WOOL MARKET

Evening Star, Issue 21745, 13 June 1934, Page 3

WOOL MARKET

AUSTRALIAN SALES WHY THEY WERE DEFERRED The eighth series of sales in Sydney were to have been resumed on Monday and last for three days, when about 27,600 bales were to Iks submitted, but, as announced by cablegram on Saturday, all wool sales which would normally have been held this month in Sydney, Brisbane, and Adelaide have been abandoned. The National Council of Woolselling Brokers, in an official statement, explained that in, view of the present position of the wool market, the Australian Wool Growers’ Council and the National Council, after conferring with all centres, have, in the best interests of the industry, decided to postpone all wool sales this month. The Sydney sales would have been largely in the nature of-a'clearing-up of last season’s wool, and most buyers were of qpinion that the embargo would not have seriousy affected the market. At Brisbane, however, where sales were to have opened on June 18, a large proportion of the catalogues would have contained new season’s clip. Buying for Germany continued after the embargo came into operation, but these German purchases were made by German firms outside Germany at their own risk, German firms in Germany only being able to operate to the extent of such as they might possess abroad. The extent to which similar operations would have been possible at the Australian sales was governed by so many considerations that no forecast was possible. The embargo does not prevent the purchase of wool by German nationals with funds outside Germany. ; The German Government’s action is attributable to financial considerations, and is said to have nothing to do with tariffs. It represented, _ stated a wellknown German in Sydney, an effort to conserve foreign credits, which had been shrinking as a result of decreasing exports, in order to pay for necessary imports.' Wool, fortunately, was a necessary import, and therefore, though Germany’s purchases might possibly not equal last season’s large total, there was no doubt that Germany would continue to ■ buy in Australia, Further, although values at the moment were a little depressed, he did not anticipate that this would continue. Wool was the one buoyant commodity in the world’s markets, and he believed it would maintain its buoyancy, despite the present difficulties. The importance of the German market to the Australian wool industry is indicated by the fact that between July 1, 1933, and April 30, 1934, Germany purchased 400,476 bales of Australian wool, valued at more than £8,000,000. The German embargo was first announced on March 26. It was extended on April 5, and was to have expired on May 31. Next London sales are set down for. July 3. The German embargo on imports of wool (among other raw materials) was last extended to June 30. I CHINA WOOLLEN INDUSTRY China Woollen Mills Development Company Ltd., Sydney, has been registered with a capital of £5.000 to seek to secure openings in China and Eastern Asia for the employment of capital in the manufacture, distribution, and sale of wool and woollen goods.