COMMERCIAL ITEMS.

Dominion, Volume 7, Issue 1948, 3 January 1914, Page 8

COMMERCIAL ITEMS.

, NEXT WEEK'S WOOL SALES. For the wool tales, which commence at tho Town lloil at 9 a.m. on Wednesday, January 7, the offerings Ehow a large tiecreaso when compared with last year's figures. In fact this year's total number of hales is not quite half as largo as last year's. The falling-olf ia said to lie entirely duo to the very wet, season. Tho offerings from different firms arc as follow:— . Bales. Dalgety and Co. 3,600 Levin and Co 2,500 • Murray, lioberts and Co 1.940 N.Z.. Loan & Mercantile Agency Co. 1,600 Abraham and Williams 1,100 Tho Wairarapa & United Farmers 470 W. and G. Turabull and Co WO HAJIBUEG-AMERICA LL\K. .. Although tho Hamburg-America Line increased its capital by 25,0C0,0C0 marks as recently as in. March, 1912, tho board of directors now propose issuing further shares to tlio value of 30,000,000 marks, 60 that, tho total eharo capital will be 169,000,000 marks, or £9,CC0,C00, As the shares are to be offered to the shareholders at a price of 118 per cent., tho company will thus acquire new capital to the amount of 35.0C0.000 marks. Bearing in view that tho shares of the Hamburg-America Lino are now quoted at 142 per cent-., there can be no doubt that, shareholders will, almost without exception, take advantage of thci offer allowing every holder of five 6ha-Tcs to acquiro one further share. The company has, in addition, in circulation debentures to the value of 71.5C0.0C0 marks, and is by far the most powerful shipping company at present existing on the Continent of Europe. The nominaJ value of all its debentures exceeds 250.CC0.C00 marks. I'hej reason given by the board of directors for this now issue of Ehares is tho necessity for a large increase of the cargocarrying tonnage, caused by increased demands and by tho starting of a passenger and mail service to the Par East. As a matter of fact, tho company had already 21 vessels building at the end of, 1912, Including tho throe sister ships of'the lmperator class, and three largo passenger and cargo stcamer3 of from 20,000 t0'21.500 Tccistered tons. A now departure that haj been decidotl upon in connection with the building of somo of the new ttoamcrs about to bo built consists in the Ham-burg-America Lino bavins entered into an agrcenjent with the Bremen Vulcan yard, according to which the latter will only charge the sums actually expended on material and ■ work, and will be allowed a certain percentage in the ehapo of profits and for tho use of its plant. At the 6amo time, tho company is naturally seeking to have at its disposal an increased capital, so 03 to deal in a satisfactory manner with coming changes in tho shipping trade. In the plan, tho company gave notice on October 1 of its intention to withdraw from the TransAtlantic I'asscnger Pool on January 1. 1914. This mean-s that. in. all probability, the various lines are about to enter on a fresh period of competition and rate-cut-ting. Furthermore, the opening of the Panama Canal will mako great- changc.7 in the whole carrying trade of the world. In order to prepare for all eventiidlitici?, ,tha Hamburg-America Line has already bought a number of steamers in England, an all the German yards have their hands already full. Without a doubt, the company will still further enlarge ltf> building programme if the proposed Increase of capital is adontcd at the next general meeting of shareholders, and of this there can bo but little doubt. With regard to business in genera!, the company has stated that the results achieved by tho first representative of the new Imperator class have been hicrbly satisfactory. and that last year's profits have been ago In considerably exceeded. A dividend of 10 per cent., as was the case in 1912, is likely to •be again .proposed, and this although the new Bharos are to participate in tho profits, while considerable amounts .arc, to be p.ppli«d towards depreciation', or carried to tho reserves.

GOLD RESERVES. An address dealing with various aspects of banking and international finance was delivered on November 3 by Sir Edwaril Holdon to a claeo on the "Theory and Practice of Banhinj" in the Birmingham Municipal School of Commerce. It was frequently said that bankers did not hold Bold, Sir Edward remarked, but that was untrue. They did not hold gold to a. largo amount, The proposal that the. ,amounfc3 of gold ,30,rdteldr,should,.be. diq-, closed once a yoar ,now, being'.'se'rious'ly considered; .-■■■ . !

Proceeding to deal with the Bub.iect, of exehango operations,- Sir Edward took Canada ns an example. The total .imports into Canada, he said, laat year amounted to £130.000,0C0 and exports to .570.C00.0C0. -In-addition-to tho import balance thus' created/Canada ..had to pay about £15,000,M0 a year -as interest op money, borrowed. The total deficiency of X75.0Cf1.0C0 was met. by fresh borrowings, and tho speaker pointed out that traders should watch these borrowings,''for■ if they were curtailed the Dominion's imports must go down. Last year, he mentioned, Canada.' borrowed £37,500,C00.-, apd durimr the first half of this year sho had already borrowed a similar amount. Asrain, Argentine exports last year amounted to about 2G92,0C0,Cf0 and the imports to about £75,000,C00, but interest on loans required over £25.000.002. and thus there was a. balance lo bo provided of over £9, ; OCO,(!CO. Issues in the' London market had latterly .been curtailed, last year amounting to £15,500,000 and for the first half of this year to about £9,500,0C0. Thereby the Argentine l:ad been deprived of the power to sell exchange against the proceeds of r'ucli issues and had had to part with no less than from nine to ton millions sterling of gold during the lest month or two. Similarly, Brazil this year had had to export about £6,000,000, of gold. This flow of gold to Europe had helped Jo relieve the money markets recently. Fir Edward remarked that foreign and colonial loans on the London market were in 1912 about £159.(00,OCO. in 1911 £164,000,C00, and in 1910 £188,000.000. a total for the three years of £511,CflO*0CQ, while tho amount of gold exported from this, corntry in the three years was about £137,000,000.

Doiling. with the question of the onal trolfl rcsarves, Sir Edward referred > the Morocco tronble. nnd stateU that 10 great obstacle to Germany's making forward move on that occasion woo tlio into of her finances—or, in other words, er small Mock of gold. Since that, period ie Iteichsbank had increased its eold y ahout £20,000,000 after £2,000,000 had been iaccd in the German war chest. The jtal amount of r;old in the German State :ank and war chest wan now about. £70.!0 000.' and was beine further increased, n this country it fell t:> the Joint. stock .inks, tho Chancellor of the Excheauor nd the Bank of England to take up this uestion. The joint stock banks were ,-orking silently to the desired end, and e believed they would satisfy th* counrv that they were doing their duty if her would carry out the suggestion to iubli;h in- their balance-shoots once a. car the amount of "old they held. .The Ldmiralty and tho Minister of War year it year increased expenditure, hut no tteinpt was made by the Chancellor of he Exchequer to provide the gold necesary for operating these two arms of the ervice in case of cmorcrency. -If he would •raduallv pa.v. off . the Government debt, if £11.000,000 in the issue department of he Bank, this amount, toircther • with the no.reasing amount of nold held by tho olnt 6took banks aid the average amount leld by the Bonk of England, would in wo or three Tears aggrogato-- about 3100,000,000. CLYDE SHIPBUILDING. According to tho "Financial Times" the mtput of 71,500 tone from tho Clyde shipmilding yards during the month of Octo>or establishes two new records, and praciically assures that tho aggrcaate figures [or 1913 will exceed anything previously •ecorded. The total for tho ten months las been raised to KO.OCO tons, beine 40,000 »ns over that of tho corresponding period >f]ast year, which was the previous best, rhe bumper figures, of October oro duo iriinmily to tbo launching of an unusnaly large number of liners, which will eonit.ituto the outstanding feature of tha 31ydo shipbuildinc trade for tho ■ current ,'eaf. Thosu figures are regarded as ?et.'rag asido any doubt that may have been .•Mertained as to tho year establishing -a •ecord. Sot only has tho output been on a Teiprd scale, but there has been an improvement in the booking of new work, Hiankß principally to tho further reduction in ilio priccs of stoel - material. Ship riu d boiler plates a.nd other material have tleen thrice reduced by 10s. per ton slnco ;ho beginning of Aiispust, bringing quota-, lions down to a lovel which permits of tho tendering for new hulls on terms more In Consonance with the views of shipowners. Accordingly, with the work still on the stocks and the now contracts booked the Clyde shipbuilding yards are assured of 11 fair degree of activity well into tho new year. That is Rhvays provided, of course, that calculations are not unset hy labour troubles, which never seem very far away. At tho moment there seems no danger of a serious breach, but the small local quost.lona which are continually cropping up liavo an Irritating way of retarding work at the various shipyards, a.nd undoubtedly find their reflection not only in tho fihlpbnildors' profits, but in the output from month to month. Tt is noteworthy that tho half-million ton level for the ten months has only been exceednd four lime?, namely, in 1906, 1907, 1912. n.nd 191?. while it ie only twelvo ycar3 since the for the year exceeded that' flcure. . The nH onrnincre of J. aad P. On*', Ltd . tho big cotton thread oomf-My, lairaiicd br £109i57 & to £2.003.113, during

the year ended Junn JO. The return on tbe ordinary ..capital is 35 per rent, for tlic fifth year ill while £500,009 Is nfaiu tnamsfcrrcd to rcscrvee. raising parao t-o' £0.5C0,0G0, leaving a balance of £607,905 to be carried lorwnrd. In addition, there aro other TeHOrve.- at vflriarus'. Rort« to tho tot.il of £-3,500,CC0. and- She. nocumulotion of euoh a iarce siiva citins some comment araoiiEK sharehold-. ers. . . ' N.U'IBR WOOIi - PALES. I'RICK.S litPROYE. (By Telozraph.—Pro;.? Association.) Napier, January..'*.: The second wool faio of the reason was' held to-da.y, wlien 17.853 holes were offered., There was a representative <itt«!!daneo of buyers, and competition for all classcs of wool was exceptionally keen, and prices were rather better Mian last. 6alo's rates. Tho ranga of prices, compared with those ruling at, the, December sole, was os follow:—December. 1913. best balfhreO, 1 lid.- to 15} d,: January, 1914, Md. to llJfl. Medium kllfbred. December. lOid, to ilil.; .Tannary, 10Jd. to Hid. Fine crossbrea, December. lOd. to lljd.; January. 9|d. to lid. to lljd. Medium crossbred. December. 9d. to 10W.; January &c-d. to 10id. C'Go.r:o crotabred. December, Cd. to *Cd.; Jo..TUi.:i.ry, 3d. to. 9M. Inferior crossbred. December, 7jd. to 81d.: Januarv, 7»d. to Bid. Pieces, Doccmber. 53d. to 9Jd.: Januai'y. sd. to ICfl. Bellies, Decerabor, 6id. to 7W.: Janua.ry, 53d. to 7id. Locks, Decetnbcr, 45d. to sjd.; January. Id. to 73d. Lambs. December BJd. to 103 d.; Jannary, (id. to l«d. Dead to 73d. _ ■ ■ BANK OF ENGLAND RETURNS. By Telegraph-Press AssoeiaUon-CopytitsM London, January 1. The Bank of England return issued for the week ended \Veda»:sday, Decembc? 81, is as under: Isscn D2rini:tr.M Kott liiqi £52.3?«.00a Gov.dsbt - £y,015,000 Other securities ... 7,434,000 Gald - 33.875.000 £52,324,000 ' ' JE52.3i34.000 BIKB3NG Department. Proprifttorß* Govt, secnvl* cipitat £11,553.000 ties... ... £13,199,003 Public Other tecuriposits i m 10,256.000 U-cs 52.138,000 Other atposits ... 61.057.000 K.tH ... £2,603.000 Ecet, 7-day ind other bills... 3,267.0C0 Co'ia- ... 1.218.000 £69.316,C00 .£63.316,(33 The leading items ol the Bank of England return afford the following cempairtton:— This wee!: lias& weak y«av £ ~ Bullion 53.575.CC0 SMM&9O9 29.204.000 Reserve 23.t56.0aa 2i, 167.C0S IS.oOG.OUO Note circulation 69.605.000 29,361.0 M 50.273.00 J Public Deposits 10.256.0U) fi.HI.OOO 12.156.00 C Otbor Deposits 61,0b7.C00 12,072.000' £3,053.000 Proportion of reserve td liabilities... 33.39 43.07 37.65 • GOVERNMENT SECOBITIE3. The following are the latest quotations for Government securities, with ft eoni' parison of those ruline last week:—

BANK HATEB OF INTEREST. ' The Bank of Enjlnnd rato was. oii. February 8, 1912, reductd froip, i to 3j ner cent., ftiid on May 9 it was further reduced to 3 per cent. On Aitenst 29 it was riii6ed to A per cent., anil on October 17 to 5 percent. It was reduced to 41' per cent: an April 17„ 1913. On October 2 it was raised to 5 per cent.

Tho" Bank of Francs rale was redncod from 3J to 3 per cent, on Januitfy 23. l»v«. and continued at the latter ilEiire until September 12, 1911, wheh it vivas railed to--31 per cent. On May 17,. 1913, it was re-; duocd to Vpor cent., ofi October 17-It was' raised to 31 per cent.,-and on October : 3o ,to 4 per ceht. The Imporial tank of Gcrma-ny on ".Oc. tober 24. 1912. advanced its rate of discount to 5 per ceiit. and lo $ per eoot. on Ncvdin? ber 14. On Octobcr 27, 1913', thd was roduced to 5i per cent.

MARKET HATES ,0? DISCOUNT. The folldwi&sr Qre tho market rates for best threo months' bills:—

Short loans are Rioted at j3 per cent., ns against 45 per cent, last week and 4 per cent, last year. , , COLONIAL AND OTHER : PRODUCE. '. Wheat-.—Prices are' unchanged. Most of 'the markets are closed. Australian, on spot, sma.ll supply at 375. 6d. and 38s. New ; Zealand supplies are Gshaustal. Flour.—Very small business at about 2(8. 6d.. ex etore. Oats.—lra. Plato, February-March shipment, quoted ,at 14s:' 6d. Beans.—Slow market; New Zealand.37s. Peas.—Market, is firm; eomo sales of first analitr llanlcs, March-April, are reported at 445., c.i.f. Butter—Tho market, is finic-t: the choaeeit Australian at the oornmencem-ent of tho week rcnliscd 112s. to life., closins lit 112s. and 114s. per «wt. For New Zealand, cot. Athenie. buyers are offering about 1205.. Danish is uncbOPKed. Ohe.sre—Tho market is steady, and priceß aTC unchanged. Sncar.—German beet, .55 per cent, net litre. Es. Ltd. per cwt- (Sid. lower): flrrt" marks, jrra.tiulaled, f.o.b. Hamburg, 3d. higher, at lis. 3d. ' Bradford Wool—Firm: 64's. 2T?d,: -surer, 27d.: r-ommnn 60'n. K'-d.: 56's, 2Ud,; 50's, 15d.; 46's, 15;. d .: 40's, 14{d. TALLOW, STOCKS. Tallow stocks. casks; landed, 2449 casks; delivered, 2370 casks, TIN. Tin—S toe to. 11,513 tons; on ewt. 6Z53 tons; afloat, o!ll ton 3; deliveries, E959 tins. . JIAKKET KEPOBT. Messrs. Dalcet- and. Company. Limited, have been, advised by oable from their London office, dated January 1, as fol- j lows:— Frojen Meat: Thcra is a good de- i raand for frozen meat, but New Zealand I stocks are exhausted. .For beef tb'a market ia firm, but prices unchaaged. STOCKS AND SHAEES. - j By Telegraph—Press /jsoetatiofl—OopjrisM. . London, January - 1. Stock and shaienjarket quotatisas in-] elude:— ' „ „ Buyers Sellera

NEW SOUTH WALES LOAN, London, January 1. The Now South Wales loan prospectus has been issued. The final -instalment of 35 per cent, will be payable on March 20. &ILVEE." ' ' London, January.-- 1. Bar silver is quoted at 26 9-16 d. pereunco Btandajd. LINSEED OIL AND TURPENTINE. '" Linseed oil, £24 15s. , ■■ Turpentine, 325. ' MOUNT LYELL MINE RETURNB. ' Melbourne, January 2. Mount Lroll returns from November 23 to December 24 (incliieire) show that 26,396 tans of -ore were trea-ted, and yielded 544 tons of blister copper, containing 626 tons . of copper, 35.742 oancc3 of silver, and 718 ouncos of creld.

j Variation' M coiapaied Price. with iBBt w«0k. £ «. d. 25% Imperial Coneolg 7115 0 5b lowe? 4 ,.N.S.W.3033Jan.-July 97 0 0 20s Sovfor „N.S.W.19;i0-50Mr.-Sp PS 0 0 Unchanged 3i „N.S.W..1&0-C0 £3 Q 0 20s lo^ror 3 „N.a.\V. 1925 Apl.-Oct B'2 G 0 2£1s higher 4 „ Vic. 3920 Jau.-JuJy 00 0 0 Uitch.an(ted 3j „Vic, l&l-G Jan.-July WOO Uacliaoged fli „ Vic,-lfc£M9 83 0 0 Unchanged 3 „Vic. 1!)'20-4QJan.-July 76 0 0 Unchanged 3-i „S,A. 1916 Jan.-July S'S 0 0 £(Js higher 8 „B.A. 1;)16 Jan.-July 73 0 0 Unchanged 4 „QTU1015-'24 Jau.-Jtily 1% 0 0 Unchanged 3i ,.QVdl£h!-2.47Jati..Ju1y G3 0 (J *203 higher 3 ,.QTdJ9U.47Jan.-Jnly 76 0 0 Unchanged 4 „N.Z. 3920 May-Nov, PO 0 0 Unciiangod 34 ,,N.Z. l!)l'2-J0Jan.-JuIy 63 0 0 Unchanged 3 „N.Z. lUiO Ajiril-Oct. TB 0 U Uncbahged 3a «W.A. 1915-35 May-Kov 1)9 i) B Unchali'gfcd. 3 79 0 0 Unchanged 34 „Taa. JUiOJan.-July b7 .0 0 3 „Tag. litfMO Jan.-July to 0 0 Unchanged

London Paris Bcrtlh rata. r«ite. rate, per per ' pot con I- cflJjt. cont. This 4J o.s ' 3n Txifit week 33-16 3% ■ 35 Laet year 413-16 ' 33 ' 6 .

• £ 9. d. £ 5. d. Wa.ihi GoldminiBff 2 11 3 . 2 13 9 Grand Junction 15 0 16 0 Talisman 2 13 ,2 3.9