AUSTRALIA WATCHES

Evening Post, Volume CX, Issue 73, 23 September 1930, Page 12

AUSTRALIA WATCHES

THE-COUKSE OF- SALES \ '

f V(fr«ni "The Post's" Representative.)

SYDNEY,vIStIi September. .^UBtraiia'is.watching the wool sales-this jresTmoTe anxiously perhaps vthan ever, before in. its history. -They are. all-import-ant to* th.eifufure finances of the Common-' wealth. ' .A* slump .in. T\-00l at this stage. tvouW'■ meati greater disaster than ever, it'VaE •'■ffitli' relief, therefore, that' the^ news was received "that the prices at the

iiret big Sydney sales this neck equalled

the closing rates of last season. Cotn'petitioji, too, was extremely keen, auguring well for, the'future. On the amount of new credit that • will tie created through the sales depends mainly the facility with which the Commonwealth, will be able to preserve its financial, status oierseas. Sydney is the chief sale centre in Australia, and that was why such keenjnterest was displayed every wheie in the auctions which opened here on Monday. When a foreign buyer is.aboutto operate in Australia his firm establishes, in London usually, credits on Australian - account with its bank. The London bant advises its■ Australian office, of the credit, and funds are made avail-

able:.iri;Australia; accordingly. • In the-pre-sent acute: dearth of :Australian funds:-the / payments that are made, inward in London must prove distinctly helpful. .. .

PREMIUMS ON EXCHANGE,

. ;As a '.Jesuit:-- of.'. the- pinch the banks are-,ottering., premiums of upi to .6%--per! cent; .for.'such-payments in London. That prejnium should be reflected in the price . which -is obtained, by- the wool: seller/ in, Australia, the margin being' allowed;. for! %y.fthe;buyer: when he:is bidding-at open ; auction^ .Wool ; . sold i has. to, be removed within;ithte'e/working; daj'sqf, its ;saje., It'is estimated .that'the quantity- of wool that •wili be available for sale'this.season Tnll'be'apjjroximafely 2,480,000 bales, mado' tip-aa'follows:—New' South Wale's,' 1,050,-'. 000 bales; 'Queensland, '430,000' ba)es; VictoHa,' 610,000 bales;' South Australia,' 165,----:000 ~ bales'; . Western ■•.Australia," ISO,OOO bales;" Tasmania,-45,000 bales. . During: last season 2,553,321 bales were: .sold at auction in the Commonwealths The

net; weight was 775,279,7311b,.and thc;gross

'.yalue- was • £33,924,062. In the previous season."sales- represented 2,654,695. bales, and the; gross value was .£57,122,056. Of ■last season's. sales Sydney 'accounted for ■8,809,172 bales, valued at £15.;080,5l8, compared with' 1,155,362 bales valued^ at £25,----'264,413'in. the 'previous season. If-last

Reason's average price is obtained for this

year's; clip, the yield ■ wjll approximate £32;050,000. Portion of each clip is bought by'locai textile manufacturers, but if the ■whole, of the sum realised were paid into the Australian account in London the exchange involved,- ■on "the basis of 6% per cent:, - -Would' be. more: than '£2,000,000.