LONDON WOOL REPORT.

Feilding Star, Volume XVIII, Issue 207, 5 March 1897, Page 2

LONDON WOOL REPORT.

The Bank of New Zealand's London agent report« by the last Frisco mail : — Wool (1896).— The past year, like its predecessor, has not proved co satisfactory as wsi at one time anticipated, and for the manufacturer it has been » year fraught with many disappointments. It is true that during the early portion orf the season the prices received could not reasonably De complained of, and the prospeots in March were bo good that everyone believed that the eminently satisfactory state of affairs which then existed would continue and perhaps be improved upon. What gave more weight to those opinions than anything else, was the knowledge that supplies from Australia would fall considerably short of the previous year's output, and as America for some time previously had been importing manufactured goods of one kind or another to an enormous extent, it became a question whether the supplies would be sufficient to satisfy the demand. As the shortage was confined princi pally to merino wool the advance in prices for that class of produce was very marked, but crossbred participated in the active demand as well and became considerably enhanced in value. At the sales in March some superior lots of greasy touched 10£ dto lid per lb ; 9d to 9£d being a common price for ordinary North Island clips. This welcome state of the market was shortlived, for immediately after the second series a reaction set in, and from that time down to the close of the fifth series a continuous shrinkage in values was experienced, which reduced the price of superior crossbred from 10£ d and lid in March to about 9d in October. At the opening of the auctions in December there was a temporary advance of about 6 per cent, for greasy crossbreds, but before the sales had progressed far this was lost, and the average for the series was no better than that for the fifth series. Merino wool followed the same course, except that at the closing series it retained its advance of about 5 per cent, to the close. The features of the market throughout the year have been exactly the reverse of thoie which marked the previous year. In the early months of 1875 the market was extremely depressed and very disappointing results were being obtained. In May an improvement set in and by Octtober values for good crossbreds had reached the highest points touched within recent years, and they make a striking contrast to the prices current in the same month in 1895. The principal cause of the falling away in prices in 1896 must be attributed almost entirely to the collapse of the American demand for European goods. During the closing monibs of 1895, the American orders for manufactured fabrics had reached stupendous proportions, and it was generally belieyed that the goods were required to replenish stocks which were supposed to have sunk very low. It, however, transpired later on that much of the heavy purchases was merely of a speculative character ; at any rate it was followed by a period of extreme depression in that country, and very few purchases of raw wool were made by Americans during the latter half of the year. The outlet was therefore practic ally cut off, and although the exports from Australia were about 130,000 bales short of those of the preceding year, the stocks were ample to supply the requirements of other countries which buy on this market. In regard to the future, it is generally believed that America holds the key to the position. We are again face to face with another American Tariff question, and if it follows the same protracted course as the Bill of 1894, it is greatly to be feared that it will have a very disturbing influence on our market for many months to come. As the stocks of old wool on hand are not large there is no danger possible on that score. The state of the trade in Europe is in a healthy condition and if America would only take up her proper position among the consuming countries a very favorable year might reasonably be expected.