MENACE OF SUBSTITUTES

Hawke's Bay Herald-Tribune, Volume 81, Issue 19, 15 October 1937, Page 21 (Supplement)

MENACE OF SUBSTITUTES

Effect of Trade Barriers Is wool secure against the rivalry of substitutes? During the period of high coxmnodity prices ending in 1929 synthetic fibres gained a footing in the textile markets. There was not enough wool to Aeet the demiand and artiiicial materials were mixed with wool resulting in immense quantities of indifferent cloths heing sold to the -inasses. Then, as now, all wool goods were in greatest request. The slump followed, and with it inten^e competition hetween wool, rayon and other textile fibres for the diminished markets. The hattle resulted in a victory for wool inasmuch as the demand for wool increased, and in the most icritical times all tha wool that could he grown was going quickly into consumption. The confidence in wool was pever.in douht, altEough for some years unpayable. prices had to he accepted by woolgrowers, The relative dominating position occupied by wool in the times of boom and slump should remain the same if the markets of the world can he kept open to wool. Artificial fibres are not the menace so much as the tendency artificially to xestrict markets. But the effect of restricted wool markets will he an increase in the use of substitutes. Every trade barxier hetween a producing and a consuming country may force that country to manufacture substitutes. Every new factory erected to manufacture synthetic fibre will he a competitor of wool. The fundamental danger to wool is to he found in the teniency of foreigu coimtries to limit wool imports owing to the existence of trade barriers against them, but if wool is allowed free access to the markets of the world then it should be as secure as ever it was against the rivalry of substitutes.