WELLINGTON NOTES.

Hokitika Guardian, 13 June 1924, Page 1

WELLINGTON NOTES.

DULLNESS OF Tft ADI'

(Speriui to “Guardian”.)

WELLINGTON, .Tune 1L Trade in W ellington is uiiqucstiuiiably dull, hut that does not mean that there is a depression, it simply means dullness as compared with the early months of the year, or even when

compared with the corresponding per-

iod of last year. The retailers of soft goods ars feeling the pinch and this is evident from llie continuance of bargain sales, and the daily etti in prices. Ceiieral trade is slow, and even on the

stock exchange there is a quiet lone. On the Wellington exchange on Monday not a single sale was recorded and business has been very -lack for some time. There is, however. some explanation for the stock exchange dullness. D is that prices of all slocks

and shares that are favoured h.v invested are at peak prices, and holders are unwilling to accept the current prices, beeau-e of the dillieulty of reinvesting. Tin re appears to be a

strong tendency at present to buy Govcrnmi at -tucks and bonds which is not a pleasing feature. The money tl it i- going into these securities ought rightly to he lined for developing the resources of ihc country, hat unfortunately there i- an aversion to lending on imotgage which is somewhat oi a riitv. .Apart from stock exchange securities investors have the choice of debentures that are now on issue by several local bodies. The present dullness may lie a temporary atfair for after all tbi- is the naturally dull peiiod of the year when production on the farms has reared. tiik wool sriTATiox.

Tile latest report from London regarding the wool situation i- causin' Mime eeneern to wool brokers here who linvr all idling maintainoi! an optimistic attitude, hut such an authority ns the London “Econom-sit” is entitled to the ut umst re-peet. According to this authority trade in the consuming centres has been exceedingly slow since t lie close of the London sales i.Mav lit 'll hem c the future is regarded

wi.ii route concern. It i- quite easy lor ns out here to le misled by the

above statement, unle-.s we know to v. hat grade of wool the remarks refer, for it is ipiite possible tor merino wool to he depressed and coarse crossbred wools to be practically booming. The reverse wa- the case in the wool season of l'ddl'-'-’.'i. when merino wool wr.s realising high price- and crossbred wool was depre.-sed. There i- evidence that it ts not likely to lie crossbred wool that will sillier from any serious set hack in values. At the last London stiles it was the ('nnlinental demand that helped to hold up merino values, liradford buyers concentrating on crossbred wools, and it i- merino wool that is rendered risky hy the diftietiilivr of linanee which Germany and some of the other Continental countries have recently experienced. A more accurate view of the wool position i- to lie obtained hy the actual quotation- for liradford top-. Tops represent the tirst process through which wool passes alter being scoured, and top— are distinguished hy their minis or numbers, the higher counts'

representing line wools, for instance til's and (id's are merino woo! tops. -Vi's and oil's would he half-bred tops. Ill’s line crossbreds, and Id's are low i fii'shreds of the l.iimnln lypo.

Throve-' ie.-illv a Id’s top- should

into a yarn ot -Id times -Vli yards. On May S'. Hie caliled (puitat ion lor ti l’s top- was tills per lb. and on June d, iho lute-t quotation wo have, the price wa- unchanged: lid’s on the earlier dad- stood at lilbl and la-t week there wa- a drop ol td to It id: Vi’- were uu-

changed at |sd. All's fell from .'ldd lo ::itl. hl's Imm Li! ltd io L’s'i L while -M’s top-, which were quoted at 2Ald < n ■May s. ro M . [ u 2d) in dune, an advance of Id per Hi. Consumers have revolted against the high price of clothing made li'oiii line wool fahries-. and demand something cheaper. .Mid thi. demand i- bring met with crus--hied wool fabrics. There is a great glllf between dPd. the price of (! I's tops, and L'litil Ihe price of Ill’s. There iirit lie a fail in merino wool at the next London s;des and a slight sympathetic fall in i ro.sslireds. hut all evidence points io the prohahility ilia! ero.’shred wool, such as is produced ill New Zealand. will maintain its value, and may even ri-e a penny or two si in liy haeanse of ils relative cheapness. IiITTKIJ AND UIEFSF. The week end eahle messages from Loudon stated that there are some mis giving- regarding the future of huiter. and many trailers anticipate a downward movement as the wcathet (ouditieiis are favourable for a large Luropean output. There is no doubt that the immediate future of the Loiter market depends upon tile current season’s output of butler in the Northern Hemisphere. Last year showe.l a .substantial increase over J!)21,

wiiieh was a year of low Ktiropeau productio'i. The price ot Initler has Leon lory attractive fur the past two or three years aH'ordine; a. natural incentire lo the dairymen ol Europe to increase production to the utmost, and no douht in many of the smaller producing eountries of Europe. margarine is being consumed and every ounco of liutlcr cxnorted. lltis-m is ihe meat factor in the situation and if supplies in quantity come from .Itiis.sia in addition io the expected increase from the Continent, prices mii't he scaled down.