SHARES AND MINING

Observer, Volume XXXII, Issue 20, 27 January 1912, Page 20

SHARES AND MINING

Br Obadiah

THE London money market is steadily improving; that is to

say, the prospects of an early cheapening of money are improving. Last year on January 27th the bank rate was lowered from 4£ per cent, to 4 per cent, and it is not unlikely that there will be a similar reduction towards the end of this month. The bank rate at present is 4 per cent., and, in view of the strong demand for money, it cannot be expected that the rate will go very much lower.

Locally there appears to be a tendency to advanoe. There ia a scarcity of money for mortgage (purposes, while for general trade purposes the banks have been drawn upon to a very large extent, and no doubt care will be taken in making further advances. There is, however, no great stringency, and it is very likely that the position ; will be much easier before the current quarter ends.

The London wool sales are proceeding very satisfactorily, and the crossbreds are distinctly firmer. Coarse,, wools appear to be affected by the* American demand; and while it is satisfactory in one respect, it is ansatisfactory in another, for it indicates that there is to be no further change in the American tariff. Were it otherwise, the Americans would refrain from buying. Of the two it would be better to see the American tariff lowered, for then Now Zealand wool would be permanently better. ■ » •

The oilwelle at Taranaki are at last to be exploited in dead earnest; at least, that seems probable, from the fact that a huge British Company is in course of formation. The capital of the Company is to be £400,000, in £1 shares. The vendor Company gets 75,000 shares, and 50,000 are to be held in reserve for future issue. That leaves 275,000 shares available for subscription. Out of this the vendor Company receives £75,00q, leaving about £200,000 aa working capital.

If the Company is floated, the vendor Company is doing very well oat of the bHsiness; and if the investors are satisfied, the shares in the new Company will be taken. No doubt, many shareholders in the old Company will, for sentimental reasons, desire to hold shares in the new concern, and this will be advantageous to the vendor Company. However if the field is exploited thoroughly and successfully, the arrangement of the capital will not worry anyone.

There was a slight decline in values in the London butter market owing to heavy arrivals, and buyers were purchasing sparingly. A further decline seems probable, although it is a very difficult matter to forecast the butter maiket. Climatic conditions play so important a part in the production, and there are so many sources of supply, that it is hopeless to make anything like a reasonably sage forecast.

The annual report of the directors of the Wellington Trust and Loan Company, to be submitted to the shareholders on Thursday of nexi week, makes that the sum to the credit of profit and lose is £12,084 14s 10d, which, with the £1735 10a 8d brought forward from the previous year, makes available £13,820 5s 6d, trom which £4,050 has already been

paid as] an interim dividend. The directors recommend that £3,000 .be added to the reserve fond, making it £52,000, and that a farther dividend of £4,050 should be paid, making 8 per cent, for the year, leaving £2720 5a 6d, which after writing down £876 11a 8d on the Company's freehold property, gives £1,843 13s 10d to. be carried forward.

There has been only fair business on the Stock Exchange in mining shares this week. May Queens are quiet but steady at Is 8d and Iβ 7d ; Victorias, Is and 9d; Kuranui Caledonians, Is 7d and Iβ sd. Saxons have been firm at Is 5d and Is 4d, but are lower again. Market now Is 3d.

Waiotahis sold freely from 49 7d down to 3s lid, and up to 4s 6d again. Market now 4s 4d and 4s 3d.

Waitangi Consld. saw a rise from 23 6d to 2s 4d, and eased again to 2s 9d. Occidental reported some more stone, and shares rose from 10d to Is 4d, and back to Is 2d.

Waihis are easier; sales down to 51s 6d, and Talisman sales 51s 3d. It looks as if the latter will pass the former before long. Waihi shares remain low in London. Perhaps they know more than we do.

There are reports of a dividend to be paid next month to Waihi Grand Junction shareholders. Meantime, shares are not too firm.

»-\. . "■ " m v Bufeioesa in investment shares has been fair on the local Stock Exchange * daring the week

Bank of N. Z. declined to a selling quotation of £11 4s, with buyers at £11. There were no sales.

N.Z. Insurance were done at £4 13s* South British were wanted ac £3 5s 3d and offered at £3 10 6d; National were on offer at £1 18s 9d ; and Standard could have been placed at £1 10s 9d.

There were deals in Auckland Gas (old) at £3 8s and £3 8s 3d. New issue of the same scrip sold at £3 19s.

Other business :—Auckland Tramways (old), 24s 3d ; Northern Steamship (paid), 14a 6d; N.Z. Portland Cement, 32s 9d and 33a; Hill and Plummer, 245.