SHARES AND MINING

Observer, Volume XXXI, Issue 48, 12 August 1911, Page 20

SHARES AND MINING

iJJT OUADIAH

"a HE London money market conI- tinues to display a buoyant tone. The foreign exchanges appear to be still in favour of London ; at all events, the stock of gold in the Bank of England continues to accumulate. This month there will begin tne usual movement of raw products to Great Britain. Jb'roxn America will come cotton and wheat, but as the cotton crop is large and prices falling, the amount of money required to lilt this crop will not be as large as usual.

There is now no prospect of any European War over the Morocco question. Germany is taking a saner view, and m modifying her demands, while the political crisis in the JJritish l J arliameut is settling down. it is not unlikely that we will nave a i per cent, bank rate, but that will not come tor a few weeks yet. The period of abnormally cheap money, such as existed in ibyfc-ya, will not be witnessed again tor some time, and the tall in Consols, though attributed to a variety ot circumstances, is really the result of the working ot economic laws. Consols must return the investor about 34 per cent., and to do that the price must fall to £<7 10s.

There is an aspect affecting .New Zealand, and all other borrowing countries, that will sooner or later receive attention. With consols returning 3% per cent., colonial Government securities must yield at least 4 per cent., and it will be found in the future that loans floated in London must yield this return.

So far as the monetary conditions prevailing in New Zealand are concerned, there is nothing calling for any special comment. Trade is steady, and committents are being well met. Money is in ample supply to meet all demands. The winter has been passed through without any stress, and in a week or two the dairy factories will be operating, and farmers generally will be getting ready to take in their profits.

The National Bank of New Zealand had a very satisfactory statement to make for the twelve months ended March 31st last. Gross profits in the time came to £203,068, as against £183,167 in the preceding year, and net revenue of £106,094, against £92,874. In consequence, the directors, after setting aside £10,000 to premises account, £7500 to reserve for depreciation of investments, and £20,000 to reserve fund, declared a dividend and a bonus equal to 13 per cent, for the year, carrying forward £20,004. In addition, they set aside £3000 to pension fund, and £6000 has been devoted as a bonus to the staff.

Last year the distribution on the shares was 12 per cent, for the year j £10,000 was placed to premises' account j £7500 as a reserve for depreciation on investments ; and £3000 to pension fund ; leaving £i/,910 to be carried forward. By the issue of 50,000 new shares, at a premium of £1 5s per share, the reserve was raised to £460,000, and with the allocation from profits now stands at £480,000, as compared with a paid up capital of £500,000. The balance-sheet shows that the National Bank is maintaining an active and constantly expanding business, and that it is exceedingly well •peSttuuui

The most interesting matter just now is as to the prospects of the dairy industry. The factories are nearly all ready to begin operations, and as in most districts the cows have come into profit early, buttermaking ought to begin almost immediately, as local demands are big enough to absorb all that is likely to be made during the next three or four weeks. As to the prospects on the market, they appear to be very satisfactory, and no less an authority than Messrs W. Weddel and Co. anticipate higher prices. Europe has suifered from a severe drought, consequently there is no stored butter to deal with. A good season for the dairy farmers will mean a good deal for New Zealand.

Fat stock continues to Command high prices, beef in particular being in strong demand. At Johnsonville last week, extra prime bullocks sold at £10 12s 6d to £11. At Addington extra prime steers made up to £20, and at Burnside, Duneilin, where the yarding was small, beet reached from ius to 45s for IUUIb. Jb'at sheep exhibited, no material change At Johnsonville, prime wethers made 12s 6d to 22s ; Addington, 2Us to 265, extra prime reaching up to 33s ; extra prime noggets, 2bs to 3Us at Burnside ; prime wetners made 20s to 245.

The mining market is normal. There was a lair demand for May Queens on Monday at 2s 7d and Us Bd, but the fear ot picked stone drove them back to 2s sd, and the report of lOlbs of stone forced them down to 2s 4d It is to be hoped they get no specimens, or the stock will go out altogether.

iNew Sylvias-eased to 3s 2d, but this price caused a demand for shares, and they hardened a penny. teeilers 3s 4d, buyers 3s 3d. It there is no diiticulty with the treatment, shares are cheap at these prices.

Saxons are steady at 2s 6d and 2s sd, with sales at both prices.

Victorias remain at Is, and Waiotaiiis at 3s Id.

Old Haurakis are quiet at 2s and is lid, and though there is very little gold getting, the mine looks fairly promising for the future

Hauraki xveefs are very firm at Is. Sales and sellers Is Id for contributing shares, the paids standing at Is 4d and Is 3d. There is a fair chance of something sensational from this mine during the next few weeks.

Tairua Mines have not cleaned up nor reported yet. They have been running nearly two months now, and yet no return is to hand. Perhaps they will keep going until they can make up the £1000 that was promised.

Waihi shares, 61s. The Empire has not been cut yet. When that happens shares will fluctuate again.

Junctions sell from 27s 3d to 27s 9d.

Investment shares have been in good demand on the local Exchange throughout the week.

Bank of N.Z. were wanted at £12 7s and offered at £12 10s. National could have been placed at £5 19s.

N.Z. Insurance were done at £4 lis 3d and £4 lis 6d. South British sold at £3 14s 9d. National and Standard were inquired for at £1 17s and £1 lis 9d respectively. • • •

Old isuue of Auckland Gas saw sales at £3 lis 6d. New issue were asked for at £4 2s 6d.

Business was . in Northern Coal at 10s 6d (10s paid) j Westport changed hands at £1 9s. Other shares were in steady demand. * • ■

Other transactions reported were : Devonport Ferries, 35s ; Oashmore Bros., 20s ; N.Z. Consolidated Den-

tal, 21s ; Wilson's Portland Cement (pref.), 39s 6d ; ditto (ord.), 39s 3d : Northern Steamship (paid), 15s 7d, 15s 9d ; N.Z. Drug, 51s ; Wiseman and Sons, 20s 9d ; Auckland Tramways (ord.), 25s 3d