WELLINGTON NEWS

Hokitika Guardian, 15 May 1925, Page 4

WELLINGTON NEWS

the slfmp in wool. (Spacial to “GuardjVji”.) WELLINGTON. -May J 3. From latest accounts it seonied thatexpe( ted a x!ump ill wool cxj|i,. growers. inn! many of the latter Mil! believe that values will go hark to ill" price- ruling earlier ill the w ar. Wool lias had a spectacular vise !l!fl | is now suiTering ire 111 a spot taeukir lail. ami even the present prices ol no l inn vaxil are said to he better than the conditions ol trade m TJrndlord and Kmibaix would warrant. The eaiises ol

ih" slump have ceased to interest anyone and what growers and brokers want to know is how soon there will be an improvement in the market and the aie'-'snre of that improvement. I liese are questions that are not ea-ily answered. but it appears to be the general conviction that the slump has carried prices to too low a point, and that therefore there must be some re-

action. Snell reariion tun.-t depend upon the measure of conlidence that can |. e created in the market, and until conirdenee is restored the market must remain uiiccrtaiii and irregular. the current f.olidun sides are to he 'dosed nil May 11. instead of May ‘JO. because ~f the heavy witbdrawals whirl: amount to as much as GOT,. The Australian ..| ; .., |.ave been abandoned and are not to he resinned until duly 1. and not then if circiiinsiunevs do nut warrant .nine. All this means accumulation of -lock-, and raw material 'i ll l new clips In he in store. AVcol is piling up and on present. appearances supplies will he i,, excess of demand. The new (dips Mill show substantial increases. for Antra l:i.si:i alone is expected to have Jill 1.000 bales inure tlian in the past season, and s’nearing if not already begun, souli "ill be. Wool is due to ris" a little, but Hie prices of November. December, and January are mat

likely to be witnessed again for some time.' Many will agree with the remarks of the wool expert of the “Economist” (London) who wrote: ‘''Hie one outstanding lessun ol the slump is that the world's purse is ton limited to support high values lor clothing. A\ col f s mg Ihe scarce article that it has been made out to lie. and wc are sallslied that with values reasonable a good textile trade can siill he. done.” Tint what are reasonable values and when will thov he reached? At present the views of buyers and sellers are very

wide apart, but this cannot be maintained very bueg. and tic position is bound to right itseli sooner or later. Xo set rules can l»o ior ivsiorinii coniidi’iu e nr Inr li;*imizit*-£ ainnii a reasonable prii e basic Doth sid.es will no doubt make euilcessiolis and so re.ndi a settlement. However. hii-ines.- iin’it and trader.-, genorallv must tear in mind that the wool slump must have far reaching effects « f an unpleasant end disturbing 1 liurm ter. XItW ZEALAND'S Id• AX. Tu ‘lie opinion of lie be-t 'pialilied in judge the X.Z. IV I" Hi of £7.OMM - (!(l() at £!>.'> 1C- is being obtained on i-x----((•llent terms considering the s.tringency nf ihe money market. Ihe London Stock exchange considered the terms favourable because the payment of the instalments was extended to August and Ids interest is to be paid nil Sept. 1. The reason for holding that Hie terms are favourable is that money is now dearer in London than it was n year ago. this is seen in the Hank of England’!, discount rate which i- mew .■)"... while lasi year it was I"., and

rurtherniore there i~ a tear that a period of (bar money would be vxporien ed as a resuli c l ilie li iiirn to tlie gold standard. Last \,-ar on May 1. the XX. (lovernnient raised a I) 1 ., ban of .Co.I :!)!>.OCO at i’M-T and the amount was subscribe.l nearly lour fold. Subsequently tins Government obtained another million in London on the same terms, and siill later borrowed £! .Id").COD fnim the Il.miL of X./.. making a tola! ol u\er £< .odM.hi>l'. Ihe cal'- ol ir-rr mg is I coming alarming and it is doubtful ii the luillitlw call stand this strain of borrowing £i .('.00.year no! ilb.-tnr.diug tin- a -ser-li-jji that the money is required mani|v for alleged product ive works. Ii we would make ,-ure that our exportetl primary products would yield good prices and there would 1 e a steady stream of immigrants o! the light class flowing into ihe country. it would led he alarming. but we sec that wool ha- slumped and that in turn is humid to bring d, mi: the |ri ■ex of mutt n aml la mb. while butter and cheese are let by any means making s.i.ti-|uctorv prices.- ii i here is :m improvement in value.s the incomes of the fanners will presently show a big reduction, which means ‘.lint their spending power will be smaller and they will necessarily contribute less in taxation. It is this possibility that makes nrmleut business men feel n little anxious.

.Mi; samcel iwn.i.. I.nMiON. March 17. Mr Samuil iu-iill. au American millinimiro. will arrive in London tins week un niic of liis | icriudii al visits to Westminster, where I.”) years he lived ami worked as a puur ulfice liny. lie is [hi* heail of several hi. 4 elee. tr■i •■ a t undertakings in the .Middle West el' America, and a prominent figure in I lie life id" Chicago. Fortylive years awe he stamped letters in l.nudou ; mitt lit l signs iln ipies lor thousand.-, ol" dollars in ( hicago. tin March L’-llli. lie will be ifie princinal guest al. a dinner given at the I louse o|" Commons hy Mr T. S’. O’Connor. M.P. Mr I modi went to America in ISslI. tt lien lie was til, in Thomas Edison's Hist private secretary, lie systematised Edison's I nisi ness. j

HOYS' HINDRANCE. LONDON. -March 17. Tito almost tmifersal Liability of ots i,t' |.| Iresli I'l'oiii school, to spell ■ten the simplest words correctly, or

to ic.nstrmi a lew easy sentences on '‘t en the best-known subjects, v. as one • the points made by Mr It. Rogers of the City of Rirmingliam CJn.s Oopartmeu: in a lecture at Birmingham yr-sterday. H< said: Front my experience in interviewing hoys ol" I ! fresh from school there is in must instances a ilcpliirahle lack of kmm ledge of the principles underlyin'.: elementary aritJnnetic. in that the ship hoy tt ho is aide to tin an example from a hook of oxen isos is ipiite unable to apply the rule when translated into the form in which the problem is likely to he met in every-day life. .Mr Honors said many hoys could not write down a description of how they drew their pay from the pay officer. A 16-year old hoy. who said lie reached Standard V., could not read the oath at Rotherham borough court yesterday. The major, who is chairman of the Rotherham Education Committee remarked: We are not getting value for our money. I think.