SHARES & MINING

Observer, Volume XXXVII, Issue 34, 28 April 1917, Page 22

SHARES & MINING

[By Bulmonist.]

THE balance-sheet of the New Zealand Investment Mortgage and Deposit Company, Limited, for the year ended March 31, 1917, shows that a net profit of £1878 3s 6d was earned, to which must be added' the sum of £4 14s lOd brought forward from the previous year, making a total of £1882 18s 4d. An interim dividend of 3 per cent., amounting to £799 5s lOd was declared and paid for the half-year ended September 30th last, and a further dividend of 3 per cent, (making 6 per cent, for the year), absorbing £810 17s lid, is recommended, also that £150 be carried to the reserve fund, and that the balance of £122 14s 7d be carried forward. • ■* • The total amount received from interest, fees, etc., during the year was £6044 13s 2d. Interest paid and accrued totals £3110 9s Id; charges account, £698 6s Id; land and income tax, £335 7s 6d; other items, £22 7s, leaving the net profit at £1878 3s 6d. The assets of the company include mortgages and accrued interest, £88,015 9s 6d; special deposits and accrued interest, £26,144 14s Id; freehold property, £1756 16s 4d; office furniture, £59; sundry debtors, £6 13s 3d; and cash in bank, £439 17s, making a total of £116,422 10s 2d. The liabilities are: Paid up capital, £27,056 10s; reserve fund, £2000; deposits and accrued interest, £85,400 Is; investors, £494 Is 7d; interest suspense, £77 18s 7d; sundry creditors, £308 6s 3d; unpaid dividends, £2 0s 3d; profit and loss account, £1083 12s 6d. Total, £116,422 10s 2d. » • • The Wellington Deposit Mortgage and Building Associ/ation has also experienced a very satisfactory year, the accounts, for the twelve months ended March 31st last showing a net profit of . £1757 10s 6d, which, added to £324 Is Id brought forward from the previous year, makes a total of £2081 lis 7d, and this has been allocated as follows: — To the payment of a dividend at the rate, of 5 per cent., which absorbs £1250; the sum of £400 to be placed to the reserve account, and the balance of £431 lis 7d to be carried forward. ■ ■ • The assets of the company include: Mortgages, interest, etc., £57,680 17s 7d; freehold property, £790 is lOd; office furniture, £40; sundry debtors, £47 13s sd; deposits at call, £5000; and cash in bank, £188 4s 5cT. Total, £63,746 17s sd. The liabilities are: Paid up capital, £25,000 ; reserve account, £1600 ; reserve for contingencies, £150; deposits and interest, £34,551 6s scl ; unclaimed dividends, £14 14s; interest suspense account, £298 10s 7d; sundry creditors, £50 14s 8d ; balance profit and loss, £2081 lis 7d. Total, £63,746 17s 3d. * • * The steadiness of the London money market is wonderful. The Bank of England has now nearly £53,000,000, and the war finance of the Imperial Government is well maintained. Important changes are likely to occur when the American Government carries through its project of lending the Allies £600,000,----,000. Such a loan would immediate•ly affect the exchanges, and London "'"snoulcf again be supreme as the world's chief money market. The war fever of the Americans appears

to be gaining in strength, and once the Yankees really put their shoulders to it, money will be spent freely, if not extravagantly. Nothing important is likely to be done until the British and French Commissions have conferred with the American authorities. America may find her part in the. war to be economic rather than naval and military, although no doubt the most will be made of her military resources.

In the economic sphere the United States can render the Allies very important service, and the President has already recognised this in his appeal to the nation. He has urged an increased production of raw materials and food stuffs, but particularly the latter, as the most effective way of helping the Allies. The food problem is becoming a serious factor with the Allies, and the position is going to be worse before it is better.

The outlying dominions of the British Empire have a duty in this respect, and it cannot be too strongly urged on the farmers of New Zealand that a great deal more is required of them than they have done in the past. No doubt the shipping problem is accentuating the difficulties, but this will soon be overcome. Germany has now the world against her, and her submarines will be unable to resist the maritime resources of the world. With the destruction of submarines and the increased output of merchant shipping the tonnage problem ought speedily to be solved.

Germany's last loan is pronounced a success, £638,000,000 having been subscribed, of which about onethird is. new money. It is stated that the loan will be sufficient to finance the war until August. German methods of raising loans are quite different to those adopted by the British. In Hunland the drill sergeant orders affaire, and the people must obey. Germany is not merely beaten in the war, but she is also physically exhausted, and her position economically is exceedingly parlous. The Central Powers will be forced to repudiate their debts or conscript wealth on a very large scale.

Austria and Turkey are both completely worn out, and both are ready for peace. Austria seems likely to break away from the Alliance, iand once there is any semblance of disruption in the enemy confederation the war would be over. We are nearing the limit of three years set by Lord Kitchener, and this great soldier's predictions are likely to be verified. The fighting part of the great war should be over by August next. Important economic changes seem pending in New Zealand as the result of the declaration of war against the community by the coal miners of the Dominion. The strike i.s against the Military Service Act. It practically means that the coal miners desire the privilege of dictating to Parliament what it shall and shall not do. Apart from the absurdity of the matter, we cannot tolerate in this country any privileged class. The strike, of course, has behind it other motives, p&rtly economic and partly political, and the leaders, of the miners are making a bold bid to bulldoze the country into doing as they desire. The Government is just as determined as tire miners, and the Government have behind them the lawabiding people of the country. The miners are, of course, going to suffer in the fight, but so is the community. We must have coal for our industries, indeed for our very existence, and some method must be found for working- the mines of New Zealand. Of course, there are prospects of importing coal from Japan, India and the United States, and later it will probably be

found that the .Government has made satisfactory arangementQ in this respect. « « m It may be necessary in the near future to consider" the question of working the mines with coolie labour from China and Japan. There need be no interference with unionism in this, for the imported labour could be placed on union wages. Supposing a white coal miner produces 20 tons of coal per day and a Chinaman only produces 10 tons, then the latter could be paid half the union wage of the former. ■ • * The economy enforced upon the community by the coal strike will have its uses. It will make the people consider matters more seriously than, they have done hitherto. The country has indulged in extravagance of one kind! and another, and now is brought face to face with many hardlsfhilps. This imuet do a lot of good. If the community insisted that strikers in the future were disfranchised we may save the country a lot of unnecessary expense.