FINANCE AND TRADE.

Wairarapa Daily Times, Volume XVI, Issue 5066, 2 July 1895, Page 3

FINANCE AND TRADE.

(Specially compiled forlho'Walrarapa Dally Times) INSURANCE. The New Zealand Insurance Company is the oldest of our Colonial underwriters, but ago appeafs not to affect this concern. Its business increases as tlio years roll on, and its dividends aro paid with unfailing regularity; the Company has, howovot', seen troublesome times, but the trials have been unimportant as compared with the misfortunes that have nearly swamped other Companies, Tlio New Zealand lusuranco Company has justdeelared an interim dividend for the past half-year, at tlio rate of 12j per cent, per annum, which is equal to the dividend paid for tlio corresponding

period of last year, With this bandsomo dividend it would be strange if tho shares did not advance to a premium Tho Now Zealand Insurance Company's shares stand remarkably well in the market, and liavo changed hands at £3l2s Gd cum dividend; tho shares are £2 paid np. INSURANCE SHARES. Insurance shares have during the past twelve months commanded the best attention, and all stocks have risen. The period named has beeu ono of unrest for the share market, and tlio fluctuations, while detrimentally affecting all other slocks, with few exceptions, has witnessed a steady advance in insurance shares. It is a point for consideration whether these stocks have not reached the limit of altitude. The futuro docs not loom brightly; apart from tlio agitation for municipal insurance, and State insurance, which the Companies themselves, by their exorbitant rales, havo fostered, there is a move on the part of the underwriting Companies to adjust the tariff. This of itself is an admission that present rates aro outof joint with the times, and ivc may therefore confidently: look for a lower tariff. The earning : power will bo curtailed, and (he dividends will of a consequence diminish; if that bo so, how is it possible for the present value of the shares to continue. Take for example tho price of New Zealand insurance shaves, which aro quoted 13 10s a diyidend; at this price the holder! receives about 7 percent, per annum, j that 12j per cent, is the 'total dividend for the year. If, under tho altered tari If, the Company is unable is pay its shareholders more than 10 per cent, per annum, it is clear tlio market value of tho shares must recede. The prospects for insurance shares are by no means encouraging.

lIAN'KIN'O. Banking affairs are engaging the attention of several members of Parliament, Mr Duthio is enquiring as to how the Bank of New Zealand has invested the money it has just wrung from its unfortunate shareholders. Mr Duthio has, perhaps, forgotten that at the half-yearly meeting, the President announced that tbo ascertained loss after a strict scrutiny of the business of the Bank amounted to .£300,000 and it was ostensibly to make provision for this leakage that the shareholders wero called upon to sacrifice their money. Air H. O. Bell is anxious f about the intentions of the GovernLunent with regard to the now famous "proposal to amalgamate the Bank of New Zealand and the Colonial Bank. The shareholders of the latter still cling to the hope that this will come about, while tlio clerks in the Bank of New Zealaud would very much like to see the absorption take place. The personal equation must be taken into accouut in this matter, the Colonial Bank's shareholders will make a considerable prolit as their shares ore now 50 per cent below par, while amalgamation would probably send the market price up to a premium. It is no wonder then, that they hope to see the Government sanction the amalgamation.

001,1) mixing. | It is possible to understand the boom in mining shares, when wo reail of tho magnificent return from the Hauraki Mine, which for last month was 33740z., worth about £IO,OOO, while the show of golden ore is such as has not been since the good old days. The Waihi Mine, the pioneer of big returns in recent years, conL tinues to gladden the hearts of its The prospect of a big yield from the Hauraki had the effect of sending up the scrip of adjoining claims, and Zealandias, Welcome Find, and Bunker's Hill, have experienced a steady advance. English capital is being freely obtained for the development of the northern mines, and several companies will be floated in London, shortly, as the result of syndicate purchases. Auckland lias interested the whole Colony in her gokllields, and buying orders are pouring in upon tho brokers from all parts of New Zealand. Wellington speculators arc very largely interested in sevoral promising claims. xelson nnos,

The Colonial Produce Distribu- i tion Company, which is now being : formed in London, to take over the English business of Messrs Nelson Bros., has a strong family resemblance to the still-born scheme of our erstwhile dairy expert, Mr Valentine. In the new Company, I are in a surplus it looks lividends on Bros, such, as surplus lie Comid, as the hungry, of investtribution ny of the have met •rt from [BR. to prothe prosaial Disproposal ; definite hip comsteamers Manchea. oject has . to the iompam'es opposition Kg delay, portant a anchcster producers team line, ly a new !ng steamv have a duce their ccessfully anchester may thus Colonial ch Nelson mccessful, the bow.

Tho low price of frozen meat bas been attributed to various causes, but Mr Dutliio who made a special enquiry into the matter whilo in London, fully accounts for tlio disastrously low rates at which colonial frozen meat lias been selling in tlio London market. Improvements in this direction must follow as a result of Mr Dutliie's exposuie, and this, added to the other good prospects that are apparent, must inevitably tend to give ft better valHc for stock all round.

ADVANCING. Wool, wheat, butter and cheese, stand better in the market at the moment-. The prospects for wool are of a decided character, and an advance at the next scries of sales is predicted. Private sales have been at higher prices than closing rates of last sales, while the weight of wool that bas been sold privately, exceeds nineteen million pounds, Sheepskins have also moved forward, and Messrs Levin and Co. are in receipt of cable advices, reporting a brisk and active demand, prices for cross-bred being higher by Id, and merino 1(1 to |d. Wheat promises to maintain a high level of prices for the coming season, and this fact will no doubt put fresh life into our iriniii growers. Butter and cheese show an advance which may be lemporary, but the prospect of a drought, which is held to he the cause of the present rise, may, if it proves severe, help our producers to mi extent not anticipated.

2;j per cent. British Consols (Goschen's) have advanced with a bound from 10l>} to 107}, and the favourable quotation is said to bo due lo the change of Government, In the -1 per cent. Colonial Stocks tho movement lias been of a forward character, New Zealand's arc 10s higher than last week, but there is still a wide margin between the quotation for our stock, ll'J}, and that of New South Wales at 117, and West Australia I If. As pointed out by Mr Buchanan in the House, New Zealand stocks have not en joyed any advantage,which has not been shared by the other Colonics. The table of comparison is as follows: -

June June Movc--20 27 incut. New Zealand 192!) Ill' 112] liise 10s N.S. Wales 1933 Victoria IH2O 1071 lull llist'i.js S. Australia lMli 111)} 111 liise as Queensland lD2t 111 1 , 111} Jiise 5s W. Australia Ml 1111 1W

In the 3i pel 1 cent, slocks there is an nil round advance, the only Colony not affected by the upward move being Victoria, Here again there is a marked difference between the quotations for New Zealand and New South Wales slocks, a margin of !>- against us. The weekly comparison is as under June June Move--23 27 meat. New Zealand 1010 101-1 105 Rise los i\.S Wales 11121 lOtif 10S1 Misc 35s Victoria J!)23 102 102 S. Australia 11130 1031 101} ]{isc2ss Queensland 11121 103 103} liise los Tasmania 19-10 101 101] liise los Percy Pexi.ys.