WELLINGTON NOTES.

Hokitika Guardian, 22 August 1924, Page 1

WELLINGTON NOTES.

THK WOOL SITUATION. (Special to “Guardian”.) WKBI.INGTON, Aug. *JO The outlook lor wool is now being discussed very freely, and while those intimately connected with the trade in wool, both the raw material and the manufactured goods, he-itate to venture ilium a definite opinion, there are others less well informed, who do not h e-itate to expre-s definite and optimistic opinions on the subject. Thus, the Chairman of the Wellington Woollen Company at the annual meeting of shareholder- held ve-terday, said: —

"It i-.. perhaps, not so problematical now as it was a year ago whether or not wild values will stand at existing rates, as indications are that they will. The world's supply of wool has de-eroa-e.-l cnorm-m-ly. while more countries have come into the market as users oi large quantilies." As one vi.ulbrokcr remarked •'This looks very well, and surface conditions. trum a. superficial view, do appear very promising. hut when one goes deeply into l'-e pros and eons and examines the position from every angle one is left with a feeling of uncertainty.” The fact that the clips of last year and the previous year were sold, together with llie enormous accumulations held hy fanm affords some indication of the keen demand for the staple. Bill il would scarcely he wise to assume that the whole ut the wool that was sold in the past two seasons has gone into consumption. We know it has not. fsers of woollen goods and woollen fabrics have revolted against file ascending prices, and merchant- have found trade very slack, and that has been the experience not alone in Biltain hut also in the l nited Stales. There must lie an enormous quantity of maim I acliired goods unsold, and it is al-o extremely probable that there is an extremely large quantity of wool in the lolls of comber-, spinners ami manufacturers. In the Southern Hemisphere we are on the eve ol getling a new dip. and the markets me governed by the supplies available from Australia, New Zealand, the Argentine and Smith Atriea. I'rom all thc-e countries the dips will be lalgel than last year. Australia has experienced a very good season, so has New Zealand, mid from all accounts the outlook is promising in South Alriea and South America. The chid laetm in the situation is finance. there is a very strong probability that money will become dearer in Britain as the result of the acceptance of the Dawes scheme. The exchanges between Britain and Australia and New Zealand is dillictilt and costly. (Bring to the present high prices of wool buyers have to find enormous sums lor (inane-j ing'purchases. The ( outi.ieutal eoi.ntries are experiencing considerable diniciiltics with exchanges, and I'ranee recently had to cn-e oil' buying wool because of her financial difficulties. Kurope needs wool, but Europe is unable to pay for It. Lung credits will hive to In' given, and that means increasing. the lost. Thus. although dealing purely with supply and demand ihe outlook may seem extremely there are the phy.ieal restrnmol chili, oh ie- that compel one to modify views. One dominant lad i- that users ale not able to pay current prices for finished woollen good-, mol requirements must be met with cheaper commodities, otherwise trade remain dull and sluggish. Ml I.T (PLYING WOOLLIi.N MILLS. | depression in the woollen trade j., New Zealand is such that for the |ir-t time in many years some d the mill, working mdy part time. ’■ licit is claimed i> due to importation of M ,ci, .mod- from Britain, where the textile trade i- in a very di-pres-cd condition mid mnnv lines have ’c 11 -old to importer- at. joh price-. I here dozmi woollen mill- m the country and their total consumption of ~V IIJ ii estimated al 37.<MMI bales (» |i. ,i,|o |...p - per annum, which is a „,er- fraction of the product ion of wool in the Dominion, mid some portion n the wool used ha- to he imported Horn ,-alia because we do not prod,me -„liiei"i!t merino or fum wool to meet domestic reqllire„"U,ts. NVitl. tow exception-. the leu null- 111 New /.calami are not paying propositions, ami CUV reduction in the P-ole.-lm.i tlu-v enjoy through Ihe U.istom- •* cripple mo-t of them. It Is P 1" 1,1 that a new woollen mill will be m operation l.efor • the mil ol ll.e and two other woollen companies are in course of formation. Whether there j, ..ning to be room lor these additional ventures in the near future remain- to | . -c-il • perhaps if the population expends ami the people «»’•• educated to dving pieierem-e to New Zealand made "col- profits mav re-ult. but (lie competition ill the immediate Imm" P>'“ ..... .„ cxceilingly Ue-.">. 11 ted that the Wellington Woollen Company paid a dividend of 12'.. Tor the pal year ami. hare- are ; (M | ~. ~ s pb-: a lit ial premium mi tin Sl-.ck Kxehalige.