WELLINGTON NEWS

Hokitika Guardian, 18 December 1925, Page 1

WELLINGTON NEWS

WOOL T.li A lIId PROSPECTS. tSpecial to “fiiiardi WELLINGTON. December ltd. •• There are 110 prollts in the wool trade now. They are extinct,” was a remark made by a wuolbroker when approached to express an opinion on the possibility of an early stabilisation of Ihe wool market, and the reply is signilieant. A year or H months ami Sir Arthur Goldfinch, who acquired a reputation for handling woo! statistics, showed quite clearly if not ounvineing|v. that the world was extremely short of wool and that the trade was operaling close to sheep's backs. llis laeD and figures may have been, and pus,.i!,|v were, apiiroximately correct, but he, with Others, failed to appreciate the fact that the purchasing power ot the masses was distinctly limited and although they were in dire .need of woollen garment s they were obliged to go without, or make shin the best way they could. because they could not pay the prices demanded. I lie trade obsessed with this idea of a world shortage purchased the raw material at higher and higher prices bn! when the fabrics were turned out the clothing manufacturers lotitid that they could not handle the cloths at a I 11 ”- iit. h was related at the Bradford Chamber of Commerce that a manufacturer (pioted slightly high prices for fabrics to a designer of women's dresses and he was promptly inlormed that a quarter of a yard less would be used in Lite making of the dress. Mi as not to raise l the price ol the finished

garment. The relatively high juices for fiui.Jied clothing cheeked the demand and the clothing manufacturers unable to quit their goods bought less material, and the merchants in their turn bought less from the cloth manufacturers and so the pressure weiii right down and all -.notions ol the trade were overloaded with stock. lo cleat this prices had to be cut and lossses faced and the losses were very heavy. It i-. stated t lull the smartest Bradford men were a long way out in their calculations. Naturally llradlord is now operating with extreme caution and it is a question whether they are not

again out in their calculations. I'ranee. Germany and Italy have been buying wool freely ever -into duly last and seem capable of coat inning a little longer. Il cannot be said that t!e‘ point of stabilisation has been reached. Bradford represent;)i ivos have oorlaiiily been buying more lively than ‘at the sales with the prices about .'id to 3ld below the parity of November but they have shown great hesitancy, giving the impression that they are not rplife sure of themselves. It is quite I rue that there are no prophets in the wool trade ju*i now for there is not an individual willing to express a definite opinion on the wool outlook. What broker.-, and grower.- should aim at is to inomote 1 oniideme in the market. Growers can help a grcai deal in this matter by meetiitg the market ami selling 1 heir clip- at current prices. To sec lot after lo; passed in a-, was i In* case towards iso elo-e ol the Wellington -ids is very discouraging. Alter all the nriees ruling to-day, notwithstanding that there has been a siibstanlial fall a- compared with last season, are .-till very good, and the question for the grower is will he do any better by clinging to ids clip and marketing at later sales in London, ff wool is moving lively buyers at ollea get confidence, and 11 is eonlidomv that is badly needed just now. TRADE OF DOMINION. The satisfactory exporl and import returns for the ten mouths to October •'lt- 1 lasi are very -a l i-1 art or \ notwithstanding I bat import- Alow a relatively greater increase I ban the export-. The exports lm the period under review amounted In l' hi. I IP.IMA. as compared v.ilh L‘bl.'.is 1,30!i in tie- ■ '.l iv-ponding term ol la-i year, showing an inc rease ol I do. 1; .'III. The iniporl s ainoimled lo L' 12.j0:. I 70, as compared with L'-M1.22i1. 127, an increase! d L'2.77>9.74(i. The imjinrts have shown a greater increase than the exports but not much importance should be ait ached lo this been use of I lie .seamen's strike. Vessels reached port with imports but could not gel away with exports. The excess of exports over imports for the ten months totals 1'3.]i>!1,7G9. against L':i.7liS.S7!l, which is rat her disappointing, It is absolutely necessary that our exports should show an excess oyer imports of at least L'ti.BIMI.BOO for that amount is required to meet our outside obligations. With 1 he drop in prices of our primary products the probability is ilia! the excess of exports will not come up lo this amouiii and the deficit must lie covered by fresh borrowing. Hi the ten months there was spent on motor-cars, motor spirit, tyres, etc.. {.‘G.002.G25 as compared with L‘5,024 ,(>2.5 last year.