Finance Stocks and Mining

Free Lance, Volume IV, Issue 167, 12 September 1903, Page 5

Finance Stocks and Mining

FROM a return of fifteen leading Australian fire and marine insurance offices published m the "Australasian Insurance and 3ankmg Re>coid," it appeals that then united latest reports, some of them coming down to as late as the 30th June, show a total profit tor the year of £29b,bb3, of which £102,001 was denved from interest, rents, fees, etc., the whole being equal to nearly 12} per cent, on the proprietary funds, aggregating £2,360,The trade profit, which was more satisfactory than in many previous years, was equal to nearly 8i per cent. The dividends and bonuses paid amounted to £157,247, or about 6* per cent, on the capital funds, the balance of £139,416 being set apart to the strengthening of the reserves. ihe net premiums paid had been £1,30,--882, and the losses had absorbed £4J.2,886 The companies had earned interest at the rate of about 4| per cent, oil their funds, of which £737,227 had been invested on mortgage, £586,313 in Government securities, £629,428 m lande and other property, £541, 102 m fixed deposits, and £330,436 m other investments. * * • The fire branch of the Guardian Assurance Company, Limited, is represented in this colony, Messrs. W. and G. Turnbull and Co. being the local agents, and, according to the report and balance-sheet for the year 1902 3ust received in the colony, the fire and burglary insurance premiums, after deducting re^insurances, amounted to £451,322 as against £423,651 in the previous year, and the losses totalled £238,158, as against £250,784, the per oentage of losses being 52.77, which was about seven points lower than in 1901. The expenses and commissions amounted to £165,781, equal to 36.74 percent., being over 3 per cent, more than in the previous year. * * * The merchant vessels under construction in the United Kingdom at the close of June numbered 426, with a gross tonnage of ,1,028,099. The total was twenty vessels more than in June, 1902, but the tonnage was 101,483 less. Of this total, 857,342 tons were for Home orders, 18,024 tons for the colonies, 16,240 top for Germany, 8690 tons for Austria-Hungary, and only 1050 tons for the United States. The Americans had, however, in construction at their own yards at the end of the quarter 191,431 tons, and Germany 134,703 tons. * * * The advanoe in the money rates in London settles the question of colonial borrowing for the current year. The Bank of England rate was advanced last week to 4 per cent., and appears to be to a very large extent the result of political disturbances in the Balkans and the Far East. Money invariably tightens with the demands that come in the autumn from the agricultural centres, but this year the movement has come earlier than usual. * * * For a time at least the adverse conditions prevailing in London will cause heavy shipments of gold, but when the wool clip comes in the colonies should be able to meet the pressure. The Australian colonies will feel the pinch of tight money much more severely than New Zealand, where the enormous profits of the past are available to meet any likely stringency. The Australian banks may be forced to harden their rates slightly, but much will depend upon London demands. * * * Money in New Zealand is, to all appearances fairly plentiful, and the outlook is for another good season. At the present time there are several new joint stock concerns in process of notation in Wellington, and the brokers are meeting with considerable success. The Masterton Permanent Building Society has successfully placed some shares in Wellington, at a premium of 10s. The weather is exercising a check to business. Spring weather has been conspicuous by its absence, and, while the drapery establishments are showing their gay colours and light summer fabrics, the wintry weather is stopping business. As soon as the climatic conditions get righted there will be considerable activity in all branches of trade. There is soundness and stability in all directions, and the outlook is as good as it ever was.

The business prospects in produce oannot as yet be foretold with any degiee of certainty. The butter season. 13 supposed to have commenced, but it is difficult to hear of contracts being mado. Prices are a shade lower than last year, but a fractional decline will not inconvenience the producers. The output mil, it is expected, be larger than in the past season, and this will more than compensate for any fall in values. * * * There is a little more life than usual m the investment market and from now on to the close of the year sharebrokers should experience a busy time. Bank shares are in good demand, New Zealand changing hands at 81s. Union Bank shaies are wanted at £40. The excellent balance-sheet of this bank has no doubt greatly influenced investors. * * * Building Society shares axe once more m strong request. Metropolitans had quittance at £12, with buyers offering £11 17s 6d. Equitable Buildmg shares and Wellington Building shares are wanted at £9 12s Gel, and Wellington Tiust and Loan at £7 10s •* * Gas shares are quiet, simply because they aie too firmly held, and holders will not sell. Fedlding Gas shares are in demand at 19s 9d; Napier Gas, at £21 and Wellington Gas, £5 paad, at £9 10s. Insurance shares are dealt in very ca,utio-usly, and this condition of things must continue until the full effect of State fire insurance is realised. South British shares sold up to £5 9s. The annual balancing period of this company closed on the 31st ult., which may account for the attention devoted to tihe shares. Nationals are in demand at 21s, and Standards at 17s 9d. New Zealand Insurance shares are offered at 86s. * * * Meat shares are very quiet, but values show no disposition to fall. New Zealand Refrigerating shares sold at £1 12s. Chxdstchurch Meat shares are offered at £10. Woollen shares are steady. Wellington Woollens sold up to £5 Bs. The company shows an excellent balance-sheet for the past year's operations. Mosgiel Woollen shares are in demand, at £4 2s. * * Miscellaneous shares are steady, at late rates. New Zealand Shipping shares were marketed at £6 17s 6d, amd New Zealand Drugsi ait £2 7s 6d. Manawatu Rails maintain a steady position, with, buyers at 27s 9d. Mauralceville Lime shares have firmed, and buyers now bid 225. A premium of 10 per cent, is very satisfactory for a company a little more than a year in existence. * * * Mining matters are quiet. Dredging returns are affected by the weather conditions. Nevertheless, some fairly satisfactory reports were forthcoming last week.