WOOL PRICES

Dominion, Volume 14, Issue 71, 17 December 1920, Page 6

WOOL PRICES

WELLINGTON SALES ON MONDAY A SHALL ENTRY The first Wellington wool sale of the 1920-21 eeason is to be held in the Town Hall on Monday. Tho number of bales to be ofTered will be in the neighbourhood of ■4000. This is a very email «n----try, the corresponding sale of 1915 (before the requisition) having seen 23,000 bales offered. Comparatively few of the growers aro prepared to take the changes of auction under present conditions, and moat of tho wool that has readied the stores is beinir held pending further developments in tho wool market. The re. Rrvos that have been filed may prove in many cases' to bo higher than tho buyers are willing to pay. Tho wool that is to be offered on Monday will include the following:— W.F.C.A., 700 bales; Levin and Co., 000 bales; Dalgety and Co., 900 boles; New Zealand Loan and Mercantile .Agency Co., 300 bales; Abraham and Williams, Ltd., 250 bales; Wright, Stephenson, 200 bale*; and tho Farmora' Co-op.. 150 bales, . The arrangements for the financing of the clip have not boon tested severely eo far. The banks are doing the business in the ordinarv way, and they hay« not found it necessary to seek any aid from the Government. The amount of the advance that the banks are prepared to make varies according to tho financial slabs of the farmer nnd other factors, but in all cases the valuations, on which Iho advances are ha=cd, kcop within the recent auction prices. Some farmers are reported to be preparing to «ond their wool to England presently, and take th» chances of the market there. ' The movfment in Australia for tun disposal of the clip through a special organisation is being watched with interest here, -but it does not appear that growers are disposed to seok co-operaaori with Australia. The preponderance of the fine wools in tho Australian clip would place New Zealand at a disadvantage in any arrangement for combined sales since the Australians will not be pushing the sales of tho coarse woolj. , Financing the clip. banks mat issue notes. Amending regulations under the Finance Act. 191G, published in the Gawtte la«t night, extend the limit of the bank note issue of the banks by rdding to the total amount of al coin, bu - lion and public securities by each hank (including the amount of all war loan advances as defined in the Act), the amount of all wool advances n.ad» by the bank and from time to lime out--5t Th d e in term "wool advances" neans such advance* on wool as the bank r„ar irnke on separate « CMUnt (1 to t ,roduc ? rs • "r without Governmentinwjj, or- (2) to approved mercantile house* whose ordinary business includes advancing against wool.