WELLINGTON NEWS

Hokitika Guardian, 1 December 1925, Page 4

WELLINGTON NEWS

THE wool, SALES. (Special to “Guardimi”.) WELLINGTON, November 27. With the close of this week four wool sales will hove been held in Now Zealand aml ill all of them the market has had to rely upon Continental buying for its main support, America, rendering ;t little assistance. The sixth and closin'' series of London wool sales commenced on I uesday evening and here again Continental buying was the feature. The (juiciness oi both llradford and Germany is disconcerting, and there is obviously some explanation for this. It i- stated that Franee and Belgium came out of the slump with comparatively small stocks and the adjustment was consequently easier. Moreover, a large volume of business developed and found them without .stocks of wool. Large purchases became necessary and conseqttentL heavv inroads were made on the carry over ol old stocks in Australia and London at very linn rales for merino, and hardening rates for medium and low cross--I,reds. Bradford and Germany have not been in the same happy position, because their stocks were heavy after the slump and realisation has been slower. Everybody is ol course wondering whether Era nee will be able to continue tbe pace. There are, it is stated, large orders in band in France, and the general impression prevails that the French demand will be sufficient to maintain prices a little longer. At the opening of the London sale all grades of crossbred wool were I root Id to l',d dearer, and were thus on a parity with tlm prices realised ai tbe sale in Wellington. The position, however. is not at all satisfactory and must be so as long as Bradlord maintains a passive attitude. France is favoured by special circumstances and also liv the depreciation of the trane. but this cannot be expected to last. Furthermore France's trade is not of such magnitude to warrant the belief that she can go on buying the raw material indefinitely. When France is obliged to ease off there will he new developments and they are not likely to lie favourable to growers. While Bradford abstains from buying she is reducing Iter stock of raw material, and when she is again ready to come into the market the remo/nlii'aiicc of heavy losses will make them cautious. While Bradford is out of the market the wool position cannot he regarded as satisfactory. It is a notable fact that the consumers in Britain are revolting against Lite high prices, and this is particularly apparent in respect to food stuffs. However, if there is one thing certain about the wool traib it is its uncertainty. .Messrs Dalgety and Co in their wool circular dated October Lilli say: “The past series has provided yet another illustration of the tendenev ol the wool market- to

run counter to general expectations. Il was considered by many that the quantity to he ollered (212,508) bales, vvlti'-lt was bv far tin- largest in any

single series for a number ol years, would lie beyond the capacity of the trade to absorb without a serious break in prices, and while it wa- expoeied that values would probably hold their own in the lii'si half of the series, a decided slackening in the demand was looked lor. Actually exactly the ojs po-ite occurred, and with lew excep lions bidding increased milter than diminished during the latter halt of the sales." WHEAT AND EGGS. The poultry farmers have no doubt suffered very seriously from the effects of the Got ernmcnt's manipulation of wheat production and distribution. Mr E. Hopkins, a poultry farmer writing to a Wellington paper points out that the people, are now reaping the rcsttll of the Government'-- wheat policy by having to nay 2s per deceit for eggs. For Mint', years llm Government of tins <•>'111111 li.i - pr; ia IL taxed lie poultry Liiin'o ihrough his wheat purchases, and put the money oMaiued into the pocket., of the grain growers with the result many of the former .have failed in their business and been compelled to give op producing eggs. Incidentally also a promising export trade has been murdered by the Government's policy. ■Mr Hopkins goes on to sav: "The "heat grower having pocketed the poultry fanner's money, decs not even atlem.pi In early out his contract with the Govern meal. i.e., to grow enough "heat lor the Dominion's requirements. Imt is quite content to puller along in tlm old way. We arc thus laced with the position ol having t° imtiort ,i still larger amount of "heat during the corning year becau-e I he wheat growers eannol. or will not. carry out their contract. The poultry Lirnicr mil lining able to shoulder the increased price of grain, has had to pass part nl it; on In the consumer. How long will the people he content to pay an extra penny on every loaf of bread and a-half penny on every egg to the wheat growerh” It i- certain that a good deal more will he heard of •he wheat problem presently, lor the people in the North Island at least are tired of being taxed for the benefit of < anlerbttry wheat growers.