Finance Stocks and Mining.

Free Lance, Volume IV, Issue 194, 19 March 1904, Page 5

Finance Stocks and Mining.

THE balance-sheet of the Union Bank of Australia for the halfyear as at 31st March, 1903, shows that the net profit for the halfyear amounted to £131,272 13s 3d. Adding the balance brought forward, £19,793 3s Gd, tl c total available for distribution is stated at £151,065 16s 9d. This has been appropriated as follows . — Transfer to bank premises and property in the colonies, £10,000 ; to write down investments, £37,000 . in aid of bank's guarantee and provident fund £4000 ; dividend at the rate of 10 per cent, per annum, £75,000 ; leaving £25,065 to be carried forward. * * * The annual report or the British and Foreign Marine Insurance Company for 1903 shows net premiums aggregating £409,694, and the claims settled 167,695. The underwriting profit for the year was £50,669, making, with £98,225 brought forward, a total of £212,002. The sum of £50,000 was added to reserve, mci easing it to £850,000. After paying dividends equal to 20 per cent., absorbing £53,600, a balance of £102,402 remained to be carried forward. * • * The announcement cabled from London last week that holders of a quarter of a million of New Zealand debentures have been asked to renew same, shows to what a limited extent borrowing within the colony really means. The debentures falling due on Ist April total £500,000, and half the amount is held in London, although the debentures were issued locally. Of the balance, it is safe to say that more than half is held in Australia by financial institutions, while similar institutions in New Zearland hold what remains. * * * The small ' investor is an insignificant person so far as regards Government debenture-holding is concerned. Bv making the interest

payable in New Zealand, Melbourne, Sydney, and London, the Government debentures become exceedingly negotiable securities, and in the past many merchants and others have secured and ti admitted these debentures to London m settlement of obligations, and have saved the exchange, a no moons'derable item. But this tiaffie has practically ceased, as the London houses hold as much of this class of paper as they need and consider expedient. • * * The terms offered the Butish holders of New Zealand debentures to renew are practically the same as those now being advertised by the Government, except that the debenture-holders in London leceivelOs per cent, cash for kindly renewing the loan, while the holders in the clonies have no such favour shown them the 10 per cent, going to the brokers throueh whom the renewal is effected. It may be mentioned that b-s'des the debentures maturing on. the Ist proximo there is a further halfmillion sterling on Ist May. The renewal ought not to be a difficult matter to arrange, and the terms offered seem advantageous, but unfortunately the New South Wales Government has pampeied the investors to such an extent that many of them consider i\ per cent, as the basis of colonial loans. ♦ * » The London money market is apparently in an easy condition. Money is accumulating in the central institution against the distribution of dividends, etc.. which must take place on the close of the quarter. The buoyancy can be regarded as only temporary, for the first land fight in the- East with Russia beaten will cause a panic in European financial circles. The Balkan troubles are also calculated to cause serious alarm on the Bourses. There is no immediate prospect of the market being in a condition to enable the colonies to borrow in London. What may be the state of things a year hence no one can tell, but there is nothing to prevent a hopeful feeling being entertained. Locally, the financial position is being discussed more seriously the more it comes home to the people. It is freely admitted that "money is scarce," which means that people are curtailing expenditure, and in some country districts it is serious enough to jeopardise the positions of several retailers. Wholesalers are not taking any risks, and there are therefore prospects of bankluptcies and assignments in the near future.

The' stringency is being particularly felt just now, possibly bee mse the annual balancings of the Bank of New Zealand and the National Bank are due at the end of the month, and those institutions are "window dressing" and straightening up for the event. However, in spite of all this, there is absolutely no occasion for the slightest alarm. The prosperity enjoyed during the past few years has left the colony with sufficient in hand to pull through even a severe financial crisis, and it is far from that now. » • » Brokers continue to comp'ain of the dulness in the sharemar.ket, but anticiEate an improvement after th« Easter olidays. Bank of New Zealand shares are easier now that the demands of one or two buyers have been met. Sales are reported at 90s and 91s sellers quoting 92s fid. A demand has set in for National Bank shares, buyeis offering £4 8s 6d ; sellers asking 90s. If the dividend for the year is as good as it was last, as there is reason to believe it will be, the shares seem cheap at the present prices. * * * Financial shares are being freely offered, and holders of building society shares show a disposition to sell. Equitable Building shares are offered at £9 Bs , WVlington Trust and Loan, at £7 6s ; and Wellington Building at £9 7s (id, but there are no declared buyers. New Zealand and River Plate shares are wanted at 22s 9d. * * » Insurance shares are very quiet, and likely to remain so until the intentions of the Government are definitely known. It is expected that the State Department will be inaugurated by the Ist proximo, but underwriters do not think that the competition will make any difference to their rece pts." Investors, however, have to be satisfied on this point to bring about market improvement. It is worth pointing out that the fire losses since the beginning of the year have been large, and that is a bad sign for it indicates that the economic conditions are not satisfactory. * • • Meat shares are neglected, for the obvious reason that the turnover of the companies has been relatively small this season. There are numerous sellers of meat shares, but no buyers at present quotations. * * * Gas shares are quiet. Feilding Gas shares are offered at 21s. New Plymouth Gas shares, £2 paid, have had quittance at £2 15s. These shares are

only occasionally on the market, and are mostly held in New Plymouth. Wellington Gas shares are wanted at £18 10s, but sellers demand £19. ♦ * * In the miscellaneous section, there are buyers of Manawatu Rails at 29s 3d, Union Steam at £13 ss, Westport Ooal at £4 15s, Leyl&nd and OBrien Timber at 38s 6d, Mitchelson Timber at 14s 3d, Mauriceville Lime at 24s 6d, and Sharland and Co. at 225. ♦ • • Mining is quiet. Holders of Talisman shares have received notice of the reconstruction scheme, and a call of 3s per share. There are many holders in Wellington, and. while same are angry with themselves for being tempted into a mining venture, others take a hopeful view. There is satisfaction in knowing that the Talisman is a bullion-producer, and if the returns of the past few months are maintained the holders should be able to get back most of their money. ♦ ♦ • Dredging shares are a little livelier. That is to say, there has been more business done on 'Change. The returns however, are very poor, but that is to be expected at this time of year. There ought to be an improvement in the yields in the course of a few weeks.