FINANCE STOCKS AND MINING

Free Lance, Volume III, Issue 152, 30 May 1903, Page 5

FINANCE STOCKS AND MINING

THE animal report of the A.M. P. Society, just circulated, makes excellent reading, even for those who are not policy-holders in this grand old Australian life office. The new business written m 1902. including the policies proposed in 1901, but not completed until last year, shows 15,591 policies, assuring £3,702,576. Compared with 1901, the number of policies issued is larger, but the sum assured smaller and tins serves to show the economical conditions prevailing in Australia. The people are insuring; for smaller amounts 1 , for that is all they can afford . but more people are assuring their lives, which is excellent testimony of the orowth of prudence and a disposition to make provision for dependents. The new premiums amounted to £174.133, as compared with £195,385 in 1901. The death claims during the year reached the total of £643,203, which is over £30,000 less than in the previous year. The total claims, including endowment assurances matured, totalled £949,233. as against £977,890. The accumulated fund has been 'increased by £914,598, while m the previous year the increase was £834,668. This paragraph in the report will give general satisfaction — "The report of the actuary discloses a cash surplus of funds over liabilities (including special reserves) of £614,480 14s Id. Out of this surplus, the Board has resolved, m accordance with the recommendation of the actuary, to allot the sum of £558,867 16s 7d for distribution among members. This sum will provide reversionary bonuses amounting to over £1,000,000." • • * The handsome bonus additions that come along each year, and swell the look of a policy, are very gratifying indeed, and contribute in, no small degree to the wide popularity of the A.M.P. The analysis of the past year's business, as disclosed in the actuary's report, is very interesting. The net increase in 1902, after allowing for surrenders is 7508 policies, assuring £1,397,024, so that on the 31st December, 1902. the books of the Society showed 176,815 policies, assuring £50,763 589 and the annual premium income is now £1,664.652 18s lOd. income from interest £858,997 6s 4d. or a total income of £2,523,650 5s 2d. This is a record that the colonies have a right to be proud of. • • •

The distribution of the business of tihe Society, as disclosed by the various registers, is as under —

The position, occupied bv New Zealand is veiry satisfactory indeed. ♦ * • The financial operations of the Society during the fifty-four years of its existence show receipts at £43 449,386, of which £29,177,489 represents premium income, and £13,621,331 income from interest. The disbursements amounted to £24,670,273, of which £10,323,592 lias been in respect of death claims, £2,966,243 for endowments, and £3,050,739 in management expenses. The difference between the receipts and disbursements, amounting to £18 779,113, represent the accumulated funds at 31st December 1902. There were at the close of last year 22,678 overdue policies, which w r ere being sustained out of the surrender value. • ♦ ♦ The mvestanents of the Society are well spread and the balance-sheet, shows that £8,949,743 is invested in mortgages of real estate, £4,095,740 in loans on the company's policies, £2,562,966 in Australian Government securities, £551,676 in New Zealand Government securities, and £105,646 in British Gove/rnment securities. The house property of the Society (office premises and freehold lands) throughout Australasia is valued at £371,865, and the Society has lent to municipalities £1,168,398.

The rate of interest leahsed last ve<a,i was £4 9s 2d per cent, of the mean hinds, a reduction of only 4cl per cent on the rate of the; previous year. The expenses of management ia.st year absorbed 13.35 per cent, of the piemium receipts, an meiease of about 3s' od per cent, on the previous year. The record of the Society all through is commendable and it now ranks among the big life offices of the woild. * • • The Bank of New South Wales finished up a good half-year with a profit of £115,793, increased to £131,072 by the addition of tliie amount carried forward. The dividend at the rate of 10 per cent, per annum, absorbs £100,000, and £15,000 is added to the reserve fund, leaving £16,072 to be carried forwaid. With normal seasons m Australia, banking profits will largely increase. * * * The London money market is settling down after the great excitement over the Transvaal development loan. The unprecedented tendering; for that issue revealed the fact that there is no lack of money for investment, and this has helped to restore confidence The rates for money have since eased, and even the Brazilian Government has been able fco float a five million loan, and have the amount subscribed three-fold. It is, however, doubtful whether the money market is m a condition to absorb colonial issues. * * * The public have not shown recently any disposition for taking up colonial loans and until the undewriters are able to unload, it will be very difficult for the colonies' to borrow in. London. Victoria must raise over five millions sterling very shortly, to redeem a like amount of stock falling due on the Ist January next. The Irvine Government has taken authority to issue the amount on 4 per cent, debentures, but quite recently a London firm, offered to find the whole of the money at a satisfactory rate of interest. * • • The remarkable -elasticity of New Zealand finance is shown by the public accounts gazetted last week. A surplus of over £300,000 is indeed very satisfactory, coming as it does afte/r a series of such handsome credit balances. The most pleasing feature about the colony's balance-sheet is the remarkable pcrowth of the Customs revenue. This has shown steady expansion each year, and the per capita cost has in oonseouenoe mounted up. As the Customs duties fall heaviest on the masses, a remission of some of the duties, such as on, currants rice, tea, and sago, would be welcomed. The sharemairket calls for no particular comment this week. There is promise of plenty of business if holders could only be induced to sell. Buyers are bidding very freely for all classes of shares, and a good few r sales have been reported. Insurance shares are comparatively weak, there beans; more sellers than buyers. Meat shares continue firm, notwithstanding- the downward tendency of the frozen meat market. Financial shares and gas shares are very firm at full rates. * * « Throughout Australasia, gold mining appears to be more active, and the yield of the metal is increasing and mining is beginning to attract attention from British investors. As yet, there is nothing doing in connection with Ne<w Zealand mines, but this must follow, for the gold output of this colony show s excellent expansion during the past two or three years The attention of capitalists will yet be attracted to the dredsring industry.

few South Wales . . r ictoria few Zealand jueensland iouth Australia 'asmania 7est Australia iondon Agency No of Policies 47,796 51,482 29,544 15,697 16,662 7,437 6,498 1,699 Sum Assured 14,868,585 13,351,934 8,015,240 5,210,117 4,278,866 2,097,893 2,163,168 777,786 176,815 £50,763,589