What the Bise in Wool Means

Feilding Star, Volume VIII, Issue 12, 10 July 1886, Page 4

What the Bise in Wool Means

The causes which led to the rise in 'wool it is a matter of difficulty to iiaine. Wool-brokers themselves who have had years and years of experience in the wool trade are unable to say, definitely. Mr E. B. Bonald, one of the London Board ; of the Australian Mortgage, Land and Finance (Company, says that the wool market was of all markets the most difficult i lb understand j rises and falls in prices i taking place with almost electric, suddenness. ; The cause of the pre- j sent rise however, he explained in thej following way :— " The effect of the; Ibiig winter has worked off thie stock j of woollen goods, and /clothiers and.cloth,; merchants have gone to the: manukcturers with orders in their; fcandsi and the' manufacturers taking j these Orders when the price of wool; so. low that it would not dp fpr j i iliein to' run any risk, determined; to buy as much wool as would [supply; i their orders for cloth." Our repre- , Behtative had also interviews withj other gentlemen intimately associated, with /the vfool trade and squatting! interests. - From them he ascertained that the general opinion was the present i ise in the price of wool .was sbnllar in character to that which tooic.pldce in 1870, when, along with a .general break-up „. of a disastrous . (Mught, wool suddenly increased in ffee in the London market. ; This . ias , what.' was - called the .'•.' double efoent," and the. wool' merchants and stock and station agents say the experience has now been- repeated; •Already the rise will mean £2,000,000 otihoney to - Australia.. . While there are -hot wanting voices counselling care; and' issuing warnings that the favorable features may not be permanent, the majority of those entitled *,to form ah opinion agree in predicting a long run of prosperity. The general rainfall^has not had any direct effect ; upon the wool market, but of course it, has,, given station property a " boom." Inquiries have been made . for .properties which have been for majay Months available for purchase, the slig^est sign being shown of .a willingness to buy. The future, as painted by those best qualified to judge, is a rosy one. -The immediate cause of the rise is- that the "top-men" at Home worked out their stocks, and were compelled to buy, andbuy largely, ; of second-class material ; but a simultaneous demand of the kind from ajil 'three manufacturing centres— North, of England, &erniany, and France-j---18. runprecedentedl^Melbonrne Tele- '■-■". : r . ... V .;'.."■-' ■