THE FALL IN THE PRICE OF WOOL.

Golden Bay Argus, Volume I, Issue 120, 9 October 1885, Page 3

THE FALL IN THE PRICE OF WOOL.

Argus)

The t ear 1835 will be long remembered as one of the most disastrous ever known in the history of the Australian wool trade. There have been times, such as in 1870 when a serious fall has taken place more suddenly, or when, as in 180‘) and 13 /0, wool has remained at a very low level for a considerable period. But the records ot the wool trade during recent years', can.be searched in vain for an instance in which this staple, in the face ot the most sanguine anticipations to the contrary' has fallen so steadily and persistently from the moment of its being bought out here until it has finally passed into consumption at Home. Although wool had been steadily declining in value since Jime 1833, . the fall was only a very gradual one until the close of last year, when it was about 2d per lb cheaper than it was tour years before. Throughout the greater part of the last season in Australia, very large quantities of wool changed hands on the ba-is of the values ruling in Europe in November and December last. During the first six months of the present year, however prices have persistently fallen until at the June-July series they were from 21 d to 3d per lb lower than at the commencement ol the year, while even then prices were only supported by the withdrawal ot the unprecedented quantity of 73,003 bales.

The fourth series of Colonial wool sales opened in London on Tuesday, the Ist inst. In the face of the fact that during a period of extreme industrial depression so enormous a quantity of wool was brought- forward from the previous series, no improvement in prices was expected in wool circles out here. But even the gloomiest pessimi t possible was hardly prepared for so severe a fall as appears to have taken place. The causes ot the serious shrinkage in the value of wool which has been going f on are not far to seek. When wool was selling at the high average prices which have been ruling ever since 1870, its production in new and thinly' populated countries like Australia and South Americ i was an extremely profitable occupation If;we except the last three years, when the bad seasons have made the squatter's position a far from enviable one, there have probably been few industries in the world which have, on the average given such high returns for the capital invested in them as has wool-growing in Australia since 1870. Naturally, therefore, both capital and-labour have been largely attracted into it, the result being au enormously increased production. Ten years ago the total production of wool in Australasia amounted to only 700.000 bales, while in the year which has just closed, it was no less than 1,110,000. bales, 400, 030 bales having been gained during the lasi decade. Nor have our great rivals in the River Plato been less active than ourselves. Ten years ago, in 1875, the exports of wool from the River Plato provinces amounted to equal to 550,000 hales of Au tralian wool. Although the final particulars regarding the last year’s shipments are not yet in our possession, it is

estimated that ihey'will be equal to at least 1,000,000 bales of wool in addition to some 60,000 large bales of sheepskins. Australasia and the River Plate alone, therefore, have increased the world’s production during the last decade to equal to about 900, 000 bales of wool.