THE WOOL MARKET

Dominion, Volume 12, Issue 130, 26 February 1919, Page 8

THE WOOL MARKET

I ■ AN IMPORTANT CABLEGRAM V \ &BRITISH GOVERNMJENT'S ■ -■'■■' "''t. SELLING, SCHEME, ".. y.. ,- ::, ;.-.-. ■• .-■■ .'. ' ■■■ ■ I '-'The Hon.D.-H. Gutlu-ie, Acting Min- :" 'ieter-in Charge, of the Department;of i -Imperial Government Supplies, in h.ind- ';• ing the following , copy of a ■"■cablegramI ■•■ /'to a- Dominion' reporter-, yesterday, ro- !■ ■'.' inarked : 'tliat it allowed clearly the wisdom j of the New Zealand Governments ac- ! ' ;' tion ini-'iecommentling the acceptance on. i the-part of the New Zealand producers •'-.-" >of- the Imperial . Govermnent's oiler to {'■ pua'ohase,'oiir products for : avdehmtely i . 'extended term. The possible uncertainty '■ ■: of the;maTket,.for"N/w Zealand nroducI.'.'-' ,ers for;lhe period' following the cessa- '■'■■ .tion of-hostilities wn?i apparent,, and the. ► Kew Zealand Government's action in ad- !'' visin"■producers, to accept the. terms ot i the requisition proved-so ;far'lo liavo i; '-"been in the best interests of the, Uo- ']■■■'■■ ■ The cablegrnm was from the Secretary of State for the Colonies, to -, the Gover- ;"'.; nor-General, dated February 8, ■as lol- \:' 'lows , :— : " ,"' . • 1., \ - "The woolsituation is changing rapitt- :'':' ly in all : par\s of the world since;>the. i 'armistice was signed. Contracts fprniili- *-''•■ tairy;woollen etiuipment liavo lieciv freely ?■ in" the'.United States .and the I-"; -"United- Kingdom,, nnd snclu production f; , ig coming rapidly to a.n end../ Demands &' for civilian; woollen, goods .have not • yet b> l fully takeh : the place of i- and the wool markets are somewhat dcV The Government of, the United ■■ States who are the principal holders ot '.'■ wool stocks in that country,'are 'holding fi , . fortnightly auctions. Prices, which _m ]'.'•' Boston were 30-per cent.- nlwve the IJri- !;■ "tisli-Jfevel; -have npw.,falien to the i•' '■'■' tish level, and"at"'eaeh''"-auction many: I 'lots ore-- withdrawn for want of buyers. 'i South-Amefican.markets..are stagnant. . ¥■■'■■■'■ "There are no buyefe anywhere heire i at-1918 prices, ;and sellers ;are not yet I ''ready to, accept ; the>pi;ice,s:vn'hich biiyera, (' ; : offer. ; Ne*rtli'eless athe 'South Afndan \ ■ "■■'■ farmers'"almost iiiKiiVitrldusly deelined'tlie i "offer made by His Majesty,'* Government I ■ "toliurchase the present seae.ons clip.on I • -the same terms. as agreed with Australia' !~ and New Zealand. South African wool r\will be sold t.p-Japan, ,the Ilnitdd States, f"'■ :and the United 'Kingdom .-in' the..;oppn- \■: market. Tiansactions/up to'the present i - 'are limited.' ' : ',•,-, r-" , '!. , ;;"Hiß'-Majesty's Government have dei;.- Hied not "to buy : the.' British' clip of '" ' 1919 because fanne'f.4'in general are disi-■'-"• satisfied with the prices,, and, because the ! '■ Government do riofliow require- Briti* i :*bol for military purposes. Under th? . ■•-' new condition?, therefore, British, Smith. ■ : • ■■-• African East 'Indies, ■ and South ;.' can wool will be sold freely in the BriI ':■■ tish markets without -restrictions. ;Aus- ! -t'ralian and Newf Zealand;lvopUield by. i. .-the Government under "the '. purchase 1 ' ebheme will be auctioned in London, and ' 7 will bo'"o'peii 'to' all 'British andAllicd > - b'iiyers. Hegerve. prices will be fixed I : "■•;■ wmewTiat':below. tlio 'present.-Bradford j'' I;issue- prices. . -. ~,,., ';■ " "At present it is intended than-the '■■"-■■ -first'a'uction shall , be held early-in April, ■ owing to .greatly improved shipping :■ Tffospects, which will-render, the f-unpiy : sufficient by that date. It is not thought: :■ possible to handle by tho.Oondon imc--7 tipns-more-than 100,000 tp. IGfI.MO .bale? i monthly, which might not*be.sufficient ' to nieetthe demand. -..'.llis^'-Majestye- ■ Government therefore pYbEosesrtCcon- ; tinue to issue additionalrquanijties; of : wool concuini'ently with-the auction sales. l ■ to •BritisV--a)ilT\'4lW«t*y l ers;at', fixed. ■' , 'pi-ices' revised;frohv.jtimcf ; to,:nme, •'■ "•■■' as occasion '.requires..vD.p' • to ,; April" 30 •at :.. issue- • prices ■. >yill ■ •" be i nwintained;'^';^7^^i'? ; v^'-S''"7;':'';