Finance Stocks And Mining

Free Lance, Volume V, Issue 220, 17 September 1904, Page 5

Finance Stocks And Mining

THE lepoit of the Alliance Mai me and General Assuiance Company , Limited, show* a balance to credit of profit and loss of £92,439, out of which it was decided 1 to pay a dividend of 30s per share, and a bonus of 10s per shaie, altogether 40b pei shaie, free of income tax, or £20,000 in all. * • • The shareholders of the. South British Insurance Company aie in lucks way foi they are about to receive a substantial bonus in addition to whatever may be distributed .v« dividend. Some years ago, through very seveie losses, and, perhaps, through faults in othei ways, the company was obliged to wiite down its capital, and the shareholders had a pound a shaie taken oft. Ine company then began to fore© ahead, and since Mr. James Kirker was appointed general manager the improvement has been very marked. A very substantial reserve has beer, built up out of profits, and the dividends have been very good for quite a number of Years The shares hare steadily gone up in value, and are looked upon as very safe security. * * * * What is now proposed is to give shareholders one share paid up to ±.1 tor every two shaies held, arid theie is a provision for dealing with fractional shares. The disposition of the unissued shares is reasonable and tair. itmav be stated that the financial year of the company closed on the dlst int., and 1 the balance-sheet should be made available to shareholders during the course of the next week or two. Ine shares are, of course, extreme y farm, and there are practically no sellers. » * * The report and balance-sheet of the Union Bank of Australia for the halfyear ended 29th February, 1904, show that the net piofit for _the period amounted to £115,238 18s 5d and, with the balance of £25,065 16s 9d brought forward, theie was available £140,304 los 2d The dividend of 10 per cent, per annum absorbs £75,000 the sum of £25,000 has been added to; the reserve fund which now stands at £1,025,000; £4000 has been appropriated in aid ot the bank's guarantee and provident fund, and £10,000 has been applied in reduction of bank premises account m the colonies. » * * The balance caaried forward is £26 304 15s 2d. Accoidmg to the bal-ance-sheet, the liabilities to the public consist of calculation, £464,766, deposits (including inscribed stock deposits), £15,990,011 4s 2d, and bills payable and other liabilities, £2,130 140 8s Id- the total of thesei being £18,584,922 12s 3d. The assets include cash investments and liquid assets, £7,342,011 discounts, loans, and other securities £13,171,511; premises and property, £697,705. * * * The London money market exhibits a decidedly easy tone, the position disclosed by the Bank of England being one of exceptional strength. The metal holding of the bank is very large, and is over £3,250,000 more than at the corresponding date of last year The reserve of notes and coin is also much greater, while the proportion of reserve to liabilities is as high as 57.15 per cent. The open market discount rate has declined I per cent, and at 2 9-16 per cent, is lower than it has been for some months. Unfortunately, this favourable showing is not reflected in the values of gilt-edged securities. * * • Imperial Consols have declined ss, while several colonial denominations are lower also. The fall of 40s in New Zealand 3 per cents, does not mean much , ait all events, it does not follow that the drop is due to the Government sounding the market for a loan. It is most likely that some weak holder has been forced to sacrifice the stock to obtain ready cash. New South Wales 3 per cents, show a decline of 20s, and it is hardly likely that the Mother Colony is trying to borrow in London. With a change of Government m New South Wales the London money-lender would feel more confidence, and the stock should have risen. The explanation is that some holders of colonial stocks aie being forced to realise. * • * The week has been quiet in the shai emaiket, not because of any scarcity of investors, but rather because holders are firm, and demand very full rates. Ihe better class of shares are hard to obtain holders being well satisfied with

their investments. It is safe to say that more money is seeking an outlet in .shaie investments, and while this continues values are not likely to go back. * * * In bank shaies, theie hat> been a 6>ale of Nationals at £4 17s, and moie can be placed at the pi ice New Zealand^ are slightly easiei , buyers offeung £5 17s bd, but selleis are holding out foi £fa Is, an abcurdly high price foi a 5 per cent, stock. * * * In financial shares, thei c is a demand for Metropolitan Building shaies at £11 10s, and the other building societies' shaies, if available, could be bold at full market rates. New Zealand and Rivei Plate shares aie wanted at £1 ss, and National Mortgage are offeied at £2 7s. * * * Gas shaiefc are in fan demand, and there are bids of 21s 9d foi Feilding Gas, which have certainly improved their position in the market. Palmeiston North Gas shaies aie in steady diemand at £4 10s, and Wellington. Gas are wanted at £18 and £9 for the respective issues. * ■* * In insurance shaies there is fair enquiry- New Zealand Insuiance shares have had quittance at £4 18s and £4 19s. Nationals are wanted at 22s 9d, andi New Zealand Accidents ane offered at 80s. The underwriters have had. to face some heavy losses during the past few days, and the results of the year promise to be much worse than usual. * * * Freezing shares aie beginning to revive, there being a better enquiry from several souices. Chnstchuich Meat shares are wanted at £10 ss, and Gear Meats at £6 15s and £1 15s for the respective issues. Canterbury Frozen Meat shares are offered at £9, and' New Zealand Refrigerating shares at 275. * * * Woollen sha.ies appear not to have been affected by the wail about the ovei -importation of shoddy, for sellers ai-e asking full rates. For Kaiapoi Woollens sellers want £6 4s bd, and for Wellington Woollens £5 2s. * * * There has been a strong enquiry for Manawatu Rails at 30s, but they aie difficult to procure even, at this price. Holders recognise their worth, and are not so leady to let go. New Zealand Shipping shaies aie offered at £6 12s 6d, and Westport Coal at £6 16s ex dividend. * * * In miscellaneous shares there are bids of £13 for Donaghy Rope and Twine shares, 38s for Leyland and OBrien Timber, and £4 3s for Manning and Co Brewery shares. Sharland's ordinary had quittance at 22s 3d. Other miscellaneous stocks are practically unchanged, and are freely offered. * * * Theie is nothing new to recoid in mining. At the Northern fields theie is quietness pending further developments in the neighbourhood of the Waibi mine. In dredging also there is quietness, and yet the returns keep up jemarkably well.