Finance Stock And Mining

Free Lance, Volume III, Issue 142, 21 March 1903, Page 24

Finance Stock And Mining

THK balance-sheet of the Un oa Bank of Australia, for the half\ea,r ended 30th August last, and submitted to the proprietors in London on the 26th Januauy, is now to hand. The net profit for the period totalled £97,930 15s 7d, being larger by o\er £2000 than the profit earned in the coiresponding period of the previous year With the balance brought forward the amount available for distribution totalled £134,143 Out of this. £50,000 was restored to the reserve fund, w Inch now stands at £950,000, and the divdend, equal to £1 per share absorbed £60,000, leaving £20,143 to be earned forward. The balance-sheet shows £453 811 aft the amount of the circulation, £15 261.293 as the amount of the deposits and bills payable and other liabilities at £1 661,719. The assets show coin and bullion at £4 275.040, money at call and short notice in London at £1.000,000. Investments stand at £1 ,448 054, bills receivable, etc., at £1,114,570. and discounts and. advances at £11 379 646 The working expenses for t^e ha'f-vear amounted to £127,984. It may be mentioned that the directors have very generously devoted £4000 in aid of the officers' guarantee and provident funds The chairman stated a.t the mcct m<r that Imperial Consols appearing in the balance-sheet were taken in at £90 which is, no doubt, a very safe valuation, even ».t the present low market quotations. # * * The Bank of Australasia, as advised bv cable a few days ago has had an-other-profitable half-year, the accounts to the loth October last showing an available surplus of £152,085. Out of this, the shareholders receive £88,000 the sum of £35,000 is added to the Reserve fund, which no-w stands at £1,070,000, £14,000 is written off the value of premises, and a bonus of £15 142 coes to the staff, leaving £14,648 to be carried forward. The Union Bank and the Bank of Australasia are represented in every colony, and it is obvious that the great drought experienced bv Australia has not hurt these banks m any way. But then much is to be sadd for that prudent and careful management which has ever been the feature of these institutions. * • * Bank balancing may cause some little stringency for a time m the colony The Union Bank us balancing: now, the halfyear having closed on the 28th February The National Bank and the Bank of New Zealand balance at the end of the current month, and the Bank of Aus Itralasia on the loth April. The balancing of the two local banks is of morei importance because their business ramifications extend all over the colon v, in eluding most of the small townships. It is this balancing that generally makes the first quarter of the year comparatively dull. Not that theie is any lack of funds but traders have a fondness for showing a good bank passbook at the close of the banking year. The Metropolitan Building Society of Wellington is in a flourishing condition, and growing in. importance and usefulness. The balance-sheet for the year ended loth February, and submtted to the shareholders 1 on Monday last, is a very satisfactory document. The net profit for the year amounted to £1957, and, with the balance brought forward the sum of £2088 wa® available for distribution. Of this 1 amount, £1718 goes 1 in dividends, and £250 is added to the reserve fund, which now stands at £2000, leaving £120 to be carried forward. • • • The total funds invested by the society now amount to £57,518, of which £56,889 is on mortgage. The deposits held by the Society total £25,528, so that less than half of the trading funds represents borrowed money. The amount received as interest on loans during fhe year totalled £3175 9s lid, and the expenses account amounted to £341. or a little more than one-tenth of the income, which is fairly cheap management. The balance-sheeit of the New Zealand Drug Company, for the year ended 3] st January, 1903, was submitted to the shareholders at the annual meetine, held in Dunedin. on Thursday of this week. Compared with the document issued last year the balance-sheet is extremely satisfactory. The net profit is shown at £15,149, as against £4274 last year. It is. however, necessary to

state that special piowMon had to be made in last yeai's balance-sheet vi lespect to stock and book debts at the Wellington and (jhnstehuich blanches to meet undue inflataon ot values and which necessitated change % in management With the balance biought foiwa'd from last year, the amount available foi distribution totalled £27,313, out ot which the dividend of 7 per cent, absoibs £13,049, leaving £13,b(>4 to be earned forward Tlie year exhibits a splendid increase in business. The gross profits, after deducting net co^t od manufacture, amounted to £44,909 at compared with. £34,429 in. the previous year. Working expenses absorbed £28,277, as against £28,480 last year » ♦ • The Palmerston North Gas Company w as able to present to the shareholders last w eek a cheering balance-sheet The amount available for distribution — £2770 — was a fairly large sum, and the 7 per cent, dividend wall be welcomed The improved circumstances of the company account for the warm market support accorded the shares. » • » The Hon. A. J. Cad in an. has had no easy task m trying; to float a company in London to manipulate lronsand. Private information received in New Plymouth reports that he has been part]aJlv successful, which is encouraging but there is still a great deal to be accomplished. What Mr Cad man, appears to have succeeded in doing is to. get a small syndicate, or firm of brokers to agree to help in the flotation of a company provided independent renoits are favourable. An expert is to be sent out to report upon thei prospects and until that report is available it is hard to say whether the lrorsand company will be an accomplished fact or not. * * * Sharebrokers report a dull mai ket and this is probably due to the pending bank balancings. Shares, too, are abnoimally high and holders show a stioiig disinclination <to sell, because of the difficulty of finding suitable rein\eatments. If the mortgage rates advance, as seems hkelv, a material change will come over the share-market. Bank shares are steady Nationals are offered at 90s, and sales of Bank of New Zealand ishares are reported at 7:= There is an impression in the market that the conversion of the Bank of New Zealand m,to a State Bank is contemplated, but what grounds there are for this impression it is difficult to determine The firmness of the shares is against such a view of the position Insurance shares keep very firm Nationals changed hands at 22s 3d and there are buyers of New Zealands at 87s, South B""tish at 107s 6d, and Standards at 19s. Meat shares are decidedly firmer than they were some months asro Gears, £5 paid, changed hands at £6 ?s 6d, and there are buyers for nearly all meat shares at full market rates. Woollen shares continue to command active attention Kaiapoi shares sold at £6 2s (3d. ex dividend, Moseiels are wanted at 80s and Wellington Woollens at lOos 6d and 83s 6d for the respective issues * * * Miscellaneous shares show the usual fluctuations. Avondale Brick shares are in demand at 10s bd. Donaghy Rope shares at £11 17s 1 6d, and Leyland and OBrien Timber shares at 40s 6d Mitchelson Timber shades are offeied at 17s 6d. The balance-sheet of this company is expected out m a few days Sharland's ordinal v changed hands at 23s 6d.