WELLINGTON NEWS

Hokitika Guardian, 18 August 1925, Page 1

WELLINGTON NEWS

’ A WOOL BALE. (Special to ‘•Guardian’’.) WELLINGTON, Aug. 11. The Wellington U'oolbrokcrs are singing a wool sale for Tuesday, Aug. Lulu, "hen about IdOO hales: will be ot-ie.-ul ol wkii.h Mill) iittlet, "ill consist of erutellings, lb!) bales of fleece wool anti ](!0 bates of oddments. No great importance can he attached to this sale, Imt: it .should furnish some indication of the opinion of buyers generally. Lower grades of wool have suffered more than other scuts as compared with the trunk prices ruling in the pa--i reason. iligu prices were paid then because Lie values of lleeee advanced out of all proportion, lent now with, lleeee wool at reasonable prices there is not flic: same call for erillelliltgs, locks, hollies and pieces, in tlie Sydney Wool market the same thing has been noted, and one authority slates that of all wools lower grade skirtings show the greatest depreciation in value compared with l:;e peak point of 1921-1925 sea-.ui. In November greasy locks were making lld to ju.lcl per Id. A week or tv. s ago some superior locks sold to lilt, hut l lie general run of market rates ranged from Ad to Pd. This of course, wa - lor .Merino descriptions, and nothing as good can he expected for crossbred descriptions. I’lie probability is Hint the Wellington sale will [all llat, ami that there will be heavy withdrawals. TEXTILE WAG KB DISPUTE. Wool interests here are somewhat eoiicerneci over the trend of cteiils in Yorkshire, especially io regard to the wages dispute in the wool textile trade. Some months ago the manufacturers indicated that the reduction In wageto t!:e extent of live p-T cent would In; pul into operation at the termination of tlie then existing agreement. To this the workers responded in April last by putting up a claim for a 5 per cent, advance in wages to date from the expiration of their agreement on .May AOlli. The time for that claim ";is considered most inopportune by employers, for at that time more machines were slamling idle or were running short hours than on any occasion since the war. Very important changes have occurred in Yorkshire wool trade. During the war and for some time afterwards practically no foreign textiles and soni-mcinulaeltired goods reached Great: Britain. Now the' position is that Bradford has to face keen competit ion. not only in foreign markets hut also io the Homemarkets. in 1921. for instance, 17.799.0t)i11b5. of foreign wool and worsted yarn and t2!).A9<;.Olib“i|. yards of woollen fabrics entered tlie United Kingdom. To face thi-. competition British maiinI’aci lifers must reduce their working costs. Mill espouses in Britain have risen very considerably in Aorkshire since Bill, but while foreign competition "cis absent. tills did not matter, lor Britain was able to recover Ihe costs in the finished products. The position is very different now with, increasing Continental -cOimpetitiou. f'ost of reduction must he reduced at sum- stage or at all stages, anil labour is an important item in cost. Ii is obvious that if labour costs cannot he reduced. the raw material must suffer. 'Yorkshire has a very hard problem, but the wool men el' Bradlord have faced other period- of stress very successfully, and they "ill come through ihe present lrouble also. I’roduelhm costs must he lowered anti al! parties, labour included must contribute i |; that reduction, if a serious crisis is to lie avoided. The same thing applies to producing costs in Australia and New Zealand. A reduction must he made sootier or later. MONEY BATES. The rates for money in New Zealand are largely controlled by Australia, and as rales in the (Jnnnnoi"ealth were at one time consider;!uly higher than in New Zealand a good deal of money was smil across the Tasman Sea for investment in the (.'niiiinonwenll.!i. It is now necessary for ns io realise that lor the ftilest gilt edged seelurii ies. investors ran obtain .5). per cent, in Australia, for that is what the fominnnwealtli Government is oil’eiing lor a Conversion Loan of £C.7.01V),(K)() al I'. per ceiil. free of income tax. which matures mi Dec. I .Till. next. Th . I'edcral Government, is oll'ering ox.opiioiicilly favourable terms to present holder- of the stock. As regards conversions. the extra interest of 1 per cent, is allowed from the date of giving notice of conversion, hut federal Income Tax must lie paid on this, hut the -I} per cent, "ill he tree ol Income U< x until December loth. Ihe point Io be emphasised is that the Federal Government cannot borrow in Australia under s', poreonl. and Federal Stock is the premier gill-edged security. Borrowing in New Zealand whether by tile Government or local bodies must eonform to this rate. The local bodies will probably have to pay more.