Finance Stocks and Mining.

Free Lance, Volume III, Issue 105, 5 July 1902, Page 20

Finance Stocks and Mining.

THE Premiers' Conference, m London, which commenced on Monday, has lost its main interest for New Zealand because Mr. Seddon's scheme of a pieferential tariff withm the Empire has been annihilated by the attitude of the Chancellor of the Exchequer. Sn Michael Hicks-Beach stated that there was to be no change in the fiscal policy of Great Britain— the settled policy of the country being freetrade. * ♦ • While it may be a splendid thing for the Empire to trade within itself, facts and figures are absolutely opposed to any practical application of the preferential trade policy. Great Britain's magnificent trade and over-sea commerce have been built up on freetrade, and some of the greatest engineering enterprises of the day owe their existence to her freetrade policy. *■ * * The Suez Canal was built by a French engineer, with French capital, almost exclusively for th© benefit of British trade. If the canal had to rely upon French or German trade it would never have been the financial success it is. The protectionist policy of America and" Germany, and the fact that these two countries are gaming m foreign commerce is misused as an argument in favour of a preferential tariff and protection within the Empire. * *■ *■ The net result of the protectionist policy of America and Germany is to s-upplv th© British with cheap goods. German-grown sugar can be bought fully 2d per lb cheaper in London than in Berlin, and the same disparity e x^s with respect to American goods. We can buy American manufactured boots in Wellington as cheaply as they can be bought by the protected Yankees in the great city of New York. Protection m Germany and America means taxing the people of those countries for the benefit of foreigners, and that is a kind of patriotism that the British are not likely to appreciate. # If England gave the colonies a trade preference, such preference must be arrived at by taxing the products of other countries, and, as the colonies are unable to supply more than a tithe of the requirements of the Mother Country, it is obvious that the people of the United Kingdom would have to be heavily taxed to provide this preference. Such a policy would upset the economic condition of Great Britain and hasten the day when Macaulav's Maori would view the ruins of the great metropolis. The subiect may be dismissed from colonial minds, for British statesmen are too strongly wedded to freetrade to agree to any tampering with it. * • * State fire insurance is again before Parliament, and were it not that we are now in the closing session, the matter would occasion much agitation and excitement ; as it is, it may be assumed that the question is being brought forward for academic discussion. The fire at Capetown, with a loss of half-a-million sterling, is about th© most effective answer that can, be given to the advocates of State fir© insurance. If such a lossi occurred in thisi colony and the State had to pay out, the credit of the country would certainly suffer. The Capetown fire will not seriously affect the fire insurance companies, because the loss will be shared bv so many of them ,and furthermore, the loss in Capetown will be recovered by the profits in other countries. The difficulties in th© way of th© successful establishment of State fire insurance are numerous. There is, first of all, the limited field of operations, and, judging by the fire losses of the past, the premiums obtainable in the colony would not be sufficient to cover the losses and costs of management • • * Another point is, that the "moral hazard" would increase. This is the hazard that the t>rivate companies find so much difficulty in combating. It would increase under State management, because, rightly or _ wrongly, most people feel no compunction in imposing upon the State. This is so obvious that a particular illustration is unnecessary. Besides the above, the State would lose th© contributions made to the revenue by fire underwriters, and this contribution amounts to an appreciable sum each year. The deficiencies would have to be made up bv increased taxation.

Tiie position with respect to the Blue Star hue and the South African trade appears to have been slightly advanced. Fresh conditions seem to have been submitted, and another week should see some definite decision arrived at. In local shipping circles there is considerable doubt about the ultimate arianging of the contract. It would be some satisfaction to the producers to learn that this direct Line is to be an accomplished fact but whether South Afnca will prove a profitable' market is a matter that will have to be determined by actual eixperience. » • South Africa is again enjoying peace, and Boers and British seem determined to turn to and begin the work of development in real earnest. What trade there is, other countries are on the alert to annex, while New Zealand is lagging. New Zealand butter is glutting the Sydney market, and the price« of the local productions are beine lower ed to force sales. This will result^ in shipments of New Zealand butter being diverted to South Africa where probably, better prices can be> obtained * # » The branding of tinned butter intended for export is occasioning some concern amongst those interested in the trade, and it is alleged that the Agricultural Department, by insisting upon the factory brands being placed on the tins, is placing unnecessary restrictions upon the trade. The factories do not tin their output, or any portion of it but sell to local speculators, or the agents, of British and Australian houses, and the marketing of the produce falls upon these middlemen. South African merchants want tinned butter, and want their own particular brands on the tins, but this cannot be complied with. The Department, by insisting upon the factory brands, is compelling exporters to ship in bulk, and do the tinning at the terminal port. and so the object of the Department, wiuch is, no doubt, a good one, is being defeated. It is somew hat, difficult to appreciate the trading tactics that are being inculcated. The producers are being taught to expect to receive all the profit, and to avoid any loss, which is quite impossible when it comes to regular trading. So long as the middleman is needed for marketing the butter, what does 1 it matter to the producer how much the middleman gains so long as the' price paid by him yields a fair profit to the producer. * * * The next of the series of London wool sales commence on the Bth instant, and the prospects look bright enough for merino wool, while crossbred wool is not likely to goi back , the chances are rather the other way. The Bradford Top market, which is about the only guide we have, has been remarkably firm since the close of the last series, and it is safe to assume from this that the consumptive demands aie good, and quite equal to the supply. * * • The sharemarket is inactive, and the sales reported are inconsiderable. Bank of New Zealand shares are firm at 66s The balance-sheet of the bank should be made available next week, and there is very little doubt about the dividend of 5 per cent, being declared. Christchurch Meat shares changed hands at £9, which is a fair price, considering the circumstances of meat companies generally, and the agitation that is going on for State interference. Gas companies' shares command the most attention just now, and are in firm demand at full rates. Insurance shares also are in better request, which is evidence that investors do not view with alarm the State fire insurance proposals. * * * Dredging is quiet. The returns for the past week were excellent, but the lee-way to be made up is very disheartening. Of course, most of the companies are improving their positions, but there is nothing in the conditions to warrant speculators being optimistic, and it is now probable that another year must elapse before the dredging industry re-gains the confidence of speculators.