Finance, Stocks, and Mining,

Free Lance, Volume I, Issue 22, 1 December 1900, Page 5

Finance, Stocks, and Mining,

THE Bank of New South Wales has experienced a very profitable half year, for according to the cabled reports the nett profit for the half-year ended 30th September was £100,463, while for the corresponding period of last year the profit was £89,544; the increase is thus £10,919, or slightly more than 12 per cent. This shows that there is a continuation ot prosperity throughout Australasia, and we may well hope to see it remain with us a little longer. Our neighbours have fortunately seen the break-up of the Sought, which, to them, means a good deal, and with federation, with its larger scope and loftier aspirations, busiSL ought to hum in Australia and we cannot escape from its influence. The Bank of New South Wales has increased its dividend from 0 to 10 per S2TJS annum, and it could not^ very well do otherwise, under the circumstances The shares have been steadgreat financial crisis of 18yd-y4. As a matter of fact, all bank shares are going well in the market. Three or four years ago, investors fought shy of bank y stock7but that was because ?hey had not got rid of the nasty -fedr i«or which was induced by the crisis. Now there k general confidence, and bank' shari are 8 viewed as safe investments, as no doubt they are. * * * The good old New Zealand Loan and Mercantile Agency Company which was for^hTyeaf ended 30th June shows a Sofit of £51,986, after P^ n S in * er ; 1st on third debentures, and the profit has ben carried to reserve. • * * As stated above, it does not seemto be very much, but it would be a mistarest on the prior lien and second interest on the third debentures the first time since reconstruction, and to have in addition a very substantial balance. # * The directors have done wisely in placing the whole of the ba knee of pronto to reserve. The position of the company is thereby considerably strengSed, and will help to mcrease the confidence of its customers and the general public. The comply has had and still has a big uphill climb, but with careful management ano> continuation of the present commercial activity it ought to pull through. » * * At last we have the assurance of a Cabinet Minister that some serious effort is to be made to capture a portion of the' South African trade forNewZealand. Tenders are to be called for a direct service for a period of two years "long enough to thoroughly test the worth of the South # African markets. While the Government > dealing with the question of extension of trade iTis to be q hoped that the .Eastern markets will not be lost sight of. India, China? Japan, Straits Settlements, and the Philippines are open to us, as much as they are to the Australians, but white we are doing next to nothing our friends across the water are working up a large business. * Producers who have been particularly noisy about the South African market ought now to support the efforts ot tne Government to the fullest extent possible. When the war is over, there will be a big rush to the Transvaal and the Orange River Colony, and, for a time, at least, the entire population ot South Africa will he dependent upon outside sources for supplies. We must get into the market well prepared to fight all competitors who are equally as anxious to do the trade. The directors of the Oamaru Woollen Factory Company in their annual report lust issued recommend that a further sum of £1090 17s be written off premises and plant account, thus reducing: that item to £9700 ; that a dividend of 4 per cent, be paid, which, with the interim dividend paid in June last, makes 8 per cent, for the year, and absorbs £1470 11s 2d, leaving £1476 158 Id to be carried forward. ♦ * * The woollen companies in the colony have, without exception, done well dur-

ing the year, and the prospects are still good. It is to be hoped that this prosperity will not lead to the formation of additional woollen companies. There is probably enough business for those now in existence, and any increase in the number would mean cut-throat competition and collapse. * *■ * The people of Masterton have got a "humming" fit. They want to start new industries in their midst, and no one will be more pleased than the people of Wellington to see new industries established in the Wairarapa. The Masterton folk are troubled first as to the class of industry, and secondly as to where the capital is to come from. * * * In Wellington for all new enterprises we find that the people have to put their hands in their own pockets, but the Masterton people intend to go one better and put their hands into other people's pockets for the necessary capital. * i * The talk is of Municipal Freezing Works, the money for which could be borrowed from the Government. The Borough is obliged to provide abattoirs under the Act passed last session, and it would not take much more to provide freezing works. Besides, there is apparently no resisting the stock argument: Why should not the producers secure all the profits? * * * It looks all right when you talk of profits, but how will the position stand with respect to losses. It is just as well to view this possibility, and see how it is likely to affect the Borough and the producers. It is not the same as running a monopoly concern like the gasworks. The meat works would have to submit to competition, and the margin of a shilling would make all the difference between profit and loss. * * * There can be no objection to meat freezing being started in Masterton, but the ratepayers would be wise in insisting upon the capital being found by the people and not by the borough as a loan. There is plenty of money in the district, and there should be no difficulty in finding the comparatively small sum that would be necessary to start the works. ■* * * A better industry for the Wairarapa and one that would be of great service to the district would be the freezing and tinning of rabbits, and the freezing of poultry and pork. There would be scarcely any competition in this, and quite a new and helpful industry would be started. § The export of poultry has not received the attention it deserves. There is money in it for all that. # It is a pity too that greater efforts are not made to develop the sub-indus-tries of agriculture. For instance, lin-seed-growing would pay, if oil mills were established. There is always a good demand for linseed products. What about maize? If Indian corn can be grown in the district, there is no more profitable product. Every atom of the corn is turned to account, and it is remarkable what a variety of commercial products are obtained from maize. The oil is nearly as good as 01j,f6 oil '■> a * any rate it is extensively used in the manufacture of smokeless p'bwder. * * * A few other products of maize may be enumerated. They are mixing glucose, crystal glucose, grape sugar, antrydous grape sugar, special starch, pearl starch, refined grits, flourine, dextrine, British gum, gum paste, corn-oil, corn oil-cake, rubber substitute, gluten feed, chop feed, gluten meal, corn germ, paper, etc. In America the maize is turned to profitable account, and the manufacturers are able to pay as much as 12s per ton for the cobs and stalks. * * * There are plenty of industries that could be started in Masterton, and if nothing else is attractive enough then it would be safe to fall back upon butter and cheese. Indeed no such a town as Masterton should be considered up to date with a cheese and butter toryThe United Farmers' Co-operative Association, whose balance-sheet for the year ended 31st August was considered by the shareholders on the 16th ult., is a concern that is doing very well, and with great prospects before it. Che nett profit for the past year was £4055, or £1521 more than in the previous year. This is a very great increase, and shows that the company is extending its operations on safe lines. ji o expense of management shows an increase also, but this, perhaps, is Inevitable when business is being extended. * * *■ The United Farmers' Association is doing a very useful service for the farmers in the Manawatu district, and that it is appreciated is seen by the increasing quantity of wool and produce handed by the company. In addition to having their interests attended to efficiently, and at a moderate charge, farmers re-

ceived a bonus of 2 per cent, on the amount of their purchases from the Association. y * * The business of the Association is growing, and, to meet the position, more capital is to be called up, but in such a manner as not to press unduly upon the smaller shareholders. With a dividend of 6 per cent., and with every prospect of an increase, the shares ought to be fairly good buying as an investment. * * ♦ The Waikaka dredging field is slowly coming into prominence. One enthusiast has written to the "Otago Daily Times" in very glowing terms, and supports his predictions with facts and figures. * * * The Patersons Freehold Company, "Waikaka, after ten weeks' work, has been able to pay a dividend of Is per share, and this ought to help the companies in the neighbourhood. * * * The Grey Biver return last week was very satisfactory, and if there is any improvement, as is expected, the shares are bound to advance. None of the other _ West Coast dredges have done anything worth recording. * * * It is rumoured that a West Coast sluicing concern, on which over £10,000 of foreign capital has been spent in bringing in water, is not proving the success that was anticipated. If this

should prove correct, it will be another confidence-shaking advertisement for the Coast. ** - * The Eclipse and the Metallic dredges are 'in an advanced state of completion, and the shares of both are at big premiums. The Wairoa, which is in between the two claims, and is just as good property, is selling at par or at 6d premium at the most. The Wairoa is not being boomed, but it will be presently, when the "clever" crowd have got all they want. * * * The Vincent Extended dredge ought to be in commission next week if it is not already at work. Last week the housing was being erected. * * * The Merrimac shares still keep low. It is stated that the dredge has not bottomed. Perhaps not, but it will do so as soon as it is wanted to. These new dredges generally find their machinery a little awkward at the start. * * * The Klondyke dredge has been shut down, the directors considering that the prospects do not justify them going on any further without consulting the shareholders. * * * It is stated in the Alexandra paper that the New Alexandra dredge has been shut down pending the decision of a meeting of shareholders, to be held shortly.