BETTER PRICES. MONEY AND WOOL.

Press, Volume LXVII, Issue 20351, 25 September 1931, Page 12

BETTER PRICES.

MONEY AND WOOL.

SYDNEY WOOL SALES.

TOTAL RISE, 15 PER CENT. (UXITED PRESS ASSOCIATION—BY ELECTRIC.' TELEGBAPH— COPIitIGHT.) (Received September 24th, 9.30 p.m.) SYDNEY, September 24. At the 'wool sales, 10,764 bales were offered, and 10,220 sold; a 150.512 privately. There was a very animated market, with a hardening tendency in all the best lines, fleece and skirtings showing a further advance of five per cent., making a total rise for the week of 15 per cent. Yorkshire and France were the chief operators, with good support from Italy, and a rather better enquiry from the German Bection. Japanese buyers were less prominent. The clearances •were very complete. Greasy merino made up to 13i pence.

CONCERN IN AUSTRALIA. LIMITING SALES. (fbom our own correspondent.) SYDNEY, September 17. In view of the stato of the wool market it is not surprising that proposals should be advanced for the curtailment of sales by at least 25 pei cent. The present prices are clearly ruinous to the industry, for as has already been pointed out they do not nearly cover the cost of production. And what is more serious, a recovery of the market is not in sight. Of course, Australia realised, in view of the decisions of the Empire Wool Conference held in Melbourne this yeai, that, it could not act by itself, and for that reason it sought the views of New Zealand and South African interests. The Australian Wool Growers' Council has also been in touch with itß London representative, and its decision will probably follow the London salos which opened this week. The average price realised over all centres for greasy wool in August was only 6.94 d per lb. and the average price per balo £9 lis 7d. The average price in Victoria from July Ist to August 31st was only 6.41 per cent, per lb or £8 5s 7d a bale. Since the end of August the position has been thoroughly depressing, and there is .no immediate outlook of an improvement in prices. As a matter of fact, expert opinion is that the wool market has not yet found its level, and there are many 'who predict a further fall in prices as the season advances. At the Sydney sales last week, Belgium, France. Germany, and Italy continued to mark time, buying in a desultory fashion only such sorts as pieces and bellies, which descriptions, m the lack of any serious support, have been dimcult to sell. The percentage of 'showed some improvement, though the withdrawals were still very heavy. Bradford and Japan have been the mainstays of the market so far, especially where the better class, of fleece wools are concerned. In this section they have secured practically everything, except a few lots that have fallen to the local mills whose competition, though not strong, has been a useful factor in a market desperately in need of all the competition it can get. Officially the market remained strong at the rates which ruled during the previous week, but several growers maintain that there has been a drop of from 5 to 7} per cent, on a majority of the offerings. . • On his Teturn from Europe this week Mr James Fastier, manager in Melbourne for Henry Avrton and Co., wool buyers, *©f Bradford, said lie had inspected tweed suits which were being manufactured in Russia from Australian wool, with British machinery, and sold in England at 30s. 355, and 37s 6d each. The Russian mills, he said, were using all grades of _ wool, including locks, bellies, and pieces. , Trade on the British, French, and German markets was only hand to mouth. In Great Britain there was sore disappointment about Australia's harsh tariff policy. Britain could not take Australian products indefinitely without some return. Russian competition .was having a very serious effect on the sale of Australian wool, butter, and dried apples.

UNITED STATES CONSUMPTION LARGER. Winchcombe, Carson, Ltd., the Sydney wool brokers, report : The existing scale of prices, not only for wool, but for every raw commodity which the world produces is. so crave as to threaten the maintenance of the whole economic structure. Its seriousness is so pressing as to cause those "owning the major portion of the world's supplies of gold to re'alise that those holdings must entirely lose their operating value unless steps are taken, and taken quickly, to rehabilitate countries who are impoverished by debt payments, and whose people consequently have largely lost their ability to purchase. Significant figures are supplied by the index prices to commodities issued by the "Economist," London, lliey disclose that average wholesale prices were 14 per cent, lower in August than in the same month of 1930, but that wholesale prices for textiles were 17 per. cent, down." While it would be preferable to see rates for textiles moving upward under the influence or ascending raw material values, one essential to get the sheep's staple into free consumption is a farther decline in the price of goods. Thovalueot' raw material bar conformed to tne law of supply and demand, prices, tor it descending as purchasing power decreased. But by artificial man-made laws, costs of manufactmg were for a lone time kept up. and costs ot distribution, per medium of the warehouses and shops, even more rigidly maintained. On the Continent; in Great Britain, and elsewhere, adjustments in mill expanses have been made. Though ari-early 'marked revival ~ n mand for wool may be delayed by existing monetary -conditions, reduccn prices for textiles should eventually result in that development. The one country which appears t° have turned the corner in regard to the use of woollen foods i.v 1 lie Tmitea States. An authority in that country in August stated that during the year consumption of wool had be«»n nboijt 13 per cent, higher than in 1930.' Pnrv ly, that improvement has been ane to a swing in favour towards woollen

goods for women's wear. The vogue of the fur coat has waned, probably largely owing to the necessity of economy. To an extent also the same force lias exerted itself which will sooner or later be felt in all directions.Purchasing of clothing by the general public has for so long been postponed, that ultimately necessity will compel buying. Merchants and retailers have been stocking in hand-to-mouth fashion, and when business revives they will fill their shelves more freely. A greater volume of employment, produced by world financial rearrangements, and a return of general confidence are, however, necessary to bring about that movement The better tone in textile circles in the States is a cheering aspect in a world of gloom. Directlv it is not a great influence in Australia, as America is not a large wool buyer in the _ Commonwealth, but as a world indication it carries hope. The American monetary crash in 1929 was a forerunner in existing world circumstances. It is just as likelv to be in the van in the revival which is so urgently needed.