MONETARY AND COMMERCIAL EPITOME FOR THE YEAR 1872.

Southland Times, Issue 1717, 21 March 1873, Page 2

MONETARY AND COMMERCIAL EPITOME FOR THE YEAR 1872.

The following is from the New Zealand Loan and Mercantile Agency Co.'g circular, dated London, 9th January : — In regarding from a commercial point of view the leading events which have marked the progress of the past year, we may be permitted to refer to the opinion expressed in our Circular N"o. 54, that the year 1872 having bsen launched under more favorable auspices than 1871, results even more satisfactory at the close of the former might be anticipated than those recorded at the end of the latter. These expectations, notwithstanding certain adverse features which, from time to time, presented themselves on the commercial horizon, have in a great measure been realized. The drawbacks to the unalloyed prosperity which was looked for during the lust twelve months may be briefly summarised as follows :— 1 Tha Bank rate of discount, which in January, 1872. stood at. 3 per cent., 'ias undergone in all fourteen changes ; and while the minimum during the first half of the yeii* ranged from that figure up to 5 per cent., in th-* remainder, for a brief perio 1, a 7 per cent, r.ite was maintained, the- final quotation for th«» year being 5 per cent. The various changes give -in average minimum of fully 4i per ceut., against 3 per cent, for 1871. While the string ney in the money market consequent upon the high level of value which was on several occasions reached had the effect ot checking the development of many financial operations of an unduly speaulativa character ; by curtailing facilities for obtaining accommodation it has also been the means of bringing to an issue transactions mainly dependent on the support which credit too easily obtained under more favorable conditions is well known to afford. In confirmation of thU several cases may be cited. In August last, the failure of Messrs Gledstanes & Co. in connexion with the Eastern trade waa announced, their grj<s liabi lilies having been represented as appro-idling two millions att r ing. More recently the suspension* of vaiious fit-mu in the Metropolis mid in Manchester, chiefly engaged in .business with Africa, have been recorded, the aggregate of whose obligations were upwards of one milli »n and a half sterling. 2 The strikes which occurred amongst the agricultural laborers and the operative classes h:ive tended, speaking generally, to an enhancement of wages. Thi<. added to the rise in the value of commo tities, j »uch as coal and iron, which are extensively v.se.i in the production os manufactures, has. whiieraising the oo^t of materials, ot necessity tended to curtail the profits realised for them. 3. The conliuued dearnes« in the price of butchers' meut, caused in part by the prevalence of the foot an 1 mouth disease amongst cattle and sheen, hir. stepped in to diminish the savings which the working classes might of ierwii> have secured by reason of the increased wages obtained by fcln'in. *• The almost unprecedented rainfall which during the past seven months ha% with but. little mteruiHßion been experienced, his aot only in the earlier stages ma erldly injured he harvest gathered list autumn, but has more re entiy prevented the carrying out of ihe usual 'araiing operations with respect »o the wh?ftt crop of the present cereitl year. Although the diminution in the yield of pot>tto>s, camel by the disets-* which made its appearance, towards the close of summer, has not proved so serious as was t lieu anticipated, the loss to the community has been felt to a considerable extent, tljroiuh ita failur,in certain localities. Subject to these exceptions, the year just closed may, wo think, be regarde-'i as having fulfilled the expectations entertained twelve months ago. The increase in the Revenue return* for the past as compared with titsise. of the previous year, exhibits the largo surplus of £5,47P,809, und for the nine months commencing on Ist April- last a like comparison gives £2,980 6( 6 The statistics, extracted from the accounts of thn Board of Trade and Navigation, tjiven in another column, in like manner show that the value of the exports of British and I ish pro luce for 1872 exceed those of 1871 by £32,^95,447 sterling. It ouuht, however, to be borne in mind that the excess of T<ilue, as we have previou-ly had occasion to ; oint out during th»* course ol last y^ar, 13 in some measure due to the higher declarations placed upon our exuortf, and that in consequence the increase of quantities is not found. to exist in the same raii >. The capital committments in connexion with home and foreign undertakings during the ye ir just ended have lurgejy exceeded those of it* predecessor. Foremost amongst these deservedly stands the French Nutional Loan, issued on 29th July, for a sim representing the net equivalent of £120,000, ->OO sterling. The. subscriptions thereto in Great Britain and abroad g-ive an aggregate more than twelve times the required amount. The year 1872 has been one essentially peaceful.an 1 has witnessed the. settlement between Great Britain and the United States of two J important questions, under the Washington Treaty, which, if longer left in abeyance might herealter have been the means of disturbing the friendly relations which now Biibsist between our own and the American Government. Although in the case of the " Alabama claims" an award of upwards of £3.000,000 sterling has been given against Great. Briiuin, and the arbitration in the mutter of the San Juan boundary has involved the withdrawal ol that island from British jurisdiction, the settlement of these disputes has been . generally > regarded us sad* factory, even under the condi:i>us which the arbitrators saw tit to impose. Turning (r<na the past to the future, it is, we think, weL not to lose sight of tiie vast . roporiions wliijh tiald and coiuinai-ca have now assumed, in order that, should a further expansion thereof during the present year be realize. l, the risk of reaction, by reason of higher prces, involving still gr<s*ter expenli I . uro and increased monetary uccoinmoiatiou, may be k-pt prominently iv view. The lollowing telegram, datpd Bth March, has been received by the Melbourne agents from the Company in London : — Wool. — Ihe t>ales ooened flatly on 13th February, and will do3e on 15th March. 9U.0J0 bales ha«e been sold up to dale, and 80^0 bales have been withdrawn. The demand by continental buyers is poor. Greasy bus declined 3d per lb, and clotning, washed, has had a similar full since cose of last, sales. Comt'injj, washed, has declined 2 1 per lb. Lambs, market easier. Tallbw. — Mirket quiet, 44* — 41s. Luath >r. — Market quiet.