WELLINGTON NOTES.

Hokitika Guardian, 23 October 1924, Page 1

WELLINGTON NOTES.

WOOL SALES

(Special to “Guardian”.)

WELLINGTON, October 20. About the middle of next month, or to bo moro precise on November 15, tho wool selling season in New Zealand will begin when a sale will be held at Wellington. Brokers, buyers, growers, classcrs and scourers are now beginning to take wool, and the first of the clips are coming into store. The firmness of tho wool market is not surprising for it is generally known that supplies are below tho consumptive demand, nevertheless there is some nervousness because prices are dangerously high. But high as they are thero will lie

’ some growers who will not think them high enough, and will place reserves on their clips which no buyer with sense would venture to pay. Tt is very depressing in a saleroom lor an auctioneer constantly singing out “Passed to .” Buyers immediately become dispirited, and the bidding slackens, for alter all what is the good of making a bid when one knows that the grower wants a fancy price. As a general rule growers will find that the brokers tan assess values much more accurately than they (the growers) can, and the matter is best left to the 'broker to deal with. Mow little some farmers know about wool selling was shown when it was seriously discussed at a meeting of a branch of the Farmers’ Union whether it would not bo advisable to ask the auctioneers to dwell a little more on the bidding in order to try and extract another fraction. Of course those who suggested that were thinking of .another penny a bead for a line of sheep or Gd per head on a. lino of bullocks. In the wool sale room one is dealing with experts who have their buying limits and they are proof against all the wiles and the tricks of the auctioneer or the grower. Coming back to values brokers arc certainly very nervous for anything may happen between now and the middle of November. The principal danger to the wool market is finance, and if by any chance money becomes dear then all calculations will Ire upset. At one time it was a practice with some buyers to scour the country buying wool, but now with sales in so many centres and store accommodation in abundance there is very little private sale of wool. It is anticipated that the bulk of the New Zealand crop will be marketed locally, and it is understood that Hie overseas section ' of buyers will be augmented this season by representatives from Germany. MONEY GETTING DEARER.

The 'Wellington City Council mid the Wellington Hospital Board have both been endeavouring to raise money locally by tile issue of 51 per cent debentures, and they are both finding it somewhat difficult to work off their debentures. The Wellington City Council secured ’.C30,700 the balance of the money for the general improvement loan which lia.s a currency of eight years. Other loans now before the public for subscription are the Hutl Road permanent paving loan of £50,000 of which £21.200 lias been subscribed; the Milk Department loan of £52.000 of which only .08,1(10 lias been taken up, and the Miramar .Marine Parade Izinn of £1,500 of which .11800 has been subscribed. There is also the Street Works loan of .COO, 150 of which only CI,GO 1 ) lias been taken up. Tho Wellington Hospital Hoard wants .050,000. ■but the subscript ions fall far short of that. The fact is the money market lias hardened. There lias been such an abnormal demand for money that investors have been able to pick and choose. The New Zealand Guarantee Corporation Ltd., bad not the least difficulty in raising £50,000 of additional lapital. This company on its first year’s trading paid 8 per cent., and the shareholders apparently see a good thing in it, and readily found the additional money. It is stated that if the Wellington City Council could offer investors G per cent it would have a good chance of getting the loan money if required. BANKS AND EXCHANGE. Producers and exporters are naturally kicking against the high rate of exchange for transferring money in London for money in New Zealand, but slandering banks and. bankers will not accomplish anything. British money in relation to New Zealand money is at a discount, or what is the same thing New Zealand money is at a. premium in relation to British money, and no amount of criticism of hanks and bankers, or innuendos, about exploitation will alter the fact that a. British pound note in London is worth only IGs in New Zealand, consequent-

ly the producer or exporter who sells produce in London, and is pa id in London with British notes is obliged to accept 18s to lOr in the £ for the money in Now Zealand. It is a matter of supply and demand. New Zealanders have too much money in Britain obtained by the sale of produce and heavy borrowing on tfie part of the Clovcrnment and local bodies, and they have not the equivalent amount in New Zealand. There is a scarcity of Now Zealand money and therefore if is dear. The postiion has not been created by the hanks.