Finance, Trade, and Commerce.

Free Lance, Volume I, Issue 46, 18 May 1901, Page 5

Finance, Trade, and Commerce.

AMERICA is the land of big things, and among the biggest of Yankee big things are the life insurance companies. The Equitable Life Assurance Society of the United States is, to use an Americanism, the boss of them all. • • * The record of this huge life office for the past year is a marvel of expansion, and a recital of some of the leading figures will show this. • • * The amount of assurance in force at the close of the year totalled £232,268,230, an increase of £13,012,213 for the year. Compared with 1899, the new business shows an increase of £788,420. # * * The premium income for the year was £9,495,153, or £739,690 more than in 1899. The income from interest and rent totalled £2,553,700, or £207,024 more than in the previous year, and the total income amounted to £12,253,077, or an increase of £966,922. The micome of the Equitable is just about double that of the New Zealand Government. t The expenses totalled £2,143,743, or £28,413 less than in the previous year, which is a remarkably good showing. The surplus funds at the close of the year amounted to £13,757,744, an increase for the year of £1,045,769. • • • The cash bonuses paid to members during the year amounted to £725,342, or £88,923 more than in 1899. During the last ten years the Equitable has paid £4,978,312 in bonuses to its members, and no other life office in the world has distributed nearly as much during the same period. • * * The Equitable possesses gigantic strength, and is well and economically managed, on safe and conservative lines, which ought to be the distinguishing feature of every life office. # • • In New Zealand, the Equitable has recently resumed business, and, although there is keen competition among the "life-takers," the Equitable must command attention. It is too big, too strong, and too sound to be overlooked, and big, strong, sound life offices are the safest to insure with. * * * The balance-sheet of the Bank of Australasia for the half-year ended 15th October, 1900, is now available. The net profit for the period amounted to £151,465, against £119,870 in the corresponding period of the previous year. Adding the amount brought forward, the total available for distribution was £164,041. * ♦ * The reserve fund has been strengthened by the addition of £50,000, bringing that fund up to £925,000, while a year ago the amount stood at £835,000 ; there has thus been a gain of £90,000. Out of the profits a further sum of £20,000 has been written off bank premises, which now stand at £411,193, against £446,654 at the corresponding date of last year. ♦ • * Of the balance of £94,041, the dividend at the rate of 10 per cent, per annum absorbed £80,000, leaving £14,041 to be carried forward. Last year the dividend was at the rate of eight per cent., and the sum taken for this purpose was £64,000. * * * All the banks in the colonies show excellent improvement, and, considering that Australia has experienced a severe drought, this is all the more remarkable. * * * The deposits held by the Bank of Australasia at the date of the last bal-ance-sheet amounted to £13,650,832, and the total liabilities to the public amounted to £16,852,182, while the liquid assets totalled £5,734,363. • • • The trade returns of New Zealand for the first quarter of the year give the first indications of an adverse movement. The total value of the exports, including specie, for the period amounted to £4,086,643, against £5,293,734 for the first quarter of 1900, thus showing a decrease of £707,091. • • • Taking the half-year ended 31st March, the exports totalled £6,930,565, while for the corresponding period of the previous year they amounted to £8, 056, 271 , there has thus been a decrease of £1,125,706. * * * If tho exports of colonial produce alone be taken, there is a decrease in the half-year of £1,129,679 , and for the year a decrca.se of £434,412. There

has been a decline in the quantities exported of wool, frozen meat, tallow, wheat, kauri gum, and hemn and values, too, have gone back. • • • Wool and hemp are much lower, and frozen meat is tumbling down very rapidly. The probability is that there will be a further decline, with falling values, and this would not be remarkable, for it would be a reflection of the general trend of trade throughout the world. The imports show a very great expansion for the quarter. The increase in the imports of merchandise amounted to £474,297, as compared with the March quarter of last year, and for the six months there has been an increase of £1,067,647. • • • It is difficult to account for this enormous increase, but it is probable that the higher prices ruling for commodities and the necessity for importing more largely to replenish stocks are responsible. If, on the other hand, the increase is due exclusively to an expansion in the volume, then in'the succeeding quarters there ought to be a slackening. * * ♦ The Yankees have enjoyed a huge gamble in railway stocks, and the victims have lost about £10,000,000. Apparently the loss might have been very much larger, but for the magnanimity of the successful operators, who have released the "bears" from their obligations. * * * Such large-heartedness on th© part of dollar-millionaires is remarkable. If the truth were known, it would probably be found that had this course not been adopted other stocks in which the syndicators are interested would have declined in value. ♦ ♦ ♦ The brokers on the New York Exchange have had several booms and big gambles, and presently there will be a pinch. Even in plutocratic New York heavy losses of £10,000,000 at a time cannot but be harmful. * * # A mild gamble is going on in Wellington in Bank of New Zealand shares, which have been rushed up from about 30s to 50s. The party of three engaged in "bulling" the shares are well known, and will presently fall over their feet. » * • There is, of course, absolutely nothing to warrant the advance. The Bank has, no doubt, experienced a profitable period, but it still has some very heavy liabilities to face, and, although there is a promise of dividends, there can be no distribution for at least a. year. • • • There is, however, something behind this gamble. Two or three men not unconnected with the bank have been booming the shares by talking and buying and advising others to buy. Probably, when the shares reach a tall price the clever people will quietly get out, and leave the stupid ones to nurse the baby and pay the call of £3 6s 8d per share which may yet be made, even although a dividend is declared. It is not unlikely that the dividend will be paid first, and the call made afterwards. That would gild the pill. ♦ ♦ * The sharemarket generally is keeping strong, and values are practically unchanged. National Bank shares are very firm, and so also are Sharland's, which have steadily improved their position. • • • The mining market is fast getting over the depression. It is a good old rule when business is booming to keep a sharp look-out for the slump, which is bound to follow, and, when there is a slump, the first sign of a change is the time to buy in — for the change means a rising market. • » • The dredging market is steadily improving, and as soon as the weather becomes favourable, and the returns improve, there will be brisk business, with a steady and certain advance in values. • • • The West Coast market, which has been extremely dull for a long time, is now in a fair way towards witnessing a boom. The dredges are at last getting payable returns, and the doubting speculators are regaining confidence. * * * The bulk of the business now passing is in West Coast dredging shares, and there will be a steady increase and a steady advance in prices. Otago dredging will go strong after the end of the cuirent month, for then the rivers, will be down, and the dredges will be able to show results. * • • The Waipuna dredge is reported to be working well, and, as the new tables recently erected suit the wash, the prospects of the company are improving. « • • The capital of the Greenstone Creek Dredging Company is to be increased

by the issue of 2000 preference shares of £1 each. * * • The Robertsons Gold Dredging Company, Cardrona, have acquired the River View claim, on the Ahaura River, West Coast. The claim in the Cardrona Valley is to be abandoned. * • • The Erickson's Reward dredge, on the West Coast, and the First Chance dredge, in Otago, had their trial runs last week. * • » The ladder of Ford's Creek dredge has been lengthened Bft. * ♦ • The Leviathan Freehold Dredging Company have decided upon building a new style of dredge, which will have two ladders. The shorter one is intended to lift on top the soil and silt in which there is no gold, and the other ladder will lift the auriferous, drift in the usual way. The dredge will be provided with three distinct engines, and will be made extra strong to suit the West Coast ground. Telegraphic Addiess • Telephone Ulnch, Wellington. No. 1453.