FINANCE AND FTRADE.

Wairarapa Daily Times, Volume XVI, Issue 5217, 31 December 1895, Page 2

FINANCE AND FTRADE.

(Specially compiled lor (ho Walmrapa Dally Time«), ■ . RETROSPECTIVE. When the border-line between the old year and the new is reached, it is sometimes useful to take a retrospective view of the events that are crowded into the dying year. It is • no easy task to review tho financial and commercial events of the year, ?rvT but it is necessary to do so to form*K an opinion as to the probabilities of) the new year. I'IENTY OP MONEY.

The year, 1895, will bo remarkable for the plethora of money. Sold has been plentiful, and new discover-

ies of gold mines have added to the world's store of the preoious metal, Money has been a drug in the market, and investors have experienced j the greatest difficulty in finding suitable investments. The craze for " safety" which had its birth in the commercial crisis of 1893-94, was not altogether'dispelled during tho year, and in consequence of this, giltedged securities advanced to extreme prices. COLOXIAI. STOCKS,

The state of tho money market has been reflected in the price of Colonial stocks, which have never been higher than in 1895. British 2f per cent. Consols saw " record " prices during the year. The glut of money in the London marketenabled . New Zealand and Now South Waleajt to float loans at 3 per cent, Themil-* lion and a half raised by this Colony in accordance with the Advances to Settlers Act, was a remarkable success, but only moderately so when compared with tho price obtained for the New South Wales loan • " of four millions at 8 per cent.

LOW TRICE OF BIOXEV. Tho plentiful supply of money and the scarcity of high-class investments, liftvo operated in the direction of lowering the price of money. The rato of inlorest was never lower than it lias been for the greater part of this year. Loans 011 mortgages of lirst-class.securities, have been easily obtainable at 5 per cent, to 6 per cent., and the demand for good securities still continues, The Hanks have found it necessary to reduce their rale of interest on deposits, and even at reduced rates, liavo been flooded with deposits. The discount rates and rates for advances have been lowered to correspond with the cheapening of money. The Advances to Settlers Act has doubt been a useful measure but thw political olomeut which seems in-* separable from all measures initiated by the Setldon party, threatens its successfuladministration. The Consols Actpassed to encourage thrift lias been a perfect frost, its only use being to afford the Bank of New Zealand and the Colonial Bank tho means of recording a peculiar transaction. The Post Ollico Savings Bank has been a puzzle, for while all other banks have been obliged to lower their rates for deposits this institution has steadily adhered to its old rate of 4 per cent, and that too for deposits at call. Wo can never fathom why this has been so, for there aro too many "wheels within wheels" to permit of a decided and correct conclusion. However, tho P.O. Savings Bank rato is to bo reduced with tho new year,

BASK IIUXGLE. The chief event of tho year is without doubt that relating to tho of New Zealand and the sale of tlsj Colonial Dank, Somo people regara this bank business as something reflecting credit on tho Government and Parliament of the Colony, but tliere are others again who look upon it as nothing short of a crime. It is unnecessary to rake up tho arguments pro and con, but there is no doubt that tho stupidity of rushing to tho assistance of tho Bank is now boing recognised, Tho Bank of New Zealand has been n, financial cancer to tho Colony, and instead of destroying it we have rubbed some ointment on it and havo appointed six men to watcti over it. Moro ointment will bo needed as the years roll by, is what everyone expects, though overyono will not admit it. New Zealand is destined to suffer through tho banking legislation, for it is impossible to mako a Bank whose assets will not rejiliso more than a few shillings in the £ pay its debts in full. The Colony has guaranteed tho difference and has no tangible security for the guarantee, tho Colony must therefore pay the piper. The personal equation has had a very niiuent interest in tho Baukyl ing legislation, and were it not ' that individuals in the front lank of politics and commerce, would havo suffered, tho Bank of New Zealand would nover have been propped up. The curse of politics threatens the Bauk, and tiie influence of the Bank-parlour will sodden our politics. Already, wo see the job of appointing the Premier to a seat ou the Assets Realisation Board. Mr Seddou is not a financier; be knows a good deal about water-races, sludge channels, shafts and tunnels, but be knows nothing of finance, except in its elementary stages, Mr Seddon is in no way fitted for the position he has given to himself; and, if tho appointment rested with the Bank officials, and they were not under the influence of politics, Mr Seddon would bo the last person who would bo regarded as qualified for the post, It is a salaried billet, and tho salary is no doubt the attraction to tho man who cannot expect to be Premier of the Colony much longer. Jobs of this kind will bo plentiful in connection with the Banking legislation of 1895d| Tin: COLONIAL DANK,' *

THK COLONIAL DANK, The absorption of the Colonial Bank by tho Bank of Ifew is another event of the year that must be noted. The arrant nonsenso that was talked about the state, guaranteed Bank acquiring a sound business and an increased business, is now being realised, If the truth were known it would probably be found that the Bank of New Zealand has lost more business than it has gained by tho purchaso of the Colonial Bank, and its only salvation lies in the liope of a prolonged period of high prices for produce. The affairs of tho Colonial Bank do not appear quito as rosy as the shareholders expected, indeed it seems that shareholders are dissatisfied with the whole business and are determined that the liquidation shall be carried out by disinterested parties, and are moving accordingly. Unless the shareholders show a yerv [bold front they are not likely t« carry the position. vpj MINING, The dying year has been remarkable for the interest shown in goldmining. A regular mining bpom set in this year tpjd so fans'Now'Zea ; land is cpjiporaetf largg' snp of money havg; been. subscribed for . , prospecting p4 proying' plajnis,! The northern ipiaiug .dietwfc,.-

has attracted most attention, and claims < havo boon pegged out and companies floated with feverish haste, Not a few of tho ... mining .vonturcs will turn out to bo dreadfui " wild cats;", but tliero are a number of gonnino properties that will well ropoy for-the working, Tho fertilising effect of English.capital has bad a, tremendous effect on ] :■■■: mining enterprise, and although for, brtbe,moment'the'London market is PRisturbed by political events, the general opinion appears to bo tlmt> with tlio now year there will be a better feeling and a revival in niining affairs, The mining industry, if supported with foreign monoy, will . greatly help tho Colony in the years '■ to come. I'RODt'CE. Tlie year 1895 has Been a general . advancein tho pricoof produce. Wool . as we all know, lmsmado theinost appreciable and to us the most welcome advance, and while tho prospects for the Now Year a month ago looked as bright as anyone could desire, to-day, those prospects are blighted by the strained rotations between England and America, The United Slates are threatened with a financial crisis, and to meet losses in revenue and to replenish t he Treasury fresh taxation is proposed, It is practically settled tiint wool, which only a yearago was placed on the free list shall bo subject to a duty, Tho rise in the pricoof wool experienced ibis year was largely due to the free Juimission of wool iuto America, and tho re-ifflposition of a duty must adversely affect our staplo product. Wheat, butter, frozen meat, tallow, sheepskins, hides, are all at fair prices.

TJIK XKW YKAR. Tlio prospects of the New Year, are blackened by the grave political situation. The Turkish Crisis is far from being settled, and how it will terminate, is still a matter of conjecture. The American Crisis has already had disastrous financial results, and it is difficult to see how it will end, unless America" climbs down " and allows England to settle with Venezuela. Franco and England are still at logger-heads over the Siamese Buffer State; the Cliino-Japnn affair is still alive, owing to Russian activity. All these disturbing elements will havo their effect in unsettling the markets; indeed tlio losses that havo already been made through Turkey and America will be felt far and wide. The prospects for tlio ftew jEear are decidedly bad 7 IX XEIV ZEALAND,

Our prospects arc tooolosely wrapped up in the London markets, and upon the state of these markets will depend oar Mure. The markets are disturbed nml have a lowering tendency, and it is not very pleasant to reflect on the fact. It is beyond doubt that this Colony will again he a borrower, and the amount set down for the next loan is between four and five millions sterling. Increased taxation stares us in tho face. Taken altogether tho prospects for tho New Year are disappointing, although steeped in a weak solution of hope. We all hope that business will be better in the new year, that there will be more employment for the labourer, that there will be expansion nnd progress everywhere. We stand 011 tho threshold of the new year filled with doubts and fears; there is an uncertainty about the future, awl that very uncertainty makes us hope fi without hope to stimulateand enrage us we should be dismal creatures. Wo hope for the best and I therefore wish that the New Year may bring to my readers happiness and prosperity. Peiicv Pexlyn.