Finance Stocks and Mining

Free Lance, Volume IV, Issue 200, 30 April 1904, Page 5

Finance Stocks and Mining

THE Wellington Deposit, Mortgage, and Building Association is quite a young concern, and the third annual balance-sheet, issued last week, shows that, notwithstanding its youthfulness, it is doing veiy well. Ihe net profit for the year was £601 7s sd, and there was brought forward from last year £76 7s lid. This makes the total available credit balance £677 15s 4d, out of which a dividend 1 of 5 pei cent., absorbing £473 18s 3d, is to be paid, leaving £203 17s Id to be carried forward. The subscribed capital of the company is £21,665, but the amount called up and paid totals only £10,442, deposits and interest amount to £8631 6s 2d, which is a laige sum lelative to the paid-up capital, and, ia addition to this, the overdraft at the bank is £377. The Association lias advanced on mortgage £20,135, which is piactical'ly the only asset, but it is large enough to more than cover all the liabilities. The income for the year was £1047 15s 2d, of which £1038 9s 8d represents interest on mortgages received and accrued. The outgo shows interest on deposits paid and due £283 Is lOd, other expenses £163 5s lid, making the total expenditure £446 7s 9d, equal to about 40 per cent, of the income. * * * The balance-sheet of Sharland and Co., Limited, for the year ended 29th February, shows a credit balance of £5361 16s Bd, out of which £1750 has been taken to augment the reserve fund. The dividend of 7 per cent, absorbs a further £3407 16s sd, leaving £204 10s 3d to be carried forward. The company has had a good year, and the figures of the balance-sheet give evidence of this. • • • The gross profits for the year amounted to £21,945 16s 2d, and the expenses of management to £16,156 16s lOd. The company has written off £163 for de-

preciation, and for bad debts £354 The liabilities show capital £48,676; moitgages, £4000 ; amount owing to bank, £21,867 , while the assets include stock on band, £45,986, book debts, £19,920, freehold and leasehold properties, £13,318, cash and bills leceivable, £1098. The reserve fund of the company, with the addition now made, will stand at £5250. * * * The shares of the Mitchelson Timber Company have been very dull recently, giving rise to the belief that the bal-ance-sheet would be disappointing. But that document, since issued, shows the company to be in a healthy condition. The profits for the year amounted to £5753, and there was £230 bi ought foiward from the previous year. Out of this, £5198 is taken for dividend, £120 goes to the directors as honorarium, leaving £664 15s 4d to be carried forward. The amounts written off during the past year on various accounts totalled £3566, which is substantial enough to please the critics. The prospects for the current year are said to be excellent, and the effect of all this should be to give the shares of the company a better standing with investors. * • * The accounts of the Bank of Australasia foi the six months ended 12th October, 1903, recently received m this colony, show that, after providing for for bills current, for British and colonial taxes, and for all bad and doubtful debts, the net profit for the half-year was £151,598, and, including the balance brought forward, there was £167,952 available. * • • The dividend at the rate of 12 per cent, per annum absorbs £96,000, the sum of £30,000 has been carried to the reserve, and £25,000 written off premises account, leaving a balance of £16,952 to be carried forwaid The liabilities to the public totalled £17,239,676, against which there were liquid assets approximating to £5,000,000. The reserve fund stands at £1,130,000, and includes £500,000 m Imperial Consols, written down to £83 per cent. The returns of the Post Office S-u-ings Bank for the past quarter sliov, to advantage as compared with the December quarter. At the close of last year the withdrawals exceeded the deposits by a substantial sum, but in the March quarter the deposits were larger. Obviously the profits of the community ai c

being well maintained, and, while this lasts, we must expect a continuance of prosperity. * * » The outlook in the London money market is more cheering with the Bank of England 1 ate down to 3 per cent. Stock Exchange securities show an mr creased' firmness, and there is now some hope that the pressure placed upon the colonies by the demands of the several Governments will be in a measuie removed. All along it was the heavy Government and municipal borrowing that has tended to make loanable ciedit scaice thioughout Australasia, and if this piessure is lifted there is every hope of rates being kept down. There is no getting away from the fact that for all legitimate commercial and industrial demands theie is abundance of capital available, but the markets are unable to support the mci easing and continued demands from the treasuries of the several States. Altogether, the monetary position, has improved a great deal during the past week or two, and if we are saved from political and international disturbances the year should prove a good one. ♦ ♦ ■* There is continued dulness in the sharemarket, yet, although sales are few and far between, more buyers are coming on the market. The outbreak of war in the Far East, and the effect it would have on the money market, made investors somewhat cautious. The same caution was exhibited when the South African campaign was started, but in the latter case there was no disturbance in the money market, and as soon as this was lealised investors pn mptly invested their capital. The same thing will probably occur now, seeing; that, instead of advancing the market is really becoming easier. Shaie values show no matenal alteiation, but theie are now buyers of Bank of New Zealand shares at £4 7s ; Metropolitan Permanent Building, at £11 15s , New Zealand and River Plate Land Mortgage, at £1 4s 6d ; South British Insuiance, £6 5s j Gear Meat, £6 14s and l £1 13s ; Manawatu Rails, £1 8s; and Mauriceville Lime, £1 5s 6d. • • • Notwithstanding the dulness and the conservatism of speculators, the mining market shows a little more life. Sales of dredging shares are more numerous now, and, although prices are still in favoui of buyers, the greater activity displayed is evident nf returning con-

fidence. The dredging returns are again becoming important, while last week we had the big return of 2140z from the Electrio No. 2. In some quarters the opinion is entertained that there will be a satisfactory revival in the market for dredging shares. There need be no fear of any mining boom, and it would be sufficient if shares advanced to their proper level.