Fluctuations In Wool Market Are Considered Likely

Bay of Plenty Beacon, Volume 15, Issue 96, 15 September 1950, Page 3

Fluctuations In Wool Market Are Considered Likely

“The price of wool is at a peak never dreamed of and, unless some means can be found to establish an average, or stable price, we must expect violent fluctuations which undermine the confidence of all buyers in all stages from, greasy wool to finished clothing.” The chairman, Mr A. E. Allison, stated this at the annual meeting of the Wellington Woollen Manufacturing Co. Ltd.

“The case of the abnormal prices is simply that there is not sufficient wool produced to supply the demand —but there must be a limit of price beyond which the consumer cannot go,” said Mr Allison. “It may well be that the answer to the problem is the admixture of man-made fibres which are now being called upon to take a share in the production of the required quantity of textiles when the demand for all-wool cannot be met. “In this testing time there is need for caution in buying and also in the distribution of profits against the day when normality returns.”' Mr Allison said the people of New Zealand did not get to know the real cost of woollen goods. The simple reason for this was that Government subsidy of 50 per cent of the cost of the raw material had kept the price down to a level far below what it would have been had there been no subsidy. The difference in price would be increased by the rise which had taken place in wool since the close of last season’s sales, and particularly the phenomenal increases at the recent Australian sales.

There was ample evidence that artificial fibres were being used by overseas manufacturers to blend With wool to keep the price of clothes, at a reasonable figure. Because of the new wool branding laws, provision was made for every article which contained at least 50 per cent of wool to show the proportion of wool in it. Where the wool content was less than 50 per cent no brand was necessary. The public would thus be able to judge for themselves the advantages or otherwise of such blended goods.