WELLINGTON NEWS

Hokitika Guardian, 17 July 1925, Page 4

WELLINGTON NEWS

TilE WOOL MARKET. (Special Lo “Guardian”.) WELLINGTON.. July Id. Tlie London wool sales have been in progress over a week and it is obvious that no further improvement in values L to be expected. The position then is that greasy merino is about d per cent better than in -May, and high quality half broils are also a shade higher but all grades of crossbred wools are lower !,v Id to ipl per lb. At the May sales crossbreds showed a net loss of -Id compared with the March sales and to that must now be added another }d to ;;d. The reports from London are rather encouraging for they are to the effect that the market is linn ill tone and the competition active. Sellers are

to some extent meeting the market, and the more business that is done the sooner will confidence be restored. It is, however, very certain 'that last

season’s prills will not rule again tor some veers to come, and tin.' probable diliereme can be ascertained by comparing ibe quotations for Bradlord tops. 11l .January last the wool market had sull'eted a relapse from the high prices ruling in November, nevertheless the prices then were good and the outlook was not unpromising. Taking the v arious < omits it is found that d-!’s tops were quoted at Bradford on January 22 at 7ld per lb. and'on July it the nriei.' wa , down to bid. a drop of ■J;id in about live months, this drop being equal to 22 per cent. ; 110’s tops Were quoted in January at 70d per lb. and last week the price was ■! Id. a lull of 2(xl, equal to just over .'S7 per cent: bb's tops were bid and are now J-ld, a dron of 17d. equal to just; over .‘l.'l per cent ; bll’s tons drooped from -bid to 2fUd, a fall of IS.UI. equal to over Jb per cent. ; Jfi’s fell from JVUd to •Jill or 12td, equal to over ,'l7 per cent; and Ill’s declined from 22d to 2H.ld or • llld. equal lo about 2t> per cent. Bradford spinners and manufacturers are apparently not .satisfied that prices have reached low water mark. They believe that if the prices at the current London Milos show no improvement a lower basis will he reached when the new clip is marketed three months lienee. It is very unsafe to forecast the wool market, and that was amply demonstrated during the past season when men who have made a hie study of the wool market failed to even approximately estimate the prospects. Eicn so he would he a hold mu-ti who would venture to predict that values will get back to the January level. It is very hard to say what the new clip will average but relative to the realisation of the past clip prices are

certain to average SO to Jb per cent less. The value of the past season’s clip from Now Zealand was roiighi.v Clb.OtllUlfltl and Jb per cent olf this means a reduction of 'Jb.’JbO.OIIO. and such a curtailment of income would he seriously felt bv the entire eommunilv The drop cannot stop at wool and must affect- freezing sheep and lambs and sheet) and lamb skins, so that the contraction in income will be much larger than estimated. TAKE IN SALE. I! era Use of the prospective drop in wool and meat and the abnormal increase til imports, first the Dunedin Chamber of Commerce and then the Otago Farmers’ T’liinn have made appeals for curtailment of imports ol luxuries. 1 Hut there are people who will have luxuries, which tunny cannot afford. and that being so there is no reason why they should tie deprived oi them, and in any ease who is to impose restriction. If the importer finds there is a demand for goods he will import. them whether they are luxuries or not. The appeal for curtailment f imports should be addressed to Die people as a whole, who should be urged to exercise economy and to save as much as possible against a lima wh-'ii business may be slow . \\ o do not want tu be taken on tin* lion by another slump. The economic conditions of the routitry to-day are extremely sound and satisfactory, and it is novr that savings can be made. If D, • people curtail their expenditure on

luxuries tbe importation ol such luxuries will be curtailed naturally. Ihe reason why the outlook is not promising and why il is necessary to go slowon import;, i-. Dint produce pliers are not likely to he as good in tbe coming season as they were in the oast, ale.! (here will not be Die same volume of loan money available for expenditure. Tbe credits are obtained through ti:e exports of otir primary products an I the credits we obtain by foreign loans are the basis of our prosperity, ; lid wi.cn produce prices are high r.:ul loan", large, as they were in the postseason the (Olintrv enjoys extreme prosperity. When prices and loans contract there is trouble, and it is the fear of this contraction that has made several bodies urge caution and economy. It seems advisable aLn lo say a word in favour of British trade, l b.' dairy factories will instruct their agents in London to bold butter and tlict-se end squeeze the highest prices

cut ol the consumer, but when it cullies i.i buying a motor vehicle preference is given to an American machine ami the I'nited States duty cm New Zealand butter is about 12 cents. I'd per lb. The same with the wool grower. lie 100 wants Britain to paytop price for wool, but lie prefers American ears. The duly mi wool imported into the Foiled States is J! cents clean content. Local bodies. Loo. are great offenders in this respect, even tbe Wellington C'ity Council giving pre fere i ice to an American road roller at a higher price than a. British