Finance Stocks andMining.

Free Lance, Volume IV, Issue 195, 26 March 1904, Page 5

Finance Stocks andMining.

THE new business of the Australian Mutual Provide.it Society foi the year 1903 was £3,744,489, as compared with £3,702,576, a very good leco d considering that the Commonwealth was last year suffering from the effects of a severe di ought. • * » The bi!anc?-sheet of the Wellington and ManawAtu Railway Company for the past yeai, c rculated this week, is a very satisfactory document more so as the shareholders rec?iv.> the compaiatively handsome dividend of 7 per cent. Those who were inclined to believe that the shareholders nude a mistake in not selling their property to the Government at 30s per share will be agreeably suiprised at the prese it results, and change their views accoidingly The detailed figures exhibit improvements, and the management is keen and careful in every way. • * • The Manawatu Railway Company is a credit to the people of Wellington. It was undertaken as a forlorn hope at a time when depression in trade was being severe y felt. The shares were placed in small lots of five and ten among a host of small farmers, but the solid support came from the merchants and lead ng citizens of Wellington. From the outset the management was in good hands, and although for years the shareholders had no hopes of ever receiving dividends, the faith of the men with the biggest interest in the concern never wavered. • • • There was a tme when Manawatu Railway sha'es could have been tought at 10s, and quite large parcels changed hands at 12s 6d and 15s . today. they cannot be had at 10s premium. They have now passed mostly into the hands of investors who look for a safe return, and these people are receiving a fair dividend. There is but one thing wanting in this company and

that is a reasonable suburban service, but so long as the tenure of the railway is insecure, it is useless expecting this concession. To give the people a suburban service would involve a considerable immediate outlay, and before the company could reimburse itself the railway may be purchased 1 by the Government. The money market locally is tightening, and the same may be said of AustiaLa. According to Melbourne and Sjdnev papers, the pressing demands of the State Treasurers and of the larger ljcal bodies are being felt, and rates have appreciably increased. It is no ust denying the fact that stringency is bring felt ; at the same time it is im-poit-mt to bear in mind that there is no cause for alarm, or for any foolish flurry. * * * The stringer cy may be only temporary. At all events, if it gets no worse than it is, it will not materially affect New Zealand. The London money market has exhibited an easier tone, and thr> Bnt'sh Government is promptly on the market for five millions sterling. Pi course, the amount will be subscribed, but it c eems that the market will not get any rest, for the moment there is easiness there are other borrowers ieady to invade the market. * * * The col'apse of Mr. Sully on the Cotton Elxohange of New York, and the wild stampede of brokers to execute oiders, will have their bearing on the financial world. Mr. Sully has lost two millions sterling, and there must be numerous other speculators who are as badly hit. These gambles on the Exchanges are seldom successful, especially in America, where they like to do tilings on a big scale, and succeed in making sensational smashes. Mr. Sully is no worse than many another man who has attempted to engineer a corner. The Steel Trust, the International Marine Company and other tiust concerns are in their nature noth■ng more than corners, and they are all more or less failures. * • * Theie is a little business doing in investment shares, although there cannot be said to be any improvement. Bank cf New Zealand shares have slumped, and are now hard to sell at £4 8s although during the week they had ouittancD at £4 10s, with sellers at £4 12s 6d. The optimistic statements of one of the directors at the recent meeting of shareholders have been discounted l>y the Colonial Treasurer, and that in

itscif would be sufficient to depress \alues, but, in addition to this, there is a stack of 10,000 or more forfeited shaies which must be put up for sale by public auction. A small lot of 500 were sold the other day. It is more likclv that Bank of New Zealand shares Mill go back to par, which they should never ha\e left, although interested speculators may do their utmost to hold up the value at a fictitious level. National Bank shaies aie quiet, with sellers at £4 10s. * * ♦ Financial shares are neglected. The shaies of building societies are quiet, and buyers seem shy, probably because the return is barely more than can be obtained on a first-class mortgage and slightly more than oan be obtained from the compan es on fixed deposit. A fall in the value of these shares seems probable There are sellers of Wellington Building shares at £9 7s 6d ; Equitable Building, at £9 Bs.. and Wellington Trust and Loan, at £7 6s. New Zealand and River Plate shares changed hands at 22s 9d, and a shade more. * * • Gas shares are maintaining their market values according to the views of sellers, but buyers appear to think differently, and decline to bid. A modification c-f sellers' views is imperative if business is. to result ; the investor in shares must get an adequate return on his capital relative to other investors. * # * Insurance shares are quiet, not beoause there are no buyers, but because holders show no disposition to quit. There are buyers of National Insuiance shares at 21s 6d, and New Zealands at £4 7s. * * * Meat shares are as quiet as ever, and nearl" all stocks are being freely offered at late market rates, but, here again, it seems hke'y that sellers' ideas of values must be modified. The general reports go to show that the turnover of the freezing companies is not as good as it was last year, and it is just possible t<% t..ere is not a change* that some of the concerns may, this year, reduce the amount of their dividends. Wanganui Meat shares had quittance at £5. * * • Miscellaneous shares call for no comment. Westport Coal shares changed hands at £6 17s, and Kaiapoi Woollen at £6 3s 6d. There are buyers of Taupiri Coal at 18s 3d, Mauriceville Lime at 24s 6d, and Whitcombe and Tombs at £4 12s 6d.

There is considerably more activity in dredging shares, and it is satisfactory to be able to say that in several cases there has been an appreciable advance in values. It seems that the earlier anticipations of many speculators who were, unfortunately, unable to carry their loads of scrip are now being realised. • ♦ # The Lady Roxburgh is turning out well. The return of 970z last week was extremely good. Bignell's Notown is another concern that has improved in market prospects. The attention of speculators is being qu'etlv drawn towards the chances in dredging shares, and it will not occasion surprise if this winter sees somewhat of a revival in speculation. There can, and will, be no boom, but prices will move up to their legitimate level. Much, however, will defend upon the returns.