WELLINGTON NEWS

Hokitika Guardian, 22 May 1925, Page 4

WELLINGTON NEWS

I'll E WAY OF WOOI

(Special to “Guardi-Ji”.}

WELLINGTON. May 20

Notwithstanding the vi|>l io:i val ot the past lew days and ill" -l«»rious. uncerla ini tv of tin- political position to-day j( the more Llioti-lutul business nil'll an- . coiiccnied iil>oi.it t!io outlook lor wool ;im | other produce oi' the hot | more espoeially wool. 'I lie London ( sales which closed last week’ <lid show some recovery, that is there was a re- __ loxc-ry on the opening priees. hut compaired with lhe March sales closing prices cro.ss-I.red wools were Id per lh lower. Compared with the Lest prices ol the oast season ii is sale to assert that crossbred wool is lully Let to hid iloxvu which means on a hale ol •iufllo a drop ol 1:12 lo f-'ld per hale, which j. very disheartening. It is ipiilc liko|v ilial wool values will improve a little because it is well known that in all maniilac-i uring countries supplies ol ran material are within small c ..inpnss. and this is particularly the case in respect 1) the i/nitod Stales. On iiu* lend stock - are aeciimulai i! i _t. and there is a prospect that lhe new clips

irnm most producing countries will show increases. and white supplies i i sight apjiear adequate it cannot he expected that manufacturers will do more than buy from hand-to-mouth, uhicli would, of course, prevent any great advances. All things considered there is some prohahility. hut no certaiiiity, that there will he a slight advance in values. Considering that th.is will happen and that the clio of IL'2-' wiN average lid below the clip oi 11---». the shrinkage In income will be a very serious matter. For the calendar year IP2| t |ic v.onl exported iroili New Va" - land comprised :>!::LH27 hales, valued at I'ld.l’dT.flOl. equal to approximately fid Ids per hale. In the exi'Oi'l:, of last year there was a fair amount o! hold-over wool included, and it against this is set a probable increase in production and exports lor the 1 orrenl year placed at say .MIUiUO hales, and if the mice this year is Pd per lh or CO per hale less, then the 070.1)00 hales would n alise L'l'i Ids or approximately !: , :,:|s!),(11)11, which would mean that the decrease in wool in 1020 won It I he j L'T,SM7,(IOO less than iillt>2l. liven il it is only C1,0011,01)0 less it will make a hi" (lill'in-enee to the prosperity ol the eoun-

tw. Put this is mu all that business men four, for with the drop in wool • tln r commodities will hccome ull'eeted. 'I Ini.-, wool sheepskins and pells must fall in svaipathv. and with the drop in wool it is prohahlc that more sheep will he released for export than was the case last year and this will help to bring down the price ol Ir.'.en meat. The position of dairy produce is not as secure as one (oilld wish it to he, and it is Miiticiualed that the average price of the season now closin’.', wii! not he. as pood as in the previous season, and it is likely to he worse for the comim.: war heeause produitiou ex eryw Imre is expanding. The lummy imirket is begiuiiin.tc to show signs of stringency and this is apparent hv the recepri.,ll given to the New Zealand loan of L'7,0(;:).i;;:n. All our exportable products seemed to rise in value si urn 11 aneously, and they are in si as capahl ■ of fatting in uni on, and this is xx hat is dreaded hv the thoughtful luisines-inaii. Even if the drop is confined to Wool die loss el income would lw appreciabl •. V. bile business people proles.-, to ih'-'iid the prospect thev anpear not Pi have the moral murage to warn the people ol what mav iui|i| eu. ’I hose who e ay the task arc gcucrnilv rexvarded xvitli more kicks than kudos, and certainly it is nd plcasanl lo lie styled a "|v-.si-tejkst.” ilowmer. there I , an old doggerel uhicli emhodies a ere.it deal ot truth and xxbbli should he i miimill"<l to memory by cverxmi". !i runs as follows : A.lter the rise llie tail; .liter the loom 1 lie '-lump : A ft, r tie lie.;: and tic big ei ;ar, .i cloari-t te and l it" liunip. cu.ml’l i.sniiY : o\n;oi,. Interest in the Dairy Ccintrnl Hoard's detcrii'ination lo apply Hie compulsory ! lan ■cs of I lie Act to the export ol dairy produce as from August 1. 102;!. is being revived umv iliac, the closing session of cli" pi'e-ent I’arliamciil is near. The .Minister o| Auric-lilt ui'e stated some lime ago I hat the iioeos'■tirv (!i cler-m-t onneil would not he

granti- ! until the position had been thoroughly investigated. What kind of iii vest igu lion is being attempted. or whether the position is being iut eslignU'd at all. it is dillieult to .--av, Iml it must be apparent lo t!i.* Governmenl that now the various sections interested in the dairying industry have had tiin ‘to , misider the mailer there is a distinct growth of opposition to the scheme. Supplier, an- apprehensive that advames may be insufficient to enable llii'in. to cany on, and that is quite possible, and some think there is an apm-eeiahle il-k ant.agoui ,ing those linns not inelnded in the distributing scheme-.. Last week a London cable message indicated that a t ai lain amount of antagonism had developed. heeause .New Zealand and Australian holders refus'd to release filltUr. II 1 rouble can a. rise over a simple matter like this, what will la- its nature when the Control Board attelunts the impossible task of dominating the British markets. The nmie.uelUs of compulsion are anticipating that the matter will ailin' up for discussion in I’arlinm.ent and that, the powers of the Board will lie eonsitlernbiv modified.