Finance Stocks and Mining

Free Lance, Volume IV, Issue 193, 12 March 1904, Page 5

Finance Stocks and Mining

THE annual report and balancesheet of the Metropolitan Permanent Building and Investment Society for the year ended 15th ult., to be presented at the annual meeting of shareholders on. Monday next, is very satisfactory. The receipts from interest on loans totalled £3915, and fines and sundr.es brought in £125. There was besides a sum of £120, making a gross total of £4100. The deductions from this amount were management expenses, £346, and interest on deposits, etc., £1154. or a total of £1500, leaving a balance of £2660. * * * Out of this the directors propose to add £250 to the reserve fund, and the proposed dividend of 7 per cent, will absorb £2109, leaving £299 to be carried forward. The share capital of the company totals £35,000, fixed deposits amount to £26,806, and the reserve fund stands now at £2250. The company has invested in. loans on mortgage £65,800, loans on shares £1788, and property account £7Q. It says much for the careful and judicious management of this concern that the directors are able to state in their report that the company has made no losses during the past year. * * » The net profit of the Bank of Austialasia for the half-year ended 12th October was £151 599, and, including the balance from the previous half-year of £16,353, the amount available is £167,592. Out of this, a dividend at the rate of 12 per cent, per annum absorbs £96,000, while £30,000 is added to the reserve fund, which will now stand ac £1,130,000, and £25,000 is written off the premises account, leaving a balance of £16,952 to be carried foiward. The dividend is 1 per cent, higher than it was a year ago. * • * The returns of the Equitable Life Assurance Society of the United States for the year 1903 show that the ne^ business exceeded that of the previous year by £8,383,994, the total for the year being the enormous sum of £66,180 857. The insurances in force have been increased during the year by £25,140.526, and now stand at £289,738,301. The total assets were augmented to £78,341,950. and the surplus shown on December 31, was £15,053,725, which was a trifle less than in the previous year, owing to the necessity which exists in, the State of New York to revalue all securities each year at the maiket prices of the day. There was a heavy slump on the New Yoik Stock Exchange during 1903, being at its worst m the closing month. * * * The New York Life Insurance Company's annual report for 1903 shows that its assets are £70,530,400, an increase of £6,000,000 during the year, although a new rule has been adopted of not taking credit m securities for the excess m market values at the close of the year over the cost values. The new paid-for business was £65,200,000, an increase of more than £4,600,000 over the new business of 1902. The total paid-for insurance in force exceeds £349,000,000, a gain of £38,200,000 over the previous year. J * * * The gain in income over 1902 was £1,080,000. The policy reserves were increased £6,400,000, and the dividends to policv-h oiders totalled £1,060,000. The total Government, State, municipal and other bond holdings exceed £50,000,000, and no single bond in the list in in default of interest. The New York Life Insurance Company conforms to all the requirements of eighty-two separate Governments. * * * The money market exhibits no change, the tendency being still upward. According to the Bank of England figures there should be easiness in the central financial market, but the bank continues a 4 per cent, rate of discount, and this seems to be directly due to the disturbed political outlook. Russia is threatened wth an upheaval, and no one knows what the Eastern campaign will result in. On all sides big warlike preparations are being made, garrisons strengthened, warships getting ready, all of which are inimical to an easy money market. » • • Were it not for the political outlook there is no doubt the discount rate would ere this have been 3 per cent., and many of the municipal loans would have been raised. As matters now stand, these loans are being held back, so that as soon as the market shows the least tendency towards easiness there will be a rush for maney and borrowers

will defeat their ends. Government and municipal boi rowing m the colonies ib becoming dfficult at 4 per cent., and some investors anticipate 4£ per cent, foi Government loans. # * * The property market is quiet. There are buyers about for real estate, but they do not seem inclined to consider the prices asked by owners as the lowest. In other words, buyers are looking for a fall in values, and are consequently waitinc The increasing difficulty of borrowing, and the fact that many people have assumed liabilities that cannot be conveniently met, may bring about some forced sales and tend to reduce values, but this will not happen lust yet. ' * * * There is a considerable sum of money being spent in Wellington on lmorovements of one kind and another, and there is more to follow, while building operations are fairly brisk. While this continues, there must be a certain amount of activity and prosperity, and real estate values will be maintained. • • * Business in investment shares is very slack, and the sales are few and far between. Brokers have many selling oiders, and some of the best classes of shares are on the market, but buyers have eased off, and brokers now earn every penny of the brokerage they happen to get. This condition appears to be pretty general throughout the colony. Bank shares are exceedingly quiet, sellers asking 90s for National Bank shares. The others are not quoted. » ♦ * Financial shares met with a little support Metropolitan Building shares had quittance at £12 cum dividend and New Zealand and River Plate shares sold at 22s Gd. There are sellers of Equitable Building shares at £9 8s ■Wellington Building shares, at £9 7s 6d, and Wellington Trust and Loan, at £7 6s. ♦ * * Gas shares are very quiet. There are free sellers of Port Chalmers Gas ai 30s 3d, and Wellington Gas at £19 and £9 2s 6d for the respective issues. Gab shares are looked upon as about the best of share investments, and market movements do not indicate very much. As a rule, sellers want top prices, and generally wait till they get theni. * * * Insurance shares are in fair demand, at late rates. New Zealands are wanted at £4 7s 6d, South British at £6 2s, and Standards at 17s 9d. It v, as stated in insuiance circles this week that the Government Fire Insurance Department was to be established in a few days. J * * * Meat shares are being offered freely, but, notwithstanding that there are no buyers about, sellers show no disposition, to make the prices attractive. Transpoit shares are fairly active. Manawatu Rails are wanted at 28s 6d, Union Steam at £13. and Wellington Steam Ferry at 11s. Northern. Steam shares, paid up, changed hands at 16s 6d. • * * In the miscellaneous section, sales are leported of Taupiri Coal at 18s 6d, and Sharland's Ordinary at 235. There are buyers of Maunceville Lime shares at 24s "6d, and Mitchelson Timber at 14s 6d. * * • It is difficult to say anything very special or very cheering about the mining market, except that there have been a few sales of dredging shares, mostly at prices which show a big discount on the amount paid up. None cf the dividend-paying dredging shares are at their fair value.