Finance Stock And Mining

Free Lance, Volume VI, Issue 277, 21 October 1905, Page 5

Finance Stock And Mining

THE London money market is &tinngent, amd it is evident that the 4 per cent, rate recently imposed by the Bank of England l has not had the desired effect of checking the outflow of gold. The open market as feeling the pressure, for the rate foir fine trade paper is now up to £3 17s 6d per cent. It looks very much like a 5 pen cent, bank rate very shortly, and, if this is imposed and is maintained for a few weeks, it will have a generally disturbing effect, which will be felt to some extent in the colonies. # * * At present Australia is very flush of cash, and many new enterprises have been financed. The successive good seasons experienced in the Commonwealth have enabled the people to irepay the borrowings of the draught period, and to accumulate sufficient for fresh investment. Indeed, the accumulations are increasing at a greater ratio than the demands, consequently gome of the money is going to London for investment. Pretty much the same thing may be said of New Zealand. ♦ * * The promising outlook for our produce has been referred to in this column on previous occasions, but it cannot be too strongly emphasised. There are some people olwavs ready to take a pessimistic view, and 1 just now, with the general elections in prospect, candidates for Parliamentary honouis are apt to misread the signs of the times or to wilfully misrepresent the facts. What are now merely prospects will shortly be realised 1 facts, and the community wl 'have its spending power greatly increased. * * ' • The effect of all this will be seen in the price of land, the values of which will exhibit a rising tendency, and this wM be seen in rural as well as in ■urban land. The cities will do a more lucrative business as the result of rural prosperity, and tihe people will naturally seek to put their savings into real estate to make homes, and this will maintain values, if not enhance them. The banking returns for the past quarter disclose eminently satisfactory conditions. There is unquestionably an abundance of available credit, which is, however, seeking other outlets than industrial enterprises. The deposits, which, in a measure, represent the savings of the commercial and! produicing sections, have increased in the twelve months by £726,749, and the borrowings from the banks have also increased during the period by £871,961, but this expansion is much less than that recorded in the previous year, when the increase was £1,003,392. • • - • We believe bankers could very easily show a larger volume of advances, but they are displaying excellent care in selection, which is to be commended. The bant returns disclose soundness. That is to say, the econlomio conditions in the colony are satisfactory. Trade is fair ; at all events quite equal to that at the corresponding dlate of last year, but the prospects -are better, because prices of produce give promise of ruling higher. The bright outlook is very cheering, and in the next six months there should be free expenditure of money by a pleasure-lovin.g and pleasure-enjoying community. • • • Another commendable feature of the colony's economic conditions is th© expansion of the revenue. For the six months there is an approximate gain of £100,000, and a fair proportion of the amount has been obtained! through the Customs, testifying to the spending power of the community. We have had a long spell of prosperity, and, as yet, there is no sign of the depression which, according to precedent, should be with us again. • • •* The report and balance-sheet of the South British Fire and Marine Insurance Company were considered at the annual meeting of shareholders held last week, and the figures of the bal-ance-sheet are certainly of a decidedly satisfactory character. The net revenue for the year was £323,146 11s 9d, made up of fire and marine premiums, £297,821 16s, and interest received and accrued, £25,324 15s 9d. The underwriting losses totalled £180,009 9s, Id, the expenses of management £82,366 8s 9d, and £10,000 was added to the reinsurance reserve, leaving the net available profit at £50,770 13s lid.

The dividend for the year is equal to 6s per share, absorbing £25,000, and, after adding to reserves, there is a balance of £30,802 10s 7d to be carried forward. The funds of the South. British are well invested in a variety of excellent securities, and the increasing strength and stability of this local insurance office is a matter for congratulation. The South British will, in all probability, be undertaking accident insurance very shortly and atnotheir compeititor in the field will be welcomed by employers and others who are largely interested in this class of insurance. » » • There is very little doing intheshaiemarbet, there being marked dullness at the close of last week and l eiariy this week. Bank shares are comparatively quiet. Nationals are offered! at £5 12s 6d, and New Zealands at £6 2s, but there are no buyers. Bank of New South Wales shares are wanted at £43, and Union Bank shares at £49. • • • Financial shares appear to be excellent piropeirty, for the demand for them continues most pronounced. There are buyers of Equitable Building at £9 15s, Metropolitan Building at £11 15s, Wellington Trust amdl Loan at £7 7s 6d. Wellington Building at 11s 9d, National

Mortgage at 56s 6d, and New Zealand and River Plate at 28s 9d. • • « Gas shares are also very firm, and very difficult to procure. Christohurch Gas shares are wanted at £9 10s, Feilding Gas at 23s 3d, Hokitika Gas at £4, Palmerston North Gas' at £5, and Wellington Gas at £18 5s and £9 2s 6d for the respective issues. • « • Insurance shares are in more favouir since the South British balance-sheet was published. Investors are realising that this class of shares are an excellent investment. Nationals sold at 22s 6d, South British are wanted at £5 2s 6d ex div., and Standards at 16s 9d. • » • Meat shares are reviving, the better known being in good demand 1 . Gears are very steady, with buyers at £8 and £2 2s 6d for the respective issues. Canterbury Frozen Meat shares are wanted at £6 10s, and Christchurch Meat shares at £10 ss. • • ♦ Other shares call for no pai-tdcular notice. Union Steam shares are firm, with buyers! offering £14 15s, and Westport Coal at £6 lls. Wellington Woollens are weak, with the shares offering at £3 18s. Leyland and

OBrien Timber shares changed hands at 42s 6d, and Maurioeville Lime at 26s 6d. * * • Mining is quiet, and the dredging returns of the past week were -only moderate. For the next few months interest in gold mining will be at zero, but in tihe winter months of next year we should see a revival.