Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 65, 28 September 1901, Page 5

Finance, Stocks, and Mining.

THE balance-sheet of the Union Bank of Australia for the halfyear ended 28th February reached the colony from London recently. The figures shown are very satisfactory. The net profit for the half-year amounted to £86,628 12s Ud, against £92,001 17s lid for the corresponding penod of last year. * * * The shrinkage is due to the increase in expenses, for the gross profits totalled £203,130, against £203,459, while the expenses totalled £116,501, against £111,457. The deposits held by the bank at the date of the balance-sheet amounted to £15,249,039, as against £15 793,602, while the advances amounted to £12,232,202, as compared with £11,730,557. * * * The increase in the advances totals £501,645, and is very satisfactory from a banking point of view, for tbe greater the demand for money the better the chance of increasing the rates. There is hkelv to be a pretty fair demand in Australia for bankers' loans, owing to the better outlook consequent upon the break up of the drought. * * * The decision of the banks to establish a sort of cleanng house at Wellington is a step in the right direction, and will prove of great convenience. The banking business of the colony has grown in recent years, and the establishment ot a cleanng house has become imperative. * » * All things considered, the Wairarapa Faimers' Co-operative Association, Limited has done remarkbly well dunng the year ended 31st July last The balancesheet was circulated last week, and the shareholders will be gratified with the lesults. _ . The net profit for the year amounted to £10,560 16s 2d, as compared with £7418 4s 3d in the previous year, an increase of £3142 lis lid, or a gain of nearly 50 per cent. This is about the best exhibit made by the W.F.C.A., and the management is entitled to every credit. _ , » * * With the amount brought forward, the total available for distribution is shown at £12,771 17s lid, as compared with £9119 2s 2d in the previous year. The directors have very rightly decided not to increase the dividend and bonuses, which will enable them to carry torward a larger sum than last year. « • * The dividend is to be 6 per cent, and bonus on paid-up capital 3 per cent., making a return of 9 per cent, on capital and bonuses to employees is fixed at 21 per cent, This will absorb in the aggregate £8271, leaving £4500 to be carried forward. * * * The detailed figures of the balancesheet call for no particular remarks. The stocks on hand and afloat dre larger being £71,672, against £58,5/3. Produce on consignment and advances show very slight variation, the amount being £8270 against £8319. Book debts and bills receivable aie shown at £34,026, as against £33,057. The working expenses for the year amounted to £6754, against £7513 in the previous year, and show a very satisfactory reduction. * * * Tho fire at the Wellington branch does not come into tbe figures of last year, but, in any case, they are not likely to occasion much concern, as the Association was fully covered by insurance. » » * The balance-sheet of the Port Chalmeis Gas Company for the yeai ended 31st August is to hand. The profit and loss account shows a ciedit balance of £673 8s 7d, as compared with £601 lot, 8d in the ptevious year. * * * Tho increased profit has enabled the directors to declare a dividend of 10 per cent., as against 7-V per cent, last year, and to place a sum of £100 to reseive, leaving £67 8s 7d to be carried forward. * * » The sales of gas for the year amounted to £1470, as against £1224, but there is a slight increase in the working expenses The satisfactory character of the balance-sheet, and the increased dividend ought to see the market value of the shares advance. * # * A cable message during the week announced that the directors of the New Zealand Shipping Company had declared a dividend of 5 per cent. Last year tho dividend paid was 4 per cent., and it is evident therefore that there has been substantial progress since. * * * It is the fashion with a certain section of the community to bo continually

tilting at the shipping companies about freight charges but, judging by the scantiness of the dividends, the profits of ship-owneis have not been large. The New Zealand Shipping Company has never paid very largo dividends, and in some years recently the shareholders have not received any return whatever. * # * Taken on the whole, the shipping companies trading between the United Kingdom and New Zealand act very fairly to the colony. The reduction in wool freights recently announced is a case in point, and the promptness with which they took up the South African trade, without any Government subsidy, is also to their credit. * * * In w ell-mfoi mcd circles it is believed that the South African trade does not pay the ship-owners. The necessity for calling at several ports for cargoes, the higher cost of coal, the higher wages, and other matters, tend to militate against profit making, but whether profits are made or not the freight charges must be kept low. * * * The South African trade question will loom large very shortly. Mr. Gow, the New Zealand Trade Commissioner, has about reached South Africa, and much wdl depend upon the nature of his report. It is generally believed Mr. Gow It is generally believed that Mr. Gow will find that there is a market in South Africa for the class of produce that New Zealand exports, but the problem to be solved is whether New Zealand can compete in the South African markets against Australia and the Argentine. * * * There is no doubt that the quality of New Zealand produce is superior, but the question is will that supenonty command a relatively higher price? In the opinion of those competent to judge the question is answered in the negative, becaiiise the consumers in South Africa have not the taste for discriminating. To them it will not be so much a matter of high quality as cheapness, and New Zealand cannot compete against cheap stuff. * * * However, if Mr. Gow does his work thoroughly, as it is believed he will, his report ought to set the whole matter at rest. Should it be necessary to fully and vigorously exploit the South African market, it is to be hoped that in granting shipping subsidies the companies now carrying on the trade will not be overlooked. * * * As forecasted last week, theie lias been an advance in merino wool, but crossbreds have not shared to any extent in the impiovement. It is satisfactory, however, to note that values are firm. * * * Wool-growers will need to exercise gieat economy during the approaching season, for most of them have to make up heavy deficiencies for the past year s clip. It is stated that the advances against wool from the Wellington province will not be moie than 3_d, and, as in some cases as much as 2d per lb has to be letunded on account of the last clip, it is clear that glowers will not have much left for themselves. * * * There is a measuie of satisfaction in the reported firmness of the hemp market. The advance is not due to any intrinsic merit of the New Zealand product, but is due to the firmness of Manila hemp. Whatevei the cause, it must be gratifying to millers and others that an upward tendency exists. The hemp industry is a great absoibent of unskdled labour, and is on that account of gieat importance to New Zealand. * * * Mining is very dull, and brokeis are doing practically nothing. Business even in investment shares is \ cry slack, and the pinch is being felt very se\ ere- * * * The dredging letuins aie beginning to decrease, and in the course of another month they will be small. In the summer the Southern iners become flooded, and dredging cannot be earned on. There is, howcvei, no relation between the returns and market values, and it would not occasion much surpnse if values advanced as the returns decreased. * * * The "Otago Daily Times" is doing a great public service in publishing a series of articles dealing with the dredging industry. This was badly needed. The public want to know how the companies stand, which companies have gone into liquidation, what additional capital has been secured, and what companies are playing a waiting game in regard to the constiuction of dredges. * = • * * The liquidator of the New Alexandia, Gold Dredging Company has declared and paid an interim dividend of Is (>d per share*. * » * The Loaning Rock diedge is lcportcd to be on good wash, with gold showing on the mats.