Commercial.

Evening Star, Issue 2858, 17 April 1872, Page 2

Commercial.

The amount of revenue received at the Cus tom-house on goods cleared for consumptiou to-day. was £907 13s lid Gold duty, L 3 17s 6d. COLONIAL WOOL EFFORT. Messrs Willans, Overbury, and Co,, wool brokers, London, have published the following interesting review of the Colonial Wool Trade, 1871: — The most significant feature in the history of the Colonial wool trade for the past year is the fact that, with continuously rising markets, about 750.000 bales have passed into consumption, while only 692,151 bales have been imP °Dh!turhcd in 1867 by the coincidence of widespread commercial depression, with a rapid and eiormous increase in production, the equilibrium between supply and demand disappeared from the Colonial wool market for several years. Stocks, indeed, rarely accumulated m first hands, and the arrivals passed into consumption with tolerable regularity; but this result was only achieved by a submission on Fm pari of importers to prices about 30 per those which had ruled in average from 18 J 9 down to the year in question, to prices in fact which it is understood were generally unremunerative to tho grower. In the short period of six months all this is changed. T'he lost equilibrium is not only restored, but the preponderating influence is found for the moment to be altogether in another direction from ttat to which tho market had for so long bsen accustomed. Tho extent of this change in the relations between supply and demand may be estimated by tho following figures. In tho three seasons from 1865 to 1868, when the rate of increase culminated, the importation rose from 432,975 bales to 633,406 bales, or 46 per cent.; whereas, in the year just concluded, the arrivals only exceeded those of 1868 (three seasons ago) by 58 748 bales, or under 10 per cent. On the other hand, the export of woollen manufactures from this country presents an enormous increase, and although the disturbance to industry from the late war may have prevented Corresponding results in the case of France and Germany, yet it is understood that the manufacturing powers of both countries arc at presalt taxed to the utmost. Its causes, too, are not far to seek. 1 hey may he found, firstly, in the check to production which occurred in the Colonies and at the Eiver Plate, as a result of the low prices which have prevailed; and, secondly, in the steady increase in the consuming power of the world at lar<m, and to that of the United States of America and to this country in particular. No doubt the diminished number of sheep in England, and also in France, the short clip in America, the interrupted transport at the Cape, and the waste caused by the war, have contributed something to the general result; but to the two first-named causes the present state of the market must be mainly ascribed. How far current rates should be regarded as normil and likely to last, is of course a matter upon which opinions will differ. Much will depend upon the continuance or cessation of the ommercial prosperity which now universally prevails. There can, however, be no doubt that the Colonial wool trade has just surmounted a double crisis, long foreseen and seriously dreaded, that, namely, of the arrival of a period of excessive supply, and the occurrence of a Continental war, and that neither danger is at all events likely to recur for several Siasons to come. High prices will naturally have their effect upon the action of growers; but the ill-advised occupation of inferior country, and the multiplication of sheep, without regard to quality, which prevailed so extensively previous to 1807, is not likely to be repeated, ami the increase henceforth may be expected to prove gradual in its chaiacter, and probably not beyond the requirements of a trade showing such exceptional powers of expansion. The first series of sales for the year commenced as early as the 3rd February, and comprised about 75,009 hales new arrivals, and SO,OOO bales old stock. A brisk demand from

Germany and Belgium, chiefly for wools suitable for army purposes, gave an impulse to prices from the commemoement, a movement which was confirmed and extended about the middle of the series upon the arrival of a considerable number of buyers from France. Towards the conclusion some slight indications of weakness wrro observable, the icsult, no doubt, of indisposition on the part of operators to do more than supply immediate wants pending the heavy arrivals expected in April; but the sales closed at an advance of Ad. to Id. per lb. upon all but the finer descriptions of Sydney fleece wools. The second series began on the 13th April, a time when France, just emerging from a disastrous war, was engaged in a great domestic struggle which might have the most tremendous consequences, but the issue of which it was impossible to foresee. The absence of French competition appeared once more to threaten the market, and great relief was therefore experienced whon, contrary to general expectation, the demand from that country proved to be of a full average character. Buyers from Germany and Belgium were also numerous, and America appeared on the stage as a considerable purchaser of wools in the grease. This active competition from so many quarters soon began to tell upon prices, and the most remarkable advance which the trade has ever witnessed in one season was initiated very early in this series. At first, wools suitable for export, especially greasy flocks, were principally affected; but in the end, all but the finest descriptions of clothing fleeces participated in the general improvement, ani were quoted at the close at the following advance Greasy parcels and washed fleeces of ordinary character about lsd, Australian and Cape scoured about 2d, Jape fleeces Id, and pieces lAd per lb. From the steady demand which sprang up immediately upon the close of the May series, on the part both of the home and foreign trade, importers were prepared for sonic further improvement during the sales which commenced on the 22nd June. The actual course of these auctions, however, not only justified the anticipations which had been entertained, but was favorable beyond the experience of any previous occasion. The series opened at an advance of Ud per lb on ordinary to good washed Sydneys, Ad to Id on medium Port Phillips, Id on greasy combing wools, on scoured Australians, and on Cape fleeces. The fact, however, , that this advance did not represent the ultimate limit prices were to reach was soon apparent. Under the influence of a continued demand from America, and a certain eagerness among French buyers—stimulated, perhaps, by an anxiety to secure the arrival of their purchases before the possible imposition of a duty —prices for superior combing parcels in the grease rose rapidly. Other descriptions sympathised in a greater or less degree, and prices generally began to creep up, until an advance of at least to 2d per lb upon opening rates was finally established, the sales closing with the utmost animation at extreme quotations. In the interval between the close of the third, and the commencement of the fourth series of sales, the market was characterised by unusual activity, and a considerable business was done by private contract at slightly improved prices, everything tending to show that the upward impulse begun in April was not yet exhausted, and that still further improvement might be confidently looked for. The sales opened on the 14th September, and the direction prices were about to take was at once apparent—quotations, though somewhat irregular, ranging generally from Id to Ud per lb higher than at the close of the previous series ; the advance upon greasy combing wools, however, being not more than Ad. After the first few days, under the influence of strong competition on the part of the Home trade, a further general rise in values took place, and scoured and washed fleeces from Australasia and the Cape improved to the extent of 2d and 3d, and greasy about Id per lb, on the highest rates of July, the advance being most pronounced in the case of superior combing flocks. These quotations were generally maintained until the close, with the exception of medium Sydney clothing wools, both fleece and scoured, which, owing to the large quantities which were catalogued from day to day, receded a Id to Ud per lb from the highest point. Algoa Bay Capes also were obtainable on rather move favorable terms during the last week or ten days of the scries, under the impression, which however proved erroneous, that a very large supply of these wools would be offered in November. Crossbreds brought extreme prices throughout. On this occasion the great bulk of the wool was taken for borne consumption, the demand from both America and the Continent having been in marked contrast with that of the two preceding I auctions.

The fifth and last series of sales for the year opened with a large attendance of home and foreign buyers, great briskness in biddings, and an advance on the close of the previous scries, which was reported as follows, viz., —Australian fleeces and scoured Capes Id, and fleece Capes per lb. Towards the end Capes and Sydney wools, of strictly clothing character, were obtainable on rather easier terms than at the commencement, while full-stapled parcels ruled rather atiifer than otherwise, but the sales were, upon the whole, characterized by a steady demand throughout, and the absence of any fluctuations of importance. whole, the course of prices during the past year must be regarded as unprecedented, whether as respects the extent of the aggregate advance from 40 to GO per cent., its almost uninterrupted progress, or the fact that the rise is due entirely to a genuine expansion of demand on the part of consumers, and in no degree to tho influence of speculation. The clip, although exhibiting some variations, was upon the whole an average one in character as well at in quantity. The choicest Hocks from Victoria, Queensland, and Tasmania, were perhaps scarcsly so tine at in some former seasons ; but, on the other hand, the proportion of well-bred, well-grown, well-washed wool, cspcciolly from the first-named Colony, was decidedly greater than usual. Adelaides in the grease were better and lighter than in 1870, while Swan Kiver wools showed manifest evidence of deterioration. Capes from the western district were hardly up to their usual mark, while the best snow white scoured parcels from Algoa Day rarely or never came to market in bettor quality or higher condition. New Zealand* were a shade shorter in the staple than in 1870, but otherwise much as usual. An inspection of the priced catalogues will show that crossbreds maintained their advantage throughout the year, selling as a rule from Id to 3d per lb above the merinos from the same flock. This result is probably in a measure due to the deficiency in the English clip, but the uniformly high prices which those wools have realised for some years past, would seem to show that a demand exists capable of absorbing a much larger quantity than has been hitherto produced in the Colonies. Hot-water washing appears to have been applied with the greatest judgment, growers generally having completely remedied the excessive dryness which marked wools thus prepared in some former years. In the past season the degree of “ nature” left in the fleece secured .at once a good appearance without undue loss of weight, and, in the great majority of cases, was so managed as to leave nothing to be desired With regard to the future, there seems reason to fear that the burr and seed arc gradually extending to fresh districts, yet it must not be forgotten that the means at the disposal of manufacturers for destroying these pests are far more perfect than they were formerly, and they are consequently no longer so prejudicial to the interests of the grower. On the other band, there are indications that a steady improvement in quality may be looked for. The requirements of the meat-preserving companies will probably create a permanent demand for

carcass, which will encourage liberal culling on the part of flock-owners, while such increase in production as may occur will probably be the result of the fencing, Ac., of lands already under past urage, rather than of the occupation of fresh and less suitable territory. More than one-half of the entire quantity was bought for export, America taking perhaps 40,000 bales. The latter outlet, however, must not bo calculated on as a permanent one, since not only is it understood that American requirements in the present season are being largely supplied by purchases in the Colonies, but the capacities of that wonderful continent for wool-growing are such as to forbid the belief that she can in the long mu be a considerable importer of merino descriptions.