AUCTION SALES

Dominion, Volume 13, Issue 75, 22 December 1919, Page 10

AUCTION SALES

FORTHGOIfIJNC FIXTURES TO-DAY. Shannon Yards, 1 p.m.—Stock Balo (Abraham and Williams). 120 Sydney Street, Wellington, 1 p.m.— Furniture oalo (Johnston and Co.). 151 Laujljton Qtixy. Wellington, 1.30 p.m.— Sale of blankets (Wilson and Co.). TO-MOItROW. 151 Lambton Quay, Wellington, 11 a.m.— Suburban property sale (Wilson and Co.). Victoria Street Bast, Ancltlaud.—Balo ot curioß (Douglaß and Co.). WEDNESDAY. Garden Roa<l, Wellington, 11.30 a.m.—Halo o£ carrying plant "(Jolinßton and Co.). LONDON WOOL SALES A GOOD DEMAND FOR ALL CLASSES OF RAW MATERIALS (From Our Special Correspondent.) London, November I.'). Seldom lias any series of colonial 6al.es been conducted under such conditions as we have witnessed in Coleman Street Wool Exchange during the past three weeks, and tho lin'.sli is drawing near, with results that the most .sanguine never oxpsctod. No one denies the soundness of the situation, but tho advances seen aro phenomenal. This is all tho more so, in vimv of the tremendous weights of raw anaternl which aro available, while prospectivo supplies are also very large. Somebody ventured the other day to assort 'that tho trade will have lo deal Well on. towards 4,(100,(100 bale? of wool lvetween now and the end of 1920, and yet that fact, which in normal times would havo driven values down mercilessly, has to-day no terror to anyone, for all alike think that the world's needs aro quito equal to. the world's supplies. It would appear as if this is tlio ease. If South Africa offers any criterion, then the price of wool is staggering T'lie latest cables stato that Ei-asa veldt ,rrool is selling on a clean basis ex warehouso of 12Sd. per lb., which is really a knock-out. This_ means tluat good merino combing wool is selling at well over 10s. per lb. clean scoured. Is there iany wonder at fino merino fabrics bo'.ng so dear? There aro those who are positively alarmed at the prices'of iwool. Other optimistic souls are still talking of wool moving sensibly higher, but it will be a mistake if it does. Every class of raw material, unlefs it be medium and coarse crossbrcds, is ' costiiig enough, merinos in particular..

Merinos Still in Great Demand. During the uast week every day's sale has passed off with as much spirit as previously, and there has been up rfackening whatever in either demand or prices. The auctions aro finishing with values practically 15 per cent, above last series for faulty carbonising wools., and it will havo In ho a very poor, burry lot of scoured locks that does not fetch tho top side of 30d. In former days these were worth about, a shilling and one looks at Queensland scoured merino pieces, bellies, and locks, and is simply staggered at tho extraordinary . prices they realise. A few days ago "0 sawpieces making SGd , bellies Gsd., and locks ■18(1., prices which are extraordinary. Somebody remarked tho other day that no man'living could value wool to-day with any degree of accuracy, meet'brokers simply accepting what was bid. and even buyers themselves aro exceeding their fixed valuations by 2d. to id. per lb. Tin* really is the cause of the present, marked advanco. A good many firms are 10-dav buying the wool they want at tho best prices possible. It is indeed a very easy job for a buyer, to bfl in that position, for he knows if lie pays Id. more than his own valuation it does not matter a great 'deal. Good grease combing wool is selling as well r.a ever, and when one gets on to the table a dock samnlo representing what ho has mtichasod'a day or two before, one begins to realise tho dearness of good merino combing wool. No matter whether the duality be GO'*. Gi's, or 70's, providing lb eve is length of staple, no man can tell what, it is worth. Last July one saw the best wo«t Victorian wools selling anywhere from 52d, to 56d., to-day such wools are in the 70(1. hole, and thoso who had the pluck to buy when things looked a little shaky aro to-day congratulating themselves

Crcssbreds Still Dearer, A feature of tho series has undoubtedly been the bisr prices realised for crossbreds. and here the advance has btfen sensational. It can be put down at 15 ner cent, for medium classes, low nno' fine crossbreds must bo called fullv 10 tier cent, dearer. Tho writer was voiV much struck ono day with a line of New Zealand crossbreds realising 51' d i'hat illustrates what good 50's to , r )B's aro worth in the grease. When we come to deal with Victorian combbacks or even half-breds, 0110 must bo pmpared to pay anywhere from SSd. to Cfld.. and oven- G2«'. has been paid for an exceedirgly good line. These aro remarkable (kmres, and, well illustrate the position of things. Tho change in medium crossbreds is indeed phenomenal. Roth the IFome and Continental trades

ars responsible for the rise. There is no mistaking the radical change -which has como over the entire situation. "Whether the ultimate ivholesalo fabric buyer is responsible for at last making a real move remains to be seen, but without doubt Germany, through French

houses, has uiven medium and low cross-

ireds unqualified support, and tliese look ike rising to :i still higher level. Even :hree-ciuni'ter-hred slipes selling on the :on side <if 50(1. is a case in point, shovrng a turn in the tide, and if # the Home trade -will only support medium crossbreds, then it cannot but be a real good thins for the entire trade. However, the sales are' coming to a finish in_ the best munner possible, and everything indicates a, remarkable situation. Are Values Safe? The high level which values for wool und its' various products have reached, is becoming a sonrco of anxiety to many in the trade. In a sense it may 1)8 taken as an indication of healthiness in the market when demand continues to come forward so persistently, and it is beyond question that there are large consumptive needs, to supply. Evidence of this has been forthcoming in the fact that ivhilo out of sheer self-protection topniakers have been putting un their nrires to what they thought would be a prohibitive level, their .customers have continued to buy with as little hesita.nev I as if they were paying less than half j the money. • )

Many sober-minded neoplo, however, roiisirler that' Hie lime Ims eomo to draw tho line, for a tremendous amount of borrowinc; must liav<» been done, and tho recent advance in Hie bank rate which has been stationary fo" alonir tinio is sigTiifirnnt of nine l !. "When R l's tons are costing around 11s.. nnd 48'fi nearly .15. on forward account. it is obvious that one pack of the latter finality represents no small value, and wheri the cost of a pack of-M'i is reckoned up, an idea can V readi'v formed, of the amount of capital which even a small topninker •need* to have behind him in order to be able to earn' on hie business. The same thing anplies to all other commodities, nnd with Botany noils around 52d. it is evident that merchants in a small wav of business must bo using a comparntlvelv lai'fe e^nitnl. If it wore possible to conduct business with half or two-lhinls f-f the rapitat now required, much of the anxiety which now exists would cease. Of co.ur.se the immediate question is what might l.appen in the event of a sudden drop, and the great need of the moment is for prions to be let. down gcnlly. A sudden fall in the price of raw material would frighten manufacturers, making them very unwill■ing to take up their contracts. Tho greater part of tho business now being done is on forward r.ccpunt. Topmakers have their order books full for tho next six months, and Hie same thing applies to spinners and manufacturers, but in the event of tho supposition already named

I coming t» pass, the market would bo placed in a very critical position in less than two inoi.l::,s.

Resumption of Sales in Australia, References have been made recently in various quarters to tho necessity of auction sales being resumed in tho eoionies. It is I'elt by some that if wool' were to be sold in Australia under competitive conditions tho advance in wool values would bo checked. It does not seem to bo practical to carry out the idea for at least another six mouths, but the principle on which it is based is that with an open market for wool ill Hie colonies as well as in London, one would counteract the other, and thereby values would become more stable.

Another point is that it is impossible for all colonial supplies lo be ('ealt with in London. Before the war a large quantity of wool was broujh.. direct, which ot course greatlv relieved the Home centre. Considerable difficulty is being experienced in discharging the cargoes now arriving in the Thames, and which are expected ultimately to find, their way into thu warehouses. There is no doubt lliat more wool is coming into this "Wintry than can lie adequately dealt with by the present facilities, and the concentration of competition in London is cno of tho reasons why values have advanced so tremendously. On tho othf-r hand, the adequacy or otherwise of tho shipping needs tn bo considered, and even if large weights of "wool are .sold in the colonies to users, it would havo to be brought to this country just the same as if it cam'.- as the property of tho Government to be sold afterwards. Other supplies besides vool havo to be shipped, important among which is food. Moreover, there seems to be already quite a-s much wool in this (onntry as machinery can cope with, though no doubt if larger weights could be sent to tho Continent they would be .cadily absorbed.