COMMERCIAL ITEMS.

Dominion, Volume 5, Issue 1330, 6 January 1912, Page 8

COMMERCIAL ITEMS.

POSITION OF CONSOLS. A cable messaec dated January 3, states that the "Pall all Gazette" supports the "Daily News" in its advocacy of Government action to improve the position of Consols, from which it is obvious that a newspaper agitation to raise the price of Consols is again iu evidence. Consols stand at about £77, at which pricc they yield the investor nearly £3 ss. per cent., and this is the fair thing. It has been ascertained from the records of a great many years that oi per •cent, is about the average rate of interest on gilt-edged securities, and Consols realise the fact that Consols arc just now at what may be termed their normal level. Not so many years ago Consols stood at £113, and to sec them now at £77 seems to suggest that, the national crcdit has declined, but this is not really tho case. When they stood at £113 the interest, was 23 per cent., and money was "dirt cheap," but now investors look for a comparatively high return, and the actual rate of interest has been reduced to 2J per cent. The presiuc.*iit of the Institute of Bankers, London, Mr. Frederick Jackson, in his presidential addres?, recently delivered, referred to this subject. Bankers, pointed cut Mr. Jackson, still considered it noce-sary to hold a considerable amount of Consols; but could their experience of this investment have made itpopular in'their eyes? Could they, or any stockbroker, honestly recommend their clients, in view of the above rccord, to invest in Consols? He was often told that Consols at a certain price were "chcap." lie asked, "Why?" Tiny had fallen consistently years, they were out of favour with investors; the banks and insurance companies had had tnich an unpleasant experience with them in recent years that they were not likely to incrtr.se their holdings of them. There were more sellers of Consols than buyers —indeed, the only considerable buyer of them was the Government broker. What was to arrest this decline in price except the for the sinking fund or for the Government Departments?

It was comparatively easy to give many pood and satisfactory reasons for the fall in the price of Consols, explained }fr. Jackson; it wss much more difficult to suggest a-ny means which would arrest this decline and prevent the violent fluctuations—mostly, he was sorry to say, in a downward direction—that h;'d been the feature of recent years. And yet, in his opinion, it was most important that something should be done; it was not good for the credit of this country that its premier security—and what was still considered the premier security in the world —should have such an unenviable record. Jt was suggested that transfer bv deed should be permitted. By all means, but was this sufficient? Would it help much? Sir It. U. Inglis Paljjravo had put forward an i ingenious Echeme for dividing Consols into two classes—oue clac-s irredeemable, the other class redeemable over a period of yeavs. But this schemc struck "him. as too ocmplicated to be acceptable. Others had suggested that holdera should be asked to accept a corresDondiug amount of a 3 per cent, stock in place of their present holding of 2i per cent, stock. But this would, in his opiniou. be equivalent to an act of national bankruptcy, and must bo discarded. Consols had, in fact, lost their negotiability, which was in the past one of their greatest attractions. Not- so many years ago it was our boast that you could sell or buy hundreds of thousands of Consols without materially affecting their price. The dominating factor was ' then the value of money; but no one coitld say nowadays that cheap coney or dear money had an important influence on the price of Consols. This was not a question of party politics, but a matter of national concern; and he believed that if the host brains in the city were asked to suggest a solution of the difficulty a satisfactory one could be found.

COLONIAL AND OTHER PP.ODUCE. Wheat—The markets wore inactive till to-day, when further reports of bad weather in the Argentine caused great activity. Three Australian cargoes and ECOO tons South Australian Flapped on December 20, and 10,500 tons shipped in January, sold at 365. 6(1.: five Australian cargoes, 27,600 tons New South Wales January shipment, and 70CO tons Australian from three ports, sold at 365. 3d. One Australian cargo, 61C0; tons South Australian, per steamer January 5, and 14,5C0 tons i\ew bout-h Wales, i:er sailor early in December, sold at 355. 4i<l.. Australian, on spot, is (£biet and unchanged. New Zealand long-berrv, 345. 6d.; short-berry, 345. 6d. to 355. Flour is inactive at 255. 3d., ex store, and 245. 6d. on passage. Oats are firm. New Zealand oil spot, about 245. 6rl. ePas arc dull. New Zealaud maple, 375. lleans are firm and scarce. New Zealand, 355. to 365. 6d., ex store. Butter is very firm, with a strong demand. Tills week's colonial arrivals exceeded 80, COO boxes, and were well cleared Danish, 1365. to 1375.; choicest New Zealand 13<s.. occasionally 1365.; secondaries, 126? to 1305.; Australian, 130s. to 1325.; secondaries. 1245. to 128s. There is □ "bullish" tone and a further hardening is probable as supplies dimmish. Cheese is very lirm. New Zealand, 735. to 743. Sugar.—German, 83 per ccnt. net titre, 3d. lower at 14s. 9d. per cwt.; first marl; granulated, f.o.b. Hamburg, 2d. higher at 17s. Bradford Tops—The market is quiet. Sixty-fours, 25d.; common sixties, • super sixties, 245 d.; fifty-sixes, 21d.; fifties, lBd.; forty-sixos, 14Jd.; forties, 13id. LONDON' MAKKETS. Messrs. Dalgeiy and Company, Ltd., Wellington, have received the following cablegram from their London house, under date January 4, in regard to the following markets:—lieef; The demand is limited, and the market weak. Prime ox fores, 23d.; hinds '33d. Now Zealand stocks of mutton and lamb arc exhausted. Tallow: Change, if any, is in favour of buyers. Rabbitskins: 32C0 bales will be offered for sale. Anv ch.ingo ill prices is likely to be in favour of sellers. METAL MARKETS. i Copper, on spot, 10s lower at £63 3s. 9d. per ton; three months, 10s. lower at £64; 'electrolytic, 225. 6d. lower at £64 ss. Tin, on spot, £191 pel- toil. Pig-iron, 3Jd. lower at 50s. std. per ton. Spelter, unchanged at £26 15s. per ton. WELLINGTON WOOL SALES. The next wool sale will be held at Wellington on Thursday of next week, when the catalogues of the brokers will comprise 'approximately 17,750 bales, mado up as follow:— Hales. Dalgety and Co 6500 Levin and Oo 4150 Murray, Roberts and Co 2600 N.Z. Loan and Mercantile 23C0 AbraJiam and Williams, Ltd. 14C0 Wairarapa Fanners and United Farmers 800

CHRISTCITOKCH WOOL SALES, (By Association.! Chrlstchurch, January 5. The third wool sale of this season's scries \va<s hcUl to-dav before a very large attendance of buyers, which represented all sections of the trade. There wore 15,102 bales catalogued—a l'ailing-off of 461.0 bales as compared with the January sale last year. This short-age was due to wet weather delaying shearing during the last iuonth. Tho wool was not in quite such good condition as was the ease a month ago, rain having taken a lot of brightness out of it, and a £oocl many lots showed signs of damp-, ii-vs. Thire was again exceptionally brisk competition, especially betwen Cont'inciilal and Home sections of tile trade. The Amerj can buyers were not so much in evidence as at the previous sale. The Duncdin Woollen ilills and local fcllinungers purchased a fair quantity. As compared with the previous sate, line and medium halfbreds wore lirnicr by a fartliing to a halfpenny per lb., and medium pieces al,=o sold bettor. There wa.s a better selection of merinos ollered than at the previous sale, and they sold well. All other classes of wool were fully equal in values to tho'c ruling at the December sale, and the number of lots pawed was again comparatively small. Tho range of prices during the forenoon wasJlerinos, B}d. to 13d.; haifbred, BJd. to 12Jd.; Corricdale, 9d. to 13d.; thrcc-quartrrbrcd, 72d. to lljd.; crossbr,j:l, 7(1. to llid.: longwood, 7id. to Sid.; down wool. B}d. to lDjil,; merino piece.-' Sid. lo lCtd.; halfbred piece.-, 6d. t-.i lid.; crossbred pieces, 5Sd. to Bid.; locks ami crutchings, 3Jil. to 73d.

The highest priced chi* weric-'-Jp over liytlal Downs." Corricdale, 13d.; "l'.akahuri," Corricdale, I.Sid,; "Ma Halfbrfd," Kid,; ">'C ovor Throe st'i« UulfbrcJ." iyd,; "IX orcr road, of items," half bred.

12.1 d.; ".Annma," halfbred, 12d.: "IV mer ino, 12d.; (eonjoiaiMl), halfbrod, 12u. "PT," half bred, 12d.; "Waitolu Down?,' halfbred, 12d.; Shades, halfbred, 12d.

GKAIN" AND PKODUOM (By Telegraph—Press Association.) Cliristchurch, January 5. The local grain .uid produce market has scarcely yet resumed it* normal state since the holidays, aiul business is yet very quiet. There has been sonic wheat offering, but millers are rtill holding oil' with a view to seeing bow Ihe new crops arc likely to turn out. There is an excellent promise of a good field, providing that suitable weather sets in to ripen the grain and allow the crops to be harvested. The paddocks are very soft, however, and in the northern district, where Fume early crops are ready for the binder, the machines cannot be taken on to the ground. The nominal price for wheat is 3s. 6d. at country stations. though pearl is worth more. The grain is likely to bo soft, \ud in view of this fact a good deal of last season's wheat will bo required for mixing purposes', but there appears to be a fair quantity still in the hands of growers, though there is not likely to be such a large amount of stock threshing as usual. Some new oats are expected to be on the market shortly. Customs duty collected at the port of Wellington! yesterday amounted to £3944 19g. 2d. LONDON MINING QUOTATIONS. By Telegraph—Press As«nrin'?nn C^nvrl-cbt London, January 4. Tho latest Stock Exchange quotations are:—Waihi Goldmining, 51s. 3d. (buyers), find 535. 9d. (sellers); Grand. Junctions, 295. 4d. and 30s. 7d.; Talismans, 455. 3d. and 48s. 9d. SILVER. London, January 4. Bar silvor is quoted at 25 5-16 d. per ounce. WHEAT. The American visible supply of wheat is estimated at 112,769,C00 bushels. OF ENGLAND RETURN. By Telegraph— Press Association—Oopyrleht {Kpc. January 5, 9.30 p.m.) London, January 4. The Bank of England return issued for the week ended Wednesday, January 3, is as under:— Issue Department Kotelssua... £'52,034,000 Gov.debt ... £11,015,030 Other securi tioa ... 7.4 M.OOO Gold ... 33.1H5.000 £52.034,003 ' &2.054.U00 B inking Department. Proprietors' Govt, eecurieapital £14,553,003 ties... 1 ... £15,270,000 Public de- Oilier secuviposit3 ... 10,677,003 tics 44.002,000 Other deposits ... 40.352,0W Kotos 2-2.50J.C00 Rest, 7-day and other bills... ... 3.872.C03 Coin ... 783,000 £33,854,001 . " £33,501,030 Tho leading items of the Bank of England Teturn afford the following comparison;— * Thisweok Lasfcweok. Last year £ £ £ BnlHon 33.6:55,000 31,732.00 a 31.048.0W Reserve 23.652.0W 21.605.1XU 21.670.u00 I Note circulation 59.ir0.10Q 2'.U9J,COJ 2b,r.2l,iyx) ! Public Deposits 16.C77.000 16.331.000 12.Mi;,000 1 Other Deposits 40.352.WJ 4J.7W.0J0 49/203,000 Proportion of reserve lo liabilitioj ... 35.85 35.48 36.40 GOVERNMENT SFOCIUTIES, The following are the latent quotation! for Government ..securities, with a consparison of those ruling: last week:— r Variations —. / ' com pa oil Pricfl. I with _j ' I last, vt'eok. I £ 5. d. 2s°n Imperial Consols . 77 5 0 ss. higher 4 N.S.'\V.l9:»3Jan.-Julyi 105 10 0 10s. higher ,3h „N.S.W.IUI^ .'iar.-Sep.' f'S 10 0 Unchanged 3 ,N.S.N\.W33 Apl.-Oct. 87 0 0 Unclaimed 4 ~Vic. 10'JJ Jan.-July 10110 0 10s. higher 3i „"\io. Jan.-July 9i> 10 0 , Unchanged 3 „ Vic. lii/J-49Jau.-July -84 JO 0 j7s. (kl. liiyiier 3j „y,A. 19idJau.-»Iuly 0? 0 ol exchanged 3 ,S.A. IJlliJun.-July ball) 0| 100.-s.hi/ihL-r •1 „QTdlJl3--J Jau.-July 102 0 o; 10s. higher 'i'i „ QTdm-oOJan.-July £6 10 0 | ss. higher 3 . „QTdke:.47Jan..July st 10 0" Unchanged 4 „N.Z. 19£) May-N'ov. 105 0 o| is. higher 35 ~N.Z. IIHO Jan.-July ' 06 10 0 ss. higher A „ls.Z. l'J4*» April-Oet. fc6 10 0 1 Jn■•hant'ed 34 „W. May-Xov Ik> 10 0 j Unchanged 3 b7 0 0! SOs. higher &J „Tis. IWUJao.-July t-G 10 Ol Unchanged 'i ..Taj. U3J-1J Jau.-July fca 0 0| Unchanged

BANK KATES OP DISCOUNT. Tho Bank of England rate was, ofi December 1, 1910, lowered from 5 to 4J per cent.; on January 27 it was lowered to 4 per cent., on February 16 to 3J per cent., and ou March 9 to 3 per cent. On September 21 it was advanced to 4 per cent.

The Bank of France rate was reduced from 3i to 3 per cent, on January 23. 19C8. and continued at the latter lipr.ro until September 21 1911,-when It was raised to 3J per cent. The Imperial Ranlr of Germany reduced its nite from 5 to 4$ per cent, on February 6 f and on February 19 the rate was further reduced to 4 per cent. On Sep tember 19 the rate*was raised to 5 per cent. IIARKET RATES 0 ; F DISCOUNT. The following are the market rates for best threo months' bills:— London Paris Berlin rate. rote. rate, percent, percent, percent. This wcel: 3$ 3ft 33 Last week 3?1 3$ Last year 3h 2li 3£ Short loans a,ro quoted at 23 ,per cent., as compared with 3* to 32 per cent, last week, and 2a per cent, last year.