SHARES & MINING

Observer, Volume XXXIV, Issue 23, 14 February 1914, Page 20

SHARES & MINING

[By ObauiAH.]

THIS buoyancy of the London money market continues and the m-esent rates for money are likely to remain until the European sr.»-srsia t il -<£*££! not appear to have affected the stock ; c Bank of England to any extent, as the reduction in the reserve was only £255,000. _

The Continental banks have added very extensively to their gold reserves. ThP State banks in France, Germany Sd Rossia added about f2f0,000 to their Socles last year and it was partly because of this that money was so exceptionally dear last year. Last week the German bank rate was redu«d to 4 per cent, clearly indicating that the monetary conditions m the German Empire are satisfactory. Further evidence of this is afroraed by the excellent reception accorded tne Prussian loan of which was subscribed seventy-twofold ije pronounced success has induced the Prussian Government to place another issue on the market.

In France the position is perhaps not so satisfactory because the Government is in want of a very large sum to square the Budget. lit. French Government can exercise sufficient authority to prevent the banks from issuing Foreign loans so that the money may he available for French loans The boom that has followed the easing of the money market is confined to gilt edged securities for commodities are apparently not affected. There is a dullness in the industrial world and manufacturers are quiet, less money being required to finance trade. Th" owners of idle credits are peeking an outlet in gilt edged securities and this classs of security is moving upwards. A few weeks ago Imperial Consols were sold at the record low prifp at .£7l 2s 6d, while now they are quoted at J77, a rise of £& 17s 6d.

All Australian Government securities have risen and show signs of going higher. The cheapness of money has attracted quite a number of borrowers and the colonial lofms floated since the beginning of the year show as under : New South Wales, .£3,000,000; Victoria, ,£1.000,000; West Australia, .£2,000,000; New Zealand, £4 500.000; South Australia, £2,000----000: City of Auckland. £100,000— £12,600,000. The New South Wales loan was not taken up by the public when it was issued, but it quickly went to a premium and the underwriters did not suffer. The other issues, except the South Australian were over subscribed. The Victorian was subscribed trree - fold and the West Australian and New Zealand issues five-fold. Tbe price fixed for the South Australian loan was very high and the syndicate stags did not apply, consequently the underwriters received 50 per cent, of the issue, but the scrip was quoted at par a day or two ago and the underwriters had then an opportunity of unloading. * * *

The Balance Sheet of the New Zealand Insurance Company, Limited, for the year ended 30th November, 1913, shows that the net income from premiums interest, and rents amounted to £746,831. Tbe available balance on the year's transactions, including the bahniee brought forward from the previous year, amounts to £139,129, from which has to be deducted a dividend of £18,750, paid m

August last. The directors recommend placing ,£60,000 to the reserve fund and .£12,000 to the re-in-surance fund. From the balance of .£48,379 the directors recommend the payment of a dividend at the rate of 3s 6d per share, absorbing ,£26250, and making 6s per share for the year. This leaves a net balance of .£22,129 to be carried forward. The paid up capital, reserves, and undivided profits now amounts to ,£964,129.

At the annual meeting of shareholders of the New Zealand Loan and Mercantile Agency Company, Ltd., hpld in London on the 18th December, Mr Warrington Laing (Chairman) in addressing the shareholders referred to the effect of the re-arrangement of the capital and remarked that the capital as now shown, with the four classes of share and debenture capital, each denomination in round figures, a million pounds is infinitely to be preferred to the figures in last year's accounts, which showed a paid up capital of ,£135,000, with a very large liability and a debenture stock issue of ,£3,250,000.

The Wellington Wool Sales, held last week, was a magnificent success from every point of view. There was a large catalogue and the attendance of buyers was larger than usual. Keen 'bidding was a feature of the pals, showing that wool was wanted. The wool, taken all round, was lighter in grease. Consequently the prices were apparently a shade higher than at the January sale, though actually there was no difference. The brokers mads a good day of it and cleared most of their lots.

The Produce markets show no changes of any moment. Butter continues to sell well and the same applies, to cheese, notwithstanding that there are heavy arrivals on the market. Frozen meat is commanding god prices and from present, indications values are bound to be well maintained.