Finance Stocks And Mining

Free Lance, Volume VI, Issue 278, 28 October 1905, Page 5

Finance Stocks And Mining

THE London money market is stringent, with the bank late and maiket rate each at 4 per cent. It is very probable that there will be a further advance in the bank rate., for there seems still to be considerable demand for gold, and it is only by extraordinary efforts that the bank has been able to protect its metal reserves. The big war loans have still to be financed, but the operation may be delayed' until the new year. In airy case, money is bound to remain dear for several weeks longer. • • * There is a brighter outlook in the colonies, and the prospects point to ample supplies. The danger is that greater attractions may be provided by London, in which case money wall be taken from Australasia for investment there, which would have the effect of levelling up the rates here. It is also possible that colonial Governments may see fit to appeal to local markets, amd the two attacks upon colonial resources ■would be inconvenient. • • * Apart from these possibilities, money should be plentiful, and rates easy. This is the prevailing condition in Australia ■just now, because of the realisations of wool and butter, and the heavier shipments of frozen meat. The easy conditions wall be noticed 1 in New Zealand very shortly, because the produce is just coming on the market. ♦ * * The produce outlook continues satisfactory, and values are well maintained. The wool sailes next month, both locally and in London, will see values up to the level of the last sales. Speculators in wool appear to have unbounded confidence in the future of the market, for several clips have been sold forward at full rates. We have the satisf action of knowing that there will be a larger clip showing a better quality, and, the realised value of tihe clip will enable tihe community to pay for many luxuries, and have a surplus for -tine stocking. Under such circumstances real estate must rather improve in value. * * The dairy factories amd the flax mills are now working full time, amd a change has come over tihe districts of Mamawatu, Ramgitikei, Wanganui, and Tairanaki. Business is decidedly brisk, and cash is more plentiful. Back debts are being paid up, and there is promise of a good tame ahead. Work is now becoming more plentiful in the districts named, for, besides hemp amd dairy produce, shearing is about to commence, and that makes work for many sections of the community. Wellington is deriving great benefit from this, and we are assured of prosperous times for the next six montlis. Traders will have little to complain of if the weather is at all propitious. The general election is a disturbing factor, but, as that event is calculated to be over by the end of next month, ■the interval of waiting is very siiort. Good weather is really all that is needed to insure the free expenditure of money by a prosperous comimiunity. • • * The Gisborne Sheep-farmers' Frozen Meat Company is a concern that deserves to succeed, and it is pleasing therefore to find that in the past year the company (has done very well. The net profits totalled £9081, which is exceedingly good considering the prevailing conditions of the frozen meat trade. Altogether, the sum of £17,917 is available, and out of this £2500 is applied to the reduction of mortgage, £1412 is written off for depreciation, £500 is credited to the leasehold sinking fund, £5000 is placed to reserve, and the bonus and dividend for the year absorb £1791, leaving £6713, to be carried forward. * * • The Gisborne farmers have set an example of the best kind. The ability exhibited in the management of the frozen meat business is praiseworthy, and there seems little doubt but that the lighterage business recently undertaken will be profitable. The directors and staff are entitled to the congratulations and thanks of the shareholders of the company. * • • The forty-third annual report of the Australian Alliance Assurance Company shows a credit at profit and loss account of £27,759, inclusive of £17,985 brought forward. The dividend for

the year is equal to 2s pea- share, and absorbs. £5000, leaving £22,759 to be earned forward. In. the hre and maaine branches piemiums net £54,659, against which were losses of £33,383, and expenses amounting to £16,921. The total funds of the company now stand at £443,771. * * * Some satisfactory sales* are leported on the Stock Exchange, Bank of New Zealand shares coming in for special attention. The enormous tendering for tihe 13,783 forfeited shares no doubt stimulated the market. The average price obtained for the shares has not been stated, but the accepted tenders ranged from £6 Is to £6 10s. Sanoe then sales have been made in the open market at £6 lls amd £6 12s 6di, and there are still buyers at the higher price. Other bank shares are quiet. Nationals are offered' at £5 13s, with no buyers. The interim dividend of t.his institution should' be declared very shortly. ♦ * * Financial shares have seen some turn-over. Wellington Trust and Loan have had quittance" at £7 7s 6d, and New Zealand and' River Plate at 295. More business could be done if holders were disposed to Quit, for there are steady buyers of Equitable Building at £9 15s, National Mortgage at £2 16s 6d, and ' Wellington Trust and 1 Loan at lls 9d. * • • Gas shares are steady, with buyers freely offering full market rates. Feilding Gas shares are wanted at 23s 3d', Palmerston North Gas at £5, Wellington Gas at £18 5s and £9 2s 6d for the respective issues. • • • Insurance shares are in fair demand, with Soutih British at £5 3s 6d ex dividend, amd Standards at 16s 9d. New Zealand Insurance shares are offered at £4 19s, but there are no buyers at the price. The balance-sheets of the National and New Zealand are expected to show good results. Manawatu Rails are vary firm, at 34s 6d, which shows a fractional advance on the last quotation. The upward tendency of these shares cannot be arrested just yet. Union Steam shares are wanted at £14 17s 6d, and these also exhibit an advance, but holders are not to be tempted), and a further upward movement seems inevitable. Wellington Steam Ferry shares were last week offered at 19s, or Is below par value. • * » Woollen shares are veiy sack. Mosgiels are offered at £3, andl Wellingtons at £3 18s, but the prices appear to be beyond' the ideas of value held by speculators. Westport Ooal shares are in demand at £6 10s, whole Taupiri Coal shares had 1 quittance at 19s 6d cum dividend. Mitohelson's Timber shares are offered at 9s, New Zealand "Times" at 40s, amd Shaxland's ordinary at 23s 6d, but there are no buyers at these prices. There are bids of 24s for New Zealand Paper Mills shares, and £4 7t> 6d for Ward! and Co. Brewery shares. * * * Minding appears to be much more active in Australia, than in this colony, but there it is the base metals that claim attention. The record advance in lead, copper, and spelter, especially the latter, has revived interest m the Broken Hill mines, and! it is predicted that under a new process, which is effective and inexpensive, the tailings will yield enormous returns of spelter, and enthusiasts say that Australia will, in the near future, control the spelter market".