Finance, Stocks, and Mining.

Free Lance, Volume I, Issue 4, 28 July 1900, Page 17

Finance, Stocks, and Mining.

THE annual report of the Government Life Insurance Department, which has now been laid before Parliament, is satisfactory in so far that the new business was larger than in any other year during the decade. This is very creditable, in view of the keen competition, and shows that the public are appreciative of the Government guarantee. Death claims show a reduction of £13,768 on the previous year, the total being £95,322, while policies matured to the extent of £66,747. It appears that the triennial valuation was made on a basis of 3^ per cent interest, the resulting surplus of £126,000 being converted into reversionary bonuses, -and although these suffer reduction, greater security is claimed. • * • The statement of the average assets and liabilities of the several banks operating in New Zealand for the second quarter of the year, says the Mercantile Becord, shows that the total liabilities exceed the assets by £201,894, a feature that has not been noticed for several years. The Bank of New South Wales and the Bank of Australasia show excess of assets, but the other three institutions are responsible for the heavier liabilities. There was a substantial increase in the amount of the free deposits and in the note circulation to account for the increase of the liabilities, but it is very evident that the banks are using their resources elsewhere, probably in London. This course cannot be condemned because the banks must profitably invest their resources, and London no doubt offers some special advantages just now. The increase in the note circulation and the substantial increase in the amount of the free deposits reflect the prosperous state of. the colony. There is plenty of idle credits to take advantage of any investment outlet, and this will insure a low rate for some time to come. If business slackens, as it promises to do, owing to the decline in values of produce and the consequent restriction of the incomes of the producers, the amount at credit will be available to tide the community over the period of slackness. * * • It has been whispered for some time that one of the large accident insurance companies was about to withdraw from business in this colony, aud now it transpires that ' the Ocean Accident and Guarantee Corporation has acquired the business in this colony of the Scottish Metropolitan Society as from the Ist of April last. This will probably cause a cessation of the cutting in, accident insurance rates that has prevailed, or possibly some other company will see its way, in view of the large business of this kind necessitated by our labour legislation, tjr enter the field. -"** w * • The market for investment stocks in Wellington is quiet just; now in the sense that the stocks in demand, and most easily saleable, are difficult to obtain. Nationals are still the best of banking stocks, so far as the market is concerned. There have been sales of Meat Exports and Gears (which are always in demand), Lyttelton Gas, and Westport Coals. # * • There is very little doing in dredging locally, though I hear from Dunedin that there has been a good deal of business there in Hartley and Eileys, Vincents, Vincent Extendeds, Electrics, Manuherikias, Sailors' Bends, and Bendigos. There has also been must activity in Grey Eivers on the West Coast. In Wellington, much interest centres in the Grey Eiver dredge, which is expected to start within the next three weeks. Half-a-dozen others will follow in the ensuing three months, and if the returns are profitable, a good deal of money will be invested here in West Coast dredging. » • * Company exploiters are very active. The prospectus of a foundry is out,|on the prospect of a boom in dredge-building, but if the returns from the above are not up to expectation it will be a poor look out for the foundry shareholders. # • • Cabled that the New Zealand Talisman mine is paying its first dividend, and quite time too, seeing that the returns have been very good so far. This mine is none too cheaply managed from London, and this, with the recent overcapitalization from an unprofitable amalgamation, will be a heavy handicap. One of the best mining investments in Aiickland just now is the New Four-in-Hand, which has paid a couple of dividends, and keeps up its monthly return of £540 or thereabouts with satisfactory regularity from a small plant. Stock is worth about 3s at present.