COMMERCIAL ITEMS.

Dominion, Volume 6, Issue 1583, 29 October 1912, Page 8

COMMERCIAL ITEMS.

THE SHIPPING BOOM. Tho ocean transport business on the seven sens has increased far more rapidly, during recent years than lias the nraount of tonnage available, and while the effect of the change in tho relative positions of these two vital factors was imperceptible at first, it ihas made itself felt during the past twelve months in a very remarkable fashion, and although many thousands of tons of new shipping arc now under construction, it will bo a long time before the present situation undergoes any radical alteration. On the 'vorth Atlantic route the volume of freight available for transport has dpubled during tho past decade, whilo a similar state of affairs' prevails in the Australian trade, Business is also active in connection with China and Japan. The ino3t striking expansion in the world's shipping trade is, however, to be found in connection with South America. Argentina, ISrazil. and Mexico, to mention the East Coast, are all of, them doing an enormously increased business with other countries, while on the IVest Coast Chili is developing very rapidly, and tho found it necessary to steadily augment their fleets in order to keep pace with what has been going on. It has been realised by tho respective boards of directors that an immense amount of fresh construction will have to be undertaken if the volume of business now offering is to 1)0 handled satisfactorily. Tho opinion is, therefore, unanimous in shipping circles that not only will tho present high freight rates continue, but that a further advance will take place before long, and shipping companies all over the world arc regarding their prospects with considerable optimism. TJp to twelve months ago it was the custom for shipowners to enter into sharp competition with one another, to- obtain the n/ore important contracts, and their attitude then was that the larger the business tho lower the freights.' A complete reversal has recently taken in this policy, and with ishipping tonnage scarcer than it has been for a Jong time past, are now inclined to increase their freights proportionately with the amount of business offering, in the belief that there is no need for them to accept long time charters at current rates, in view of the strong probability of an improvement in the market hereafter. This line of argument is finite logical, and will probably bo justified by events. The opening of the Panama Canal nest year will undoubtedly give a great fillip to tho shipping industry all over the world, precisely to whnt extent no one can predict, but there can be no doubt that the effect of the opening of this waterway will be enormous, and preparations in the meantime, grop.t as they will be, will not find tho shipping companies in a position to take full advantage immediately of the situation, that will be created by the opening of the new means of communication between tho Pacific and the Atlantic Oceans. Fresh route? will be opened up and additional porta brought into being, nil of which will call for fresh tonnage. Possibly the regular use of the Canal may not take place quite as soon as is anticipated at present, but there can be no doubt that within twelve months of the opening cf the waterway tho world's shipping trade will have been vitally affected. There are some who are apprehensive that English shipowners will suffer from tho approaching chanso in conditions, but those who know most of tho subject do not participate in these fears. On the contrary, it is felt that tho prosperity of tho shipping trade of Groat Britain will derive substantial benefits if the. new situation is grappled with at the outset. The Royal .Mail Steam Packet Company will be most immediately affected by tho opening of tho Panama Canal, and the directors of thatgreat undertaking have already taken steps to derive all possible benefits from the increased opportunities which will be presented to them. But oven that company is unable to state any more than in general terms what will be the precise state of affairs to be faced. All the directors know is that the present shipping boom will make further progress during the next twelve months, and probably continue to do so thereafter, and that the shipping industry is likely to bo more prosperous during tho next fow years than ever before. To this may be added tho fact tha-t a- boom in shipping means activity in nearly every other industry, and while it is admitted that sooner or later tho amount of new tonnage launched will put an end to the present high rate- of freights, there is no probability of any reduction for a considerable period, during which the average book value for tho vessels owned by the limited companies registered iu this country will probablv bo cut down by £3 or £1 per ton, in which case the book value of English mercantile marine will stand at a very : low figure, and that at a period when conditions are most prosperous. liy this means tho various companies will bo placed in a. strong financial position to face whatever reaction may occur subsequently, and the probability is, therefore, that the benefits of tho conditions now prevailing will bo felt for a period of many years, possibly until 1920.—"Financial Times."

MAEINE TJNDEEWEITEES. At the international conference of Marine Insurance Underwriters, held at BadenBaden, one of the chief subjects of discussion was the effect of labour disturbances upon policies of marine insurance. The practice adopted in Great Britain is to exclude from the ordinary risks insured against all loss or damage arising from strikes or lock-outs, and Continental underwriters have now decided to adopt this system, in contrast with their previous system of including such risks without extra charge. On tho other hand, the English practice in regard to the war risks warranty lias been objected to by Continental underwriters, and particularly by those doing business in Germany, whero the idea prevails that the extra charge imposed in connection with war rfeks should he confined to 'immediate consequences," instead of including the incidental risks arising therefrom. Tho mattor has been left open for the present, Knglish underwriters having decided 'to continue to follow their previous practice while their Continental colleagues will adopt a narrower interpretation of the war risk clause. DoubtlcM, hereafter, an agreement will bo arrived at regarding this important matter, for there can bo ■no doubt that the English interpretation of suoli policies is the wiser one. THE ADVANCE IN' JIAKISE INSURANCE. That marine- rates would ho increased was predicted when the Titanic foundered. The prediction needed no great, prescience in view of the heavy losses of the previous 15 months. . Lloyd's, in making the incrcn6O, has inserted new clauses in policies to protect the insurers. There has been <in increa.so of more than £2.« M,150 in losses suffered by Lloyd'K underwriters during the first, six months of this year over tho corresponding poriod of 1911, and under the-o appalling cirr.nmstaneoe steamship owners have little ground for serious complaint against the higher rates. The sinking of the Titanic was quite naturally responsible for a. big portion of the increase in losses, hut of {he £U50,M0 tarried on tlm diip Lloyd's were not. the only interests to suffer, a? the rbk wns tcitlerod j,, this and other countries. The increased loss of Tiloyd'a underwriter? over the «bc raonthe of Kit roar is cowtiias tike tI.Ko.CJO ovet

and above llio Titanic loss, as the Lloyd's portion of insurance carried was not more than £937.500. Lloyd's members havo further heavy losses facing them, as within the period of the first six months of this year 32 ships were posted as missing. Claims have been paid oil 127 vessels of over 500 tons, bringing tho total amount to the greatest in tho history of marine insurance. LOCAL WOOL SALES. If the weather of the past, two day 3 continues shearing in this district will bo pretty general. Only a few clips have been gotten in so far, and thia is rather unfortunate, as tho first local sale of the season will be held in Wellington this day week. November 5. There was no Bale last year, but in 1910 about 1300 bales were offered. It ie very probable that a similar quantity will bo on offer next Tuesday, and judging by recent cable messages the price of the stnplc should show improvement. Tho following are the dates of tho various sales to bo held throughout the Dominion during November, and tho quantities of wool offered at the corresponding sale; of the two previous years:— 1910. 1911. In November— Balee. Bales. s—Wellington, 2 p.m 13C0 no sale. 7—Napier, 2 p.m 4600 no sale. 14-Christ<!hurch, 9 a.m.... BSCO S4CO 20-Tiniaru, 9 a.m. ? 4500 16C0 27-Auckland, 9 a.m 69C0 6100 NOTES. The new substitute for jute made from paper, yarn, and cotton waste by a German firm appears to be finding a market, according to recent Homo flies. Arrangements are being made for enlarging the present works. An agreement has also just been concluded between tho German makers of tho new product and tho Austrian Jute Cartel for the erection of works in Austria, the cost being defrayed joints ly by the Gorman firm and the Cartel. The new substitute, which is marketed under the name of textiloso, is so far being used only for sacks. It ie said to offer great advantage over jute for packing dry powdery substances, suoh as cement. The nature of the material prevents any dust escaping from the bag. Tho Canadian Government has decided to issue 5-dollar (£1) notes. Hitherto the Dominion note issues were in denominations either above, or below, the bank notes, and it might appear that the Government had decided to compete against tho banks in regard to the noto issues. But that is not tho case. The position with regard to the bank notes is this: Tho banks are allowed by law to issue notes to the amount of their paid-up capitals, with a power to extend those issues between September 1 and March 1 during the grainshipping season, paying a tax on the excess. On June 30 last the limit of the bank notes was £22,356,062. and tho actual issues were £20,810,417, which was practically as high as the .banks could go, becanse no bank- can in actual working issue to the full extent of its powers. Tho risk of breaking the law would bo too great. Still the demand for currency continued, and with the virtual approval of the banks tho Government decided to supply the want. The banks,'as a matter of fact, would prefer exchanging some of their bit Dominion notes for inoro workable enr-rem-.y, rather than reccivo powers to exteud tlieir own issues coupled with a tax. Three of the Canadian banks actually did exceed the note-issuing powers inadvertently.

There have been marked developments in the productive capacity of the artificial Bilk industry during the past year, particularly in Russia, where the ordinary silk /trade is also making good progress. A now company has just been formed with a capital of 3,000.000 francs to erect a plant near Moscow. The style of the undertaking is the "Soio Artificielle do Mysbow." A fairly largo works has been producing in Moscow for some time past, and it is stated that arrangements arc being made for increasing the output. The company which began manufacturing in Tomapcliow at tho commencement of tho current year has been very successful, and further undertakings will shortly bo put forward in Russian Poland. A large amount of new plant has been put down in America and England and Finland. It is not surprising that the older Continental firms arc feeling tho effects of this in .•> falling-off in the export trade, and several of them havo had to reduce production. The consumption of artificial silk, however, is steadily increasing, and the output of the iicw : firms ehould find a. market foon, if it is of satisfactory quality. Velvet manufacturers arc begininng to make use of artificial silk in rather large quantities.

The boom in the Shefiiold steel trade continue.,?, orders beinc obtained almost without effort. The chief matter of anxiety is to get them executed. Deliveries arc in sorno cases hopelessly in arrenrs, without a prospect of catching up. Sheffield has hail ite trade booms in previous years, but none even approached the present one in tho volume of orders put through. The conditions arc uninue in the fact that tho pressure is universal, and is felt in every single branch of the stctl industry, and in tJio trade with all foroiten markets, while no firms complcin of being exceptions to tho general experience. Excluding the influence of strikes, every rnoulli this year has registered a bie increase upon, its predecessor. This estimate receives support from tho wonderful story told by the export returns for July. There i.-i no simi at present of a turn in the tide of prosperity. SYDNEY POTATO MABKET. By Tclesraph—Press Association—ConrrteM Sydney, October 28. Tho arrival o! Northern Eivers' new potatoes is helping to relieve tho shortage. FROZEN MEAT. London, October 27. The Incorporated Society of Meat Importers' Kmithficld market quotations for tho undermentioned classes of frozen meat are based on actual sales of not less tlinn one hundred carcasses of mutton or lamb, or twcnty-fiyu quarters of beef of fair averago quality. The quotations arc not for selected lines, but for parcels fairly representative of tho bulk of the shipments now on the market. The prices which follow nro on tho jvvcrnge a farthing per ]t). itioro than tho values ex ship, this difference representing an average cost ill expense, handlins.i conveyance, and selling tho meat:—

Oct. 19. Oct. 26. Mutton- . d. d. Canterbury, light * * Canterbury, medium * " Canterbury, heavy * * Southland 4J • North Island, best 43 4J North Island, ordinary ... 45-16 41 Australian, light 4 4 Australian, heavy 4J 4J Hirer Plato, light. * . River Plate, heavy 4 315-16 New Zealand ewea 3J 33 Australian ewes ... ' ' River Plate ewes * * Canterbury, light 53 . 53 Canterbury, medium 5J — Canterbury, heavy 5 — Southland 53 55-16 North Island, ordinary... 5 5-16 5} North Island, selected 53 65-16 Australian, best * * Australian, fair * Australian, inferior * River Plate, first * ■ * River Plate, Eecond * * Beef- . New Zealand, ox fores ... 23 - 2^ Sow Zealand, ox hinds ... 38 . 33 Australian, ox fore 3 28 23 . Australian, ox hinds 3j) 31 . River Plate frozen fores... 25 2* Biver Plate frozen hinds 3§ 35 River Plate chilled fores 25 21 River Plato chilled hinds 41 4J •None offering. THE WHEAT AFLOAT. London, October 27. Shipments of wheat and flour afloat on October 26, a week previously, and a year previously, were:— Oct. 26, Oct. 19, Oct. 23, Qrs. Qrs. Qrs. 1912. 1912. 1911. TJr.ited Kingdom 2,285,000 2,465,C00 2.6C0.0C0 Continent , 2,350,000 2,135,000 1,255,000 4,635,00 D ' 4,600,000 3,855,000 The wheat shipped from tho Atlantic and Pacific Coasts of North America, during the past week, tho previous week, and the corresponding week of last year is estimated by "Bradstreet's" to betAtlantic Coast ... 590.000 479.0C0 22M00 Pacific Coast ... 40,000 30,000 M.COO 630.0C0 509,000 319,000 The quantities of wheat and flour shipped to Europe from the countries enumerated were as under:— Arccntine 36.000 88.CCO 26.000 T,,,s s ia 415.0C0 320.000 2!5,CC0 Dnniiblan States 90.0P0 146.CC0 245.0C0 India. .... 167,000 179.000 42.0C0 Australasia 77.000 54.0C0 70.0C0 785,000 787.C00 668,000 LONDON MARKETS. < BUTTER. London, October 27. Argentino butter is quoted at 1225. to 126s per cwt. A fow boxca of now Australian are realising, for sailed, 120s. to 1253.: for unEalted, 120s. to 128s. A good demand is anticipated. RADBITS. The market is firm at full rates. WOLFRAM. MTolfram is quoted at £9 to £10 per lon. NEW Mfl lilVEIi. (By Telegraph.—Press Aesoclation.i Reofton, October 28. New Big Eivcr gold returns:-9160z. 19dwt. were obtaiuetl from 680 tons of stone crushed: rvaalda Wos. Jdwt.i approximiu value, ,«?Mi'