WELLINGTON NOTES.

Hokitika Guardian, 21 November 1924, Page 1

WELLINGTON NOTES.

OPENING WOOL SALE. (Special to “Guardian”.) WELLINGTON, November IS. It is no exaggeration to say that neither the wciolbrokers of Wellington nor the wool-growers who sent in their clips lor sale last -Monday lead the faintest idea that the market would display the buoyancy it did, or that prices would go soaring. Opinion seemeel to vvystu Use on the prohnbilitv that ;i penny or mi would he the lull measure of the advance, and there were many who did not think that there would he

an upward movement, and the actual results show values pence above the highest point reached last season. Crossbred wool was due to advance, because in relation to merino wool, it has been very c heap. This season there arcmany more buyers on the hem-lies, and il is safe to say that every consuming centre in the world is represented in New Zealand To-day, and the fact is being realised that it is in Australia and New Zealand that wool values are fixed and nol in -London and Hradford. The improved tone of the market is due to the greater confidence that exists and that in turn is the result of the more stable poliical conditions that prevail. American having was the potent factor in the sale in Wellington. Fortunately the catalogues contained a good deal of what is known as American style wool, and for this there Was very keen competition. The American buyers were pushed hard by Hradford and Germany and were forced to pay extreme- rates. Hut the demand was wide spread and every grade and c lass of wool sold freely; prices showing an advance of about 2o per cent on the host rates of last season. GROWERS’ RES FRYES.

With prices as high as they are and the demand as keen as it is, it would seem absurd of woolgrowers to place reserves on their clips, hut strange as il may seem there are some growers who fancy (hey are smart enough to heat the market. Snell growers place high reserves mi their wool and refuse to he guided hy brokers. At the Wellington sale there was one clip that was olfered in several lots. Full prices were being hid for every lot. One lot sold at --Bel, hut for the next lot which was worth no more, the seller wanted 2(id and this proved to he ton muc h for the buyers, who, realising that the vendor was acting somewhat absurdly in the matter, refused to hid for the rest of the clip. They did not feel anxious to waste their time bidding for wool that was not for sale at market prices. The lot was eventually sold at the price olfered 2o)d and the vest of the clip snnn changed hands. The market rccpiires to he handled with very great rare just now for it is not on too sine a foundation. For growers to fix up m extreme reserves is to invite trouble. A grower is safe in leaving his broker to lix the reserves, or at least he she) ltd he guided hv him. Prices are high, in the l opinion of many prices are too nigh, ami it would lie sheer fully to endeavour to force them higher. The reserve price is a matter of imlilfereiiee to the buyer: he has his own Millions of value and you c-amiol force him to c hange his views. -Of the three parlies, the mver the broker, and the grower, the latter knows the least about the value I wo"l hut deludes himself that he knows Letter than the other two. Wool, AND THE DOLLAR.

The Allll • 1 ir.in■; made the pa< eat I lie Wclli'iylnu v 00l sale, and yet there were many wondering uhether the Americans would operate al all this season. Tile election of President C'oolidge to a further term of office witli all it implies in respect to political stability appears to have yiveu the utmost cimlidcnce to trade yenei'ally, anil altliouyh a hiyli lurid' will lie rout in tied that will lint trouble the American people. The Americans are in the New Zealand market to buy wool and they are not. apparently, troubled about the price they pay. d hey are payiuy more in two ways this year, There is the actual advance in values I rout Id to oil per lb, and there is also the improvement, in the dollar oxrhatiye. A vear aye the exehanye rale was about t.'J.'t dollars to the l'. it is now Mil dollars, which means that for everyL' the American buyer has to pay Ins wool purchases to-day. he must pmduee ll> cents more than was the ease a year ayo. To state the matter in another way he must 10-ilay pay 2ks 7d approximately for wool that he could have houyhl. last year for 20 s and the exehanye gives indication of go'iiy further against him. However. the American has the consolation that a omul many dollars spent mi New Zealand wool will in turn he spent on American motor cars. Ihe list; tn wool should ease the way for the moratorium.