Finance Stocks And Mining

Free Lance, Volume IV, Issue 176, 14 November 1903, Page 5

Finance Stocks And Mining

THE balance-sheet of the National Fire and Marine Insurance Company for the year ended 30th September last is new to hand, and the figures are fairly satisfactory. The premium income for the year, less reinsurances and leturns, totalled £109,856, and this included fire and marine premiums. The losses totaled £59,843, or .54.47 "er cent, of the premium income and, m addition to this amount, £20,110 was appropriated for unpaid losses. The expenses of management amounted to £33,699, or 30.68 per cent, of the premium income, and the losses and charges aggregated £93,543, leaving £16,313, equal to 14.84 per cent, as the underwriting piofit for the year. In addition to this profit there was deprived from interest and rents £11,383, making the profits £27,696, out of w hich £2000 has been appropriated for the re-msurance reserve, £10,000 has been added to the general reserve fund, £75 written off for "bad debts, and £15,000 distributed in dividends, leaving £621, which, added to £15,124 brought forward from the previous year, gives £15,745, which has been carried forward. The reserve fund of the company now stands at £110,000, and the le-insurance leserve at £50,000. The assets are repiesented by excellent securities, mostly of a very liquid character. The earnings of the Leyland-O'Bnen Timber Company for the year ended 30t.h September last amounted to £22,762, and expenses of management, repairs, renewals rates, taxes, and allowance for bad debts absorbed all but £8426, and there was brought forward from the previous year £1451. thus making the net available balance £9877. Out of this, £4000 has been taken, for augmenting the reserve fund, w hich now amounts to the substantial sum of £21,000, and £4000 has been distributed by way of dividend and bonus After paying a bonus of £150 to employees, and £125 to directors, there is left a balance of £1601 to be carried forward. The Leyland-O'Bnen Company has done exceedingly well, and the prospects, are bright and promising. The shares of the company have recently commanded a considerable amount of attention, and have changed hands at a fair premium. The accounts of the Bank of Australasia for the half-year ended 13th April have been received in the colony. The gross earnings for the period reached the magnificent sum of £297 588, against £278,893 for the corresponding period of the previous year, while the net profit totalled £157,705 as against £144,468. With the balance' brought forw ard from the previous halfvear the balance available for distribution was increased to £172,353, cut of which £30,000 was added to the reserve fund, and a further £30,000 used, in writing down Imperial Consols to £85 per cent. The dividend, a,t the rate of 12 per cent. (48s per share), absorbed £96,000, and £16,354 was carried forward. * * * The London money market again shows tension, and the open market, discount is once more approximating to bank rate. It is apparent that qrold 1 is being withdrawn from Loin don, and the movement may culminate in a further stiffening of the discount raifces. Colonial securities are as yet unaffected by the money movements , if anything, there has been a slight recovery. In the colonies, special attention is being paid to the demands of the various Governments, and the criticisms offered clearly indicate that any pressure of Government borrowing will inflict mJ ury - - . • The New South Wales Government is indulging m over-the-counter sales of debentures, and the New Zealand Government is doing the same. South Australia is on the market for £425.000, and Victoria will, in all probability, need very nearly the same amount. The requirements of the four States run into a} out £3,000 000, and there is not the money available to meet this demand. There is competition betw een the States and between the States and private borrowers, and it is obvious that the lender can fix his own rates It is this competition that must inevitably force up rates and bring about dear money at a time w hen the colonies most need financial ease. • * * The produce markets are of special

discovering that oats aio not as piohtable as they were, nor is South Africa quite the market it was expected to be. The So<uth African market is being supplied more cheaply than is po&sible from New Zealand, and this is the case w ith butter, cheese, frozen meat, and cereals. The price of wheat is certain to be very much low en- than was the case last season, and for the very best milling wheat the basis will be about 3s lOd c.i f. London. * •+ * The frozen meat maiket is extremely weak, with a strong downward tendency. Prices have declined very considerably during the past few months, and lower prices must be expected. Wool may hold up, but of that there is some doubt. All the sales that have been held recently have not been very promising, and it would not be surprising if, at the approaching London sales, theie is a slump. New Zealand butter — -the new season's supply — has sold at a very fair opening rate, a,nd it is to be hoped that values will be maintained. However, the industrial conditions in G-ieat Britain aire not quite as rood as they have been, and that is really the cause of thei falling produce markets. A slight decline in general values should not ca,use any material disturbance to New Zealand producers. * * * The Lharemarket continues quiet, although a few sales are reported. National Bank shares are neglected , seller quote £4 12&. 6d, without being able to attract business Bank of New Zealand, shares are in demand at 81s, w hjch is a better price than was offering a few days ai^o. The projected legislation is affecting these shares Other fin-a-neiail shares are very quiet * * # In Gas shares, Auckland's changed bands at £14 10s. Feilding Gas shares are wanted at 20s, while Port Chalmers Gas shares are offered at 31s 6d. Other eras shares are neglected, and values show a downward turn. * * « Insurance shares are quiet, Nar tionals and New Zealands alone commanding attention. The balance-sheet of the National referred to above, has created a demand for the shares, buyers offering 21s cum dividend. New Zealands changed hands at 88s. aaid theie are buyers at 87s 6d The bal-ance-sheet of this company is due shortly, and is expected to be satisfactory, hemce the demand for the shares. * +■ * Miscellaneous shares are as quiet as e\er Westport Coal shaieis had quittance at £6 16s, and Manning and Co (brew cry) at 80s Brew ei-y shares are again weakening, possibly because of the uncertainty of the Bill now before Parliament. Manaw atu Rails are in steady demand, at 275, and Union Steam shares at £13. Mitchelson Timber shares appear depressed, sellers quoting 15s. There is nothing of importance to record in mining. The dredging returns for the past week were> fan, the noticeable feature being the satisfactory improvement shown by many of the West Coast dredges.