Finance Stocks and Mining

Free Lance, Volume IV, Issue 184, 9 January 1904, Page 5

Finance Stocks and Mining

THE National Mutual Life Association has apparently had a very prosperous year. The balancesheet is not yet to hand to admit of a critical analysis of the figures, but, according to cable information, 8175 policies were written during the year, assuring £2,236,000, or over £500,000 more than in the previous year, which is an extremely good record. The revenue from new business is stated at £74,000, the total income for the year being £630,000, amd the total funds now amount to £3.674,000. The average rate of interest earned durin'- the year was £4 16s 2d per cent., a very high rate indeed, and speaks well for the care displayed in investing the funds of the society. As soon as the balancesheet comes to hand, we shall deal further with the figures. » * * The half-yearly report of the Eastern Extension, Australasian and China Telegraph Company shows an income for the half-year of £265,099 5s sd, and, after deducting all charges, there was a net balance of £108,856 0s Id. To this there was added the balance brought forward of £37,180 8s 2d, making in, all £146,036 8s 3d available for distribution. The two quarterly dividends paid durin" the half-year were at the rate of 5 per cent, per annum on a paid-up capital of £3,000,000. *■ * *• The balance-sheet and statement of accounts of the Northern Assurance Company (Badham and Biss, local agents) are to hand. In the fire department the premiums received amounted to £960,365 15s 9d, being an increase of £107,438 4s 6d over the previous year. The losses totalled £470,336 9s od, or 49 per cent, of the premiums, which is the lowest ratio in the experience of the company. The expenses of management came to £309,603 13s Id, or 32.2 per cent, a slight reduction on the previous year. After making full provision for current risks, there remained a credit balance of xu7 450 7s od. * * The balance-sheet of the Nippon Yusen Kaisha for the half-year ended 30th September last, submitted to the shareholders at Tokio, th November last, has been seiu .o us. The net profit for the half-year amounted to 2,589,480 yen after writing off 1,327,780 yen for various purposes. Adding the amount brought forward, 733,291 yen, the total available was 3,322,771 yen,. Large additions were made to the reserves, and the shareholders received a dividend equal to 12 per cent, per annum. * * * The Nippon Yusen Kaisha, is destined to play an important part in the campaign against Russia. Already two vessels have been acquired by the Japanese Government as hospital ships, and it is most likely to he called upon to provide transport for troops. The steam tonnage of the company is 242,163 tons, and there are eighteen vessels of over 5000 tons burthen, seventeen of them being twin-screw vessels. Altoeether the fleet comprises 77 vessels, besides steam launches and tugs and there are three ships building. * ¥■ * Brokers re-opened for business this week, but there was manifest the usual dullness after the holiday spell. There is practically nothing doing, and some of the brokers incline to the belief that values will recede slightly before very long. Investors show no inclination to pay present prices, and, as the mortgage rates are advancing, it as expected that share business will continue dull until there is a readjustment of values. Investors who care to pay the ruling quotations have a fine choice of the best dividend-paying stocks. V- + ■* In estimating the prospects for the current year, it is impossible to overlook the fact that money shows a very hardening tendency. It is admitted that mortgages are being arranged at 6 per cent, somewhat readily and on good security, while some of the banking institutions are tightening the strings by calling up the overdrafts of some clients and insisting upon a rather wide margin of security in other cases. The success of /the half-million loan floated on the 23rd ultimo has certainly had a cheering effect, but it is not so much upon what has already passed as on the future demands that stringency is likely to arise. Several of the municipalities are prospective borrowers of large sums, while the Australian Governments are in straightened circumstances and must look to the local markets for suWies.

The stringency in London is likely to continue well on to the middle of the year, if it is not prolonged beyond tnat period. The hist instalment of £10,000,000 of the Transvaal war loan is to be issued next month, and that will be sufficient to tie up the market for a time. The situation is overshadowed by the tiouble between Russia and Japan, and the probability of Great Britain being drawn into the turmoil. Then, theie is the possibility of renewed trouble in the Balkans with war between. Turkey and Bulgaria. War at almost any point affects the London money maiket, and the prospective wais will most ceitamly do so. With money dear in London, and a pressure on the colonies for gold for export, as well as for Government purposes, there must be further advances in rates. Even assuming the worst, the position in New Zealand should not be very serious. There is a splendid reserve for the people to rely upon, in the savings accumulated during the past five years. The colony can comfortably stand a year of depression, and any depression that is likely to come this year will scarcely be felt. There may be a shrinkage m> the values of securities of all kinds, but there should be nothing in the nature of a senous collapse. The outlook is not bright , at the same time, it is not gloomy either. •» # * It is most likely that, produce prices may rule lower this year, but here again a fall in values will be fully compensated by increased production, except perhaps in a. few cases. Butter, now one of the maJn products of the colony, is lower in price but the expansion in the output will more than cover the deficiency in value. Individual concerns may make less profit, but the national income will be as great as last year. Then again it is to be expected that there will be an increased demand for certain products n bich would afford additional compensation for losses in other directions. + * * The output of gold from New Zealand mines for 1903 is certain to be veiy much larger than in the previous year. The figures for December are not available at the time of writing, but the output for the eleven months showed a considerable expansion. TLe dredging industry, acording to the figures compiled by a Southern contemporary did not give as good results as in 1902. The Otaeo and Southland dredging; returns for five years compaie as under

The past winter was by no means favourable for dredging, the rivers continuing high owing to floods. The returns for 1903, though smaller than in 1902, were considerably larger than m any previous year. The West Coast dredges just about maintained their records, for the yield last year totalled 30,6190z sdwt lgr, as compared with 30,4160z 7dwt 2gr in 1902.

.899 90U 901 902 903 oz. c .. 46,152 . . 62 271 . . 65,50.5 .. 106.369 .. 87,130 d\Vt. gi. 10 20 1 20 17 15 10 22 2 14