BAY OF PLENTY BEACON Published Mondays, Wednesdays and Fridays. WEDNESDAY, SEPT. 6, 1950 HIGH WOOL PRICES

Bay of Plenty Beacon, Volume 15, Issue 92, 6 September 1950, Page 4

BAY OF PLENTY BEACON Published Mondays, Wednesdays and Fridays. WEDNESDAY, SEPT. 6, 1950 HIGH WOOL PRICES

The prices obtained for wool in Sydney, if they be accepted as an indication of what _ may happen in New Zealand, will be the cause of mixed feelings. Those farmers who see possibilities of securing a “pound-for-a-pound” return for their clips will probably be jubilant. Housewives who will have to pay higher prices for finished woollen products will be unhappy. At a time when artificial substitutes are coming on to the riiarket in ever-bigger quantities, the fantastic wool figures are, to an extent, amazing. The reason must be given as fear of another major war, with all its demand for woollen goods Possibly some overseas manufacturers are already building un stocks because of fears of decreased war-time production. For some years now, it has

been expected that wool prices will fall. Farmers have worried about the popularity of substitutes. It is doubtful, of course, if the artificial product can eve: be as efficient as the natural but it can certainly, in these days of expenses be produced more cheaply. Wool prices have not fallen, however. They have, disobeyed economic laws and have risen to almost inconceivable heights. One thing must be expected now, however, and is that, unless war creates artificial economy, wool prices must soon fall. They will have a long way to fall and, very probably, will accomplish the drop with dramatic speed.