SHARES AND MINING

Observer, Volume XXXI, Issue 8, 5 November 1910, Page 20

SHARES AND MINING

By Obadiah.

<g* HE London, money market in I still very stringent.* Juast * ween the; Bank of England lost £boo,ooo m goidj bringing the amount m the issue department to £29,9/8,000. The note circulation was £27,751,000, so that the bank had only a margin of twd and a quarter millions over the notes in circulation. The. proportion of re-, serve to liabilities, was reduced ;t<>' 46.11 per cent, as compared: with 45.80 per cent, last year>phut lust year there was a million more in gold. This month there will be the Scottish demand for the metal, and the foreign demands are likely to be strong also, so that there is every possibility of the bank rate going to 6 per cent., and it is probable that the movement will have taken effect before' these lines appear in print.

The decline in Imperial Consols has been rather pronounced recently, but, as previously explained, the decline is in accordance with economio conditions. This gilt-edged security has lost much of its preeminence, and has in point of fact to submit to th ecompetition of other and equally safe securities. The extension of the' trustee list has enabled trustees to have a wide choice of securities, and investment is now oil what may be termed a geographical basis.

It is interesting to note that the drop in Consols has not materially affected the price of Colonial Goveernment securities. The hardening of the London money market must be reflected throughout Australasia. There is, of course, plenty of money in the Commonwealth and New Zealand, but the point is. that if the banks cannot find, investment in the colonies, the money will be transferred to London, where the rates are extremely attractive.

The wool sales will open in Wellington on Tuesday next, and the catalogue to be submitted will not be a large one. The question of the moment, however, is as to values. It is quite obvious that wool will not fetch the prices of last year by quite a penny a pound, and the difference will probably be more. In looking at the matter, it is well to remember that last year the market was favourably affected by American purchases, and, unfortunately as it happens, the Americans over-reached themselves and' paid too much for wool. They inflated the market and suffered for their pains. ■ • a

This year the Americans will not operatfe too any extent, if they operate at all, arid the absence of this influence must make . a big difference. Then again, there is *he fact that the market will be called upon to handle a much larger and better grown clip than last year. Although the number of wool users is increasing, the fact remains that during the past three or four seasons there nas been an enormous increase in the weight of new wool, and it must be remembered that a good deal of it reappears on the market as shoddy. ■•-• • • . The butter market, according, to last. advices, is demoralised, and prices have dropped. The market is far too tricky for anyone to risk expressing ah opinion. So riiuch depends upon climatic conditions, so that the experiences of one season afford no guide to- the next.' fs just as much prospect of the marrecovering as there is of it gov • still lower.

Sheep and cattle are selling well, .and - the-prices realised are still very v; 'Fat .stoob Jsipljd, freely >at : : X. The:;datfger ! ;aheacl vr-appears to be the want of rain- in tho drought ' are prolonged,'-some radimust take place in the '"'• • 'stock; ■ "- ' v •■' ■:. •..• ;■'.>>■■■•'. : '- • > '■••■.".....•; Tja©>balarice-sheet''.of the Hawera for the year ended , .tseptentber 30th jast. ; the ':■ ■'••■ sales of v .gas, residuals, etc.',' Amounted to £4,0/4 lis, and other minor receipts were i£l 13s, ..making the .total revenue £4,075 145.. The general expenses amounted' to £1,607 18s 3d j the coal account to £1,129 13s lid ', interest account; £436 10s j rates and taxes, £6 Ills 10d ; and bad and doubtful debts, £37.4s 4d ; the total outgo being £3,172.18s 4d, leaving the profit at £902 15s 6d, and there was brought forward from the previous year £446 9s 2d, making available £1,349 4s lOd. The dividend for the year at the rate of 10 per cent, absorbs £900, leaving£449 "•• Is lOd to be carried forward. ■.:'■

The balance-sheet of the Mutual Benefit Building and Investment Society of Canterbury for the year ended September 30th shows that there has been a substantial increase in the society's business over that of the previous year. After providing for the payment of a dividend at the rate of 7 per cent., the profit and loss account shows a credit balance of £822 16s 4d, out of which £500 has been placed to the'credit of the reserve fund, and £322 16s 4d carried forward. The amount out of loans on mortgage and investment in shares is now £111,227 14s 6d. Business on the local Exchange has. again been dull as far as investment shares are concerned.

Bank of New Zealand have been in request at about £10 7s, but holders are firm at a higher figure. There wa&a transaction in National at £5 ■15s Bd, whioh, at latest, was the seHrn'g fftaee. - , "» •■ . • ."There, was no business done in insurance shares; New Zealand : buyers £4 2s 3d ; sellers, £4 3s 6d. South British : buyers, £3 2s 6d ; sellers; £3 4s 6d. ; m m Coal shares are still "active demand, although few transactions have resulted.' Northern (10s paid) sold at 10s, and Westport Stockton were done at 7s 9d. • ' • •• . Auckland Gas (old issue) changedhands at £3 9s and £3 8s 6d.

Other sales "recorded were : Auckland Tramways (ord.) at 24s : N.Z. Portland Cement (ord.) at 36s 6d ; Wilson's Portland Cement (ord.) at 40s 9d and 41s ; Northern Steam (paid) at 15s 6d.

Only a moderate amount of mining business has been transacted on the Stodk Exchange during the last week. Waihi shares changed hands from. £6 lis 6d to £6 14s 6d, and shares remain firm at sellers £6 14s 6d, buyers £6 14s. There should be a decided move in the shares during the next week or two. The quarterly dividend; is due at the end of the month. ...''.'.

Waihi Grand Junctions eased to 325, and are now steady at that price. There seems -nothing likely to give them a lift for some little time.

■ • • • Deep Levels mines are dormant ; May Queen« (3s lOd), Saxons (Is sd), Victorias (Is), and Waiotahis (3s 7d), being the market prices. New Sylvias are worth 3s 4d, and Watchman hold steady at 2s 9d. Zeehans : sellers 9sd, buyers 9d* These hold very firm. • • • Bremner's Freehold shares sold down to 9d and recovered to lid. The mine looks fairly well; Old Haurakis were at 2s 7d, with 'limited transactions. ' - N ■ • ■ ■•''.'- • '■ • / At the Upper Thames, Talismans are quiet at 66s 9d, and a little business is doing in Crowns at 4s 6d. There are reports that these will see; a rise directly. /