WELLINGTON NOTES.

Hokitika Guardian, 13 March 1925, Page 4

WELLINGTON NOTES.

THE WOOI* MARKET. (Special to “Guardirji”.) WELLINGTON, March 11. The writer recently uad nil interestin'; conversation with a gentleman closely connected with the wool trade, who stated that he was not surprised to see -wool values decline. Growers and these interested in the wool trade have had it drummed into them that the supplies of wool were very short, and Sir Arthur Goldfinch, who is perhaps tiie greatest authority on the wool situation, lias emphasised this shortage in several of his public utterances. The statistical position of woo! has been and is undoubtedly a strong one, hut too little attention lias been given to

other factors which have an influence over values. The shortage in supplies was canvassed to the limit, and the opening of the current wool season buyers were carried away with the slogan of short supplies. At tho November sales' iii N.Z. prices were un-

reasonably high and they have been falling Steadily ever since. The trade overlooked the other factors, such as finance and the free use of substitutes, hut they have since been forced to realise that these apparently side issues are important. The use of substitutes has been carried almost to extremes and economy in the use of wool has been brought about by various means. This economy means increasing the available supply. Eaily in the season, in fact in the previous season, merino woo! was rushed up to a. giddy height, and manufacturers were forced to turn to cheaper cros.s-hreds which in turn were forced upwards reaching the peak in November last. Then followed the

general and extensive use of substitutes. All along manufacturers contended that they could not secure for the finished article prices commensurate with those paid for the raw mate rial which dominated li,o situation. The ascending prices called for more credit to finance the purchase of a given quantity of wool, and the difficulty of the exchange made matters worse. There have been occasions when prompt pay brought a surprise, mainly through the exchange difficulty, 'towards the end of last year the drop in. merino wool was sufficiently pronounced to cause the wool brokers and

the Wool Council of Australia to limit the offerings at the current half-year’s safes, and the catalogues have been put down by about 50%. But this has not prevented a sharp decline in values being registered at the Adelaide wool sale, were the fall was about 20%.. At the London sales which opened this week there has been a further substantial decline. Finance is now the dominant factor, and the recent hardening of the British money market makes the position more difficult. It will alwa; he a debatable matter whether growers act wisely in holding over supplies for better prices. Those who held their clips after the commamleer ceased was certainly justified in their actions, hut wool then was a drug in the market by reason of the enormous accumulations in the hands of B.A.W.R.A. Tins season, however, the position lias been different. Prices have been remarkably good, and those who sold at the earlier sales will show a better record than those who have still t:> market their wool. At the January sales in London about 50,0(10 hales were held over, and there is not the slightest probability that wool will realise better prices than were offering in January, indeed there is very little chance of as got cl prices being obtained. The policy o. holding hack wool from sale appear? just now to he dangerous. It is not now a question of vanishing supplies, due to the natural increase and the extensive use of substitutes. The held hack wool, must conic on to the market .suner or later, and the longer that it is held over the nearer will wc get to the new clip which in the coming season will he larger than the last and ntnsi necessarily have a cleti'iiuc-nial ellect on values. PARLIAMENTARY LEADERSHIP. It will not he very long before the members of Pailiamcnt assemble in

Wellington for the clc-.ing session, and interest is being revived in political affairs, owing to rumours and surmises. The leadership of the House in the

coming session irs now engaging attention. Air Massey, it is pleasing to note, is slowly recovering, hut it is not believed that Air Alassey will he lit to lead the House. AYhat lie needs just now is absolute rest and perhaps a change of scene. Sir Francis Bell has most unostentatiously taken Mr Massoy’s place, hut, as “The Pest” says, when Parliament meets it will lie impossible to continue this arrangement. Parliament cannot he led from the Legislative Council, “and i‘: will he necessary, therefore, to choose a deputy leader from the House of Representa-tiv-s, in order that Ale Af.as.sey may not he compelled to attend all day and all night”As he has been in the habit of doing. Di the ordinary course of events leadership falls to the senior minister, hut seniority we believe should not govern this selection. Whoever is chosen will he regarded ns the Prime Minister’s (irst° lieutenant, not only while the session is in progress, hut in the following election. The de-puty-leader will he expected to take a share of the work in the election campaign, which has hitherto been borne almost wholly by the leader.” It is quite easy to suggest the appointment of a deputy-lender, hut quite, another thing to see. the suggestion adopted. There is more than one aspirant for the position and that is the trouble the Reformers are finding it difficult to overcome.