ;' out from London not long after he v; gets there. The signs of good times V ore growing brighter.

The report of the Norwich Union Life Insurance Society for 1908 states that in the ordinary life department. 9366 policies were issued, assuring £4,982,451, and carrying new premiums of £229,035. In addition the society reoeived £12,685 as premiums for leasehold and capital redemption insurance completed during the year. The income for the year was £1,573,606, while the outgoings (including a provision for every outstanding claim) amounted to £892,015. The difference, £681,590, constitutes the increase in the fund, which at the close of the year amounted to £8,126,001, and which, with the Scottish Imperial fund £697,302, brings the total fund up to £8,823,303.

The interest, dividends, etc., amounted to £322,168, and the net return on the mean fund, including all unproductive assets, was £4 4s 6d per cent., after deduction of income tax. The total claims for the year amounted to £377,663 by .death, and £42,243 by survivance, the former amount being £90,537 less than was expected according to the usual mortality investigation.

The accounts of the Royal Mail Steam Packet Company for 1908 show that after providing £209,707 for depreciation of tho fleet the profits were £136,206, as against £95,245 for 1907 and £49,586 for 1906. Adding profit on the sale of the La Plata, and transfer fees, and deducting debenture and other interest, etc., £4891, and amount transferred to insurance fund, £33,500, the net profit for tlie year is £54,582, to which is added the balance brought forward, £16,397, making together £70,979. The sum of £20,000 is transferred to reserve fund ; the dividend on the 5 per cent, preference stock absorbs £30,000, and tho dividend, of 2 per pent, on the ordinary stock £18,000," leaving a balance of £2979 to carry forward.

At tlie annual meeting the chairman referred to the termination of the company's sharo in the Australian mail contract, and stated that tliey were tkirig the necessary steps to protect their interests in the Austalian trade which they and their predecessors had carried on and helped to develop for over thirty years.

Business on the local Stock Exchange is principally confined to mining lines, and m the excitement of the boom but few investment stocks are looked at.

The improved feeling with regard to insurance stocks is being maintained. Now Zealands have held their place at just under £4 and one line changed hands during the week at the even figure. , The latest sale quotation was at 796 6d. South British have been done at 54s 6d.

Coal shares have seen a fair amount of business — Westports at £6 lis 6d, Northern (10s paid) at lis 6d, and Taupiri at 20s 6d and 20s 9d.

Auckland Trams have been dealt in at 21 9d for ordinary and 22s 9d preferential.

There have been transactions in Northern Steams at 6s 2d for contributing and 12s lOd for paid up.

Kauri Timbers have been done at 14s for contributings.

Speculation in mining shares continues as brisk as ever, and Thames is still the centre of attraction. Big tilings are expected from May Queen and Waiotahi.

A pessimistic report in the " Herald " with ref erenoe to the deep levels scheme caused a deoided drop in Thames shares on Saturday morning at the first call. The depression did not, however, last long, a fair recovery taking place at noon. May Queens saw 5s 6d on Friday- and 4s on Saturday. Their rise has still to come. .Market now 4s 7d. \' i ~/

Waiotahis saw 10s a couple of times, between the calls and are now a littlo under Bs. More picked stone is expected this week, but 10s was a high price on present prospects.

Bonanzas moved quiokiy from 8s to ls, and back to B£d. They are now at lOd, and will probably go higher. There are cheery reports from the mine.

Dixon Consolidated should cut the reef coon. Shares are sensitive in the meantime. Sales up to ls 4d and back to ls. They have a very fair chance and are not likely to go much below the shilling .

Outside of May Queen and Waiotahi, the Alburnia mine should be about the best chance for a rise during the next couple of months. The paid-ups are at 2s and oontributings at ls 3d.

Victorias are firm at 2s, and should see higher money soon.

Everybody says Thames are going to have a run. They have a chance, but the run may be down instead of

Coromandel is quiet, and that's a way it has. Old Haurakis, ls lOd and ls 9d.

In the Upper Thames, Dominions have a large reef, giving good assays. Shares moved from 4gd to Is. Shares in the adjoining claim, Shotover, are firm at 4£d, and there are better reports from the mine. • ■ «

A strong demand set in for Tairua Monarch from s^d to 7sd, and Tairua keep firm at 6^d for paids and 5$ for contributing, shares. Sellers are scarce in both instances.

Shares in Waihi mines are normal

Regarding Kuaotunu, there are free sales in Mountain King at ls 9d and ls lOd for cont. and 2s for paidup. A further rise is anticipated.

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