Finance Stocks And Mining

Free Lance, Volume V, Issue 224, 15 October 1904, Page 5

Finance Stocks And Mining

THE report of the Northern Assurance Company for the year 1903 bhows premiums £1,019,208, losses £492,152, which is an exceptionally favourable experience. Aftei providing for expenses, and increas.ng the amount of the provision from 40 to 45 per cent, for liability under current policies, a credit balance of £110 510 was transfened to profit and loss. A sum or £96,000 waa distributed among shareholders. A provisional agieement, according vo mail advices, has been entered into between the directors of the London and Lancashire Fue Insuianee Oampanv and the directors of the Scottish Employers' Liability and General Insurance Company, whereby the latter will be absorbed by the former institution. The Scottish company has had a profitable career, paying dividends up to 26 2-3 i d per cent. Its paid-up capital liowevei was £15,000, with £40,000 ordinary reserve, and other reserves aggregating about £90,000. * • • The financial year of the National Mutual Life Association has just closed, and, according to the executive officers, the new business written, in New Zealand establishes another record, the completed proposals amounting to about £400,000, or about £70,000 more than la«t year. The National Mutual is steadily gaining in popularity with insurers and is well represented m this oolonv by active, wide-awake and courteous officers. The field agents are a pushing lot. * * * The old-established business of Strange and Co., Chnstchurch has been converted into a limited liability company, and there is a rumour that the new concern is likely to open a branch establishment in Wellington. * * * The balance-sheets of several dairying companies bave been circulated recently, and it is alarming to note that very few show any adequate writingdown of machinery and plant and a few only have thought it worth while to set aside anything as a reserve. There is trouble ahead for the industry, tor, when the time comes to replace wornout machinery, a heavy expense will tall upon the then suppliers of milk, lne dairy f aimers seem too anxious to secure all the present advantages, without any regard to the future. Theie is a day of reckoning to come for bad management. Municipalities and other local bodies wishing to borrow in the local markets find that mvestoi s are not keen, to buy up 5 per cent, debentures. During tne past four or five years the colony has been flooded with debentures, and it is doubtful whether there is any real demand for them outside of on© or two big insurance offices. Besides, there is no getting over the fact that money is dearer, or rathei , more difficult to obtain - The inability of the Government to borrow in London, and the difficulties experienced by local bodies are the principal causes of the cry of the unemployed being heard just now. Fortunately, the colony is approaching the most profitable season of the year, and in a month or six weeks hence there should be full employment for all those who are idle now. Of course, if the money market does not improve in the meantime we may expect to hear more about the unemployed next winter. * * * Money in London is still apparently easy and the issue of Exchequer Bonds has been readily taken up. However, we must not expect to see money iemain cheap in London for very long, for in previous years there has always been an advance in the rates about this time. There is considerable distress in Gieat Britain, and that is rather bad for our producers. Furthermore, the conditions prevailing in Great Britain aie speedily reflected in the colonies, because we are so absolutely dependent upon the Mother Country m the matter of trade. * * * Investors in Stock Exchange securities appear to be developing a conserve tive attitude. The demand now seems to be entirely for what may be termed th»j "gilt-edged shares," and full market rates are offered. Holders, however show no inclination to sell. Bank of New Zealand shares changed hands at £5 19s 6d. and there are sellers of the stock at £6. National Bank shares are neglected.

Financial bhaies aie in fan demand. Ai 1 building society shares are readily taken at market price*,, but bellois> aie scaice. Metropolitan Building shaies aie wanted at £11 12s bd, but there are no selleis National Moitgage bhaies are in demand at 4bs. # * * Gab shaies aie compai ativeiy quiet, simply because of the difficulty of obtaining them. Feildmg Gas shares aie wanted sit 225, and Wellington Gas at £18 and £9 for the t elective issues. It ib obvious fiom the firmnebs of the latter that uivestois do not anticipate that the City Council will acquire the Gasworks just at present. If the Council hasi no immediate intention of purchasing, an assuiance to that effect should be given the company, .so that the d' rectors may engage m any capital expenditure contemplated. • * * Insuiance shaies are very fiim. Nationals are wanted at 23t>. The financial peuod of this company has iust closed, and the balance-sheet, which may be expected towards the end of the month, will, it is anticipated, be very favouiable. New Zealand Insuiance shares are in demand at £5 Is, and New Zealand Accident shares ate wanted at £3 15s. A good many people are anxiou» to know when the State _Fne Insurance Department intends making a start. As fa_r as can be ascertained, the new premises are ready for occupation, the staff required has been appointed, and the necessary sum has been voted by Parliament. The delay, therefore, is difficult to understand, unless it is that satisfactory arrangements for re-insurance have not been made » * * Meat shares are very much neglected, the only demand being for Gears, which are wanted at £6 15s and £1 15s 6d foi the respective issues. There are sellers of Canterbury Frozen Meat shares at £8 17s, Ctoristchurdh Meat shares at £10 10p, and Wellington Meat Export at £-5 15 sand £3 ss. * * * Woollen shares 1 are slow of sale. Holders are asking full rates, but buyers' ideas of values do not come to payine; the prices asked. Sellers want £6 Is for Kaiapoi Woollens, £4 Is for Mosgiel Woollens, and £5 for Wellington Woollens. In the present state of trade the prices are scarcely warranted. # * * In miscellaneous shares, sales are reported of Westport Coal at £6 13s, with further buyers at the price. Holders aie demanding £6 15s. Manawatu Rails are off ci ed at 30s, and New Zealand Shipping at £6 12s 6d. Theie are sellers of Leyland and OBrien Timber shares at 40s, Mitchelson Timber at 12 > 6d, Sharland and Co. ordinary at 22s 6d, and Manning and Co. Brewery shai es at £4 3s There are buyers of Waid and Co. Breweiy shares at £4 12s 6d A fair amount of business haisbeen done in these brewery shares recently, showing that investors have got over the prohibition scaie. * * * The gold output from, New Zealand for the current year promises to show a substantial increase ovei that of last year. For the nine months ended 30th September, the exports amounted to 404,3500z., valued at £1,544,503, showing an increase over the corresponding period of 31600z., of the value of £14,228. Notwithstanding this satisfactory showing, speculation in mining ventures is very slack. The continued improvement in the industry must eventually have a stimulating effect, and encourage those with capital to associate themselves with the affairs of pioved ventures.