SOUTH AFRICAN WOOL TRADE

Dominion, Volume 14, Issue 21, 20 October 1920, Page 7

SOUTH AFRICAN WOOL TRADE

SERIOUS POSITION, The position of the wool trade in South Africa is disclosed in the following from the "South Africa," dated July There is a serious position of affairs in the wool trade in South Africa, eventuating at present mostly among small men, arid, unless a ehaugo 6ets in soon, tho situation will be more serious still. Quite a number of retailors and ordinary country storekeepers who have been purchasing wool, and sending it on to the coast, expecting to make a profit on sales, have found tljanselves landed with their wool on hand. There appears to have been a stoppage in export, and tuose whlo have laid out their money to buy, and have found themselves hit with their wool en hand, have been clamouring to know the reason for the block at the coast. Some of them complain that the case is a grave one, and if such a condition of affairs is allowed to continue they will be driven into the bankruptcy court. In fact, unless relief is established quickly, disaster life ahead of many wool buyers, The trouble appears to lie, in the opinion of wool buyers in London, entirely firancial, and if grappled with sturdily will not spread. But there seems to be no doubt that many small men will suffer much loss. The banks, of course, win finance tho wool for export, but tho sovereign must be advanced by them, and this costs money to import. They will be compelled, in fact, to rate tl'Je discount high, or refuse to touch it at all. The troublo is not confined to one State iu the Union, but it rang** generally. Available supplies are by ns means as short as some would make out, for Australian and other overseas stocks come well tierward. But, on the other hand, there will be a new turn of affairs instituted in South Africa shortly by the establishment if wool factories'at several centres. At Cape Town one is starting shortly, which will convert the raw material into manufactured goods. Good work is promised there in the way of turning out woollan articles of all descriptions, but this must b? of necessity progressive, mid the factory will not ijii- able to wild away quantitiesl of manufactured goods at anything like a pace to keen in touch with supplies . of the Taw material. So it cannot alter the condition of affaire at once, and tho outlook is not brightened at urgent bv , the establishment of new industries tf this description, although in the end it must mean another step in the advaiiM- , n-i-nt of South African trade.