FINANGE

Free Lance, Volume V, Issue 239, 28 January 1905, Page 5

FINANGE

THK local money mai ket shows* no change, and theie is not likely to be auj change until the.ie aae movements in London and Australia. In London there appear to be an ira--piovement, and were it not for uhe political unrest, especially iv Russia, theie would be no cause for uneasiness. The revolution has begun, and how andwhen it is to end no one can tell Such a distui bance in so big and important a country ax Russia must be felt tar and wide. Trade to at a standstill, industries aie quiet, the factories aa'e shut down, and aU this makes for economic troubles. Germany, Fiance, and Austria, which have close bus ne-s lelations with Russia, wMI feel the pinch, and through them it will spiead to other count 1 es • ♦ * Apait from this, one would' be tempted to take a very optimistic view , foi there is no doubt that money is more abundant m London and New York. The Bank of England 1 leturns foi the past week <how increased strength, and gold is coming into the bank fiieely, instead of flow in or out as was the case a month ago. The outlook is better than seemed likely a month back, and everything is promising except for this Russian trouble. • • • The chief item of inteiest to the colony just now is the splendid position of wool. The curient London saJes have seen ciossbied wool advance 5 per cent., and this improvement has since been maintained. Coarse wool is now more than a hundred percent, higher than the lowest pi ice touched since 1900, and it means a great deal to the colony Though frozen meat and butter a.re important items in the export IM, it is wool that is the bisis of our prosperity. • * * Just w hat the advance means to the colony m sterling it is haid to say. Some people estimate the amount ol gain at £1,000,000, and some at half as much again, but these are rather optimistic Assuming that the annual export of wool is approximately £5 000,000, the o per cent, gain would amount to £230,000. Howevei , there is a substantial gain, which should go a long way towards making good deficiencies m othoi directions. The twenty -se\ enth annual report ot the Equitable Building Invectmeait Company shows that £7342 5s 5d is at credit in the piofit and loss account. Of this amount, the dividend of 10 per cent, absorbs £5000, the sum of £1750 has been added to the reseive fund', and there remains a balance of £592 5s sd, to be earned foiwaid At the meeting of shareholders, to be held next week, it is proposed to make various alterations to the Articles of Association, the most important being in the diieotion of netting up a contingency reserve, which seems quite a proper thing to> do. • » * The only objection that can be urged aganiisit the pioposai is the power sought to invent such fund m the business of the company. A reserve fund or contingency fund, to be of any real value, should be liquid, and as little of it as passible should be invested m the business. The fund should be available in case of an emergency, and if it is invested in the busmessi it is not likely to be available on such an occasion While it is proposed to reserve this power of investment, it is to be presumed that it is a meie formal lenervation, and that the director^ will see that it is so invested as to serve its real object. *- » • Tlhe leport and statement of accounts of the National Mutual Life Association aire now available, and a- peiusal of the same confirms in every way the earliei favourable reports cabled fiom Australia. The funds at the beginning of 1904 were £3,674,435 16s lid, and had increased to £3,932,367 2s 3d by the end of the year The growth is highly satisfactory, and lefleots the greatest oiedit on the management. The renewal premiums totalled £403,411, clearly showing that the Association is holdang its business, which means that the risks aie being carefully selected The new premiums amounted to £82,715, and the single premaums to £9911, consideration for annuities totalled £40,163 and interest and ienbbrought in £182.223. The death claims for the year amounted to £13"),-

778, endowment assuiancns mat mod 1112, 8b1, a.nd endowments matuied £^0,18«5. Expenses of one kind and another absorb a large sum a.s is usual. The funds of the Association are well invested, as the> need to be to bring in so satisfactory a return. Loans om mortgages amount to £2,1()4,809 , Government securities, £171,032, loans on policies withm their sui render value, £490,689 Taken oi the whole the account* disclose a very prosperous state of affairs, which must be pleasing to the policy-holders, and should also enable the field agents to attract a cons durable amount of newbusiness dvi mg the current year. * • * It can scarcely be -said that mvestoi s have settled down, foi business on the sharemarket is quiet A healthy feature, however, is the more numerous buvmg orders, a sign of returning confidence, and an admiss'on that the money market is now steady. Na.tion.al Bank shares sold at £4 17s 6d, whale Barak of New Zealand shares are in, request at £o 9s, sellers wanting £5 13s * * * Financial shaies are firm. There are bi,dis of £11 for Masterton Building, £7 cum div for Wellington Trust and Loan, £2 9s fid oum div. for National Mortise, while sales of New Zealand *<mJ R've'- Plate shares were made at 26s and 26s 3d. * • • Gas shaies are neglected, the only demand being for Feilding Gas sfhareis, a.t 22s 9d. Insurance shares a,re in nuu:h the same, position, there being sellers of Standard Insurance shares at 18«9d. # Meat shares continue quiet. There are sellers of Canterbury Meat shares at £8, a.nd New Zealand Refnfretrarting shaies at 20s. For Chriistohtirch Meat chares there are bids of £10 5s and for ■Wellington Meat Export (£2 12s 6d pa-'d) at £3 2s 6d * * • Of other share*, there are buyers of Manawatu Rail*, at 21s 9d, Taupiri Ooal at 17s 3d, Westport Coal at £6 12s, Leyland and OBrien Timber at 40s, New Zealand Drug at 44s Gd, and Riverhead Paper at 345. * • • In mining, interest is centiing on the Auckland fields, and there is every prospect of considerable market activity in the No'-th. In dredging, the interest is dull, the letums from the dredlges iusit now beine very poor. The lecords of last year «how that the totail yield fiom the Otaeo and Southland dtredges wasBB,B46oz. as aeainst 87,1300z for 1903 and 10fi,3890z for 1902. The returns from the Coast clre^Veis amoaiinrteo' to 90 870oz. a= aora'nst 30.01 90z in 1903, and 30 4160z for 1902.

With reference to Mr. Hy. Markwald's advertisment, appearing elsewhere, regarding carbide of calcium, used in the manufacture of acetyline gas, we are requested to state that tiie Heat, Light, and Supply Company of Wellington are not now acting as his retail selling agents. TJsers of carbide of calcium are advised not to purchase this article unless the package is marked: "Sold under license, royalty paid, by Hy. Markwald."— Advt.