Finance Stocks and Mining

Free Lance, Volume VI, Issue 274, 30 September 1905, Page 5

Finance Stocks and Mining

DURING the past week the London money market exhibited increased stringency, and the position, is much less favourable than, a year ago so far as a comparison of the figures ot the Bank of England admit. The da&■count rate in the open market is up to 3 per gent., and if this as maintained a further advance m the bank rate must follow. The demands for money that now seem very strong will not last lotng unless they are due to the aftermath ox the war m the Far East. Crop movements are on. a large scale this year, the Unated States and 1 Canada being vi possession of record crops. • • • The point for us to consider is whether tne ughuie&s. in Europe will have any serious innuenoe on credit un. the colonies. We cannot hope to escape •altogether, but tue adverse eftects wull be scaroejy noticeable. The colonies just now have a great deal of idle money seeking an outlet, and! in, the Commonwealth, new joint-stock companies are being floated 1 , and the loan applications of local bodies are being readily subscribed. The Wellington City Corporation loan is being offered by the Union Bank in Australia, and promises to be a huge success. This loan is likely to go off at a small premium. While there is no immediate effect from the changed! conditions m London, we may look to. the coming months to add materially to our resources; hence the adverse London money market is of little importance to us just now. • • • The wool market is strong andi ami-mated,->aind, above all, there is a substantial rise in the values of crossbred wool. The great staple has seen many fluctuations j and just now it is in the ascendant, with every indication of maintaining a hrm market. The American demand continues strouig, and, as the population of both Canada and the United States has increased!, it is obvious that the demands from this quarter must expand, more especially during the next twelve months because of the increasing prosperity of the people. • • • Butter, too, is promising well, and the market has recovered from, the dullness of a week or two ago. The Aulrtralians are getting in their new make of butter, and are securing the benefit <rf the present high prices. We have nothing to complain of va. this colony, for the butter dealers are giving very fair prices this seasoni, and the whole of our butter will be marketed at a profitable price level. With produce prices high, and! a good tourist season, the outlook is exceedingly good 1 . ■* * tt ' The report of the WoiLseley Sheepsheaaing Company for 1904 states that the net profit for the year amounted to £5000, which the directors regard as satisfactory, in view of the condition of the trade. The scheme for the reduction of -capital has been successfully carried out, and a dividend of 5 per cent, on the ordinary shares has been declared. This is the first distribution in the history of the company, though nearly sixteen years have elapsed since the concern was fiirst floated. • » * The business, which is largely a cotlonial one, has naturally suffered a good deal in recent years owing to the great destruction of flocks in Australia by the drought. It is not unusual for shareholders to have to wait a long time for a return on their money, but at is much more rare for them to get something at the end of nearly two decades, even if on a diminished holdung. • # # There is a lull in the issue of balancesheets, and the next group will probably deal wath insurance companies . The few documents recently issued deal with the North Canterbury Co-operative Stores. The balance-sheet of this concern shows an available credit balance of £6576 15s lOd. A dividend of 7 per cent., and the usual bonuses, have been declared, £1161 8s 3d has been added to the reserve fund' (which now stands at £8000), and £500 has been added to the special reserve fund. » • • 'The balance-sheet of the Gisborne Permanent Land Building and Mutual Investment Society exhibits a satisfactory condition of affairs. The investments on first mortgage amount to £12,453 18s 2d, and there are no arrears in the books of , the Society. Loans on shares represent £4866 16s lid. The value of

investing shares is £10,363 14s 7d, and permanent shares £1800. There are now on issue 36 permanent, 477 investing, and 404 borrowing shares. * * * Money is seeking an outlet in investment shares, consequently the demand for those on the dividend list is pretty strong. Holdeis, however, have to consider what is to be done with the money if realisation is decided upon. Unfortunately, the scope for the safe investment of capital is restricted. A considerable sum has gone, and is going, into land, but the surplus needs an outlet also. » * » It is surprisdiig that more is not being done in joint-stock enterprises, but when this is mooted brokers ask "Where are the enterprises?" It is useless suggesting industrial ventures where the employment of labour is neoessaTy, because- m such eases the margin for capital is not tempting enough. The restricted avenues of investment are forcing those' with onpital to eret diividend u paying shares when possible, and in the alternative to allow the money to lie idlle in the banks. ♦ * ♦ For financial, insurance, and gas shares the demand is pretty consistent, and full market, values are offered',

while there are practically no sailers*. For instance, there are bids of £9 12s 6d far Equitable Building, £11 15s for Metropolntan Building, £7- 5s for Wellington Trust and Loan, 11s 9d for Wellanigtan Building, and 28s for New Zealand and River Plate 1 shares. These shares are hard to proou>r& a.t the prices, and yet the interest on the quoted prices is in each case veiy small. * * • Gas shares are freely bid for, at £4 15s for Ashburton Gas, 23s 3d for Feilding Gas, 36s 6d for Gisborne Gas* 80s for Hokitika Gas, £7 for New Plymouth Gas, £5 for Palmerstoa North Gas, £25 for Napier Gas, and £18 and £9 for the respective issues of "Wellington Gas, and there are no sellers. Insurance shares are similarly circarms<tanced. NatnonaJis are wanted at 225, New Zeal an ds at £4 15s 6d, and South British at £5 3s. • * • Meat shares are firm, notwithstanding that the turn-over of the companies is somewhat less this year owing to the shortage of fat sheep. Canterbury Frozen Meat shares are wanted at £6 10s ; Ohristchu'roh Meat shares at £10 2s 6d, and Gear Meat at £8, and there are mo declared sellers. Shipping shares are firm, with offers of £14 12s 6d for Union Steam, and £6 for New Zealand Shipping.

In woollen shares, the decline in values appears to have been arrested, for there is now a demand! far Mosgiels at £2 19s 6di, while Wellington Wool lens changed hands at £3 18s Bd, a very fair price considering the conditions of the woollen trade. Westport Coal shares sold up to £6 lls, while Taupiri Coal shares are wanted at 18s 9d. Leyland and OBrien Timber shares changed hands at 42s 6d, and New Zealand Paper MiWs at 24s 6d. Other miscellaneous shares are quiet. • • » The dredging returns of last week were unusually good, or appeared so because of the excellent yields obtained from three or four dredges. And tihe good returns are backed by diividemids, every week witnessing several dlrvidemid payments. The latest davMiendls include : 2s per share from the Chicago Gold Dredging Company, Is per share from the Waikaia and the Sandy Point Companies, and 6d per share from the Upper Waipori.