Finance Stocks and Mining

Free Lance, Volume VI, Issue 272, 16 September 1905, Page 5

Finance Stocks and Mining

THTfI London money market advanced somewhat suddenly last week, due to the persistent withdrawal of gold. Of course, at thus time of the year there is invariably a strong demand for money, but to this regular demand there is probably other pressure added which, for the moment, ciannot be traced to ite source. However, the advance in the bank rate is only 10s per cent., and the change has had but little influence on the values, of colonial •Government securities, though Consols fell 20s. The main question for us is whether the adverse movement will be prolonged, and whether we will feel it m the colonies. This cannot be answered offhand, because if the advance is due to normal influences it 'will not hold very long ; on the other hand, if it is due to pending political complications, it may hold a lone time, and anything may v happen. However, there is no reason to expect' that tihe colonies will feel any pressure for some time to come. * * * There is, unquestionably, am abundance of money available in the colonies, and local requirements can, be readily met, while the prospects of a good produce season, if realised, will add to. our available credits. At the worst it seems that colonial Governments will find it difficult to borrow in London, but Colonial Treasurers may turn to local markets with a certainty of success provided the demands are within moderation. On the whole, it seems, on. the data available just now, that there is no. occasion to take any serious notice of the hardening of money in London. • * * The London wool sales open on Tuesday of next week, and 1 , on present indications, values of crossbred wool slhould be maintained, while an, advance would cause no surprise. The top market has been exoeedinclv firm during; the past two weeks, and unless the disturbance in the money market affects the position, which seems unlikely, the wool market is bound 1 to respond! to the improvement shown in tops. However, a few days will determine the matter. Another aoodl wool Reason will mean much to Australasia. • * * While the promises for wool are good, the same cannot be said for butter. The market is not strong, and amy attempt to press sales brings down the price. The high values ruling recently have apparently attracted considerable supplies, and the shipments from Australia are earlieT and larger than last year, which may account for the condition of the market. It is not likely, however, that the market can be depressed so early in the season. There will be a fall, but that will be immediately after the Christmas trade is dlone with. • * * The Bank of Australasia has declared a dividend at the rate of 12 per cent. per annum for the past half-year, and has added £30,000 to the reserve fund, carrying forward £17,000. The Anglocolonial banks have done very well during the past few years, and their shares command excellent prices in. the London market. Other recent dividend announcements include; Wellington and Manawatu Railway Company, an, interim dividend of 3 per cent. ; Northern Boot and Shoe Company, 5 per cent, per annum; Southland! Farmers' 00-operative Company, 5 per cent. ; Northern Canterbury 00-opeirative Stores, 7 per cent., and a bonus of 2-i-per cent. * * * The balance-sheet of the New Zea^ land Fammersi' Co-operative Association to tibe 31st July covers a period of fourteen months, and the net profit for the period totalled £22,538 12s sd. The gross profits on merchandise anwxun'fced to £33,148 15s 2d ; commissions earned totalled' £10,229 : discounts, exchanges, and. interest yielded £5517 17s Id ; storage, £184 17s sd; and transfer fees, £16 18s 6d. The paid-up capital of the company is £65,605 and! the reserve fund stands a* £29,736 9?>. This is one of the most successful of the co-opera-tive societies established in the colony, and" the secret of its success is due largely to following closeJy the true principles of co-operation. * • * The North Otago Farmers! 5 CkMroerative Association has been in existence only four years, andl during that period has achieved great result®. The bal-

ance-fiheet for the year ended 31st July discloses a net profit of £3160 oin, an average paid-up capital of £12,653. The Association .announces a dividend of 7 per cent., and bonuses on the usual scale ; £1000 has been placed! to credit of reserve fund, and £300 has been set aside for doubtful accounts. * * * The sharemarket has witnessed a little business during the past week or two, but this has beeai principally in insurance and coal shares. • National Insurance shares sold at 225, New Zealands at £4 15s 6d, Taupiri Coal at 19s, and Westport Goal at £6 10s and £6 10s 6d. ♦ * * For bank shares, the demand is restricted to Bank of New Zealands, which are wanted at £6 4s. National Bank shares are offered 1 at £5 13®, and New South Wales at £44 ss. Financial shares axe in steady request, with buyers of Equitable Building at £9 10s, Metropolitan Building at £11 15s, Wellington Trust and Loan at £7 2s 6d, Wellington Building at 11s 9d, National Mortgage at £2 15s, andl New Zealand and River Plate at 28s. # * * Gas shares are very firm. There are practically no sellers., while bjuyers are offering full market rates. There aire bids of £4 15s for Ashburton Gas, £14 5s for Auckland Gas, £4 for Bokatdka Gas, £5 for Palmerston North Gas, and

£18 and £9 for the respective issues of Wellington Gas. * * * Manawatu Railway shares are steadily advancing in value, and buyers are now offering 34s 3d, but holders are not bo be tempted. Union Steam shares are wanted at £14 12s 6d. Meatefhares are steadier than usual, there being a demand for Canterbury Frozen Meat shares at £6 10s, Chratahurch Meat at £10 2s 6d, and £8 and £2 2s 6d for the two issues of Gear Meat. * * * Mosgiel Woollen shares are in demand at £3, but the offer is below the estimates of value entertained 1 by holdieirs of the shares. Westport Coal shares are m firm request at £6 10s. Leyland and OBrien Timber shares changed hands at 42s 6d, and Sharland and 00. at 235. Other miscellaneous shares are quiet. « * * The gold dredging return® of last week were father favourable, some excellent yields beirng obtained from special areas. The export of gold from the colony last month amounted to 42,5500z., valued at £170,994, as compared with 46,7730z., valued! at £178,624, for August, 1904. For eight months the value of the gold) exported' shows a decrease of £27,613 as compared with the corresponding period of last year.