Finance Stocks and Mining.

Free Lance, Volume IV, Issue 189, 13 February 1904, Page 5

Finance Stocks and Mining.

THE new business for the year 1903 of the Mutual Life Association of Australasia is stated at about £704,000, which, though less than in some previous years, is nevertheless very satisfactory considering the economic conditions of Australia in consequence of the drought which existed throughout the greater part of last y ear - The remarkably fine balance-sheet presented by the directors of the Westport Coal Company has caused the shares of that concern to firm considerably It is not merely that the results of the past year have been very good, but the prospects also are exceptionally favourable. The Admiralty demand for the China Squadron is not very much just now, but. in the event of complications as the result of the Russo-Japan-ese war, the demand may easily assume enormous proportions. • • • The result of the past year's trading is a net profit of £57,011, and, with the balance carried over from the previous year, there is available for distribution £66,158. The dividend and bonus combined equal 10s 6d per share, of which 7s is now payable. The dividend and bonus absorb £42,000, and £15,000 is added to the reserve fund, leaving £9158 to be carried forward. The results are exceptionally satisfactory. * * * The Palmerston North Gas Company has apparently had a very satisfactory year, the dividend announced being 7 per cent. The directors are also able to strengthen the reserve fund by the addition of £1500, leaving a balance of £237 to be carried forward. The decision to reduce the price of gas, while very satisfactory to consumers, is also likely to prove profitable, as it is generally found that a reduction in price is followed by an increase in consumption.

The public subscribed for only half of the Wellington municipal loan, and it is about as much as could have been expected. Relatively to other recent issues the Wellington loan was fairly successful, but the piling up of undigested securities in the hands of underwriters will keep the market depressed and make it difficult to issue further colonial loans. * * * The London money market, during the past two or three weeks, has given indications of easing, but the war in the East will upset the position. The sensitive Stock Exchange has already lesponded to the gun-fire and British Consols have dropped 15s, with every probability of going lower Tightness now will make a considerable difference to the colony, because the feeling was growing that we were to escape market stringency. However, the colony is in a strong position, and the public finances are apparently in a very healthy condition, for, on present indications, there is every probability of the Treasurer being able to show a surplus of £480,000 on the Consolidated Fund. It is not a temporary monetary stringency that we have to fear, but a prolonged ciisis- involving the produce markets and lowering the prices of our staple products. The war itself, if confined to Eussia and Japan, should not occasion so very much trouble to the colonies. There will be a disturbance in Eastern trade, and probably some Eastern products, such, for instance, as Japan rice may advance, but, as against this, there should be a fair demand for steam coal. Neither Russia nor Japan are likely to be able to borrow in European capitals. The former tried the Paris market recently, and failed. Both beligerents have probably enough money in hand for all immediate requirements, but, in any event, both countries will be able to extract the money required to carry on hostilities. The danger is rather m the complications that may result than in the contest confined to Russia and Japan. ■* * * Restricted business is still the feature of the sharemarket, and brokers find the position somewhat embarrassing, for it is difficult to place shares when available for sale, and equally difficult to buy shares when buying orders are plentiful. In bank shares, the demand hag been very pronounced for Bank of New Zealand shares, which have in consequence firmed, buyers offering 82s, but there are really no sellers about. Union

Bank shaies are wanted at £42 10s. National Bank shaies are offered at £4 10s, and Bank of Australasia shares at £85. * * # Insurance shares have claimed a fair amount of attention, and sales are reported of New Zealands, at £4 5s 6d, and Standards at 17s 6d. There are buyers of Nationals at 20s 6d, and South Butish at £6 2s (id. The fhe loss this year promises to be very heaw the record since the beginning of the year being exceptional. * ■* * Gas shares are quiet, and holders are anparently inclined for profit-taking. There are sellers of Auckland Gas at £14 7s Gel, Wellington Gas at £19 and £9 os, and Feilding Gas at 20s 9d. -+ ■* * Meat shares are very slow, and investors do not take kindly to them. There are free sellers of nearly all stocks. Canterbuiy Mate shares are offered at £9 , Chnstchurch Meat, at £11 ; Gear Meat, at £6 15s and £1 14s 6d , Wellington Meat Export, at £7 2s 6d, £5 12s 6d, and £3 13s 6d , Wanganui Meat, £5. * * * Woollen shares are slow of sale, but the demand for Wellington Woollens continues satisfactory, buyers offering £5 5s 6d. Kaiapois are offered at £6 7s 6d, and Mosgiels at £4. Westport Coal shares are in demand at £6 19s, Mauriceville Lime at 24s 6d, New Zealand Drug at 48s 6d, and Whitcombe and Tombs at £4 12s. New Zealand Shipping shares changed hands at £6 16s. r * •* The dredging leturns of last week \\er& reminiscent of the old days. The Electric No. 1, with a return of 12650z, has put up a record for the past two years. The other dredges, though not yielding large returns, are beginning to show increases. From the West Coast also very satisfactory improvements are to be noted. It will take a good many big returns to revive confidence, but, all the same, there is no better speculation than some of the dredging shares.