SHARES AND MINING

Observer, Volume XXXII, Issue 21, 3 February 1912, Page 20

SHARES AND MINING

Br Obadiah

MONEY is. not very easy in Lon don. As a matter of fact, th< rate for short loans advanced 5< per cent, during last week. Gold ha: cone into the bank more freely, bnl the liabilities in the shape of good de posits have increased enormously, sc that the proportion of reserve tc liabilities is practically unchanged As compared with the previous week money is also dearer in Berlin. • » to There is little that can be said witl respect to local conditions. There i: only a moderate demand for money partly because returns for produce ar< coming in, and partly because there ii a slight advance in the lending rates Traders are liquidating summer stocks and sales are in full swing everywhere There is said to be a tightness in trad* in some quarters, which is very pos sible ; but that does not mean thai there is a general tightness. * ■ * The report of the National Mort gage and Agency Company of New Zealand shows a profit of £50,997. The total dividend for the year is 12| per cent.; a sum ot £15,000 has been added to the reserve fund ; and £10,977 is carried forward. Bβ m. The report of the New Zealand Portland Cement Company for the thirteen months ended November 30, intimates that the net profit was £10,861 69 9d, while the balance brought forward was £772 11s 34. After deducting an interim dividend of 4 per cent, on old shares, there is a balance of £8,433 18s. The Directors recommend a further dividend of 6 per cent., estimated to absorb £5,660 8s 3d ; depreciation on plant and vessels, £1,900; and to carry forward £873 9s 9d. At the annual meeting of shareholders, the chairman mentioned that the profits for the year bad benefited considerably from the fact that the low price contracts entered into tome time ago had been running out, and more payable business had been substituted. *> * m The enormous depreciation that has taken place in gilt-edged securities in the past eight years was indicated by Lord Staldwyn, who stated at a meeting of bank shareholders the other day, that nine of the largest London Banks had written of! £6,283,----000 for depreciation of gilt-edged securities since 1903. This is a very large sum, and it is mainly due to the decline in Consols, which have come down to •their true market value. What pass for gilt-edged securities in New Zealand —that is, the beet of investment shares —are all very high in price; far too high, even if one takes a favourable view of all the circumstances. Some shares are paying only 5 per cent., and some very little more. The return is insufficient, considering the risks, and sooner or later they will drop to their proper level. a * • ' The produce markets continue satisfactory. Wool remains very steady ; frozen meat is showing a firmer tendency; butter and cheese, though reported dull are still making very good prices. Unfortunately for New Zealand, the high prices for butter are reflected locally, and this winter householders will have to pay a fancy price for butter. However, fruit is cheap just now, and householders who are wise will lay in a big make of jam to ewe the batter bill.

There has been a slight advance in New Zealand hemp which has proved very welcome to the millers. The long dulness io this market has not been without its advantages, for it has taught millers the necessity of economy in the working, and a great deal has been done ia this respect. • • m The mining market is still rather quiet. Waihi shares eased to 43s 9d and hardened to 455. The ordinary dividend has been declared and ehareholers are -puzzled to account for the eudden fall. » .« « Junctions eased to 26s 3d, then sold to 27s and 26s 9d. Their price is fixed, to a great extent, by the Waihi market. The expected dividened has not yet been announced, and shares are not very firm. • ■ ■ Talisman shares have been the steadiest on the market, but even they show signs of falling back. The mine has shown steady improvement for a long time now but it is a long lane that has no turning and (holders (should keep Jtheir weather eye open. • • • Waitangi's, after selling up to 3s 4d, eased to 2s 4d, and must be cheap at that price.