THE BUSINESS WORLD

Dominion, Volume 7, Issue 1945, 31 December 1913, Page 4

THE BUSINESS WORLD

FINANCE AND COMMERCE.

A VERY TRYING YEAR. , - , \ CONCERNING THE MONEY ■ MARKET,'.: '■ ~ ■■■/■ . Tho money markets of Europe and America, and, in fact, in all parts of :!io world experienced <1 very trying /iiiie (luring 1913. There lias been an ipparent scarcity of loanable crcdit, and lomnvers have had to pay very dearly or accommodation. Bear as money las been, it was not quite so d-ear as in 1007, - the. year of the American mancial crisis. During the year there were only two changes in tho Hank of England minimum discount rata as against the five in 1912, four n IGU, nine in 15)10, six each dn 1809 Hid 1908, and seven in 1907. Two ihangea in the bank rate during a year invo occurred oil seven previous occa;ions sinco 1344, the last occasion bcins; is 19ilj. Tho movements during 1913 sre Riven below January 1 5 per cent. .■ April 17 4J. per cent. ..October 2 S per cent. l lto duration <if «ach rate during tho •ear was as follows:— . 4j per cent, for 168. days. ■ 5 per cent, for 197 days... Hie average rate, for the year works out" it fl.lus. 4cl. per.'cent., and, compared F ,r<?Vio V s years, as im&or: — ■ Bank rale, 1 ■M, ''' ' ? : \ ".y i )er ccn t. i-v Average in 1913 1..'....' 4~ 15 4 !' Average in 1912 ■' .1 lo 8} Average in 1911 3 9 Average in 191.0 3 14 8 Average in 1909 3 2 0 . . Average in 1908 '■■■■■. 3 0 3 Average in 1907 ...... 4 18 6 . Three years, 1911-13... 4 0 2 l''ive years, 1909-13 ... 3 15 4 Ten years,' 1303-13 ... 3 14 81 the Bank of i'Yance made no alteration n it:, rate. On October 17, .1912, tho ate was raised from 3} per cent, to 4 i( \ r oont., and the latter rate was mninained throughout 1913. The Paris orrcspoiident of "Tlie Economist," m , communication to that journal dated /ctobor 23 last, sakl:—"Tho Paris mar;ct showy no signs l of shaking itself ree from tlie weight of depression that ias hung over it for so ninny wccus. 'hoso who liavo bought for the' rise and boss who are heavily burdened with low scrip grow tired of waiting for an mprovenicnt, and their liquidations deiress prices. Besides the market is a . ery limited :oiic. ' It is commonly, obr served, too, that the transaction!) of tho investing public have for some time been on a much smaller scale than usual; available funds are being held back, under the influence of fiscal throats-and fears of another war. Whatever be tiis cause, iiie former abundance of money available for investment purposes is no longer in evidence, ant] tno rolump of transactions each account grow smaller and anil smaller! ■Hie same thing occurs week after week; dealers are very ready to take advantage of-a slight rise, ancl consequently those days which opened with an improved tone and a hardening of prices closo with a reaction oil realisa* tiiiiis. Experts are of tho opinion that this same state of affairs will eonlimio tor some time until the international si-liatian or the monetary position changes decisively for tho bottot—or worse._ Paris is suffering " from the same influence that is so prominent in ijonrJon just now. Ihero is an abundance of scrip of tho new issues tnat have been made during tho past lew months waiting to find a home. Ouantaftus! of (bonds remain' on the hands of underwriters and issuing houses, who are eagerly on tho lookout ior a chance to unload. On tho other hand, advances on securities held by tho banks have reached an unusually high desire." . The Imperial Bunk of Germany made but oiio change in its discount rato during the year. On October 27 tho rate was reduced from G per cent, to ■4 per cent. Tho 0 per cent, rate was in operation - from November 14, that is practically for a whole year. This reduction in bank rate does not mean that- there is any great tendency towards easiness in tho German money market. The Germans nro suffering to the same extent as tho other nations of Europe, and German 3 per cent, touched 75 during tiro year, "the lowest on record.

_ M. Lcroy lleaulieu, the well-known French economist, writing on the situation, expresses tho opinion that it is a mistake to_ attribute tho monetary stringency to increased output of geld: it is due rather to (1) a series of bad harvests; (2) industrial development and its excessivo demands for raw material ; (3) universal rise in salaries and reduction of hours; (4> growth in luxury of all kinds. At the same time, while, relief may be hoped for as regards the immediate tension, it is unlikely in bis view that tho very low discount rates of the close of the nineteenth century will be repeated. THE CALL ON CAPITAL. The demands on the London market lor new capital have been very largo and persistent, notwithstanding the dearness of money and the failures of successive issues. In the opinion of members of the London Stock .Exchange the first half of 15)13 was the most .worrying six months in roccnt momory. One trouble, succeeded another, and it .is difiieult to recall a time v/hen so many perplexities had to be fared. I'irsi. came tho torrent of new issues, resulting in a glut of stocks on urnicrwriters' hands, followed by internatiwia! nniest, renewal of- hostilities in tho disturbed state of jilexico, Konn-paliic in Germany, coupled with nervousness on the New' York and Ktirnpenn houses, culminatim* with a fierce strike on the 11-ruul. The trouble was maintained to some oxtouv. in tho second half of tho year. The Mexican situation became very much worse; there was a liiianei.il crisis in India resulting in, the suspension of several native-mannged ■ banks. The shortage oi. geld in (Jormany was severely felt, and there was again a pressure for fresh, capital. . . According '<5 ."The. Fconomis.t." the new issues io October 1013, compared with the figures for the cor-, responding dates for previous. .-ycVus, were as under:-— .■ , v ' ' '■■ij-*: './.'Aft ..; ■■irr.Ms.i'm 'Ki.Trn . J.'- i!')i n:!.:!oi f.73 <. ■ £&i*.mor> im.\>7u:w ■ ; •- 190:? t00.:iin).577 .V- - t'C'ircs 1 of;J J. 013 j'ard.i not_ as large., as J

1,111 1912 or 1910, but considering the i .stringency of the market tho figures aro ; ij;ery. substantial.

i•. 'Jhn. .\i,-;traTnsi;iji States ■ have borkre\ved?very,freely in London, tho Govori:inent>v loans-.,,,.being approximately £«.->,y.i0.n00.,-. .- .

v On -January. G'.Tasmania issued a- 4 per ccut. loan for £1,300,000, tho minimum prieo of issue being £99. ■ Tho public.subscribed for about 28. per cent.,' leaving tho underwriters with about 72 per cent. '

Five days" lntcr f on January 11, Queensland offered a 4 per ocilt. loan ior £2,000,000 at £99, but ; for this issue the public subsidised only io per cen,t, tho underwriters king" saddled with 81. per cent. On February 18 New Zealand eamo on the market with a 4 per ccnt* loan for £3,000,000, tho is-sup ' pric? being fixed at £98. Tho public subsidised SO per cent., the Underwriters being left with SO per cent,, but tho latter were able to unload, and by March 1 were quit of their burden. tOn March 14, tho Government of Nov/ South Wales issued 4- per cent, boitds for. £3,000,000 at 98, and having a currency of four years. This was an exceptionally attractive short-dated issue, and was fully subscribed. On April 10 the West Australian Government offered a 4 por cent, loan for £2,000,000 at 98J, and tho underwriters wore saddled with 87 per cent, of the loan.

On Maj 29 the New South Wales Government again approached tho market, this time with i per cent, oneyear Treasury Bills, for £750,000, and obtained tho money, ■ ■ On May 30 tho South Australian Government successfully jilaccd per cent, one-year Treasury bills for £300,000. ■

0;i July 2 tho Victorian Government went on the market for ft 4 per cent, loan for £3,000,000 at 98, aitd was fairly successful, as tho public tub-, scribed for 70 per cent., mainly conversion, leaving tho underwriters to liiid U0 por cent. On July 23 the South Australian I Government's second appeal to the iiiai- | ket was mado by the issue of a 4 por | cent, loan for £1,000,000 at 97. Tho public, however, subssribed for only 25 per cent, of the issue, and tho* underwriters had to find tiio balance. On August 8 the New South Wales Government was on the ioan market for the third tinio offering for subscription a 4 per loan of £1,500,(500 ! at 97J. The public subscribed for 81 per cent, of tho issue, leaving tho underwriters with G'9 per cent. On September 23 tho Victorian Govornment's second attack on tho martot was tr.ado with n 4 per cent, loan for £2,0011,00(1, for which tho public subscribed 47 per cent,, and tho underwriters 53 per -cent, On October 14 the Now Zealand Government.issued a conversion loan fot £3,500,000 at UoJ m 4 per cent, frauds, with a currency of 10 years, and although all tho hading papers in London commented favourably on the attractive character of the issue, the underwriters wero left with 92 pes- cent, of tile issue.

On November 12 the West Australian Government was again on the market for a 4, per cent. loan for £1,000,000, the. isstto price of which was 07. The underwriters were saddled with 78 per cent, of tho issue, -and the quotation promptly dropped 7s. (id, discount. On Doeeniber 11 it was announced that tho Tasmainau Government bad arranged privately for a loan of £800,1/00. Summing up the position, the loans (including conversions) floated in London during tho year by Australasian Governments wore as under: — £ New Zealand 6,500,000 New South Wales... 5,250,000 Victoria 5,000,000 West Australia .... 3,000,000 Tasmania 2,100,000 Queensland 2,000,000 South Australia .... 1,500,000 25,350,000 The amount appears largOj but it nHist bo remembered thai a considerable portion of the money, has been required for redeeming maturing loans, so that tho. actual addition to tho Australasian debt is not as great as tho figures would appear to indicate. »

111 addition to the New Zealand Government loans recorded above, the City of Auckland on February 19 issue per cent, bonds for £100,000, and on March 12 the Auckland and Suburban Drainage Hoard issued similar Ijoitds, 'and to the same amount., both of which were successfully placed!

i Cltt-Edged Securities. | Imperial Consols at £71 10s. liaro | touched the lowest- level sinco they were converted into 2J per cent. Even at this price sio on© wi.il vcntviro to assert that tlio lowest point has boon reached, for tho convertibility of Consols, which used to bo the attraction to investors, is no longer unquestioned. It was in 1910 that Imperial Consols began their persistent downward oftreer. and when in that year they touched £78 12s. 6d, there was considerable commotion in financial circles. In 1911 the prico dropped still lower, registering £70 155.. but there Was a recovery, and towards tho end of 1911 tho quotation was £78 10s. On October 14, 1912, when tho fitmieiai panic was somewhat severe, following upon the outbreak of hostilities in the. Balkans, the price of Consols went down to ■ £72 10s., and this year tho low level ! of £71 was reached. The highest and lowest prices, according to the cable messages published in The Domiswk from time to time, compare as under: —

' Higliest. Lowest. £ s, a. . E s. (I. 1912 78 10 0 72 10 0 "1913 75 15 I,) 71 0 0 The enormous depreciation in Consols has teen very trying to tlie joint stock companies holding tiiosn stocks for Mims have been set aside out of protit to covr-r tiio depreciation. Th-o tablo appended will give an idea of tlw> movements in Oonsols during the. voar:— 1919. £ s. d. January 8_ 75 5 0 ;■ '.Tammy 27 74 15 0 . February 12 74 5 0 . ■ Mai eh 5 i 75 15 0 *'■ Mnrcli 19 73 15 0 Ma.v .7 75 2 6 ■ .Tune i! 3 7.'! 0 0 .July 2 72 10 0 September 3 73 10 0 . October 13 72 12 8 December 3 72 2 6 . IVd-mber 9 1\ 10' 3 December 10 71 10 0 ' -■ December 17 71 5 0 Di'rembnr 19 71 0 0 In October when tlie price was £72 12s. fid. the quotation was cx interest, and oil December 19, when idiotically i.hero . was three months' accrued interest, equal la about, 12s. od,, tho quotation is 325. Otl. lower.' Some littlo times ago Jir.' Chas, I'aclaSs writing is tlie

' Bankers' Magazine," tlms accounted ,4, |p ' drop in. Ooiisob ■— l,; Jl av< : l " i ;S9 discount ral« becomes '' ? nd , Ul)s li,;e P s <lomi the prion ot Consols, _ becnugo bankers find Ijilla of exchange io | )n lmttor 'short' invostM;wus lliiii! Gijrenuaeiit slock. ijraiii ow- h« fio ex]wrtali<m of capital hasW Wioolloot of mWjfng lira rates of forei'-n «xcnaujso less favourable to u«, w ron<lriii|j it morn and nmro iliffioui't to retain the .gold wo Imvo required. In many ease, too, fro havo lent money for purposes winch, in protected countries. Jiavt; set tip comiK.'titivo demand for raw materials by tiro jwak-ctcd mami> lac.inrer.s_ who consume them. Furtkor . o Browne quantity of aHraotiv-o' se«inil ics placed on our market ] laS tempted traders and tho great fmq.iiCial interests to act wi'tl'i less eautio'ii than formerly, and, they do not now hold that proportion of Government stock anioi'.j'.st their investments whsoli prinjeiißo still requires." ftp national stacks of Cbe other Great lowers arc suffering i„ tho like man, nor, _ and from tho same causes, and it will require a io!>.g period of cheap money to rehabilitate tfiem in tho eyes of tho public. It will be noted in tlw tablegiven abov.o that Consols dropped los. jn threo or four day#, and this may bo safely attributed to the disturbed political situation in tho Near Hast,

Australasian Gofernn'iont securities | have suffered with tho rest in tiio giltS . section, aud in tho taWe ai>peilded tho quotations at norroSfwiiding dates in 15)13 and 1012 aro given:— Deb. 13, Doc.J2, 1312. 1-913. . Fail. . „ £*• d. £b, d-. £, t,. d' 4ri X.S. Wftles 102 0 0 98 0 0 ( o i 3J% N.S. 95. 0 0 59 0 oi6 t> 3 % *.S. VTaicS 84 0 0 SI ■'0 0 5 0 0 4 % Victoria® ... KO 0 6 96 0 0 ! 0 0 SIX Fictorlan ... 94 fl fl 9i 0 0 10 0 3 % Victorian ... MOO 76 0 0 .2 0 0 Si% 8. Aust.fa.iian 93 0 0 67 0 0 (>OO 3% 6. Australian "6 0 0 73 0 0 3 0 0 4 % Queensland 100 0 Q 93 6 9 2 0 0 3i% Queensland 93 10 0 93 0 0 110 0 3"i Queensland f9 0 0 J5 iG 0 3 0 0 4 Now 102 0 0 98 0 0 40 ft 35% NcwXtftland 9t 0 0 88 0 0 3 0 0 3 % New Zealand 80 0 0 78 0 0 ! I t 3i">, W Australian 9 1 0 0 89 0 O 20 0 3% W Auutralian .84 0 0 79 0 0 fi 0 0 Sl% Vasmatrion 91 0 0 87 0 0 4 0 0 3 % Tasmania® 85 0 0 BO CO 300

AUSTRALASIAN FINANCE. Tim year lias been oho of mttneta.>'.v stringency, but fere lia§ beta 110 real inconvenience. Kates for loans htivo kept about 6 per cent., or 1 tier cent, nbo.vo what, is regarded as tho . cheap rate, The coffers' of tho Advances to Settlers Department wero for a time almost empty, but with tho loan raised by the Government in February a cronciderablo sum was available for this purpose, and altogether things liavo moved along smoothly. The banks have been* particular in. their advances, and appear to have set their faces against speculative business. Advances against i'ont' etT'aW, especially ' ■ "subnifban jv/opeity, have been refused absolutely b.v tho banks, and very rightly so. "T3i« customers of tho hanks have boon able to obtain advances to a; very reasonablo extent. Tho September banking iiverages of tho banks in Australasia discloso clearly enough tho position, and tho figures of the deposits and advaawes aro given in tho table appended.. Tho deposits far 1018 and lfll'2.compare as under Sept., 1912, Sept., 1913. £■ & Victoria .. 4fi.182.01l 44-,f1fi3,2-i3' N.S. Wales 56,094,349 54.691,867 Queensland 20,488,802 21,536,481 S. Australia ... 11,155,731 10.PGS.2nl W, Australia ... 6,519,941 6,033,934 Ta&tianaa *1,229,025 4,395,098 Commonwealth.. 144,640,85# 141,939,174 New Zealand ... 25,181,29.1 25,552,83!) Australasia 169,831,150 167,102,010 This comparison shows a nut decrease of £2,339,140, Victoria being responsible for a shfinkago of £1,778,708, New • {South Wales for £1,402,783. South Australia far £317,480, and Western Australia. for £426,007; tho increases wci;o: Queensland £1,047,679, Tasmania £366,673, and Now Zealand £371,545. Turning to advances, etc,, tho comparison is as under: — Sept., 1512. Sept., 1913, £ £ Victoria 38,388,332 35,741,042 N.S. Wales 48,643,244 4:5,598.,775 ■Queensland 37,980,516 16,024 A! 7 fj. Australia ... BiOII.SW 7,984,102 W. Australia ... 8,023,588 8,085.,410 Tasmania' 3,070,709 3,19?;8.a9

Commonwealth.., 124,919,462 117,231,800 Now Zealand ..., 24,&t0,y30 £3,8.70,004

Australasia ...... 149,159,992 141,107,810 Tho reduction of $8,052,182 in advances, as compared with a year ago, is spread over almost every State, Victoria showing a decrease of £2,848,490, New South Wales ,£2.,444,468, Queensland £1.355,96.9, South Australia £027,681, West Australia £§38,178, and Nmv Zea* land £504,526", while tiio only increase is that of £127,130 iu tho Tasni.nniati figures. COMPANIES REGISTERED. For our ligtires relating to company registrations, wo arc indebted to tho "Mercantile Gazotte.V.. Up to .December 20, tlwro wcro 200 companies registered, with an, aggregate 'capital of .€6,585,(87, but ouo coneern 'aumt/tiw Union Steam Ship Company, is (responsible lor £.3,000,000. Another concern, the Farmers* Co-operative Orgaa-' isatton Company, was registered with a capital nf £500,000, \V. and G. Tunibnll ami Co. £100,000. Thtfrn were several concerns registered with capitals of £10,000, .'JV-UKKJ. £.20,000, £23,000, £30,000, and upwards. A rough classification nf tlvo companies registered gives us the following:— ■ Companies. Capital. • £ ii.Tcon ..is 33,001} .Dairying 01,500 Casein 2,500' Milking-machines 4,000 Oil ; * 40a;i$0 I'iokires 1?-S,10i1 Shipping 3,012,2?0 Newspapers ... M 7..120 Gotd-mming 404,8(i0 Con! 12.000 Land 401,800 Patents 04,300 Financial .; 25,000 Timber 71,000 Hrick and tilo 20,000 Motor transport 13,500 Acoiylcno >•••• 20.000 Uakcrios 47,000 Amusements '24.800 Rubber 40,0.00 . Farmers' Co-op. ~,,,. SIK^oSO Miscellaneous ~,» 237,205 Private '. 738,472 £6,58-5,78? There was one company—tlv6 Tasmart Pure Foods, registered with a capital' of only £o. Among tho largo companies registered was tho Intoniattoaal

Petroleum and tho Mineral Development Company, with a capital of £400,000. WELLINGTON SHARE MARKET. Tho demand for all investment share 3 has been steady, and on tho wholo prices have been well maintainpd; in some cases thero has been a sharp advance, owing to special circiumstlances. A comparison of tho quotations for the shares of leading companies is appended :— Dec., 1912. Dec., 1913. £ s. d. £ s. d. Bank New Zealand 11 0 0 10 17 6 National Bank ... 6 0. 0 5 7 6 N.Z. Insurance ... 4 14) 0- 5 13 0 S.B. Insurance ... 3 14 0 4 1 6 Standard Insurance I 12 3 1 12 6 National Insurance 2 10 2 10 0 Well. Gas (£10)... -16 10 0 16 15 0 N.Z. Shipping ... 14 0 0 17 10 0 Union Steam 2 7 6 1 4 3 Mosgiel Woollen 310 0 310 0 Kaiapoi Woollen 55 0 52 6 .Wellington Woollen (ord.) 3 16 0 4 1 0 .Well. Trust and Loan 7 7 6 7 6 6 Equitable Building 9 15 0 8 15 0 Gear Meat , (£4) 12 15 0 13 5 0 Meat Export (£5) 6 2 6 6 0 0 THE MININC MARKET. Tho mining market has been rather quiet during the year; thero have been spurts of activity, but anything in tho nature of sustained movement as was witnessed in 1910 and. to some extent, in 1911 has been wholly absent. ■_ The Waihi Company's shares exhibited a very satisfactory, movement, and so also did the Waihi Grand Junction shares. Ross Goldfields Reconstructed - was again on a bullion-producing basis. The gold production of Australasia con- j tinues to show shrinkage. We have tho figures for the eleven months ended November 30, and tho figure of each State compare as under:— 1912. 1913. Fine oz. Fine oz. Victoria ' 452,182 419,100 New South Wales 149,743 136,023 Oueensland 319,356 240,916 W. Australia 1,189.597 1,201,922 Tasmania 35.500 33,500 S. Australia 5,500 4,500 Commonwealth 2,151,878 2,035,961 New Zealand 301,414 292,016 2,453,292: 2,327.977 The comparison discloses a total shrinkage of 115,917 fine oz. in the Australian production. Victoria was responsible for a decrease of 33.032' fine oz.. New' South Wales for 13,7200z., and Queensland ' for 78.4400z. Tho New Zealand production shows a decrease of fine oz., so that tho total deficiency in the output for the cloven months was 125,315 lino ounces.

New Zealand's Trade. The value of tho exports for tho year ended September 30 last totalled £•24,082,303, or £3,320,148 more than in the previous year. The total was tho highest on record, tho next best being in 1910-11, when the total reached £21,968,651. There wero increases in wool £1,346,000; frozen meat, £628,000; dairy produce, £510,000; hemp, £3-16,000; kauri gum, £220,000; sheepskins, ■ £130,000; and hides, £37,000. There were decreases in grain, timber, livestock, silver, and some of tho minor lines.' The imports wore valued at £23,403,024, as compared with £20,104,486 in the provious year, an increase of £3,293,538. The increase in tho imports was nearly as large as the increase in the exports, so that the Dominion gained practically nothing by tho b Mansion in the exports. The exports : id imports indusivo of specie for a

ijries of years aro given ill the table appended:— ..

Excess of Year. • Exports, Imports, exports. £ £ £ ■" j 1907-8 p. 16,384,173 18,021,426.' 1,037,253;" 3908-9 ... 18,953,661 15,626,368 3,327,293' 1909-10 ... 21,968,651 16,501,171 5,467,481 1910-11 ... 19,967,273 19,329,333 637,910 1911-12 ... 20,762,155 20,101,186 657,669 1912-13 ... 24,082,303 23,403,021 679,279 •£xces3' of imports.^ Tho Wool Market. At the December sales in 1912, held locally, very high prices were paid for the staple, and there was an impression that values in 1913 would rule high, but this opinion was not supported by the actual results. Many of the speculators who bought wool at th 9 earlier sales of the past season were heavy losers. Later an there wero expectations that the admission of wool iuto America duty free would stimulate the market, but so far there has been no beneficial effect. The American situation must, later on, have a favourable influence on the market, but for the present the American manufacturers appear to be well supplied with foreign wool. 'The full six series of sales were held in London and the movements at each aro recorded below: The first series, January 14 to 29. Tho new arrivals totalled 282,500 bales, of which 119,500 bales wero forwarded, direct to manufacturers, leaving with the 2000 bales carried over from the previous sales 135,000 bales to bo catalogued. The sale opened with a .full attendance of buyers, and tho competition was animated. Merinos and fine crossbreds were firm; medium and coarse crossbreds, the change if any wa3 in buyers' favour. As tho sales progressed fine wools improved, but for low quality merino and crossbred wools prices wero lower. The tone of the market continued to improve and tho sales closed firm and active. As compared with the closing rates of tho previous sale's, scoured, merinos,: medium sorts, good quality and' condition were 5 per cent, .higher,'.inferior'.unchanged; greasy merinos, medium"to good, sto 7} per cent, higher; inferior, unchanged; fine crossbreds/5 to 7} per cent higher; medium crossbreds suitable for America. 5 to 7\ per cent, higher, and ordinary medium crossbreds unchanged. The distribution of the wool was as under: • Bales. Home consumption 78,000 Continent 43,000 America 9,000 Held over 5,000

135,000 Second series, March 4 to 19. The . new arrivals totalled 420,000 bales, of which 270,000 wero sent direct to manufacturers leaving with the quantity brought-forward 155,000 bales available for the sales. There was a large, attendance of buyers and strong competition at the opening, and as compared with the previous ■ sales, medium crossbreds and merinos ' and fino crossbreds were from par to 5 per cent, advance, coarse ciossbreds 7A i J.er cent, advance. A- the end of five days the markat exhibited firmness for nil descriptions except medium crossbreds, which declined 5 per cent. Tho sales closed with firm tone, and, compared with the closing rates of tho January series, scoured merinos were unchanged ; faulty scourcd merinos par to 6 per cent, higher; greasy merinos were unchanged ; shafty combing wools par to 5 per -coit. higher; fine quality crossbreds, unchanged, medium quality par to o per cent, higher; wools suitable for America were par to 5 per cent, higher; coarse crossbreds, slipc crossbreds, and crossbred lambs were ft per cent, higher. Tho distribution of the wool catalogued at- this series was as under:— Bales Homo consumption 84,000 Continent 41.000 America 4.000 Carried over 20,000 155,000 Third scries, April 22 to May 8. Tho new arrivals totalled 389,000 bales, of which 227 bales were forwarded dirent to tho manufacturers, leaving, with 26,000 bales brought forward, a total of .188,000 bales available for tho series. '] he market opened firm with good competition, tho priccs ruling on a parwith tiio c\os'ffi2 Tales oi ttw pvwvm

series. Tho tone of the- market was steady and. confident throughout, and at tho close fine quality crossbrcds wero lower as compared with tho closing rates of the March sales j medium crossbrcds suitable for America wcro rather lower; sliped crossbreds wero higher; scoured crossbrcds and lambs wero unchanged. The distribution of tho wool was as follows:—

Bales. Home consumption 93,000 Continent 45,000 America 1,000 Carried forward 49,000 288,000 Fourth series, July 1 to 15. Tho new arrivals totalled 255,000 bales, of which 133,000 bales were forwarded direct to tho manufacturers, leaving, with the quantity brought forward, 171,000 bales available for the sales. Tho sales opened with a large attendauco of buyers, and, as compared with tho closing prices of the previous series, fine, and medium greasy crossbred wools showed no perceptible change, but tlie market was easier for medium crossbreds. A few days after tho opening tho market became irregular and weaker, except for the best descriptions of wools, and at the close exhibited a. 5 per cent. declino in merino short and wasty, inferior and faulty morino, fine and medium crossbreds, coarse, dingy, and clotted crossbred, ecoured crossbred and crossbred slipes; lambs, unchanged. Thoro was a large carry-over, about two-thirds of which was Now Zealand-grown wool Tho distribution was as under:— Bales. . Home consumption ... 83,000 Continent <11,000 America 2,000 Carried forward 65,000 i 171,000 Fifth series, September 23 to October, ing, with the quantity held over, .170,000 bales, of which 44,000 bales wero forwarded direct to manufacturers, i leaving, with the quantity held over, 170,000 baje3 available for the series. Thero was animated competition at the opening, and for merino; and greasy crossbreds prices were unchanged. Fine and medium sliped crossbreds wero 2.J to 5 per cent, lower, and firmness was manifested at tho reduced price's, nnd closed strong without any change on opening rates. Tho istribution was as under; — Bales. Home consumption ... 73,000 Continent 56,000 American 4,000 Carried forward 37,000 .170,000 Sixth series: 'November 25 to December 9. The new arrivals totalled 143,000 bales, of which 40,000 wcro forwarded direct to manufacturers, leaving 103,000 bales, which, with 37,000 bales, brought forward, made 140,000. bales available for tho series. Of this total about 40,000 bales were from New Zealand. Tho sales opened with a good attendance of buyers, and animated competition. For merino wools of good quality and condition prices wero unchanged, but all other wools averaged | a halfpenny lower compared with tho closing rates of tho previous series. Fivo days later tho report was that for scoured faulty merino prices wero rather lower, American buyers wero operating sparingly, especially on sliped wool. On .December 5 all crossbred wero reported 5 per cent, below opening rates. At the close tliero was excellent competition for the best combing wools; fine crossbreds declined id. /to Id.; medium and coarse crossbreds and merino lambs were 5 per cent, lower; slipes and crossbred- Jambs wero unchanged. The distribution was as under: — _ .

Bales. Home consumption 54,500 Continent 67,500 America , ! 3/000V: Carried forward 15,000 140,000 The statistics for- the sis series aro given in tho table appended:— Brought forward 2,000 New arrivals 1,638,500 1,610,500 Forwarded direct 863,500 Home consumption ... 445,500 Continent 293,500 America .. 23,000 Carried forward 15.000 1,640,500 Other Produce Markets. The position with regard to frozen meat was greatly improved during the year. / The markets were extended to Europe and fair quantities have been marketed in some of the capitals, lhe moat important feature, however, was tho opening of tho United States to foreign meat. America is unable now to produce sufficient meat for doificstio requirements, and tho Beef Trust has been active. This-organisation has acquired freezing works in the Argentine, and is also operating in Australia. So far there is no indication of _ ita en- | deavouring to manipulate tho r*ew Zealand market, and it is to bo hoped the I Trust will not have tho opportunity or , doing so. ' Tho prices of irozen meat have been at a profitable Jcvcl throughout tho year, and this is rejected in tho quotations for fat stock in tho paddock and the sale yard. Tho freezing companies have'all dono well, which is \i another excellent feature. The prices of dairy produce have not been so high as in the previous year, still dairymen havo no cause for complaint. By tho production of a good article on approved scientific jincs tho returns from the dairy herds tend to increase. The only disturbing feature is tho announcement that tho Local Government Board has issued a memorandum stating that there is no appreciable difference in tho nutritive values of butter and margarine. Tho competition of margarine, however, with the choicest quality | butter is practically impossible, as it docs not possess either the keeping qualities or tho genuine flavour of a really high-class butter, and, therefore, its sale is restricted to thoso who cannot afford to buy tho superior article. The only sound principle in tho manufacturing of New Zealand butter is to aim always at making it of choicest quality. Secondary and inferior butters will suffer from the competition of margarine, and it is no use producing such butters.

Outlook for 1914. A reaction in tlio world's trade haj begun, and wo havo very good authority for the statement. Sir Edward Groy, speaking at Alnwick the other day, said that there wero signs that trado was.on the turn, but h'ree-trado England would feel tlio decline later | than "Protectionist countries. Jlr. George Paish, editor of tho "Statist" (London), in an interview, said ho ex-! pectcd lower cost of living would soon I prevail. Tho financial stringency ' meant that tho demand for goods wa.i likely to decrease, leading to overproduction, thus tending to lower prices. Reaction in tho world's trade was now duo, but he did not think it wan likely to bo serious, but rather a normal quiet period. It seems safe to predict that the money strin"eucy which began with tho war in the Balkans will continue at least for a time during the Now Year, and the difficulty which the Australasian Governments will experience in raising fresh loan capital in London will bo reflected in the various States. The "vigorous" public works policy must be modified, and that will mean less expenditure and _ less employment. Prices of commodities will, "o doubt, droo, but the decline should not be serious enough to cause any trouble. On the whole, with ordinary care unci reasonablo economy, tho year lfll-1 should be a profitable ono to New Zealand.