WOOL AND THE FRANC

Hawke's Bay Herald-Tribune, Issue 158, 22 July 1937, Page 14

WOOL AND THE FRANC

Effect of Devaluation FRENCH TRADE RECOVERS The devaluation of the franc has re sulted in a fillip being given to the demand for wool and the opinions is expressed by Winekcombe, Carson and Co., Ltd., woolbrokers, Sydney, that a recovery in France's export trade in woollen goods as probable. During the past few years lier foreign business in miE produeta . has deereased to a marlced extent. "Saies of tops for export have not deereased to a great degree, but ker exports of yams in 1936 were only 13,700,0001b., or one-fourth of the 1930 total, and the weight of fabries exported was only 5,200,0001b., one-seventk of the 1930 quantity. As a result of that contraction the wool imported by •France has deereased from 548.600,000 lb. in 1930 to 353,400,0001b. in 1936. When the franc was devaiued at the end of Septembert 1936, activity in the French mill " andustry revived, but on tbe application of the 40-hour week and the granting of increased wages in the mills, that spurt lulled, and the quantity. of wool bought showed reduc--tion. In the past season, hnwever, French purchasing in Austraiia increased slightly, but deereased in South Africa, New Zealand and South America. Apparently the special Japaneae buying activity in those countries resulted in a transfer of buying orders to the Commonwealth. In addition to shorn wool, France is usually an extensive importer of skeepskins, and fke treated wool is ex-port« ed and used externally. In 1936, sbeepskins weighing 107,800.0001b. were imported, estimated to produce 4S, 000, 0001b. of wool, that .total belng 22 per cent. less than the 1930 quantity, .