A CREDITABLE OPENING.

Dominion, Volume 6, Issue 1770, 7 June 1913, Page 6

A CREDITABLE OPENING.

No fewer than six sellers put before tho Toom a catalogue last Tuesday, the aggregate ' offering being 12,369 bales, • this being unusually large for an opening day. The selection was only a medium one, the crossbrods being, a very poor and miscellaneous show of wool. Tho best merinos consisted of two or three well-known marks from New South Wales and Queensland, but otherwise thero was nothing out of tho ordinary. At tho very start bids were given with freedom, thero being practically no reserve. As <a matter of fact, it was frequently remarked that competition seemed to bo on a broader scale than during the closing week of the March series, particularly on the part of the home trade. ' A little buying in tlio merino section was done Iwth by Franco and Germany, while also one iloubaix firm of buying brokers secured a few nice lines i of coarse crossbreds Belgium-was also ( in evidence for the scoured carlioijisHig wools, tho initial sale giving rise to a very commendable degree of competition. Comparing prices with the close of tho March series, there was practically _ no alteration. All good oombing merinos easily made last sales' closing values, billon a few lots of heavy, faulty wools of uncertain yield, these occasionally showed a decline of id. At the same time, all desirable lots easily made March prices. The most surprise was associated witli crossbreds, and here wo had distinctly good competition. The homo trade led tho von, and competed very keenly indeed. There was no change here whatever, prices both for coarse, medium, and fine, description being fully on n par with last sales' closing prices. Slipes if anything Eold a little in sellers' favour. South African wools also fared better than during the last week of tho March auctions. Competition was broader, and if anything good conditioned combing lots were in sellers' favour, while the more wasty descriptions easily made March prices. Taking the sale as a whole, it passed off well, and certainly exceeded the expectations of tho majority. Succceding sales havo passed off 'very woii indeed, opening prices being well maintained. There is a goodbuying spirit abroad, and everything indicates a firm and healthy market. THE OUTLOOK. Messrs. 11. Dawson and Co. make tho followiiif! observations regarding tho out-look:—'"To-day's verdict has been n waited with more than usual anxiety and in-, tercst, after an interval which has been somewhat depressing and critical. Tho stability of values has boon severely strained, but prices have stood tlio test without any notable shrinkage. Thero has been a combination of adverse factors. New business lias been scarce; buyers havo preferred to wait for the verdict of the sales; money has been dear and accommodation limited: and tho export yarn trade has had difficulties owing to tin Balkan crisis. The greatest trouble has, however, been found in tho congestion of supplies, which has been felt very acutely this year: imports from all tlio colonial mid touth _

American markets havo como lo hand more expeditiously, and more simultaneously than usual. This question of tho moro equitablo distribution of supplies is becoming a serious problem to tho trade, tho arrival of such a largo proportion of the season's clip in tho first three months of tho year constituting ft grave menace to values, especially in these times of high prices. Tho subjcct is worthy of being earnestly grappled with by the various consuming interests, and tho suggestions recently made at the Bradlord Chamber of Commerce that importers should revert again to the larger use of 6auing ships deserves consideration. I.uese combined adverse influences havo not, however, been ablo to weaken tho confidence which is felt in tho statistical position of supplies for tho year. Fortunately, coincident with iho opening of tho series, tho most critical period seems lo have passed, and prospects havo begun to assume a moro favourable aspect, 'iho settlement of tho Balkan ■ question, a cheaper bank rate, and the probability of , tho American Tariff Bill being passed by July 1, with wool on tho frco list, or with an alternative of a small ad valorem duty, aro all factors which should tend to strengthen tho position and fnltn< of 'tool. Added to these, thero is the moro real and important fact that during tho next eight months of tho year (after tho close of tlw present scries), there will only Ire three comparatively small sales ill London, the offerings at which will constitute practically the whole of tho supplies available for the industry, _ until tno now season's imports arrive in fair quantity at the end of tho year. Thero appears to have bran misapprehension in some quarters respecting the facts of tlio South American production. Tho latest and most careful estimates place tho decrease in this season s clip from tho River Plato at 80,000 _ bales. Meanwhile tho shipments to this date show an increase as compared with 191.,, but it will bo remembered that shipments last year wero seriously -retarded by labour strikes at tho South American ports, which extended the season by about two months. This year, thanks to an achvo demand and an absence of labour troubles, thero lias boon' a remarkable expedition of shipments, and a record early season. These earlier arrivals Of South American wools are in fact largely responsible for the temporary glut and- financial strain of tho past few -weeks.