WHAT THE RISE IN WOOL MEANS.

Ashburton Guardian, Volume V, Issue 1284, 9 July 1886, Page 2

WHAT THE RISE IN WOOL MEANS.

The causes which led to the rise In woo tis a matter of difficulty to name. Woo

brokers thems lves who have had years

and years of experience in the wool trade are unable to siy definitely. Mr R. B. Roland, one o. the London Board of the Australian Mortgage, Land and Finance Company, says that the wool market wha of all markets the most difficult to understand, rises an : falls in prices taking place i with almost (leotric suddenness. The cause of the present rise, however, ha explained in the following way: “The etfsot of the long winter has worked off the stock of woollen goods, and clothiers and oloth merchants hare gone to the manufacturers with orders in their hands, and the manufacturers, taking these orders when the price of wool was so low that it would not do for him to run any risk, determined to buy as much wool as would supply their orders for cloth-” Our representative had also interviews with I other gentlemen intimately associated with the wool trade and rquatting Interests From them ascertained that the general opinion was the present rise in the price of wool was similar in character to that which toos place in 1870, when, along with a general breakup of a disastrous drought, wool suddenly increased in value in the London market. This was what wae called the “doable event,” and the wool merchants and stock and station agents say the experience has now been repea' ed. Already the rise will mean £2.000.000 of money to Australia. While there are not wanting voices counselling care, and issuing warnlugs that the favourable features may not ] be permanent, the majority of those entitled to form an opinion agree m predicting a long run of prosperity. general rainfall has not had any direct effect upon the wool market, but(K course it has given station property a “ boom. Inquires have been made for properties which have been for many months aval - able for purchase, without the slightest, sign being shown of-a willingness to buy. The future ae pointed by those best qualified to judge is a rosy one. The immediate causa of the rise is that tue “ top-men" at Home worked out their stocks, and were compelled to buy, and buy largely, of scond class material ; but a simultaneous demand of the kind from all three manufsc nring centres -the JNorin of Kngland, Germany, and France—»a unprecedented.—Melbourne Telegraph