Finance Stocks and Mining

Free Lance, Volume VI, Issue 273, 23 September 1905, Page 5

Finance Stocks and Mining

T' HE London money market is firmer, and the open inaiket discount rate is now very nearly equal to bank rate. The advance in the bank rate has not quite checked the outflow of gold, for the decrease for the week in the metal reserve of the bank is nearly £500,000. Compared with a year ago, the position, is not at all favourable, and, if the demand for gold continues, a 4 per cent, rate may be imposed, and that would spell dear money. # • * It was expected that there would be a rush to float companies in the autumn, and this demand, together with the demands of the Continent of Europe, have no doubt contributed to the present stringency. Dear money in the European autumn is not an unusual thing, but the effect is not likely to be felt in the colony, because our producers are getting excellent prices, and, consequently, much to spend. It is ,this expenditure that will stimulate local trade, and make for the maintenance of prosperity. • • • Wool-growers have much cause for congratulation at the continued favourable condition of the market, and, from all accounts, wool will hold its value until at least the bulk of the new clip is marketed. A fiirm wool market means much to the whole community, for it furnishes in no small degree the wages fund. With wool, mutton, and butter ruling high, we cannot help having prosperous times, and, on present indications, it is impossible 1 to take other than an optimistic view of the situation. • ♦ • Most of the 00-operatdve Associations have issued their balance-sheets, and some recent publications include the Wairarapa Farmers' Co-operative Asso ciation. This concern, has. apparently had a prosperous year, for the net profit amounts to £14,763 8s sd, which, with the sum of £11,504 2s. brought forward from the previous year, gives an available total of £26,267 10s 5d for appropriation, and the following distribution is recommendied' : — 6 per cent, dividend and 3 per cent, bonus on paidup capital, iand 3 per cent, bonus on shareholders' purchases, and a similar bonus to employees on the-r salaries. * * * The reserve fund is to be increased to £20,027 by the addition of £8500, the sum of £200 is placed to the credit of the employees accident fund, and other minor distributions absorb all but £7077, which is carried forward to the new account. There is no reason why this Association should not show a greater measure of prosperity during the current year. « * • The balance-sheet of the Canterbury Farmers' Co-operative Association discloses a net profit of £20,560 14s sd, to which has to be added £3116 15s lOd brought forward from the previous year, making £23,677 10s 3d ava lable for distribution. A dividend of 8 per cent., and a bonus of 6 per cent, on paid-up capital has been declared, in addition to which shareholders get 6 per cent, on their purchases, 25 per cent, on commissions on grain, etc., while 6 per cent, is given to the staff on salaries and wages. The sum of £4000 has been added to the reserve fund. ♦ ♦ » The Southland Farmers' Co-operative Association's balance-sheet shows a net profit of little more than £1000, and, with the balance brought forward from the previous year, the total at credit is £1939 7s 2d. The profits were affected by the small margin of profit on cornsacks and binder twine, in which the Association does am extensive business. The dividend for the year is 5 per cent., which absorbs about £400, the sum of £200 is set aside as a reserve for bad! and doubtful debts, and £134 is written off store furniture, leaving about £1200 to be carried forward. * * * Notwithstanding severe competition of one kind and another, the Northern Boot and Shoe Manufacturing Company earned a larger profit in the past year than in the year before. The net profit totalled £998 13s lid, and, with the amount brought forward, the sum available for distribution is £2708 9s 7d. The dividend for the year is 5 per cent. The directors report the installation of new machinery and appliances, and take a very optimistic view of the outlook.

The balance-sheet of the Thames Gas Company for the year ended 31st July discloses a sum of £1516 8s Id as available for distribution. The interim dividend paid in. March last absorbed £499 2s, and a further dividend as declaied payable out of the balan.ce, leaving £393 8s 7d to be carried forward. • * * The New Zealand and Australian Land Company has declared a dividend of 5 per cent., and a bonus of 2 per cent., which is rather good for a land company. The sum ot £25,000 has been devoted to the i eduction of the defic t on land loans. * * Investment shares have had sonip little attention during the past few days, and several sales have been registered. With few exceptions prices exhibit an upward tendency. Bank of New Zealand shares changed hands at the satisfactory price of £6 Bs, and are very firm. Nationals are offeied at £1 13s 6d, with no declared buyers. • • • In financial shares, business has been done in New Zealand and River Plate at 28s and 28s 3d, and National Mortgage at £2 15s 6d. There are steady buyers for Equitable Building at £9 12s 6d, Metropolitan Building at £11 15s Wellington Trust and! Loan at £7 ss, and Wellington Building at 11s 9d.

Gas shares are all in good demand at full market rates. There are balds of 23s 3d for Feilding Gas, 36s 6d for Gisborne Gas, £25 far Napier Gas, £7 for New Plymouth Gas, £5 for Palmerston North Gas, and £18 and £9 for the respective issues of Wellington Gas. * * * Insurance shares are in better demand, but holders do not exhibit the same disposition as previously to* quit. For Nationals 22s is offered, for New Zealands £4 15s 6d, and for South British £5 4s. The balance-sheet of the latter company will be circulated very shortly, and a good reroort is evidently expected. • • • Meat shares are quiet and neglected. Canterbury Frozen Meat shares are wanted at £6 10s, and Gears (£1 paidup) are offered at £2 4s. New Zealand shipping shares changed hands at £6 10s, and there are further buyers at £6. Manawatu Rails are in firm demand at 34s 6d, but the price does not seem, to be attractive enough to holders. Union Steam shares are wanted at £14 12s 6d. • • • Woollen shares are quiet. Kaiapois are offered at £5 ss, bait the price is beyond the ideas of buyers. * Mosgjels are wanted at £3, and it is a wonder there are no sellers at the price. Tau-

pin Coal shares changed hands at 18s 9d, and Westport Coal at £6 11s. Leyland and OBrien Timber shares had quittance at 42s 6d, and New Zealand Paper Mills at 24s Cd. There are buyers of Sharland's at 235, and Ward and Co. Brewery shares at 84s. * * * In mining, there is really nothing doing in Wellington, and in the other centres business is not very cheerful. The dredging returns are good, and the dividends are better. The Masterton Gold Dredging Company and the Enterprise Gold Dredging Company have each declared a dividend of 2s per share : the Alexandra Eureka and the Waikaka United, Is 6d per share; Hessey's, Matau, Patersons Freehold, Waiotahi Gold Dredging Companies, la per share ; and the Roxborough Amalgamated. 6d per share.