Finance Stocks and Mining

Free Lance, Volume IV, Issue 191, 27 February 1904, Page 5

Finance Stocks and Mining

THE principal life assurance societies operating in the colonies repoit an increase ii business in the past year. The new business of the Australian Mutual Piovident Society was nearly thiee millions and three-quarters sterling- that of the Mutual Life of Australasia £704,000, that of the o dinray business of the Citizens' Life £1,057,817, and the National Mutual also showed a substantial increase. The "Citizens' Staff Recoid," in its issue of 6th Februaiy, stated that the new business of the Citizens' Life Assurance Company for the past year amounted to over £1,000,000 completed, thus beating the reco.d established in 1902. * •* • Also, the largest addition for any one year was made to the company's funds, which now also exceed £1,000,000. A reduction in expenses of many thousands of pounds was made, with the result that the expense rate for 1903 w as very substantially reduced. The rate of interest earned during the year by the funds had a^ain advanced, and this, coupled with the fact that for the third year in succession all interest which had fallen due had been collected, was strong proof of the solid nature of the securities held by the company. *• * * The balance-sheet of the Gisborne Gas Company, which was submitted at the annual meeting of shareholders, held on Thursday of this week, shows a net profit of £2236 2s 2d, to which has to be added the amount carried forward from the previous year, viz., £1056 2s 3d, making a total of £3292 4s sd. The dividend of 10 per cent, absorbs £1350, and £450 is added to the reserve fund, which now stands at £2100, leaving £1492 4s 5d to be carried forward to the new account. The directors propose to further reduce the price of gas to consumers by lOd per 1000 feet on gas used for lighting and power, and 2s 6d per 1000 feet on gas used for heating, the reductions to take effect from the Ist proximo. This company is in an excellent financial position, and the fact is fully recognised by investors. * # * The Standard Insurance Company of New Zealand has had a very good year, and has been able to substantially strengthen the reserve funds, and to pay the shareholders a larger dividend. The report states that the income for the year, including the balance brought forward from last year, was £103,923, and the expenditure £78,072. An interim dividend, absorbing £2812 was paid in June last, £5000 has been added to the reserve fund, and £5000 to the re-insurance leserve fund. It is now proposed to pay a dividend at the rate of 7-2- per cent., which will absorb £2812; also a bonus of 1\ per cent., £1875, leaving £7451 to be carried forward. * * * The Timaru Gas Company has paid a dividend of 10 per cent., and has added £1000 to the reserve fund. The profits for the past year totalled £2496. * • * The increasing difficulty of raising money in the colonies is shown by the failure of the Wcsb Australian Government to borrow £500,000 at 4 pei cent. Westralia has been more abstemious than most of the other colonies, and the credit of the western colony is good, but the Australian money markets have been squeezed dry, and the loan was not fully subscribed. * * * New South Wales has been unging the changes on the money market with debentures and Tieasury bills, and one way and another has scooped up about £630,000 during the past three months in addition a million sterling -in Treasury bills has been placed in London. This latter flotation has not been

on advantageous toims, but the money was ui gently needed to meet local commitments. Besides w hat New South Wales has obtained locally, New Zealand boi lowed 1.300,000, and is now seeking furthei funds in Austialia South Australia bori owed £42.3,000, and the Victonan Savings Banks Commissioners and the Sydney City Council were also bonoweis. * * * At the pies-nt time, m addition to the demands of the New Zealand Government, theie are seveial local bodies appealing for funds in this colony. AH this has had the effect of 1 .using the mortgage rates and rendeiing it difficult for borrowers to obtain money Furthermore, capitalists are anticipating a further hardening of rates, and aie consequently holding back. The outlook of war betw een Russia and Japan has not as yet had any appreciable effect, but then no special dc minds have been made. Japan is raising the modest sum of £10,000,000 within her own dominions, and this amount it seems will be easily obta'ned. Russia, it was lepoited, was negotiating for £40,000,000, but without any prospect of succe-s. Russia has resources, and, at the worst, the Russian Bank, with its hoard of gold, could easily finance the war for the next six months. Money won't prevent the Russians keeping up the fight. The danger is in other Powers being drawn into the conflict, and this is one of the possibilities of the next two months. * # * During the past week or so theie has been consideiable activity m Bank ot New Zealand shaies, which have firmed about 7s 6d Sales are reported up to £4 13s 9d, with buyers offering £4 12s Od. Other bank shares aie quiet. * * * Financial shares have witnessed a little more activity. Equitable Building shares sold at £9 7s 6d , National Mortgage, at £2 Cs 3d , and New Zealand and River Plate at £1 3s 9d. * * * Gas shares are quiet. Most of the companies have issued their balancesheets, and holders now seem disposed to take profits, with the result that there aie numerous sellers. Well ngton Gas shares, new issue, sold at a premium of £3 10s. Ashbuiton Gas shares are in demand at £4 14s 6d. Gas shares stand in high favour with investors, and there is not much likelihood of a decline in values. * * * Insurance shares continue to command attention, no doubt because of the excellent balance-sheets submitted. But underwriting is such an unceitain business, and the good results of the past year may not be repeated m 1904. The probability is that the current year will see a curtailment of profits. The fire losses for the two months are lelatively very heavy, and total over £60,000 However, National Insurance shares are in steady demand, as also Standards, which aire supported bv the excellent balance-sheets noted above. New Zealand Insurance shares changed hands up to £4 8s 9d. * * * Meat shaies appear to be completely out of favour, probably because of the prospective curtailment of business. It is a well-known fact that none of the

companies aie handling the same numbei of cattle and sheep as last year. Theie is not the fat stock available because of the over-expoitation of the past season. * * * In woollen shaies, Wellington Woollens command the most attention, with him buyers at £5 4s 6d. Westpoit Coal shares had quittance at £6 14s ex dividend Maunceville Lime shares are in good demand at 255, with no declaied sellers. Other shares show no matenal change. * * * Mining calls for no comment. The letums last week not up to the lecoids of a few weeks past. Transactions in dredging shares are few, and, uith money tightening, it is not likely there will be much speculation. The most profitable period for di edging is new approaching, and big leturns may ma':o a difference.