A REVIEW OF 1910.

Dominion, Volume 4, Issue 1013, 31 December 1910, Page 10

A REVIEW OF 1910.

FINANCE AND COMMERCE. FACTS, FIGURES, AND FEATURES. Tho year 1910 is remarkable, so far as - tho Dominion of New Zealand; is con : -/'./ corned, for; the splendid recS'very.Jjnat place in' tho' financial 1 ! and economic ■ conditions of tho country. In 1909 tliero . 'was h scarcity of credit, , and economy-was forced upon tho community,.. In 1910 tho ';■ reco'vory was : ,complete,.- and- : for ; some /: months past tliero has been a .plethora of 'i. 'monejv But this abundance of capital lias , ;//not - stimulated ' enterprise, ho/industrial'; havo been undertaken," and there appears to exist either* a want of /confi<!cnce or a desiro to .bo sure that tho bed-, rock' : has been reached; Tlio /values of limd:a'nd labour play'a prominent part in v the lifn/of - this country, and it may bo that theso values are consider- -. od to be still too high. This absenco of " enterprise, the disinclination/ to exploit '.: tho resources of tho country -is ..a very . .-" regrettable feature., of : tho, moinent... Tho ■■.outlook, however; .apart from, this, is extremely good and .1911, promises to be a V .record year for New Zealand. \ The Money Market. There were more/fluctuations: in the Xondon money market in 1910 than in.the / .-previous year. Thero' wero nins changes. ' in tho Bank of England rate, as against '•isix in,lSo9, and the average rate for the : year)was higher. /Tho movements in thei 1 bank:.. rate during the year were as unto;— '"///' '-//Eate ' ./-.,. 1010. per cent. • • January 1 ....41 January 6 ................ i January 20 3i '.February 10 3 . . March 17 4 Juno 2 Si ;June 9 .. 3 ■/. .'September 29 4 October 20 5 ; . ..; December 1 4J The duration of each rate during tho ycar/was as .under:—; . . -• ..- v'-.V /•/. Duration.*. „•Kate. ;- _;•- .•• . Days. . ..-3 per cent 147. i '-35 per cent ..: 28 ./- '//// ;./4 per cent 113 .i's per cent . -35- /. '/ .5. per cent 42 • . 265 .Ibo average rate for the year compared >!.yith;previous years shows as under:—.; • /.'.'-■ '- -I /•'.'•■ ' Per cent.- £, ss. d. ./..J..-// -Average in 1910 '. 3 14 4 , . ./■/ ' Average in 1909-' 3 2 0 . ' Average in 1903 ......... 3 0 3. 1 • /Average in iyU7. 4 18 6 ; '. /"/"iverage in. 190G 4 5 4 . . Three years, >1903:10.,.._ 3. 5 6 . -./;. '. ; ; ' i ; Tivo yearJ, 19GU-10 3 18 1 /V. Tlia rate, for 1910'. was .less than the : ''iveragß for tto' past' five'years./ v The, Bank of/Franco rate, was maintained at. 3 per cent throughout tho year. It '/ was reduced from 31 per cont to 3 per cent ■^on'Jai!xiai'y'2S,-1908, and has.not been.-al-. tercd.siiiee. ' ./ / : Tho'; discount rato of the . Reichsbank / (Imperial Bank of Germany) was lowoied .-/ on January 21from : 5 tq/41 per cent, 'and '/joh /lO to/4, per...cent.-/On Scp--7.'; jtember 26 it«Tfas rSsed to'.:s 'per., cent,/and V -was/iii.aihtain*! rato fof,;,tho;-rest of tho year; - J J-;/.!' 1 i- ./The' iluctiiationS' ,' '■ land .irate '.-'of /discouht.,' r/atur'ally'/ 1 caused ; ' more' attention to gold reserve, and .'.during the year the .matter'"has been'very i/freely'discussed. It was suggested, that the bank thould materially increaso its-'motal ' xeserve,'.and to ensure this there ■ was j)fo//posed' .the elimination, of v v the . fiduciary : ./.note-issue, gold-.-to- be 'substituted fori'-.tho /securities. Hoiveverj'Vno j.measui'M,\-wa:e /■/ taken-: to"improve- the 'position; and it "is ;, .likelyj;that nothing vill.be done for sonii ./ time. ;: lloney was dearer .in 1910 than in '.V/1909,-/as is shown by the. average of tlio / bank/'-discount rate, and this, was .. due -■/ '

Demand For Capital. 'According to tho "Economist" (London) ■V'-'fitile capital.applications in Great Britain : [ during ; the first.. nine > months of 1910, amounted .to 755,330,'''whi1e for the whole of- - 1009 -7- the : ,total-, -was' only--.8)82,.150,000, andin 1805 it ;.%as-; : ; .£192,503,700.. Tho rubber and .pil,;b.odm : ,' v.:r'. which;, fascinated.' tto speculating public .•••: " during V the' first.half of.,itho .year, was mainly responsible' for ' the increaso in' ' . ../the oapital application;', Tho new-capital secured for. rubber 'yentures during. the' nine totalled • - 282,500,. : . of; which .-£16,070,460 was secured . during the 'first .half of : the. year. Oil 'ventures lac- . counted , for ■' 030,400, of-, which . .£8,5H,400. was obtained' during tho .first "•six months.The'"amounts Becured'during the first nine. months of each of the past three years by?, the -principal bor- , rowers were as under :—. : -1908. '. 1009 v 1910 * . "' p ' .£- Canada ... 20,308,900 23,049,000 31,883,000 Australasia 8,458,000 10,043,900 7,359,000 South Africa 4,098,800 10,831,000 3,304,100' ' U. States 14,002,G00 5,378,300 38,002,100 ■ : Brazil . ... 7,9-13,500 ■6,019,900 11,397,200 '-'Argentine-' • 8,396,900 19,005,200 10,041,000

The Colonial Government and Municipal . loans in which Australia. and New Zea- • .•' land wore interested wero as under:— February 12.—New South Wales . Gov- ... eminent mriltd subscription . for a loan of £2,750,000 bearing- interest at '31- per '•• " : cent, with.,the minimum price at.97, out as a half-year's interest was payable on July 1 the net price was equal to ,£% 2s. sd. per cent. Tho loan was mainly for conversion purposes. . Holders of the . 'maturing 4 por cents, : totalling >£2,863,700, were offered equal amounts of the new ' stock. .Tho applicatibns for. conversion ' totalled. iJ,250,000, and tho cash - appii- . cations to .£2,800,000. Tho issue Was a complete success, and the - scrip was promptly .Quoted at a premium. -• February 12.—The City of Auckland .offered ,£343,000 .of 4, per, cent debentures : , with a currency ot 21 years •at i£lol 10s. '.'•per - cent and the issue was over 'subscribed. ■ • ... •'•'•• March' 81.—The New Zealand' Government .offered for subscription ,£1,850,009 . ol' convertible debentures with u currency of 5 yc-ars, and bearing' interest at 3-j per cent, i'ho issue prico was i'SB ...... 10s. 'riie debentures are convertible at the holders' option, into 3J per ccut inscribed Btock at tho rate of 4:102 of " stock.i The. option ■ must bo -exercised. V - prior to April 1914. Tho public subscribed for 80 per cent of,tho loan and tho underwriters had- to find the- balance. ' - '".'V s May 31.—The West Australian Gorefnment came on'tho'lharkot'for a loau of - JE1,342,000, interest at 3} per cent, issuo. price £96 10s. "per cent." Tho loan is : . repayable in 1950, ; but tho State reserves ': the right to redeem-it par after April 1935. The public subscribed for only 12 per cent of. the amount, tho : underwriters' 1 fi.nding-.tho -balance-of 88 per cent. ■ October . 10,—The 'Borough of Gisbo.rno. oA'orctl through tho Bank of Australasia ,£175,000 of 4 j>er cent debentures, ot per. Tho results ot this issue wero not pub- ' lisbed, but. it is believed that tho public • .subscriptions foil short of tho amount re:*l quired. . . • November I!.—The' New Zealand Gov-, eminent offered Jib,ooo,ooo of 3} per-'-cent debentures at 10-1, repayable at par on December 81, 1914. Thoss who-under- ' took to convort before-December 1, 1910, received JJIO2 of- 35 per cent inscribed . • '' stock for every' J6109; and six months' Holdors of tho debentures havo . the right until Docawbar 31, .1913, to convert into 3J por coot inscribed stock receiving .£lO2 worth'of stock for every .£IOO debenture'. Tho applications from tho public totalled .£344,000, tho undcr- - writers- finding tho balance of X 4.650.000. New . Zealand thus borrowed in ' London the following'amounts:— ■ Government 1 loans C,850,000 . Citv of Auckland 313,000 1 ' Borough of Gjsborne 175,000. .: 7,308,000 The interest payablo annually in respect. o£ these -loans is ..£226,220. ■ Tho ■; i rate of borrowing indulged in by Ivew '. Zealand-in rcccnt years has been very

great, -but .this' would not bo a matter for • concern/ or - complaint 'if tlio increase in population was as rapid, Gilt-edflod Securities. i The higher, return, scoured .by investors in foreign securities, together with tho want of confidence created by tho taxation' schemes of tho Liberal Government, caused all gilt-edged securities to decline. This is .shown in tho quotations of Govornmont securities at periods twelve mouthsapart*—

Imperial consols have declined rather seriously. Early iii January tho . quotation was .£B2 7a. 6d., in June tho price dropped to X3l 2s. 6d., but by July 1 there was a recovery of .£B2 ss. ■ It was in, t|io second half of tho year that this gilt-edged security snffored most, ■ and the fluctuations, at times have been very violent -Tho following; will givo some idea of the movements:—• • .£ s. d. Julv "3 SI 17 G ' August 9 81 0 0 September 22 S2 « 2' i- , October 5' '' 15 0 October 25 t 6 , 20 . JG 3 . November 3 , '9 § • November 15 . <8 12 6 November 23 . 78 1/ 6 Consols have aofc been singular, for all other gild-edged, securities, liave suffered. Banis, insurance companies, and Other concerns, which by tho naturo .of their business are obliged-' to . hold securities, have had to submit to drastic writing down. Lord Jlilner, at recent meeting in London, remarked that they had been'writing down securities out oi profit? for quite a number of years, and the total amount so absorbed has been eiiormovis. The amount actually earned iii'li thje banking business had 'bwn .mucn larger than the profits . which;-( jo directors had been able to dispose of, "for year alter year the fall in high-class securities had eaten .into profits, and AT . as imppssiblo- to .saiy; whether tho depreciation had'even { yet come to an ead % . Quite a number of reasons are assigued fqr the depreciation of consols. The stop? page of the sinking fund, the. expansion of tlie trustees' list, the demand for ex- . ternal .securities,' and* 1 for. , higher rates of interest. . Another reason .is the mcrease - lii'the National Debt, between .1890; and 1900, t tlxe t JBritislx rNational Debt was rediicea but in .tho ten years, 1900 to\lolU. was increased vby and ihcluding the guaranteed securities \yuch aro Teckoned in, the market as Britisn Govern- . irieiit securities,'tho'addition has/, bceii as much as. X 262,000,000. . ' .Other writers maintain that ..the fall in .capital values is not due to temporary depreciation, but to tho gradual disappearance of past inflation. Important Failures. ' -During the year the important suspensions were Knight, Yancey and Co., cotton shippers of -America, in April last. On July. 28 tho Niodcrdentscho Bank . of portmond-.-VPrusßin-, failed. assets' Of,,this concern tot3llcd'/£2G3,500, nnd'tho liabilities amounted/ to ; Tlio creditors v, : ill:sthus .teceive sothething I<SS than 4s. ift the £.1} This biink, ;to attract depositors,' Offered 7 per cent.' at-a time when the markot rate for money was only 3 per cent., and even speculative. foreign investments only brought in as a rule 5 per cent. This makes tho sixth important bank failure that 'has taken placb in Germany dyring ;tli(K past years, s"' v;. i fCfn OcCbber'!i'BL'the! .Charjng Gross:' Bank suspendetl' pnymeiit"; This organisation was not a joint stock bank, and did not publish accounts; it was privately owned by a Mr. A. .W. Carpenter. In addition : to three/establishments ill .London, there ' were' forty-'branches' in - various 'part's(ofthe United Kingdom. It was to tho person v/ith'small, capital .that tho bank appealed 'for : funds, for it accepted amounts of'. iClO'and upwards on deposit, and paid' mueh higher, rates o{ interest than that : allowed .: by the big banks. .Jioans itfere.vgranted piv furniture, plate, /andKjve 1 lery,-r/billo.of- ale, ,etc., -Ono " Scot'cfcdoposif or. J ,l64g?fW-.6evpral 1 hundred : i)diiiids'at the'Gi-teiibck*brhnch' of tho bank, with tho understanding; that lie was to-g«t-7J per' cent; .ihUrest.' Then he insured his deposit' with Xloyd's for a 2i per. cent, ilremiiim. : Th» conscquenco is that .his capital is now restored to him. "intact;, and-lie'has had.'a safe 5 per cent, during tho irvoriod it wa3 in•vosted; - The liabilities of tho Charing Cross Bank aro placed, at X 2,500,000, and the assets are valued at i|360,000. There was a run on tho Birkbeck Bank ; in November owing to tho circulation of an arienymoiis letter connecting this institution with : the' Charing Cross Bank. Tbe Bank .of England, materially assisted tiie Birkbeck'-Bank to'meet .tha demands Of depositors.; On Novomber- £8 t'hc London Trading- Bank - suspended ■ payi- ment, and tho directors ..expeot to pay all creditors in full." Australasian .Finance. There lias been'; a Temarkablo accumu- ( lation of idle capital in Australasia; hut especially in Now-Zealand, arid "this, has been .the subject of chairman of tho'Ba'nk of. New. ZealaSd- ; at -tho half-yearly 'meeting of slia'rehol.ders a few days ago. The position is clearly shown in tho banking returns-, for tho September 1 quarter. Comparing tho deposits held in each State, of the Commonwealth and in : Now /Zealand, with tho figures for the corresponding .'quarter of last year wo get the following table: — • Sept:, 1909. Sept., 1910. .. " £ £ Victoria' ' 37,527,G4G - 40,872,48!) N.B. Wales 43,472,9.53 48,804,6-19 Queensland 10,437,158 17,833,551 S". Australia ' 9,212,178 10,227,08:1 W. Australia's,l27,so2; 0,470,287' Tasmania 3,011,279 3,508,147 / Commonwealth 115,421,716 ' 127,776,100 New Zealand ..'. . 20,979,120 23,141,319

Total ............ 186,400,830. ; 150,920,515. Tho Commonwealth shows an liiicreaso of .412,354,450, and tho expansion in New Zealand is .£2,165,22!), or a total, ot 51!l,67!) for tho wholo 6f Australasia. Tho advances on tho other hand show a very moderate increase, and this will ho sc-en in tho table, appended:—

Total i 17,742,576 123,233,842 ! The,increase exhibited by tha Commonwealth amounts to .K,48-1,377, equal to about 40 per cent, of the increase in tho deposits,- while-in New Zealand tho advances have oxpnnded by ,€688!), equal to about Cs.',3d.';por 4 cent.- of'tho increase in. tile advance." 'Tlieso figures show that there is moro activity in Australia than, in New Zealand, and those who know the conditions ot both places will readily admit ..this. There 'is more enterprise beiiiff shown in tho Commonwealth than in, New Zealand, and this has attracted a-good deal of our capital and many of our people.. The disinclination of those possessing capital. to invest in New Zealand has been, tho subject of comment quite recently, and need not be discussed here. However, there is evidence that the shave market .lias received attention from investors. Wellington Share Market. All ■through the year, but particularly : during"the last half, there has been a persistent-demand' for investment; shares, and - under "tliis pressure have, mmost'cases, ascended. ' lhis will -be seen I by : comparing the current quotations for

tho, shares.of the leading companies wit.h the: values of twelvo months ago. The figures are appended:

AVhero values exhibit a decline there are special reasons which, if taken into account, would show that tho lower , prices really represent'an advailce. ■The Mining Market. . So far' as. Wellington 'speculators are concerned .tho year lias proved more or less disastrous; for most speculators have lost money, and somg havo lost very heavily. The dobaclo in Waihi shares, the collapse of ltoss Goldfields, tho delay in connection with tho Thames thousand feet lovel, and the absence of any satisfactory development in any of tho mining districts were to some extent responsible for tho fall in prices generally, out the .position was mado worse by tho tactics of tho Auckland punters, and at practically no time, it is'safe, to say, havo Wellington speculators had. a reasonable chanco of a win. Wellington speculators have no prospect whatever/of/successfully, competing against the -Aucldajid: punters, who have .sources of- information -which those dowli here cannot-hopa to.havej:Ontl also a certain amount of influence /with tho managements. It i.fi. pretty .certain that fewer-peoplo here/will deal;in Auckland mining sliares, and/ with Wellington's sucnort withdrawn,-.some of. the Auckland "brokers will!find, .'their income curtailed. Perhaps tho matter will reach a point when tEo Auckland Stock / Exchange will bo forced -to intorveno. The only shares that .have consistently maintained their, position, notwithstanding damage by fire to the plant, aro _ the Talismans, and it is claimed that this, is simply becauso the control of - this .mino is centred in Wellington, and Aucklandorff* are unable to .''manipulate. * the shares. They tried once, but found W<Jiliiiston so ready to buy that they were glad to get out. Considerable conhdence is felt in Talismans, because it is believed that, the mine is being carefully developed' for tho benefit of the-shareholders, and not for.market.operators, and : tho official information given out ; by tho is :always trustworthy;-and clear.: London Wool Sales. ' First series—January 18 to February- 4. | The total offered amounted to- 181,873 bales, made up of 125,089. bales Australian, 43,989. bales,. New. /Zealand,. 9204 bales Soutl; .African; and 3591 bales South American, and the disposal of this quantity was approximately as under:—J . ' r . Bales. . United Kingdom " 82,000 ■■ ... Continent . 85,000 . America : ,12,000 - Carriedover ; 2,873 1 181, era ■ The market kept extremely . firm ! right, up- to tho finish, tho demand for greasy Mcrincs; showing good ' quality continued vory brisk, tho closing prices being quite 5 per cent, higher tlian tho best. rates obtained' at the previous series. On tho other hand, harsh, Inroad wools fell away a little..- .ScouredVsold;;: extremely, ! ,w:ell. thi'oughout.,., aid .■some good sales, .wero. made to . Evssian Lambs', wool, was in excellent demand, and' tho'record! price of 28d. pefplbf ;,was- /p.aid.'.'.for a lot of Western 'lambs, and d34d. per lb; was obtained-.for spoutwashed.

Crossbreds —Fine crossbreds went well, except tho heavier, shabbier lots, which 1 were a little easier than in December., ' Medium crossbreds' wbro in demand ■•by' American buyers; and ■ Bradford men ' were strong buyers of coarso wools, which sometimes showed an advance, of '7Jd. . per cent. ' Slipes .'.'sold briskly,-cqarso grades 1 being 7J to 10 per cent. up. .... ■ Second series—March 8 to March 23. Tho total catalogued amounted, to 140,172 bales, -mado up of 51,259 bales Australian, 7G,744 balds. Now Zealand, and 9-109 bales Capo. Tho featuro of tho sales ■'was the unexpected slackening in tho demand from tho United; States, the result bsing that thoso classes which wero so ■ favourable in .January by' the com- . petition from Amorica, suffered in value. Trade in the' United States had not responded so freely as had been anticipated, and-.-stocks of raw., material in tho ; hands .of/both j.users. .and? , ; deajers..-,-hctd ' steadily .accumulated. On tho opening; day tho p.rices of;v Australasian memos' ■ showed an advance'-'of about 5 per'cent., and. as tlio.sales progressed tho improvement became more pronounced, frequently : roaching 7J per cent. Fino qualities of crossbreds maintained tho January cur- : policy, but the medium and- coarse grades ruled' at ft decline of fully 5 per cent.,, tho reduction in tho caso of some of the better' bred,, light-conditioned clips being even moro pronounced. During the series about 130,000 bales were sold, and tho disposal of tlio catalogues was as under ; Bales. United Kingdom' ; ' 78,000 Continent 46,000 United States ' ............. 6,000 Carric-d over 10,472 1-10,472 Third series—April 26 to May 12. Tho arrivals totalled .431,000. bales,. of. which 270,000 .bales wero forwarded direct to manufacturers, leaving, with the. quantity earned over.. from 'previous" ; salei. :■ i? 0,000 bales, of which .107,000 bales ; \rero "from New Zealand. The conditions oi .- tlio market on tho ovc'of'tliis"series had undargono no material alteration; the falling oil in tho American demand had continued to bo the. disturbing factor, and tho snJes opened with iin unsettled feeling. Tho , however, -was _ moro satisfactory. than ' had been anticipated. Merino wools mot witli keen competition, and exhibited great firmness throughout. In the case of crossbreds, thoso usually taken by America suffered .' to somo extent, but the description usually taken by Yorkshire buyers maintained their values. Notwithstanding this, there, were considerable withdrawals.' Tho dis- ■ posal of tho cataloguo was as under:— ' ' Bales. , United Kingdom 87,000 .. C0ntinent',............;..-. 51,000' United States 4,000 ■ Carried' over 25,000 • ■*. . . ' ; 170,000 ' .

Fourth series-rJuly 12, to. July 26. Tho new" arrivals totalled 285,684 bale's, of which quantity 155,500 bales wero, forwarded direct to tho manufacturers, leaving, with the. amount brought .forward, 25,000 a total of 155,184 bales. After tho conclusion of tho May auctions the wool markets became increasingly affectcd by the unsatisfactory trade conditions in tho United States, and this was aggravated by reports of, largo shipments of wool from Boston for resalo: here. , The opinion was generally expressed that tho sales would witness a fall ' in values. The comparatively slight decline, which actually took place, and tho quick re-, covery in tho case - of crossbrcds,' notwithstanding the' lack' of any support from • America, was somewhat of a revelation. Merino and fine crossbred wools were unchanged as compared with tho closing prices.-of, the previous sales, except short, faulty, . and irregular scoured, prices for which were 1 5 to 10 per cent, lower. Greasy crossbred wools, medium and coarse quality, were unchanged ; scoured crossbrcds wero 5 per cent, lower. Fino slipo wools wero unchanged, but coarse descriptions wero 5 to 7i per cent, lower. Tho withdrawals wero very heavy, as also .was tho carryover. One featuro of the series was the sale of so mo 4000 to 5000 bales of lino Geelong and other Australian wools ou American account. These wools wero either sent back from Boston or stopped in transit. The Americans lost .heavily over this lot; ? The total quantity sold wns 127,000 bales, tho destinations being as under Bales. \ ■ United Kingdom 85,000 1 ' Continent-' .41,700 'America 300 , : -r " ■ -127,000' The quantity held over, and withdrawn totalled 32,000 bales. ' Mfth series, September 27_ to October ' 8. Tho new arrivals amounted to 132,000

bales,, of Which quantity 49,000 bales wero sent, direct'to manufacturers. With tho 32,000 bales brought forward, tho quanitiry available was 155,000 bales, of which ■72,'J00 bales were from New Zealand. The 'sates opened at an advance, but of a somewhat moro moderate character than had been generally looked lor; and whilst the improvement was sustained by merino wool, which was comparatively scarce, erossbrcds tailed to maintain their position, closing at very little change lroni the rates current at tho July auctions. Tholnck of demand from uic United States, induced several Yorkshire dealers to offer at this salo a considerable quantity of the.better grades of greasy crossbrods, which wero being held in rne hope of an improvement in tlio American market. The sales closed with good greasy and scoured merino combing par to 5 per cent higher than tho closing rates of tho previous sales; fino and iliedium erossbrcds, wero unchanged, and coarso. crosshreds wero par to 0 per cent higher. The quantity actually catalogued was 125,000 baies, and this was disposed of as under:— Bales. .•••..•United Kingdom 69,000 Continent 42,000 Carried over 14,000 125,000 Sixth series, November 23 to December 6. Tho new arrivals totalled 150,000 bales, of which 40,000 bales were sent direct to tho manutucturers, 13,000 bales wero brought forward, so that 117,000 bates wero available. The series should havo commenced on November 22, but owing to log woro postponed to tho following day. At.tho opeiing iherino 'v/ools of good qualityand' condition exhibited no chaiigor'but'for' faulty and 'interior merino .prices were lroni par to 3 per cent lower!;./Crossbred wools ; woro. unchanged, ll'ho sales closed firm. Good quality merinos; maintained their position, but other grades, were 5 per cent lower. Greasy crossbred' wool was unchanged, scoured and sliped wools 5 per cent: higher. It appears that, actually 120,000 bales were oiiored, and tho disposal of this quantity was as under:— "' ' . . - Bales. United Kingdom - 52,000 1 1 . • Continent 60,000 Held over 8,000 '• ' ! • . - ' 120,000 In addition to the ,8000 bales held ovor, 1)000 bales were not olfered, consequently 11,000 baies should bo taken as tho quantity carried forward. : .'/'. .' j i During the sis series of sales, a total,of S04;000 bales wero sold asunder-.— ; ' ' Bale 9. , - 'United. Kingdom .....'.,.. '.453,000 1 / Continent, : '&b,700 • ; /United-States '22,300 / 1 , 'I.;-, : -804,000 ~Tho: ' United'Kingdom,has taken considerably mo'ro than 'half the'total, and has been the main support ot the wool market. ... Production and Values—Messrs. Williams and Ovorbury, tho well-known London wool brokers, m thoir annual report on the colonial wool trade just issued, rnako ; the following remarks:—"At tho present time,, when rolcrences aro so irequently mado to s tne great increase in supplies trom Australasia, it may bo interesting to consider tho following figures relating to. tho production oi Australasian wool during tho last twenty years'. During the decade .'from 1890 to 1899, inclusive, tho clip from Australasia totalled 17,025,000 bales; in the last ten yoars 'from 1900 to 1909 it has. amounted to 17,651,000 boles, or only a small increaso 0f'20,000 bales. Theso figures go to show that as far. as. Australasia is concerned, tho world's ; requirements , were, shpplied. with practically | tho same quantity of. wool during tho two periods, the latter, of' course, including tho years 1903 and? 1904, when;-the drought was at its worst?-- ;

Since tho season of 190-1-5 tho wool .clip of Australasia has been increasing by leaps' and' bounds." For tho''current season Dalgety and Co., Ltd., who generally ileal'very exhaustively with the statistics, .'and whoso sources/of information are unequalled, estimate, a clip of 2,535,000 bales in round'numbers,, an increase of 100,000 .bales, over the previous.season;-. The increase is probably a consor'votivoestimate, if we may judge by -the forecasts of tlio firm in. previous years. -Comparing the estimate for tho current season ,wit.h tho actual shipments of previous years, wo get tho following interesting tablo:— - ' Bales. 1010-11 ■: 2,535,000 1909-10 ; 2,435,000 190S-D ; ; 2,288,100 1907-8 ."2,057,800 1300-7 ! 2,090,200 1905-G -. 1 1,809,400 I ■' 1,595,700 These figures; show that Australasia is producing .'this reason, .nearly ono million bales, njbro /.than. was the caso just six years-jago, and there nro fewer sheep in Australasia now lis compared with the ••roars' prior to tho ■ drought. And herein, lies the extreme prosperity that is now ,being ; enjoyed throughout the Commonwealth and Now 'Zealand. With respect to values, Messrs. Williams and Ovcrbury have 'the following to say -.—"Tile average value of a balo of wool stands at present at ,£l6 7s. Gd., as ; against -SIG 18s. at tho September series 1909, whilo for tho whole period under review (that is, the wool year, from October to October) it works, out at J316 55., as'compared with <£15 ss. ill the previous season. Tliero have teen very fow fluctuations in tho average value of a balo during tho year, though September, as has often happened in recent years, witnessed ' tho nighest return. At thtse latter sales a fair Australian merino wool in tho grease averaged .£lB ss„ as against ',£l3 10s. at the corresponding period of 1909, and to-day's average of a bale of coarse greasy crossbred stands at £16 45., as compared-with • .-Sls 10s. twelve months' ago." '■•.-., '. . .• Frozen Meat. Frozen meat received special and unusual attention during the year. As a result of complaints and adverse statements a. conference of all those directly or indirectly' interested in the trade was held in Ckristchurch iu January last. All matters brought forward wero freely discussed, but it cannot bo eaid that any real good resulted. ■ This conference uppointed a committee to deal with certain matters, and tho committee very recently met in Wellington and discussed matters placed beforo it by Mr. Lysuar,' of. Gisborne. Dr. Chappie, formerly of NewZealand and.now M.P., for Stirlingshire, and Mr. W. D. Lysuar, of Gisborne, have both made vigorous attacks mainly upon the methods of handling, our frozen meat' in London, and tho river barges in particular have come in for severo condemnation. Mr. Crabb, the New Zealand Government veterinary officer in London,'.and Mr. T. A. Coghlan, the New South Wales Agent-General, dispute the charges, and it is difficult to decide how far each sido is right in this matter. However, . tho interesting feature about tho trade is tho prospect that some European markets may lie made available- to exporters of beef. Early in tho year there was practically a meat famine in America. Prices .were advanced to a very high level owing, it was reported, to the shortage of meat, but a novel boycott, which originated iu Ohio, had the effjet of bringing down prices. At ono period over. a. million people in America •ware pledged to abstain from eating . meat. It was eventually ascertained that enormous quantities of meat weto held in cold store. On February 7 a cablo message from New York was. as follows:— "Official naturns show food to the value of ,£600,000,000 held in cold stores by" various American trusts—including 14,000,000 carcasses cattle, 25,000,000 sheep, 50,000,000 pigs, and .£5,000,000 ■ worth of •fish for the Lenten season." Iu May it was reported that the meat extract business in Chicago was brought to a standstill owing to . the shortago of meat.- In tho middle of June a consignment of 891 carcasses of New Zealand mutton were retailed in New York, and the importers wore characteristically loud in their talk of doing a big trade in imported meat. There has, however, been no development since, and not likely, to bo any now, for on November 1G Now York advices were to the effect that "bumper crops and heavy receipts of cattlo and hogs at the stock yards have caused a decline in the price of feedstuffs throughout tho United States where the high cost of living was becoming a s;-rious matter. Sugar, flour, pork, and lamb will sharo in the reduction in price." , In. the past thrco- months the.' cintro of interest has-been diverted. to.Austria, wheiia in October last .thero were > demon- • strations against the high, price of food, I The .Vienna City Council sought Gov-

eminent sanction for tho importation of Argentine meat, but was opposed by tho Agrarian party. Several members of tli-a Austrian Chamber of Commerce.wore deputed to visit England to inquiro into the frozen meat trade, ■ and . this committee as the result of its visit. recommended the unrestricted importation of meat into the Austrian . Empire. Tho High Commissioners for the Commonwealth au<l Nov/ Zealand and tho AgentsGeneral visited Vienna and arranged for trial shipments of New Zealand and Australian meat. Tho. other day it was stated that small parcels of New Zealand beef were being shipped regularly from London to Italy. At a recent date veal was quoted at 25. par lb., and beef at 9d. to Is. 6d. in Konio.

The London correspondent of "Tlio Pastoralists' Eaviow" in dealing with tho question says:—"ln Austria, Germany, Spain, and Italy tlio public havo risen in rebellion against . tho system there; prevailing, under which the great farming interests aro able to..make fortunes, wliilo tho consumer. eats offal, or, if "he is well oif, pays an . exorbitant sum for/'his. butcher's, meat. In Madrid butchers 'are' • demanding: Stata support in importing • frozen meat. In Germany and Franco the public are seething with indignation, becauso they are denied tho. simple privilege of buying meat at reasonable prices." Tho movement in Franco has gone off on proposals being made to import cattle from Madagascar, where. thero are 4,000,000. head of, horned stock. So far as Australasia is concerned thero is not much in.the agitation. Tlio'countries named want beef aud Now Zealand is not able to spare much. Tho position is such, that it is bound to result in fresh sources of supply being discovered in Madagascar and West Africa; and probably East Africa will bo tapped. ,'A. member, of the German Kciclistag,. writing .to the Christchurcli Meat Company, says:,"Tho Germans /aro not. consumers of mutton, therefore there is no chanco of importing lambs and mutton froni Australia and New Zealand to. auy extent:" . .. Tho frozen meat industry lias made good progress in Now Zealand. Prices have been at a profitable level, and all the - freezing companies havo done well. Two new companies begin operations this season, one at Tokomaru Bay Works, near Masterton. Dairy Produco. Great hopes wero entertained at the opening of tho season that . high prices would again rule, and dealers - were-, as sang u ino aa the. producers, for.they paid extremis rates and tied themselves up with various conditions in thoir eagerness to do business.. Tlio market so far is not up to.' expectations,' and' even the Christmas • demand failed to check tho downward tendency of values. ■ It is doubtful whether the market 'will recover the level of-the previous season;'first of all supplies are larger, ..but this in itself would not bo much, taken, however, ih conjunction with tho widely-ex-tended consumption of butter substitutes it means a great deal. The substitutes have a legal standing, and they are attractively prepared; furthermore, they aro cheap, and spread on bread. .Those who are used to tho substitutes aro not likely to turn td the high-priced butters. Therefore, if supplies of buttor continue to increase, valuos must decline. Cheese also has failed to advance, although tho market, is- firmer than that lor butter. Both 'Australia and New Zealand will havo a larger output this .season, so that a lower rango of values will not mean any loss. The people who stand to lose heavily this season. aro tho dealers who Eecured tho season's output of factories at It-id. to.lljd.

Other Nsv/ Zealand Products. Tallow has sold well throughout tho year, and tlio demand continues very strong:-' Thero has been a shortage-of animal ,fats-..and seed, oils owing to ,'tho extended uses found for. these commodities, 'and : values aro ■ likely to .be well, maintained for sonic timo to come. Now Zealand hemp has suffered from tho competition of other fibres, but particularly irom Manila hemp and eisal, and prices havo ruled low. Millers, however, liavo improved their machinery, readjusted their royalties, and ofiected other rcduc'-J tions in working costs that a small, profit' is how being mado at • present: prices. Thero is no . boom in .flax, and .thore is no immcdiato prospect of, ono. ..-Thero is littlo that .can bo said, with .respect to wheat and oats." Though much of our land is agricultural, and very productive, still our farmers 6eom unablo to grow grains at a profit esreopt when prices aro particularly high. Just now .values are moderate, consequently thero is very little doing in tho grain trade. Prospccts for 1911, . 'Writing a year ago on the prospects of 1910, wo said: "The - depression is over, and we aro on-the -threshold-of a period of prosperity which . will'bo ,'world-wido in its 'scope." '■' That prediction' has been' amply fulfilled. Tho coming year gives promise of being 'bettor i than 1910. There is to-day an abundanco of capital in Australia and New Zealand; furthermore, our Government, is committed to a public works expenditure of closo upon three millions sterling, and the greater part' of tho money will be spent during 1911, Tlio trade of tho world is expanding, and industrial activity is manifested almost everywhere. Tho only apparent danger in tho situation is the labour unrest, and what will bo tho ultimate result of it no one can foretell. Still, 1911 should witness a period of extreme activity, which will bo world-wide.in its scope. New Zealand is certain to experience a very, prosperous year, but 'we repeat what wo said last year, the favourable outlook affords no justification, and' oxteuds no warrant for extravagance in "living or inflation of values, especially land values.' The lessons of 1903 and 1909, if properly learned,-should lead to prudence and caution being.pxercis.M by .tho business' com-munity-during 1911.

i C: f'. Dec. 1909. Deo. 1910. s. d. £ s. d. 2} Imperial Consols ' 82 0 3 79 12 0 4-N. South Wales ' 107 0 0 104 0 0 3J N. South Wales 99. 0 0 98 0 0 3 N." South ' Wales 88' 0 0 SO 0 0 i Victoria ; 102 0 0 101.10 0 31 Victoria 97 i0 0' 9010 0 3, Victoria ' • ■ S5 ,0 0; ■84 0 0 SJ.S: .Australia- \ 97 12 v 0 9G. 10 0 3 S. Australia 83 10 ,0 81 10 0 4 Queensland 102 10 0 101 10 0 131 Queensland • ' 98 10 0 96 0 0 3 Queensland . 85 0 0 '83 0 0 .1 New'Zealand •105 0. 0 *103 10 0 S.V .Now Zealand ' v 1 ' 98 0 0 1 95 7 G 3 New Zealand SO 10 0 85 _0 0 3J West Australian 58 15 0 97 10 0 3 West Australian £8 0'"0 8G 10. 0 31 Tasmania . 97- 0 0' 97 10 0 ,3 Tasmania 80 0 0 BG 10 0

; ' , Sept., 1909.' Sept., 1910. J! • £ ■Victoria 31,924,483 ■■ 3d,338,'303 •N.S. Wales- .-... 37,309,270 39,177,877 •Queensland A.!,.'.' 15,373,243 15,369,332 'S. Australia ...... $951,71G 0,956,935 Wf Australia 5,558,825 ■ 6,338,055 '.Tasmania 2,851,332 2,855,745 ■? ;Commomvcaltli 99,571,809 105,05G>1G New Zealand !.;. 18,170,707 . 18,177,500

Dec., 1909. Dcc., 1910. £ s. d. • <£ s- J. Bank o£ N.S 9 11 0 10 12 0 National Bank 5 19 0 5 l(i fi N.Z. Insurance 3 1(5 0 M 0 South British '... 2 13 G 3 '3 li Standard 13 0 10-0 National Insurance... 17 0 1 li G Well. Gas (£10) 18 0 0 19 0 0 N.Z. Shipping 7 10 0 11 0 0 Union Steam 1 13 0 '117 .. 0 Mosgiel AVoollen 2 15 0 '3 8 0 Kaiapoi Woollen 5 0 0 5 0 0 Well. Woollen (ord.) 3 10 3 14 0 Well. Trust and Loan 7 3 6. 7 10 .0 Equitable Building... 9 5 0 > 9 15 0 Gear Meat (■£■!) 10 10 0 12 5 0 Meat Export (£5) ... li 0 0 0 10 0 Westporfc Coal G 3 G G 17 G