Finance Stock And Mining

Free Lance, Volume III, Issue 148, 2 May 1903, Page 24

Finance Stock And Mining

THE balance-sheet of Sharland and Co., Limited, for the year ended 28th Februaiy, is decidedly satisfactory The figures show that taking into account the sum of £108 lbs 3d brought forw ard from the previous year, the credit balance for the year is £4997 18s Bd, a very respectable sum indeed. Tins enables the directors to add £1500 to the reseive fund, making that, fund £3500, to distribute 7 per cent, per annum on all shares, preference and ordinary which will absorb £3407 6s sd, leaving £90 12s 3d to be carried forward to the new account. In theor report the directors say — ' Whilst regretting the necessity for the unusually large provision for bad debts, the directors congratulate the shareholders on a larger turnover of business, and consequently a more satisfactory net return than in. the preceding year " The amount written off forbad debts is shown in the balance-sheet at £840 3s 4d It is a large sum indeed, but, instead of apologising the directors are entitled to the thanks of the shareholders for having the moral courage to face such a loss, and write it off. It is the proper and only safe course, but, unfortunately, there is a tendency to avoid making suitable provision for such losses. The ample provision made for losses through bad debts is a strong point in favour of the directors, and not a matter for apology. * * *■ Of course, it is to be assumed that for the future care will be taken to keep such losses down, but losses already incurred are best written off. The company is doing an excellent business, and has splendid prospects before it. The difficulties of the past are not hkely to crop up again so loner as the directors pursue their present course. The bal-ance-sheet shows the value of the assets at £80,032 of which stock on hand accounts for £44,961, book debts, £18 560, and freehold and leasehold properties £12,997. The gross profit for the year was £20.223, and the working expenses £14,337. The shareholders- hold their annual meeting on Monday. * * • The Wellington Patent Slip Company held its annual meeting last week. The balance-sheet showed an available balance of £3071 8s 7d, of which £1765 10s 3d was the profit for the year, the balance being brought forward from the previous year. The dividend declared, 8 per cent., absorbs £732 9s- 7d, and the bonus of 2s per share absorbs £305 4s, leaving £2033 15s to be carried forward. The reserve has Jjeen strengthened by the addition of £476. * * • The Australian Mortgage, Land, and Agency Company has apparently felt the fidl effect of the drought, few it has been found necessary to reconstruct. The balance-sheet of this company was issued the other .day^. and showed that to meet losses the directors! appropriated £80,000 from the reserve fund. This is the first of the land companies forced to reconstruct because of the drought, and' it, is mot unlikely that other companies will have to do the same. In the scheme of reconstruction the preference shares and stock are reduced to 70 per cent, of their face value. It is a reduction such as this that helps to shake confidence and it w r ould not be surprising if there is a small crisis amon"' the land companies of Australia. * • • The New Zealand Loan and Mercantile Agency Company has once more appointed local directors, and those now selected — Messrs. Nicholas Reid and J. G. W. Aatken, M.H.R.— command the respect of the commercial community. These appointments do not involve any change m the methods of business, but it us obvious that the -neiw directors w ill tend to increase the public confidence in the operations of the company. * » • The Bank returns for the past quarter show that the colony is enjoying; unusual prosperity. TJiere has been a very large increase in? free deposits, and a fair increase in fixed deposits. Advances also show a substantial improvement. The outstanding feature of the returns, however, is. the fact that the liabilities exceed the assets. This means, of course, that the banks are employing their resources outside the colony. As a matter of fact, ihe Bank of New Zealand and the Union Bank are doing so, and asi regards the former it is very probable that this diversion of funds has been

rendered necessary ni the interests of the Government. It is obvious, however, that the banks cannot aftord to lose then" deposits, so that should theie be exhibited any disposition to withdraw deposits rates will have to be raised. There is a distinct tendency for money to harden, and mortgage rates are slightly firmer. * » * The sharemarket continues very dull, and the turn of the quarter has not seen the improvement that was anticipated. Bank shares are easier. New Zealands changed hands at 72s 1 , which shows a fall of about 3s per share , Nationals are offered at 88s 6d. with no declared buyers. Gas shares are not quite so firm a® they wore. There are sellers of Christohurch Gas at £9 17s 6d, Feilding Gas, at 21s- and New Plymouth Gas* at. £7 2s 6d. There are bids of 90s for Asihburton Gas 92s 6d for PaJm&rston North, and £18 10s and £9 5s for the respective issues of Wellington Gas. * * * Insurance shares are neglected. The market is disturbed, not. knowing what is really intended with respect to State Fire Insurance. There are buyers of New Zealand Insurance shares at 84s, sellers asking 88s ; Standards are offered at 19s, with no buyers. Meait shares show no variation. Gears are firm at £6 4s and £1 12s for the respective issues. New Zealand Refrigerating Shares are offered at 40s 6d. * * « Union Steam shares are in firm demand at £12 10s, and Westport Coal shares have had quittance at £b 4s, which is a remarkably good price. Woollen shares command fair attention. Kaiapois are wanted at £6 4s, and Mosgiels at £4. Wellington Woollen shares are very firmly held, and any coming on the marke-t are readily sold. * • * In miscellaneous shares, a little more activity is to be noted. Donaghy Rope and Twine shares Changed hands at £12 12s, and there are still buyers at the price. New Zealand Drug shares sold at 475. Leyland and OBrien Timber shares are jn demand at 40®, and Wellington Opera House shares at 80s. New Zealand Candle shares are offered at £10, and Ward, and Co., Ltd., at £5 * * • Dredging returns are getting very interesting. The old companies that were expected to give payable results tw o years ago, are only now beginning to verify the erood opinions entertained of them Last week's returns were very satisfactory, and eiven better results may be looked for during the next few months. Revival in speculation in minims: shares is one of the. strong probabilities of the near future, but the speculation will not be on the same wild and senseless soale which brought disaster to so many people.