Finance Stocks and Mining

Free Lance, Volume IV, Issue 170, 3 October 1903, Page 5

Finance Stocks and Mining

THE Hawke's Bay Woollen Company, for the year ended 31st July, 1903, showed a deficiency of £14.58 12s Gd on the year's operations, but from this amount £46 lls lid must be deducted, this being the credit balance brought, forward from the previous year, thus making the net deficiency £1412. This is not very promising, but is just what should have been expected. The directors assign specific reasons for the deficiency, and, while these are fair, they do not amount to much. * * * Running a woollen mill is not quite the easy thing that many people in the country districts fancy it is. They see immense quantities of the raw material, and are inclined to think that a mill is all that is needed to turn this raw material to profitable account. Since the Hawke's Bay mill was started, there have been agitations in Masterton and Palmerston North for the establishment of the industry, but the balance-sheet now presented will, no doubt act as a deterrent. * * * It is very evident that there are today more woollen mills in the colony than there is trade for, and every additional mill merely increases the competition for the restricted trade, and helps to bring down prices. The products from the four or five leading mills find a market and, during the past four or five years, during the period of nrosperitv, business has been extremely profitable under very capable management. * * * But, even the older mills have to supplement the work of the looms with trading in what is technically termed "slops." They cater for the readymade clothing tirade in its various branches. There is really no opening for additional woollen molls, and the Hawke's Bay Company is likely to have some sad experiences. At all events, all young companies have their troubles, and the Napier concern will do well if, in a fe wyears, it is able to pay a modest sum. * * * The Wellington Woollen Company strikes a different note from the Hawke's Bay Company. The Wellington company had) its troubles years ago, and they were serious troubles while they existed, but the Wellington company was established at a time when there was reasonable hope of a company finding a footing. The management too, of the Wellington company has been of a__high order in recent years and the progress made has been phenomenal. The company is just about to enter into the worsted trade, and, judging by the past operations of the company, this branch of the business should be a success. * * * The balance-sheet of the New Zealand Shipping Company for the year shows a profit of £54,742, sufficient to pay a dividend of 5 per cent. and leave £10,570 to be carried forward. The dividend is a modest one, but, in view of the declining freights all over the world, the operations of thei New Zealand Shipping Company must be regarded as very satisfactory. •* * * The tightness of the London money market has been much commented on by business people here, and no one can say what the ultimate effect will be. When gilt-edged securities are depressed, the market gets the worst knock possible, for it is the big financial houses that feel the pinch, and the moneylenders become extra cautious and reserved. It is obvious that the colonies will not be able to borrow in London for some time to come — possibly not until the middle of next year — but that will cause inconvenience only to Victoria, which, has a large loan falling due on the Ist January next. * * * Even if the London money market kas a detrimental effect on the economic conditions of th© colonies, it will be a year op two before it can be felt here, and it is foolish to anticipate trouble. For the: present, we may content ourselves with the fact that produce is realising very fail" prices, and that there is a plethora) of money, the savings of the past four or five years. It may be that second and third class securities may have to pay higher rates of interest, but the pressure will come gradually and imperceptibly, and we will not feel it at all.

The exports of butter from Siberia have reached enormous proportions, with every indication of increasing to a very large extent during the next few years. But, it is wrong to suppose that this will prove detrimental to the Danes, because the Danish butter-mak-ers are importing the Siberian product for consumption, and exporting thenown excellent butter to the London market. * * * In any case, New Zealand must expect to meet with increased competition, and the only way of meeting this is to maintain the quality. The present season, which is just about opening, will see a considerable increase in production and prices, while not as high as last season, are, nevertheless, very remunerative. The milk cheques will be large enough to assure another year of prosperity for the dairymen. * * * Money is being freely invested in the hemp industry, and this should be encouraged. The profits just now are very good, but from the point of view of the community the chief gam is in the fact that the industry finds an excellent outlet for unskilled labour. * * • Investment shares have not been '"n active demand, possibly because of the closing of the quarter, and the balancing period of two banks. The demand, however, is fairly strong, and prices remain firm. Bank of New Zealand shares are in request, at. 795, which is a trifle lower than the offers of a few weeks past. National Bank shares are offered. * * * Financial shares are firm. There are bids of £9 12s 6d for Equitable Buildin" £12 for Metropolitan Building, £7 lls for Wellington Trust and Loan £9 12s 6d for Wellington Building, and £2 4s 6d for National Mortgage. * * * Gas shares are steady, but there is little business passing. Napier Gas shares had quittance, at £22 10s. Feilding Gas shares are in demand at 20s • while Wellington Gas shares, £10 Daid, are offered at £19 12s 6d. * * Insurance shares are neglected. Nationals are quoted at 21s 3d, and New Zealands at 82s 6d. The balancesheet of the South British Insurance Company is about due. Meat shares are off the market, except Wellington Meat Export shares, which are m demand at £7 7s. * * * Miscellaneous shares are slack. Manawatu Rails sold at 27s> 6d ; Leyland and OBrien Timber shares, at 44s 9d • Mauriceville Lime, 26s 6d; and New Zealand Drug, at 27s 9d. New Zealand Shipping shares are in 1 demand, at £6 18s, and Union Steam, at £13.