WELLINGTON NEWS

Hokitika Guardian, 10 November 1925, Page 4

WELLINGTON NEWS

IMiOSPECTS FOR WOOL. (Special to “Guarditui”.) WELLINGTON, November 0. Wool is steadily coming forward and at the opening sale in Wellington it is probable that over 1*2,000 bales will be catalogued oi which about *I,OOO hales will represent carry-over wool. Last year at the opening sale the catalogue comprised 7,100 bales. Owing to the very wet winter the wool is light and somewhat tender . and the hogget wool more particularly so. I'hci'c is every prospect of there being a large attendance ol buyers, all consuming centres being represented. I’here are some growers who regard the buyers as their enemies and hold them responsible for all the troubles whereas the buyers are their best Iriemls. In February and -March last when wool prices dropped the opinion was expressed by many growers, and was published in the papers that by eoncerled action the wool buyers had forced down values. This was an absurd view to tube for the buyers were then carrying heavy stocks bought at. 1 senk prices. .Many of the buyers lost very heavily, but they accept that as one'oT the risks of their calling. The ideal wool season is the one where growers secure a good price, and the buyers make fair profits, and the ultimate user linds trade good. It may he imagined that after the heavy losses of the past season buyers will be nervous about the price level this season, and no doubt they will, but wool is a world commodity and there ran be no cohesion or concerted action on the part of the buyers, because of the conditions in all* consuming countries. Bradford made heavy losses on last year’s purchases, but that will not prevent them buying freely this season if a profit is to be made out of wool. The market has certainly improved

since August, and. it scents certain that crossbred wool will realise a fair price. If range from 12d to lod growers should bo well satisfied, for the buyer must be allowed to make a profit. A conference between the brokers and buyers is to be held on November 1 Ith to settle—the question of eliminating evening sales to enable buyers to give more time to valuing. The brokers have been trying for years to bring about flu's reform which the buyers have always opposed because it meant extending the selling season which they did not like. Now the proposal for- doing away with night sales comes from the buyers, so that there, is every probability of the selling season being extended at least a month, if not longer. SHRINKAGE IN RETURNS.

With best crossbreds wools selling at about Kid which some anticipate will be the top price, will mean a considerable curtailment of file wool income as compared with last season when 22d and more was readied for best wools. This contraction will be widely felt for it is on tile returns from -our primary products that we exist. Our secondary industries have not reached the stage when they aro •able to export their manufactures. With wool low, mutton and lamb must lie lower and in respect to frov.cn meat also flic past season was a sorry one for exporters for the double reason that wool will not give as good a return. and the frozen meat market does not promise* to lie any better than it is now. Unless the shortage in wool, mutton and lamb is made up by dairy produce the returns from our exports of primary products will Ik* several millions less than in the past season, and «ili force upon us economies in many directions. Months ago attention was directed to expanding imports, and several chambers nf commerce advised caution. But the returns lor the 0 months to September ;«) show" that imports have increased. We have not the exact figures for at the time of writing the monthly abstract was not available. but the Treasury returns show Lhyt the Customs revenue increased by £291,000 which is an indication that the ini-

ports have increased. It was estimated in tbe Budget that Customs this year wotdd yield an increase of Cloll,o9ft which was a gross underestimate and in accordance with the very bad practice of the Treasury in recent years, it must have known that out of the loan of £'7.000.000 raised in London in .May last. £<'1.090,000 would have to lie transferred to New Zealand and that such transfer Icnuld only lie accomplished by the transfer of goods or import.s.

Imports for the current, year must show an increase because of this borrowing. and this will to some extent compensate for any shrinking in the value of our exports; that is to say the drop* in wool will not affect, us as seriously as would have been the case lad the Government not borrowed in London.