Finace, Stocks, and Mining.

Free Lance, Volume I, Issue 28, 12 January 1901, Page 5

Finace, Stocks, and Mining.

THE holidays are over, but business people have not settled down to the humdrum of business. The clerks and counter hands still find amusement in recounting their adventures up-country. • ♦ • Laßt year wound up with business good, and the new year has opened with great promise. The country is smiling with prosperity, the dairy industry is active, cattle and sheep are selling at high rates, and the outlook is good. • ♦ • It is the outlook in Great Britain and Europe generally that is not very promising. The London Stock Exchange has witnessed a severe crisis m the Westralian market, and seventeen firms have been "hammered." • ♦ * The word "hammered" in this connection implies a great deal, for it means that the firms in question have bankrupted. The crier of the Exchange gives three knocks with his gavel before announcing that So-and-So will be unable to meet his engagements, and hence the expression "hammered. » * * The London Stock Exchange has seen many a worse crisis, but there is just this probability that the Westralian collapse is the forerunner of many another to come during the year. •* ' • At last the Bank of England discount rate has advanced from 4 to 5 per cent. This movement has been expected for the past three months, and now that it has come there will be no surprise. Business people at Home must have been prepared for it, consequently, its effects will have been discounted. • * • Looking .at the Bank of England figures, it would seem that a further hardening of the money rates is not unlikely. The British Government will be borrowing a fairly large sum in the course of a few weeks, while all the colonies are waiting for a favourable opportunity to raise money in London. • • * We, in this colony r have nothing to fear so long as the prices of produce are maintained. Therein lies our prosperity. No one can say whether there will be a continuance of the favourable conditions, but we may all hope for the best. • • * The balance-sheets of the Equitable Building and Investment Company of Wellington and the Wellington Trust and Loan Company, for the year ended 31st December, 1900, are now due. • ♦ * The revenue returns of all the Australian colonies for the last quarter have been issued, and all show progress. The returns of the progressive colony of New Zealand will not be available for another fortnight, if then. The king is on tour, and, until he returns, the Treasury officials would not dare to make public the figures. It is the way the Civil Service is run. • * * The London wool sales commence next Tuesday, and growers are anxious to know what the tone of the market will be. The Bradford Top market furnishes a good guide, and this market has recently been fairly active. Sales in the colonies, too, have been brisker, with a slight hardening of prices, and it seems therefore that there will be a firm market next week, with perhaps a small advance in values. One thing is certain • wool cannot go much below its present level. • *• * The exports of gold from New Zealand last year totalled 371,9930z, as against 389,5580z in 1899, showing a decrease of 17,5650z. The West Australian return shows that last year i , du,9490z were produced, against 1.643.8770z in 1899, a decrease of 62,9280z. The Queensland output was 901,0650z, against 946,8940z, an increase of 41710z. The aggregate of these three colonies shows a decrease of 76,3220z, and the Victorian, New South Wales, and Tasmanian returns are still to come. New South Wales and Victoria exhibited heavy decreases for the eleven months ended 30th November, and, all things considered, the output for 1900 will be substantially less than in 1899, which is a pity. • * • The decrease in the New Zealand output is entirely owing to less gold being won by the reefing companies. Dredging shows a satisfactory expansion. The Otago dred<"~~ returns for 1900 show that 62,2750z were obtained, as against 46,1520z in 1899, an increase of 16,1230z .'or not quite 40 per cent. If the West Coast returns were added, it will be seen that dredging has saved the year from disaster so far as the gold output is concerned.

The New Zealand Insurance Company shows an excellent balance-sheet tor the year ended both iNovemoer, lyuu. Ihe net profit totWled £68,944, against £ol,lod in the preceding year, adding the amount brought torward, the total available tor distribution is £82,2^0, against £55,340. There is an increase in the net profit of £17,7yi, which is remarkably good, considering the heavy fire losses experienced during the year. * * * The directors of the New Zealand Insurance Company have decided upon distributing the £,62 ) uy0 as follows . —To be added to reserve, £3.5, 00 U, in payment ot dividends, £25,0UU, to be carried forward to new account, £22,290. The dividend distribution is on a larger scale than last year, when 4s per share was "paid to shareholders. A dividend of 12i- per cent, is very substantial, and it is not surprising that the shares ot the company have been in active demand. » • • Butter and cheese maintain their values, much to the advantage of the dairy farmers, and there is no doubt that in the districts where the industry has been established the tanners are enjoying very great prosperity. Let us hope dairy produce values will be maintained for several seasons to come. * # * New Zealand hemp does not hold up. Prices again show a downward tendency, and the present quotation of £21 10s exhibits a decline of £2 10s per ton on recent values. This is a great pity, as millers were beginning to take courage, and were re-starting their mills. * * » There is, we believe, a market for hemp on the Continent of Europe, and it is stated that Italian commercial houses are making inquiries through their consuls with a view of giving the fibre a trial. In Japan also there is a likely market, and, when the Department of Industries and Commerce is organised, we may hope to see some special attention paid to this product. The industry will be worth all the attention that may be bestowed upon it. « # • The Dunedin Stock Exchange members must be still suffering from holiday heads, as the business is not very large. Many members are, no doubt, still prosecuting inquiries in the dredging districts. * * * The Wellington Exchange opened very well, but the dealings were mostly in West Coast stocks. Kohinoors sold up to lls, and Maori Queens were going strong at los. * * * It is quite evident that speculation will, for a time, be confined mainly to West Coast dredging shares, and, as a number of dredges will shortly be getting to work, the interest ought to be well maintained. * * * The Dome Creek Company's dredge started operations on Monday. The bulk of the shares in this company are held in Wellington, where the head office of the company is located. * * * ' The Notown Creek Company have just invited tenders for the construction of the pontoons. It is expected that the dredge will be at work in June next. * * * The Greenstone Creek dredge is practically completed ; the contract for housing was let last week, and active work should be started in the course of a few days. The shares have been selling freely up to 36s before the holidays, and are in strong demand now. » * * The private dredges operating in the Waikaka district are reported to be doing very well. The returns from the Glen-iti dredge during the past four weeks were exceptionally good. * * * The Central Charlston dredge is still laid up for repairs. The winches have been sent to Dunedin for an overhaul, and it will be fully a fortnight before the boat will be again dredging. * * ♦ The pontoons for the Long Valley Dredging Company have been launched. * * * The New Alexandra dredge is reported to have struck better wash, and the prospects of the company have, i n consequence, greatly improved. There was some talk of the Lady Roxburgh Company buying this dredge, but so far nothing has been done. * * * The Lady Roxburgh directors continue to send out call notices with unfailing regularity each month, but the shareholders are kept in absolute ignorance as to the intentions of the directors. Is it not time a move was made towards procuring a dredge? * * • Those who were under the impression that the Lady Charlton dredge would be at work by this time will be greatly disappointed. From latest accounts it will be fully six months before the dredge is completed.

The Central Mataura Company is coming into prominence, owing to the excellent returns obtained recently by the small prospecting dredge. The first large dredge for this company should be completed in about five weeks. * • • Ruby Creek shares ought to be good buying, and, as a matter of fact, there is an active demand for them, but prices are relatively lower than those of other companies less favourably circumstanced. This company suffers from the disadvantage of not being registered on the Dunedin. Stock Exchange. The directors are either very economical, or very stupid, in overlooking this important matter. • * • Mr. Spencer Booth, the well-known sharebroker, of Wellington, intends leaving for London at the end of the month, with the object of introducing dredging ventures to London capitalists. He takes the option of several extensive dredging claims on the West Coast, which have been thoroughly tested. Mr. Booth will do a good service to the industry if he can induce the investment of British capital in it.