FACTS FOR INVESTORS.

Auckland Star, Volume LIX, Issue 236, 5 October 1928, Page 4

FACTS FOR INVESTORS.

MERCANTILE FIRMS. ADVANCING PRICES. As with banks and insurance shares 00 the script of mercantile and financial firms has shown a definite improvement as compared with the rates ruling a year ago. Most of the firms included in the classification designated ''financial" in the accompanying weekly table, have a close connection with the pastoral industry, and have benefited from the improved rural conditions that existed both in Australia and New Zealand last season. Firms like Dalgety's, New Zealand Loan and Mercantile, Goldebrough Mort and the National Mortgage play an important part in financing farmers, and of the seventy odd millions collected for the huge wool clip in Australia and New Zealand last year, quite a substantial proportion would be returned to those firms for previous accommodation. The disastrous drought in Queensland caused heavy losses in 1925 to 1927 to most of the pastoral firms engaged in that territory, but by last year the position had been remedied, partly as the result of a partial recovery in the drought stricken areas, and partly through extensive writings-off. The generally improved position is reflected in the figures of the table, and indicate clearly that investors are inclined to look more favourably upon those firms whose interests are directly linked up with the fortunes of the man on the land. Very striking is the advance in Loan and Mercantile ordinary £100 stock, which, after being almost stationary for a considerable period, is now over 20 cent higher than it was a year ago. National Mortgage shares have also "jumped,'' showing an increase in the year of oyer 25 per cent. In both cases the advance has been most noticeable during the past few months. In June last the Loan Company stock was quoted at £106, and National Mortgage shares at £3 15/6. Locally the Far mers' Auctioneering Co.'s ordinary shares bad been neglected during most of the year, but the appearance of the latest balance-sheet and the resumption of dividends in ordinary shares has brought along inquiries. In considering the shares just particularised, intending investors should note that some are subject to English income tax, which constitutes a substantial deduction from the gross return.