Produce Circular.

Horowhenua Chronicle, 11 March 1915, Page 4

Produce Circular.

By Mail via San Francisco, dated 19th January,l9ls, comes the Bank ot New Zealand's latest produce circular. For a copy of it we are indebted to the manager of the bank's Levin branch. We reprint from it some interesting items. "The gross quantities of colonial wool imported during the course of seven series of sales for 1914, and the quantities catalogued for tne same period were 1,546,041 bales in the seven series of 1914, as against 1,679,728 Lu the six series of 1913. "In addition to the above quantity catalogued about 37,000 bales have, since the cqmmencoment of the war been disposed of privately. "It is our pleasant duty to, once

j again, be able to record a year of great prosperity to wool growers in the 'lominion. The average value per bale is in excess of 1913, and up~Tb the outbreak of the war, values for most grades of staple have shown a strong upward tendency. CrossTireds have undoubtedly been the wools of the year : and are more required than ever to cope with the heavy Government orders. We wish wo could apply the same flattering remarks to merinos, the prospects for which, at the moment appear to be none too hopeful. The pas year has been a singularly eventful one, yet notwithstanding all the disturbing elements brought about by this war, the wool trade in this country has onoe again demonstrated its great reserves of strength and stability, and has emerged from the . unparallelled j crisis with a better reputation than ever. In fact, the fortunate position i of the British wool and textile trade ■ to-day is a matter for hearty eongratu- ; lation, notwithstanding we have pnss-

Ed through a year of great financial i stress, the moratorium being in effect for three months from the beginning of the war. The year's operations started under • most favourable conditions and the first seven month may be summarized v ■ as a continuous hardening of prices for all descriptions of wool, the..effect of the new American tariff, anxiously awaited for some considerable time, having a marked effect 011 values. m 1 the first two months (December and January) of the new tariff, exports ot woollen goods to the United States exceeded the value shipped during the eleven months of the J>;evious year. In the first half of the /ar American buyers secured 63,000 bales in the London market alone, in spite of the very disappointing state of trade in their country, and this support was a welcome offset to the slackness which, alter a prolonged period of activity, has chniacterised the Home trade ior a gieat part of this season. Both in Australia and New Zealand, the rfouie buyers operated less freely than usual, hoping to secure cheaper wool later on, • ml towards the close of 1913 there was a strong attempt to "bear" erossbreds, large quantities of yarn being sold to the trade on the Continent for a fall "* We know how little their expectations were realised, both crossbreds and merinos continuing to advance. At the |

end of July trade at home was goon and on the Continent tairly so, with signs of steady improvement-, and 't looked very much as if wool would still continue at the same high level of valuers. Then ocurred the outbreak of war with its terrible effects on the finances and trades of all the great nations involved. •'With each an unprecedented state of affairs business operations were 'ilmost entirely suspended, and the trade relationship between this country and the Continent became entirely dislocated. It was feared in the entire absence of the usual Continental support the Home trade would be unequal to the task of coping with the whole of supplies, and with the further possibiilty of a financial deadlock the outlook appeared to be a- black one. We know now how well and successfully the Homo Government with great enj ergetic initiative tackled the extraord-

inary situation, and onoe the fear of financial trouble was dispelled, it became apparent that the tremendous demand for war materials would more than compensate for the tailing off in the ordinary requirements. Owing to the insufficiency of stocks of coarse wools in -Ellis country to cope with the enormous orders for Army clothing of all descriptions placed by the Home, as well as the Allied Government, a brisk demand sprung up and a considerable quantity of wool, mostly sliped and greasy crosebreds, were disposed of privately at prices mostly in advance of those ruling at July series' closing prices. After these transactions nad taken place, arrangements were made for three short series of London sales tor the concluding three months of *' the year, the fifth series originally fixed for 29th September being postponed until 6th October. The remaining sales of the year showed still further advances in the prices of crossbreds chiefly owing to the huge khaki demand, but merinos benefited to a very slight extent, and 'although prices were fairly well maintained so long na stocks were small, there was a serious decline at the last series of the year, when supplies became more plentiful, and the embargo on wool has added considerably to the difficulty of the situation. At the end of the year merinos are about 10 per cent easier while fine crossbreds are 25 per cent., medium 35 per cent., and coarse 25 pei cent., dearer than in December last. "The arrival of the New Zealand clip was much delayed owing to the oversea strike, the quantity catalogued at the first series being very small in consequence. The end of 1913 witnessed an increase in business in the Yorkshire districts, the movement being sufficient ly pronounced to re-establish confidence in the future of the raw material Throughout the series competition was

satisfactory, the keen demand by tlio Home trade soon stimulated activity amongst Continental buyers, while support from America was distributed over various grades of wool. Merinos, in chief supply, advanced 5 per cent., on the previous sales' rates for good wools, but inferior and faulty descriptions, though selling well, were not quotably dearer. Fino crossbreds appreciated 5 per cent-., medium 5 to 7£ per cent., and coarse from par to 5 per cent., on November Decemb r 1913 closing rates. in small supply, were generally cheaper compared to previous sales, closing quotations.

"At the second series the New Zealand crossbreds were very much in the majority, but this tact in itself did not produce any effect upon prices in a downward direction, the movement being quite in the opposite direction, in some cases a penny per lb, more than the close of the previous sales' rates : being paid on the opening night. There was a large attendance of Home and Continental buyers as well as a good muster of Americans, and competition ruled extremoly keen throughout. Merinos were quoted 7i per cent., dearer, whilst coarse crossbred advanced 10 per cent., and medium and fine 7£ per cent, on average. STipes, in small supply, average 10 per cent., above the previous sales, quotations. American j buyers of merinos and tine crossbreds j was ngaifi the chief feature of the May j sales. The large quantites of New j Zealand crossbred wool on offer were of a very attractive character, some I very stiff prices often being paid for them;. Merinos, in only moderate supply, advanced 5 per ccnt., fine crossbreds were 5 to 7\ per cent, dearer, and medium and coarse grades met a ready sale to the Home trade at values fully up to the. best rates of the previous auctions. Slipes, though firm did not show any change in values. "The outbreak of war early in August caused a sharp fall in quotations and the market was entirely disorganised. Business in Bradford was - eported to be in a very bad indeed, and in order to meet the w: .'nv. of" ti;«Bradford buyers these soles were postponed until Gth Octo'j The Importers' Committee fuvi-'- arranged s<: as to mei-t the di!h 'i' r fiuimr-al situation, as well as the requirments of those manufactures who were busy with Government orders, to hold monthly sales until supplies become more plentiful. Tn the meantime, however, ewiiioc to the placing of large orders for khaki, etc., a demand sprang up for slipes and .scoured and gieas> crossbreds, no less than 30.000 bale* being disposed of priva+elv nt advancp* on July closing- rates, before these auctions commenced."