Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 53, 6 July 1901, Page 15

Finance, Stocks, and Mining.

THE National Bank balance-sheet for the year ended 31st March, 1901, brief details of which were cabled to the colony towards the end of last week, will give general satisfaction to the shareholders. • • • The year has evidently closed with a record profit, for the balance available for distribution amounts to £66,900, and the dividend of 10 per cent, places the National Bank in. the front rank of dividend-paving banks. ♦ # • Comparing the figures with those of previous years, the position stands as under : — Year ended Available Dividend Amount of March 31. Balance. Percent Dividend, jg jg 1895 31,607 5 12,500 1896 37,196 5 12,500 1897 26,157 5 12,500 1898 29,195 6 15,000 1899 45,161 7 17,500 1900 47,508 8 20,000 1901 66,900 10 25,000 • • ♦ The net profit for the year just ended is approximately £59,400, while for the year ended 31st March, 1896, it amounted to £18,090, thus in five years there has been an increase in the profits of £41,310, and this demonstrates the immense improvement that has taken place in the banking business in the colony. • * • Had the directors of the National Bank distributed the whole of the net profits earned during the year, the shareholders would have received a dividend equal to about 24 per cent. : the shareholders, however, receive 10 per cent, only, and it is a very satisfactory dividend. • • • The directors of the bank are determined upon building up a strong reserve fund, and this year £30,000 has been added to the fund, which now stands at £110,000, or equal to about 45 per cent, of the paid-up capital. * ♦ * The reserve fund of the National Bank has. been built up since 1895, and the allocations to dividend and reserve compare as under . — '"'Year < "Dmdend. Reserve. 1896 12,500 20,000 1897 12,500 10,000 1898 15,000 10,000 1899 g17,500 20,000 1900* 20,000 20,000 1901* 225,000 30,000 £102,500 £110,000 • ♦ ♦ It will be seen that more of the annual profits has been added to the reserve fund than has been, distributed to shareholders, and, what is of special interest to the customers of the bank, is .that quite 80 Tier cent., if not more, of the reserve fund is invested in giltedged securities. * # # The officers of the bank have not been overlooked, for £3600 has been granted to the Pension Fund. This fund was established in 1899, on a report furnished by Mr. M. Fox, of the Government Life Insuiance Department, by leave of the department, and that year the bank placed £2500 to the credit of the fund. Last year the officers received a 10 per cent, bonus, and this year there is another grant to the pension fund. * * * During the past seven years £16,656 lias been written off premises and furniture account, and of this £5000 was written off last year, and a like amount this year. No little of the credit for the improveed circumstances of the bank is due to Mr. J. H. B. Coates, the general manager, and the able assistants he has gathered around him. Of course, it is not to be denied that business has been good for all the institutions, and the others have shown equally good results as the National. ♦ ♦ ♦ Bank shares, as an investment have improved very greatly in recent years, and there is undoubtedly more confidence in colonial banking institutions. * * * The balance-sheet of the Bank of New Zealand must first be submitted to Parliament, and as the Bank Act fixes "within ten days of the meeting of Parliament." this interesting document should be available to the public on Tuesday next * * • The Bank of New Zealand balancesheet will show very good results — it would be very queer indeed if it did not

— and the pubho will be delighted to see the liability to the State reduced and the ultimate loss, if any, brought down to its smallest proportions. # * * Bank of New Zealand shares have weakened somewhat during the past two weeks, and are fully 5s below the highest point touched. What caused them to rush up, as they did, has yet to be ascertained. * » * The round of bank smashes appears to have commenced once again. It is some time since Dumbell's Bank, with headquarters in the Isle of Man, went under, and we have had the smash up of the Japanese banks, and last week three German banks and the National Bank of New York suspended payment. * # » Overtrading and mismanagement seems to have brought about the collapse of the German institutions, and, although the houses and the money markets have not been affected, it is impossible for three fairly large banks to shut down without causing a disturbance. • # • German trade is on the down grade, and there must be a readjustment of affairs to meet the new condition, and it is that gives rise to the trouble. Bankers and business! men are out of their depths, and cannot get back into safety. • • • There will be many more bank smashes in New York before long. A great and glorious boom has been in full activity in Wall-street for several months, but prices of watered stocks cannot be maintained for very long, and presently the inevitable crash will come. The Americans themselves are expecting a collapse, and the financial papers have given repeated warnings of the pending disaster. • • * Speculators have at last settled down to business in Dunedin, and the mining Exhanges show a little more activity. The Royal week pretty well killed business for the time. • * * The news from the dredging districts is much more favourable than for some time past. The weather is frosty, and the rivers are falling back to tlieir normal winter level, and nearly all the dredges have steam up. • • • If the machines have a free run for two or three weeks the returns will be big enough to attract the attention of even the indifferent, and we will see good business on the Exchanges. * * * The Junction Electric dredge has done well. During the past three weeks the gold won totalled 3250z, which gives the excellent average of over lOOoz. * ♦ • Not much is heard of the West Coast dredges, but the returns this week are expected to be larger than usual. The Greenstone Creek dredge is said to have got on to the rich patch, and prospects are bright. * * * The Maori Queen dredge has not don© quite as well as the Wanganui people expected. There are plenty of disappointments in dredging, but if holders will just wait a little longer there is every chance of good returns being obtained from this claim. ♦ » • The Hokitika River Dredging Company's dredge is well advanced, and when completed will be the most powerful dredge on. the Coast. The claim is heavy, and full of boulders, and will need a powerful dredge to work it. • * ♦ The Old Dunstan pontoons are ready for the machinery, and a start will be made to fit this up as soon as the Cairnmuir dredge shifts from the site. • * ♦ There is trouble at Stafford hi connection with the construction of the dam for floating the Stafford-Waimea Creek Dredging Company's pontoons. The contractor is employing Chinese to do the work of excavating, and a public meeting has been held to protest against the employment of Chinese. • • • The Otama, Clratto Creek, and Garvey Burn Dredging Companies have gone into voluntary liquidation. * * * The Perry's Reward dredge appears to be too light. The wash is about twenty feet deep, and the ladder is long enough, but the dirt is hard and tight. The dam is too small, and dredging is cramped. It will be quite a fortnight before the dredge has sufficient room to work freely. ♦ ♦ * The shareholders of the Monte Chnsto Dredging Company have passed a resolution authorising the capital of tho company to be increased to £10,000, by the issue of 2000 shares of £1 each. * * * It has been found necessary to build pontoons, one on each side of the Hau

Hau dredge. On letting in the water fears were entertained of the pontoons not carrying the machinery. In another fortnight a fresh trial will be made to float the dredge.