FINANCE AND TRADE.

Wairarapa Daily Times, Volume XVI, Issue 5144, 1 October 1895, Page 3

FINANCE AND TRADE.

Specially compiled for the" Mrar.i|u Daily Times. 1 ACKtiOWIiKDfiMKXT. v I have to acknowledge receipt of the nineteenth animal report of the • ' Mastorton Permanent Investment and Bnilding Society; tho prospectus of tho Collier Two-Speed Cyclo Company, Limited; The Daily Commercial News and Shipping llepoiter; The Auckland Goldjields Maps and \ Investors' Guide,

THE MASTERTON* HUH,DIM! SOCIETY. The main feature of the balanceV sheet just issued is the relatively small proportion the C slimes or permanent capital of tho Society hear to the A and B shares or temporary capital of the concern. This does not appear prudent, for it presents this feature, that the Society's operations aro carried on mainly with '•J is in reality borrowed money, ffil so long as this is the principal ieuture, the Society cannot be regarded as exceptionally strong. Borrowed money has to be repaid, and sometimes the repaying occurs at inconvenient times, and the Society will one day be caught on the hop. The investment shares and . deposits together total £25,787 lGs, while the C shares or permanent capital of tho Society is represented by tho insignificant sum of £2,110. Compare these figures with those furnished by a similar Society in Christchurch, known as the Christchurch Building and Land Society ' (Permanent), and a difference will & be observed, In the Christehnrch Society the permanent capital is £25,000, while the investment shares stand at £8,453, and the deposits! amount to £11,887 ss; the borrowed

money is loss than the permanent capital by £4,05!) 15s, and it is to this i fact that the strength and stability , of tho Christchurcii Society is due, T The Masterton Society is operating with borrowed money, which is more thaii twelve times greater than its nwiancnt capital, while with the CTristchurch Society the permanent capital is one fourth mote than its borrowed capital. There is a big difference between the two concerns, and k it does not require much study to see r which is the stronger and better Society. The Masterton Permanent Invcstmontandßuilding Society will be studying its own interests by issuing more C shares, and thus increasing its permanent capital. IUE RESERVE FI'XD. j »' \ The Masterton Building Society's Reserve Fund is shown as amounting to £lOll 15s, but it does not appear that this sum is dealt with in any special manner. Theamount has been treated as so much capital and used in the business of the Society, Jjvhich is manifestly wrong. What is tho good of a reserve, if the amount is swallowed up in the business, The true purpose of a reserve fund is no doubt to provide for adverse contingencies or bad times, the return of capital, and a ®ierly constituted reserve therefore, should bo equalled on the Assets side of the balance-sheet by investments outside the business of the Company. Tho reserve of tho Masterton Society is tied up and could not be made available in an emergency, but this fault is not peculiar to Masterton, it will be found with most jointstock companies throughout the Colony; there are exceptions i however, and tbe exceptions arc the strong institutions, such for example as the Union Bank of Australia. COLUEIt TWO-SI'EKDCYCI.K COMI'AXY. The prospectus of this Company reads very well and there is no doubt ' the invention which the Company is .to work is a marvel of mechanical 'ingenuity. Furthermore a twospeed gear easily manipulated, has been a want and the Collier patent fills tbe void. The shares have been selling freely in Wellington, where the most shrewd men have largely subscribed. Tbe Provisional Direc- > tors are E. W. Mills, Esq. (Messrs E. W. Mills and Co., Ltd.); N. Reid ®sq. (Messrs W. &G. Tnrnbull and Jft); J. P. Maxwell Esq, M.1.C.E.; VfV L. Meek Esq, (Messrs Storer, Meek and Co.); and H, Collier Esq. I understand that a limited number of shares are to be offered to tho Wairarapa people, if so, I can recommend tho share# as likely to grova a handsome investment.

Tlio healthy tone of the fifth of the series of London wool-sales, which opened on the 24th ult,, is something to be thankful for, in these days of heavy depression. The total quantity available for the sales is 225,000 bales, and as anticipated,tho sales opened at an average ' artyance of from 10 to 15 per cent, on the closing rates of the previous sale. On the 26th Sept. the market was excited, everyone wanting to buy but the shrewd Yankees, who are evidently playing a waiting crarae. Tho excitement is it bad feature of the market, and the probability is that the close of tbesalewill witness i decline in prices; in the meauwo are benefitting by the advance, and what it means to our rattlers will be known later on when wjfc returns are received. ' JHE TWO HANKS, We are evidently to hear more about tho two banking institutions that are now negotiating a sale and y The speech of the Hon. fjco. M'Lean, at the meeting of the ' Colonial Bank shareholders, is interesting, as showing that the amalgamation is not to bo accomplished to the entire satisfaction of Hie Colonial Bank. The position is pretty olsar that tho Colonial Bank is demanding moro than tho Hank of New Zealand is prepared to give. It is to the interest of the B.N.Z, to concliido the sale, and is no doubt ready ,to pnrchase on fair and equitable iterms, but tho selling hank does not appear inclined to accept tho terms. I understand that thp Coloflia}B.ank

tyaiits 37a fl.cl per sharp, and to bo jafcp'n over as a going concern, while the Ban(c oi New Zealand is prepaid to purohaso tho sound assets leaving to tbe Colonial Bank to do mbest it can with what may bo red, if this is so, the Bank of New "Zealand has undoubtedly taken up the correct stand, The provisions the Act, paused this session, are, according to the Hon. George M'Lean t; the obstacles inthoAyay, If that be fliarp is y'ery little filiiiiice o| the Act b.eing amended this'session. What will happen if . : amalgamation does not come about P .. The Colony will probably be called .. . upon to make, further sacrifices for * V '

tho Bank of New Zealand. But I think no such feftr need be entertained; as, in my opinion, the Hon. George M'Lean will "climbdown," and accopt tho terms offered by the Bank of New Zealand; in the meantimo bluff is a fine game to play, STOCKS. Colonial Government stocks, without exception, show a decided advance upon previous quotations. The plethora of money must operate in the direction of keeping tip the prices of high-class securities. The latest quotations compareas follows:

4 PBIt CKNTS. Sop. Sep. 10th. 2litli. Movement. New Zealand 1929 ... N.S. Wales 11133 ... Victoria 1020 .. S. Australia 11)30 ... Quccnalaml 1024 ... V, Australia 1931 ... 112 113 117 1171 lffilt 1101 112 112! 1125 112} 121 122 Rise 20s Riso Gs Ri«c 20s Rise 10s Rise 0a Rise 20s 3J I'Kit CKXT5. Sep. Sep. 19th, 20th. Movement, New Zealand 1010 ... N.S.Walca 1921 ... Victoria 1023 .. S. Australia 1030 ... Queensland 192-1 ... Ttsii:anin HMO ... 1065 107 106" 106J 102 ; J 101 107 108 105 1011 106 107 Rise 10a Rise 10a Rise 25s Rise 20s Iliao 20s Rise 20a PEBCV PfiXLYX.