FINANCE AND TRADE.

Wairarapa Daily Times, Volume XVI, Issue 5084, 23 July 1895, Page 2

FINANCE AND TRADE.

(Specially compiled (or tho' Wilrampa Dally Times'). SECURITIES. The no-confidence debate on Thursday and Friday last had a special reference to securities. The statement of the Colonial Treasurer ' respecting the three million "unpledged," or as ho afterwards varied the term " pledgable" securities, required cleaning up, and the Opposition forced from the Government a plain declaration as to certain securities held by the Trust Departments of the State. The Post Office Savings Bank holds a very largo sum of money deposited by the people of the Colony, mostly women and children, and others who do not care to utilise the Banks of the Colony. The Savings Bank Trustees invest these deposits in gilt-edged securities, that is to say securities that could be converted into cash with the least possible delay, These securities areinvariably in the form of Government or Municipal debentures and stock, but these securities are in no sense the property of the Government, and could not bo used by the Ministry for other purposes than repayingthemoney duo to depositors. | The contention of the Hon. W. P. | Reeves, that the Government could , aud would use' theso securities toj maintain the public credit in tho ovont of a crisis may be "straight out" socialistic financing, but it is i against the Gospel of £. s. d. in tho l ordinary work-a-day financing. , In the event of a crisis, the country I must rely upon its credit and could r not pawn the securities it holds in I trust to bolster up its position; j furthermore, it is doubtful whether these securities would be available, as a crisis would naturally cause depositors tore-claim their deposits, and to meofc this demand the Post Office Savings Bank would need the securities which are, in point of fact, the money "of the depositors in t anotherform. The doctrine preached ' by the Ministerof Education is an exs tremcly dangerous one, and if acted ■ upon in private life, invariably leads '■ one to the gaol. Let us suppose that X is tho executor of a deceased person's estate, and the personalty includes say fifty shares in tho Gear Meat Company, what would be the n position of X, if he pawned these t shares to maintain his own credit. t Judge and jury would, I think, soon] brand him as a criminal, and whai is regarded as a crime in the individual becomes something more when practised by the State. Tho a views held by the Minister of Edug cation, were not, however, shared by the Premier and Colonial Treasurer, k and if the Opposition has failed to register a majority against the a Government', an event that conld it scarcely have been anticipated, it t. has obtained a clear definition as to .5 the relation of the Government in a respect of the securities held by the d Trust Departments.

KETL'IiXS. The Colonial Treasurer is answerable for another freak developed by the Government, and that is withholding Financial Returns that, according to law, should be issued at certain fired periods. The nbsonco of the Colonial Treasurer, robbed tho Ministry of its only Financier, and the Premier, fearful no doubt of exposing his igiiomnc&_ (although he showed no hesitation in acting as Colonial Treasurer™ , kept back the returns, and notwithstanding thai he accepts the responsibility for breaking tho law, the precedent set up, is extremely dangerous. What there is to conceal, passes comprehension. The finances of tho Colony concern ovory living soul in it, and therefore every facility should be given the public of knowing how the country's finances stand. In New South Wales, Premier Reid caused a weekly or monthly statement of revenue and expenditure to be published and thesame course should be adoptod in New Zealand. It is mforlunate for us that Party exigencies take precedence of the country's welfare. The responsibility assumed by Mr Seddon is nothing; Ministerial responsibility has no significance, for no punishment can be meted o»t to a refractory Minister. He may be turned out of office and rejected by his constituency, but his character in no way suffers, he does not bear the brand that would ostraciso him. Tho deliberate mont of the law to suit Party pufß poses is a step that could betaken™ only by a Minister with a very strong party behind him, and Mr Seddon is no doubt conscious of this fact, but the interests of the country would bo best served by submission to the statutes, which Parliament in its wisdom has found it necossary to enact,

MINING. The boom in gold mining continues, and the flotation of the Queen of Beauty Company in London, has increased the activity of the sharo market. The attention the mining industry is now receiving is one of the hopeful features, and as in the past, New Zealand has received incalculable benefit from this source, so in the near future will the present activity tell its tale. The bullion yields from theWaihi, liauraki,and several other Auckland mines inspire confidence, and already several of the lucky individuals have made a pile. Careful investors in mining scrip should make money, as the boom has come to stay for some time. Bunker'B Hill, Welcome Find, Ze'W.', landia, Woodstock, May Quewß* Victor, Talisman, Kapai-Vormonf/ are some of the best speculative stocks, as most of them will rise from 50 to 100 per cent within the next few months, The striking feature about the mining industry at the present time is the amount of foreign capital that is being invested. Several of the Auckland mines will shortly bo floated in London, and present shareholders will largely benefit; it is this prospect that is causing a flutter in the sharemarket. INVESTMENT STOCKS. %.

Of local Bank shares, the National at 25s cum dividend stand the best in the market, Colonial Banks at 19s • 6d are absurdly low, considering the dividend this institution pays, and lias paid regularly for years past. There is an uncertainty with respect to the Colonial Bank, due entirely to the amalgamation proposals of last year, for, when these proposals tjwo abaudoied, the idea was entertaiJK .that the Bank would be call up further capital as the alternative. The Bank, however, has not dono bo, but investors seem not to have dismissed the idea of a call from their minds. Insurance shares show a tendency to recede. New Zealand Insurance, which saw .business at 72s 6d cum dividend, are unsaleable at'69s«, and the belief is current, that the shares will fall. South British, National i and Standard, are'stationary, but show a disposition to recede; The ITaril Conference to be held shortly:

in Melbourne, will have considerable *■ influence on all insurance shares, Lowering the premium rates, which sooms inevitable, will curtail the inoomo of tbo Companies and reduce the dividends to shareholders, so that the shares must fall in synvgathy with the smaller returns. Thewnres of Woollen Companies, whicn last year were neglected, are now hardening, tho movement being duo to the possibility of the customs tariff on woollen stuffs being increased. Wellington Woollens are excellent, buying up to 50s; Gear Moats hayo advanced since tho last a dividend, and are in strong demand at a premium of 22s u'd; Wellington Meat Export shares are also receiving attention, and tho £5 shares meet with ready salo at a discount of £2. The upward movement in the price of our staple products shoAl cause enquiry for such shares as ihoso of the National Mortgage andAgoncy Company, and should also give a valuo te the shares of the Now Zealand Loan and Mercantile Agency Company. This hitter Company, since its reconstruction, has dono better than the most eanguino anticipated. STOCKS. British 2J per cent. Consols (Goschen's) aro down ss, and aro nowrnuotedatll7l. (Jjfenial Governments' i per cent. stoH continue tho downward tendency noted last week. New Zealand s have fallen anothor its, Viotoiia's drop 15s and Queensland's ss. The advance of 10s in New South Wales stock recorded last t week has been dropped this week. South Australia and West Australia continue unchanged. Tho table of comparison is as follows : July July Move--11 til. ISth. iiicnt. New Zealand... 1029 112} 112J Fill 5a H.S. Wales ... 1933 11.7* 117 Ml 10a Victoria .. 1920 l'Jil" W\ Fall 15a 8. Australia ... 193S 112 112 - Queensland ... 1921 112 111J Fall 5s V. Australia... \U 119 1111 - In tho 3i per cents the movement is in sympathy with the other stock, v. and of the six denominations throe havo declined the others showing no variation, Now Zealand's have been steady at 105j for the past two weeks, The movements are shown below— July July Movelltll. 18th. niont. Now Zealand ... 1940 105.J lOiiJ - N.S. Wales ... 1924 I(K$ 103 Fall 10a Victo™ .. 1923 102 10U Fnli 10s S.«tailia ... 1930 1051 10o( - (fflßland ... 11)21 lOlj 101J Fall 5a TasStnia ... 1940 105 105 - Percy Pexlyn.