THE WOOL TRADE.

Hokitika Guardian, 23 November 1923, Page 4

THE WOOL TRADE.

EXPLANATION OF HIGHER V AT. FES. WELLINGTON, Not. 21. The prices realised at the wool alehere yesterday stirpri-ed even those most intimately connected with the trade. It was evident from the start that buyers had 1 ■ecu given high limits and that they were bidding up to the last farthing. Since the sale ihere has been much speculation as to the reason lor Midi animated competition, and the man in the street, and some of tin* sellers and growers jumped to the conclusion that the recent Press cable messages about the chaotic condition of affairs in Europe, and the possibility ef another war gave the real reason for the keen bidding, and the greatly improved prices. There seems, however, little reason for this belief. Even if it had some slight effect, it is quite clear that there were other factors that entered into the ca'leiiahiiCt. The true position appeared to he more accurately summed up by the .Minister of Agriculture, the lion W. Nsoworthy, in an interview to-night. Air Noswnrthy expressed the opinion that, to anyone who had really studied tlio position the increase in prices was quite understandable. “ I he sheep flocks of Iho world,” he said, “have "roatlv decreased during recent wars, while IbA.W.H.A.. hy its ex-

cellent mauagemeul. has reduced the surplus wool stocks held by it l" a verv low quantity. IbA.W.H.A.. now holds only 7tUKID hales of New Zealand grease crossbred wand, and 10--fi()i) hales of New Zealand slipod and scoured wool. I*or some time pa-t there have heen indications that the demand for crossbred wool was iucrcaail". Km' a considerable Lime, also, there has been a wide margin between the values of merino ami crossbred wool in favour of the iorruer. and history -hows [hat such a large margin has never been maintained over a lengthy period. It seems now that, the demand is swinging hack from merino to cross-hred, though the former, owing to a world scarcity, is still likely to onimanil high prices, seeing that it is essential lor the nianuiacture ol the tiner iabries such as underclothing, women’s dresses at:d fabrics with which silk is intermixed. Then the lact that (here is a seal city of cotton and a large increase in iis price also enters into the calculation. Another point which inusi not. he lost sight of is that, so far, this: season’s wool has be m much lighter in condition than usual, so that from a buyer's standpoint its value has been increased pro rata with its reduction in weight. Hut, apart from all deductions. ipc interesting iael tor New Zealand is that the lir.-ff sale has proved eminently satisfactory., and that it tends to confirm the opine u previously expressed an opinion based on statistician and ether reliable iulormat ion that wool values w- r" bound .o improve.” .nraasOTswiua