Finance Stocks and Mining

Free Lance, Volume IV, Issue 169, 26 September 1903, Page 5

Finance Stocks and Mining

THE annual meeting of shareholders of the Wairarapa Farmers' Cooperative Association, Limited, is to be held at Masterton, on Monday next, when a very satisfactory balancesheet will be presented. This document shows even better results than last year, and the balance-sheet of 1902 was a very good one indeed. The net profits for the year ended 31st July last., after making provision fcr bad and doubtful debts, depreciation on stock and plant, and auditors' fees, total £12,656, and, with £5852 ca.rned over from the previous year, the directors have the handsome sum of £18,508 to distnbuto and this amount is to be applied as under — Payment of dividend on capital, 6 per cent Bonus on capital, 3 per cent. Bonus to shareholders on their purchases and to employees on thieir salanes, 3 per cent. Besides which the heads of departments showing increases get bonuses, and, after doductin.3 theso- amounte, together with Government taxes and directors' honorariums, theie is left a sum of £9400 to be carried forward. Thus, after being more liberal m the matter of dividends and bonuses, there is a larger sum to carry forward, a result that cannot be regarded as other than extremely satisfactory. The detailed figures give much cause for congratulation. The stock on hand and afloat is valued at £81,800, and the book debts and bills receivable are set down at £43 089 the bills payable and sundry liabilities amount to £6213, while, the bank overdraft is £2291, but against this latter sum must be set cash in hand £808, and London agent's credit balance £1149, so that practically the Association is working on its own capital. # The gross profits for the year amounted to £22,802 and the working expenses to £10,146 , the proportion of expenses to gross profits is very small, and shows that the directors are safeguarding the interests of the shareholders very well indeed. The Caselberg family have very large interests in this concern, and their connection with the business is an element of strength. So far as is known, there is no juggling with the shares, but those holding the shares look upon them as a siafe investment. The shareholders get 9 per cent, in addition to bonus on purchases, and this is an excellent return now-a-days. It is a) better return than the Association has paid, and the future is full of promise. The balance-sheet of the Canterbury Farmers' Co-operative Association for the year ended 31st July last is to hand and shows an available balance of £19,734, made up of £18,050 net profit, and £1684 earned forward from last year. This Association, is two veais younjrei than the Wairarapa Farmers' Association, and shows a larger net profit by £5400, but the tw o businesses are so absolutely different that a fair comparison cannot be made. * * * The southern Association does a very large commission business in wool, grain, and stock, which is not the case with the Wairarapa concern. Both Associations have done remarkably well m their respective spheres, and tend to illustrate the fact that co-operative companies, when properly managed, are a decided success. The directors of the Canterbury Farmers' Co-operative Association propose distributing the available balance of £19,734 4s lid a& follows- — 8 per cent, dividend on paidup capital, 6 per cent, bonus on pinchases by the shareholders, 25 per cent, to be refunded on grain and auction commissions earned (except wool), and 6 per cent, bonus to go to the staff . £3000 to be added to the reseive fund, and £1000 to be written off building's, and aii extra margin is provided foi depreciation. * * * The buoyancy of the market for crossbred wool is one of the most cheering items in commercial news, for it spells another season of prosperity for the farmers — a prosperity which the community generally will enjoy. Mutton wdl be dear enough locally, even if prices go against us in the terminal markets. The great scarcity of sheep will make for high prices, and butchers' meat will be dear for some time to come. Butter is selling well, though

at a slight reduction on last year's prices. Hemp is safe. Thus, all the main pjoducts of the colony ade on a splendid selling basis, and, this being so, the piognostications of the pessimists may be laughed at. * * •* The London money market exhibits unusual stringency just now, but that as due to special circumstances, chief of which is the pressure that is now being applied by Russia. In addition to the withdrawal of credits with German and French bankers, the Russian Government is endeavouring to borrow twenty-five millions sterling. Russian credit does not stand very high, and, with the present strain on the money markets of Europe, it will be a difficult matter to raise the amount required at a reasonable rate of interest. * f • The pressure is likely to continue until w ell on into the new year, and the only point of interest to New Zealand is whether or not the pressure will affect us. This is a question that cannot be answered off-hand, for it involves a good deal. Much depends upon the strength of the stringency and its duration. If money rates go higher, and there is a possibility of this, we may feel the pinch, but only to a slight extent. * * *• So far tins year British trade has been well maintained, both exports and imports showing expansion. The imports for the first eight months of the year totalled £348,944,665, as against £347,172,166 for the corresponding period of last year, while the exports amounted to £194,063,054, as compared with £185,704,570. The ereat increase m the exports will rather favour the arguments of the opponents of Mr. Chamberlain's fiscal reforms. The abandonment for the time being of the preference proposals robs the fiscal question of much of its interest for colonials. * * * Business in the sharemarket is fairly active, and several sales are reported. National Bank shares had quittance at £4 lls 6d, Neiw Zealand and River Plate. 26s Wellington Gas (£5 paid), £9 15s ; Northern Steam, second issue, 7s Id- Kaiapoi Woollen, £6 8s 6d , Westport Coal, £6 19s Sharland's ordinary, 235: a~d Ward and Co. (brewery), £4 109. The market shows no fluctuations worthy of note: the buying orders axe fairly numerous for all the favourite stocks, but woollens and miscellaneous shares are being morei freely offered, and in many cases holders are profit-taking. * * # The production of gold in the Commonwealth continues to show excellent expansion, the output for the eight months ended 31st August being 2,569,102 fine ounces, as against 2,222,825 fine ounces for the same period of last year, thus showing the substantial increase of 346,277 fine ounces. The output from the colonies this year wiJl be very much larger than in many previous years. The Transvaal output is going up by leaps and bounds, although many of the stampers are idle because of the alleged scarcity of native labour. Th& output for the month of July was 251,6440z, as against 149,1790z in July of last year. The yield for the first seven months of the year is 1,565,7210z, valued at about £6,634,300, against 806, 021 oz valued at £3,425 500.