Finance Stocks and Mining.

Free Lance, Volume IV, Issue 196, 2 April 1904, Page 5

Finance Stocks and Mining.

THE balance-sheet submitted by the directors of the Wellington and Manawatu 1 Railway Company to the shareholders, at the annual meeting held on Thursday of this week, makes excellent reading when the figures are compared with those given in the balance-sheet of last year. The traffic receipts amounted to kll6 J,/o, as compared with £109.168. showing an increase of £14,107, which is distinctly good for it represents a gain of nearly J3 per cent. The net traffic receipts totalled £38,500, against £51269. There was an increase in the railway expenditure, the total for the pastyear being £63,682, as against £60,129. After paying interest on debentures amounting to £34,000, and all other charges, including £3500 for maintenance of line, etc., there is a net profit on railway account of £11,066, as compared with £10,361 * * * In the charges for the past year the increased emolument to the duectors appears for the first time. The net piofit on land account available tor dividends is £5177, against £4309 and the total from all sources, including "balance brought forward credited to dividend account is £26,598, and the shareholders receive a dividend of 7 per cent. The amount derived from land sales and not available for dividends is now £88,046. The railway and rolling stock is now written down to £BUS 440 10s- the company's freehold land is valued at £33,366 14s, the Government valuation b -ing £39,222. Land purchaser*, owe the company £50,029 , the depcsits, which include £65.000 of New Zealand Government 4 per cent, debentures, total £90,553; and the cash balances amoount to £9079. » • * There has been a considerable transfer of shares from the London register to the colonial register, for the latter shows that 72,098 shares are held m the colony now, as against 65 863 last year. Local investors have great faith in the prospects of the company and the excellent balance-sheet fully warrants this good opinion. * » * The balance-sheet of the Union Bank of Australia for the half-year ended 31st August last has only just been received in the colony. The statement of profits shows a net profit for the half-year of £131,272, while for the previous halfyear the divisible total was kl6d,<y6. The divisible total for the past halfyear, after adding £19,793 brought forward, was £151,065, appropriated as follows : —Reduction of bank premises and property account in the colonies, £10 000 ; writing down investments (Consols being re-valued at £85), £37,000; in aid of bank's guarantee and provident fund, £4000 , dividend at the rate of 10 per cent, per annum, £75,000; balance forward, £25,065. * • * At the meeting of shareholders in London on Ist February, the chairman said: — "There is one other matter which is not mentioned in our report, as to which I feel sure of your approval, and that is that the directors have decided from the results of the half-year under notice to authorise the payment to the bank's staff in Australasia and in London of a bonus representing 10 tier cent, on their salaries as on December 31st last." Lucky employes. « * * The New Zealand Shipping Company has just declared a dividend of 5 per cent. This is not much of a return for shareholders, but it is the best that can be expected. The shipping business is not in a very nourishing condition just now, for even , the bounty-fed shipowners are feeling the pinch of low freights. The clearest indication that the changing economical conditions have not aftected New Zealand is to be found in the Treasury receipts. The surplus for the yealr will be larger than it was last year, thanks to the expansion in th receipts from Customs and railways. The Customs returns have shown considerable buoyancy for years past and the import returns for last year exhibited a substantial increase over 1902. There is reason to fear_ that there has been over-importation in many directions, while increased prices have had something to do with the expansion in the figures. • • • The great increase in the customs ia proof positive that the spending power of the people has not been curtailed. When we turn to New South Wales, and notice the drastic retrenchment that has been forced upon the Government,

we can at least be thankful that the financial affairs of our own col on v are in sucn a healthy condition. The Imperial Budget, which may be expected about the middle of April, is certain to exhibit a heavy deficit, probably £4,000,000, as indicated by the cables. This means increased taxation for the Mother Country. The London money market, which, foi a little wh.le, showed signs of easmg, is now hardening again. Probably the is&ue of five millions sterling of Irish stock, which, by the way, was enormously over-subscribed, has influenced the market. The real cause, however, is the enormous pressme for money that is known to exist. The moment the market shows any temporary easiness, there is immediately an appeal for money, and this tends to keep up the rates. By very clever financing the Bank of England rate has been ket>t at 4 per cent., and under normal conditions should now be down to 3 per cent., buL the war in the Far East, prospective troubles in the Balkans, an Imperial deficit, and financial failures in New York and London help to keep the money n:aiket stringent. * * The excellent tone of the London wool sales, which closed last week, spells much nrofit for the sheep farmers of Mew Zealand. Crossbred wool is in the ascendant, and, for a time at least, values should be well maintained. The disparity in values between merino and cjmmoner grades, which lend themselves to the manufacture of shoddy. Merino wool is steadily croing back, and, with an increased production from Australia, which now seems probable, the demand appears to be strongest for the ciossbred will soon disappear, and then, perhaps, fashion will favour fine wools. But that need not be anticipated. * # * The sharemarket preserves its quietness, much to the chagrin of the sharebrokers. And this quietness must continue until values break, and yield the investor a higher rate of interest than at present. The mortgage rate governs the position, and the best securities under this head are now brin°r_ iug in six per cent. There is a fair demand for bank shares. Nationals are wanted at £1 6s, and New Zealands at £4 7s. Both institutions are now busy with their annual balancing. # * * Financial shares are very quiet. The shares of building societies, hitherto m strong demand, are now neglected. There are sellers of Equitable Building shares at £9 8s Wellington Building at £9 7s, and Wellington Trust and Loan at j£7 6s but there are no buyers at the prices. * * * Insurance shares are maintaining their position. Nationals are in demand, at 21s 6d, and New Zealands at £4 7s 6d. Other shares call for no special remark. Tnere are buyers of Gear Meat shares at 32s 6d, Manawatu Rails at 29s 6d, L'nion Steam at £13 2s 6d, Westoort Coal at £6 16s, Leyland and OBrien Timber at 365, and Mauriceville Lime at 24. 6d. • • * Speculation in mining is slowly reviving. The market has exhibited some activity for dredging shares, and some substantial advances in prices are recorded. This is very encouraging, and is helping to restore confidence. Speculators are beginning to realise that there are many excellent mining propositions, and they are again coming m This winter will witness a distinct n-vival in mining, but there will be no wild gambling or boom. Just now, Bignell's Notown and Notown No. 2 are receiving attention, particularly the latter, which, on paper, lo"ok remarkably good.