Finance Stocks and Mining

Free Lance, Volume III, Issue 115, 13 September 1902, Page 5

Finance Stocks and Mining

THE Bank of Australasia has declared a dividend at the late of 11 per cent , which is very satisfactory for the shareholders. An inciease of one per cent, is something to be thankful for in these days. The point for special notice is the steady ey~ansion of bank dividends. /hen the financial crash m 1893-94 wrecked several institutions most of the banks curtailed their dividends, particularly the Anglo-Aus-tralian banks, and for a long time o per cent, per annum was the prevailing rate. * * * Banking business is now on a very sound basis — sounder, perhaps, than at any time in the history of the colonies, and, although it may be many years before shareholders receive a 20 per cent. dividend, the solidity of the older institutions is a matter for congratualtion. The Union Bank of Australia has opened a branch at New Plymouth and this may be taken as a tribute to the expansion and stability of the butter industry. • * * The speech of Mr. James Macandrew, the chairman of the National Bank at the annual meeting of shareholders held in London early in July last, was very optimistic, and appears to be fully warranted. He observed that the directors were satisfied that the position of the bank in New Zealand was sound, and that the business was being conducted on safe lines. * • * There is no doubt that the National Bank is doing a very good business in this colony, and as large a business as it is possible to do with the present paid-up capital. A cheering item in proceedings of the National Bank annual meeting was the announcement that the bank had recently increased the salaries of many members of the staff in consequence of increasing business, and the process will in all probability, be carried still further. • • ♦ The National Mutual Life Association will close its financial year at the end of the current month, and the executive officers in New Zealand are delighted with the business written in this colony. The eleven months that have already passed shows an aggregate greater than that fcr the whole of last year, and last year's business was a record for the society. Mr. Orton Stevens and his staff may well be proud of their achievements. The South African steam service is causing the Government no end of worry, and the results only confirm the views of experts that the subsidy offered is inadequate for such a service as the Government requires. The dipping companies have endeavoured, as •far as possible, to meet the demands of shippers, but it seems that, while a number of irresponsible people are insistinp' upon direct communication and upbraiding the companies for not being more enterprising, a ship placed on the berth does not meet with full support. » • ♦ The Blue Star Line sent in a tender so far back as February last, and this tender with certain modifications was accepted by the Government, but Mr. Sleigh the man behind the tender was unable to secure the support of London financiers, and the Government has been forced to cancel all negotiations There appears to be a good deal of confusion about the new tenders but it is more than likely that the views of the Acting-Premier will, in the end. be found correct The subsidy offered is insufficient for the conditions imposed and unless there is some material alteration the service will not be established The Federal Line has, in the meanwhile, met the requirements of the colony. The Sussex left some weeks ago with a full cargo but she sailed ]ust after peace was declared, and before the repatriation of the British troops commenced. The steamer Norfolk, which sailed a few days ago, did not receive the same support. The cargo for Natal and the Cape was trifling compared with the previous shipment, but a considerable amount of space was engaged for cargo for Australia. ♦ * * It is very likely that the next vessel, the s.s. Kent, will get less than the Norfolk. There is, after all, a very restricted business in normal times and this will come home to producers presently. The Australian market is being flooded with, meat from New Zealand.

The Norfolk took 17,229 carcases of mutton and lamb, and 3000 live sheep. The Taviuni takes 300 head of cattle- , the Nairnslure is to take 25,000 cai cases of mutton and 2000 Quarters of beef the Kent will take live cattle and sheep and the Tomoana frozen mutton * * * The Australian market cannot possibly absorb all this meat, and a glut is inevitable. There has also been fanlv good rains and it will not be lon^ before sheep are brought up to a condition fit for the butcher. The last sales and these further heavy shipments must depress the market. It is very nrobapble, however, that consignois are stipulating that the frozen meat shall be taken on to London if it happens that the Sydney market is unfavourable. The London market for frozen meat is, unfortunately, showing a lowering tendency owine to the heavy receipts from New Zealand and the Argentine, so that it is iust possible that Sydney quotations, even if there should be a slump, will be more profitable than the prospective London r>rices It is satisfaotorv to note that while meat is fairly cheap in London, there is a meat famine in Germany necessitating the slaughter of dogs Germany's policy of protection does not protect but causes starvation. The high prices ruling for butchei's meat in Wellington is having the usual effect. There is a tremendous decline in trade People are eating less meat, which from a health point of view, cannot be regretted. The low prices ruling in London, the prospective check to exports to Australia, and the decline in local trade will all tend to brine down prices to their proper level here when butchers will be glad enough to lower their charges. The fifth of the series of London w 00l sales begin on Tuesday next, but it is difficult to get an expression of opinion on the prospects from experts. If the market for crossbreds is no worse than it was at the last series there will not be much room for complaint. The interest in butter is increasing The season has practically begun, but dealers and c.i.f. buyers find that the factories possess inflated ideas on the market prospects. Several f acton es are consigning, and taking the risks, and it is to be hoped that the results will be to their liking.. * * The sharemarket is inactive, and the sales reported are few. Bank of New Zealand shares are in fair demand at 62s 6d ; Nationals are offered at 83s. Financial shares are in steady demand but business is restricted. Metropolitan Building shares are wanted at £11 17s 6d New Zealand and River Plate, new issue, at 23s 6d ; Wellington Building at £9 ss, and Wellington and Loan at £7 6s. * * * Gas shares are in active demand, and are rightly regarded as the safest investment. There are bids for Ashburton Gas at £4 12s 6d ; Feilding Gas at 20s ; Gisborne Gas, 37s • Palmerston North Gas, 85s, and Lyttelton Gas, £6 7s 6d. Meat shares are quiet. Gears, £1 paid, are in demand at 28s and Wanganui Meat are enquired for at £5. Meat Exports are freely offered at late rates but without attracting buyers. * * * In the miscellaneous section Manawatu Rails are firm at 28s , Union Steam at £11 15s; Westport Coal, at £4 19s, and New Zealand Candle Company at £9 10s. Donaghy Rope and Twine shares changed hands at £11 15s and £11 16s 6d.