FINANCE AND TRADE.

Wairarapa Daily Times, Volume XVI, Issue 5032, 22 May 1895, Page 3

FINANCE AND TRADE.

(Spe la ly compiled lor Hie" Wnlmrapa Dally Times) IMPROVED PROSPECTS. H Tho long continued depression at - v last shows signs of passing away, if ive may accept as correct the information j that comes by cable. In America the millionaire Carnegie has, of his own free will, advanced the wages of his mon, 10 per cont., owing ty tho improvement of trade Tho Pittsburg millionaire may,however, bti playing a card in the hope of securing the return of the McKinlisy party and the McKinley high protection tariff, A revival in Amcricaai trade will be a great lever in the progressive movement, and the Canicgie advance of wages may be a true sign of tho revival. NEARER IIOMK. On the Australian Continent a brighter prospect is noted. Sydney Melbourne arc slowly, bulsurcly recovering, and although the prices of produce continuo at a low level, the point of recoil is believed to havo Alieeu reached. In Melbourne the "state of things may be gleaned from the following extract from the Argus :—" Estate and house agents "in Melbourne are beginning to " report a somewhat improved con- " dition of affairs. Bents which havo " hitherto been nominal enough in " all conscience, have commenced to "harden, and it has also become " possible to pick tenants, which in " itself is a great gain. The brick " companies aro making better "deliveries, although not yet at " paying prices. Small properties " are being more freely purchased, " a consequence of the greater con- " Science now felt in the future."

IX THIS COLONY. In Now Zealaud, notwithstand- ' ing that there are a greater niinibci" ■ of unemployed, the prospects are s better than they were, t "here exists a strong disposition on ' ' the part of capitalists to invest, but ' the restraint of Socialistic Govern- f ment, and bursting-up tactics are ( fitill manifest, In Wellington the * demand foi teuautablo bouses is in ' excessof the supply, and rents are in ' consequence at an almost prohibitive 1 figure, a condition of things that ' cannot long continue. House property I' is changing hands more freely, and ' land agents' reports arc cneourag- 1 ing. Shavebrokcrs arc also reported 1 busy, the demand for really good fl investment stocks being strong. c MONEY, Loan money is still plentiful. The Banks and Building Societies, are flooded with the. " thrift of the people," and notwithstanding the Advances to Settlers Office, the monetary institutions are lending money as freely as possible. Safe margins are still demandcd.but even ' this rule appears to have slackened ' a bit. Valuations are all that are ' required, and if the vainer can be v squared,tbemoney is easily obtained. c alters is keen competition among ' nae larger iustitutions.aml the danger is that some of the banks will revert c to the old and dangerous policy of L looking up money in mortgages on ? real estate and bouse property. A ' loan of £SOOO, on, say the Opera c House, Wellington, may be a first- ' class investment for a private lender, ' but, for a bank to invest deposit l money in such a way, is not good ' banking, yet this is the kind of leii'd- s ing that is still pursued by some of J the banks. TUB GOVERNMENT OBSTACLE. The obstinacy of the Government in the matter of the Post Office Savings Bank, blocks the way to any general forward movement. The larger hanks are giving reluctantly 3j per cent, for 12 months deposits, and would be glad to reduce the rate to 3 per cent., but this is invpos- | eible so long as 4 per cent, is the ] ruling rate at the Post OUice Savings i Rnk. The Government rate should ( m from \ to 1 per cent, lower than i the Bank rate,because of the greater security offered by the State, but the reverse state of affairs prevails in New Zealand. Why does the Go- ' vernment pay 4 per ceut. when the bauks cannot afford more than 'i\ s per cent. Both work upon business , lines, and the inference must bo that , the Seddon Government has been seized with a philanthropic fit, or else the money is required by the Treasury. Whatever the cause may be the P.O. Savings Bank stops a reduction in the rate of interest paid for deposits. If the deposit rate ' were reduced, it would force a lot of money into the open market, to the great benefit of the community. THE DAIRY INDUSTRY. That excellent publication, T/i« New Zealand Trade Review, gives ' the following figures, showing the Mio of the dairy produce shipped qvm the respective Colonies of Victoria and New Zealand: — Victorian N.Z. butter butter. and cheese. £. £. ; 1889-P... 51,3(3 228.001 1890-91 ... 91,20 275,0/8 1891-92 ... 225,000 287,102 1892-93 ... 401,432 331,955 1893.94 ...761,273 318,971 189-1-95 1,081,213 423,029 After reading the above figures, New Zealand farmers should hang down their heads with shame. There is no earthly use in blowing about this Colony being the finest for dairy purposes, with such figiujs before us. New Zealand may be the best dairy country in the world, but the people that own the dairy country, must be sadly wanting in i enterprise and business aptitude, or they must surely be greatly oppressed by bad Government, which tends to kill all enterprise. In 1889-90, New Zealand dairy produce was valued at more than four jUes that from Victoria, but in six ijlars the position changes, and in 1894-95 the Victorian product excoeds in value, by more than 2j tia'es, the value of the New Zealand product, In six years, Victoria has increased the output from her dairies, more than twenty-fold; New Zealand has failed to double lier outpuv i" that time, The figures given above, are extremely i l disheartening. 4 SI'OOKS. British 2| per tf nt. Consols (Goschen's) have advanced JOs, and are now quoted at lOof. Colonial Government stocks appear to have reached the limit of price, and except in the casa of ) West and South Australian 4 per cents., there is a downWard tendency. New Zealand 4's show a fall of 15s, and now stand a shade better than Queenslands, The tinsel brightness of tho recent loan, and the clacking of the Treasurer, has evidently worn off. The comparison of tho 4 per cent, quotations is as follows : f& May May MoveW 9 16 ment, lies Zealand 1929 IUJ- UOf M 15s U.S. Wales 1933 115| 115J-Fall 5s Victoria 1920 lOC 106 ; - ;S. Australia 193G 109 • 10UJ- Sisc 6s l ■Queensland 1924 110 110 - W. Australia 11)31 117 118 Eisc 20s In the 3| per cents., the backward,

movomcnt is more marked, as out of tho six denominations, four havo receded, whilo the other two show no variation. Again, New Zealands have experienced tho greatest fall of the lot, The tablo of comparison is as follows : May May Move--9 16 ment. New Zealand MO KM| 101 Fall 10s N.S Wales 192 i 105 105 - Victoria 11)23 101 100JFall5s S. Australia 1930 101 101 - Queensland 1924 102} 102 Fall 5s Tasmania 1910 103J 103| Fall 6s FROZEN MEAT. The frozen meat market appears to he in a state of collapse. There has heon a further fall in all classes of frozen mutton. During tho week first quality has receded from 3|d to 2|d; second quality from 2|d to 2d ; and lamb from 3|d to 3|d. It will be impossible to export at these prices unless concessions are obtained in freight and incidental charges. To securo these concessions a strong combination on tho part of farmors is necessary, and to this end the interest aroused by Mr I). J. Nathan, will, no doubt, tend.

Tho sales show a firmer tendency with an upward disposition. The operations are principally by Continental buyers, who are making heavy purchases. The prospects of better prices even than now ruling are ] greater for wool than frozen mutton, \ for while the world's oiitpnt of wool is barely equal to the demand, the frozen mutton trado is overshadowed ■ by the possibilities of the live stock trade. FI.OUIt. There is to be another advance of ] 10s per ton in Hour, and the Wei- i lington quotations now stand at £8 ' 10s per ton for sacks. This is not ' surprising, as it is well-known that this colony has not grown sufficient wheat for home consumption, and New Zealand has had to import from Victoria. The wheat producers of the past season do not share to any ; extent in the advanced price. By this time most growers have sold to millers and others, and it is these . people who will reap the benefit, As a matter of fact the price has " been advanced by the Flour Millers' f Association of Canterbury. The i Tariff Commission will, no doubt, propose a tax on imported wheat . and Hour to further encourage the dealers and millers. ' I'ercv Pkxi.vx. t