LONDON WOOL SALES.

Press, Volume LXVIII, Issue 20493, 11 March 1932, Page 12

LONDON WOOL SALES.

ACTIVE COMPETITION. A READY CLEARANCE. (csrrfiD re ess association- bt ilicwuc TF.I EGBAPH—COPIftIGHT ) LONDON. March 9. At the wool sales 9746 bales were offered, including 3399 from New Zealand. Approximately 567-2 • were id. Yorkshire and Continental competii ion was active, and there was a ready clearance at, firm rates. Greasies, New Zealand, Tunui. top price lOd, average 82d. ■dourer! lambs. Wcka Downy. Ifd nd lO^cl. The Bank ot New South Wales is in receipt of the following message from its London office dated March Bth: Wool market: Medium and coarse i j ossbreds, better competition, slightly firmer: others unchanged." Mr G. D. Greenwood, Teviotdale, Aui--I'urley, has been advised that at the London wool sales top price for wool submitted on his behalf was lid per lb, the whole line averaging 10d.. SYDNEY SALES. MARKET UNCHANGED. r RE39 ASSOCIA'CIOS—BY l-LECTKIC TELKtRAI'n—COPI'niGHT.) '.Received March 10th, i) p.m.) SYDNES', March 10. At the wool sales the offerings lotallod 10,214 bales, of which 8290 were sold, also KJ46 disposed of privately. The market generally was unchanged, 'rossbreds were in strong demand. Greasy merino made to 20d. DUTIES ON WOOL. FRENCH PROPOSAL. ("jKrcen rans* association-bi elkctjuc telegraph—copyright) PARIS, March 9. The Central Woollen Committee is demanding the withdrawal of a Bill introduced in the Chamber of Deputies proposing an increase in import duties on wool to subsidise the home-grown product. The committee shows that 90 per cent, of the raw wool used is imported. NEW ZEALAND HONEY. INCREASED DEMAND. (VKITEB m*SB ASSOCIATION—»T ELtCTJUC TM.XOBASK—COPYRIGHT.) " LONDON, March 9. The sales of Now Zealand honey in l"31 a exceeded ilie 1930 total by 17 per cent. RAILWAY LOAN OVERSUBSCRIBED. LONDON, March 9. The Metropolitan Railway issue of £-'.000,000 five per cent, debentures closed within . half-an-hour, largely I over-subscribed. MONETARY STRINGENCY. UNITED STATES PALLIATIVES.

A lew weeks, ago the cables" gave information of the Glass Bill before the United States Congress, having for its purpose a relaxation of the conditions of the eligibility of paper with : the Federal Reserve system .for the purpose oi extending , the note issue, l'his was only one of the measures which have for their object stemming . the tide of deflation in the. United States, the extent of which is indicated by the large withdrawal of deposits from bank.-i, and the hoarding ol currency notes. Another Bill, which has passed the Senate of the United States, 'S for the creation of a .Reconstruction Finance Corporation. The corporation, . which is to lend money on security to banks, trust companies, building and loan associations, and agricultural credit corporations, will have a capital of 2,000,000,000 dollars, which is approximately equal to the total assets of the United States banks, which have , failed since October, 1920, and also to the. decline in bonk deposits in the United States since September last. The deflation through hoarding has by its very magnitude compelled the administration to put forward counter measures., of _ which the Reconstruction Corporation is the first. The extent of i the hoarding is measured by the increase of the Federal Reserve notes in circulation during a period of continually declining trade, from 1,652,700.000 dollars on January 14th, 1931, to 2,636,770,000 dollars on January 14th, 1932. _ Attempts to include loans to municipal corporations as part of the operations of the corporation were cle- . f eated in the Senate, the objection being takon that loans of that kind implied inflation. The intention of the Act is primarily to "unfreeze" some of the assets of tne banks by lending on collateral, but as the "Economist" points out, unless its secondary effect is to restore public confidence in the banking system, it is doubtful whether the result will berto enlarge very greatly the spending re- . sources of the' public or the lending power of the banks. The condition of the banking system is very difficult. The heavy withdrawals of gold in the autumn were .neutralised by purchases of bills by the Federal Reserve system. At the same time the. member banks, and non-members as well, were put in great straits by the withdrawal of deposits. Caught in the financial nut-Cr»cker the banks were nearing the Jimit of their rediscountable paper, when, the bill providing for the relaxation of the conditions of eligibility was introduced to Congress. The real testing tiriie will come when the vast accumulation of hoarded money returns into circulation and the brake may have to be heavily applied to the inflationary machine now being created. TIME-PAYMENT SYSTEM. Ihe Auckland Drapers' Association view ''with alarm the . quantity of un-neeessaj-y goods being sold on timepayments." The Drapers' Federation na» expressed itself as recognising the of this question, also that interests of other traders are involved. The matter .will be fully cons'dered and discussed by the Federation ia general meeting at an early date.