WELLINGTON NEWS

Hokitika Guardian, 30 January 1926, Page 1

WELLINGTON NEWS

JAN HA BY WOOL SALES

(Special to “ Guardian.’’)

WELL l NO TON, January

'Jhree wool sales were held in tile North Island during January, and at each sale there was a slight improvement in values comparing one sale with another. At Wanganui where the first, sale of the month was held, although prices were not perhaps tip to the December level they were very satisfactory. At the Napier sale which followed there was a slight imprvoemrnt on the Wanganui rates partly due to tho better quality of the wool offered but mainly to tho fact that American buyers showed some activity, while the Continental buyers were ready to take any of the rough wools, and Bradford 100. was not indifferent. At Wellington these favourable features were emphasised. The Americans took all the wool that suited their requirements. and would readily have taken more but it was not available.

Owing to tlu; wet weather a good deal of the wool was tender and that had no appeal for American interests. Unable to fill their requirements in fine and medium crossbreds the Americans fastened on coarse crossbreds and thus keen competition forced up prices and this grade of wool mot with the host sale and showed the greatest upward tendency. The average price of fine crossbreds Ki-IS’s, of average quality at Wanganui was ISfd. at Napier the price rose to 13d and remained at 13d at the Wellington sale. Medium crossbreds ll—fft’s realised lljjd at. Wanganui, at Napier the price was just a shade more, blit at Wellington I2d was

realised which was a distinct gain on boih (Tie Wanganui and Napier sales. Coarse crossbreds 40-41’s registered lid at Wanganui, but dropped to lOiJd at Wanganui, rising to 10Jd at Napier, and making a fraction more at Wellington at IfHd. The above prices deal only with fleece wool, and they are not unsatisfactory. Tf the North Island clip averages 12-Jd or thereabouts there will ho tio complaint to make.

bul of course the aggregate will he considerably less than last year, and ii is that difference flint is making things a little tight. BRITISH TRADE. The state of British trade is of very great indirect importance not only to New Zealand but to the whole British Empire for il is to Britain tljfat we must look to provide funds for the development of the Dominions. If Britit in’s trade is depressed there arc no savings available for investment

abroad. British trade in 102 b was unsatisfactory to the extent that there was an increase in imports and a decrease in exports as compared with 1921, and there was a substantial adverse trade balance. The imports for 102 b were valued at Cl .321,8(10,219. which compares with C1.2~0.b07 for 1021. an increase of Cb 1,01b.322. while exports fell from C03b.1b3.b3S in 1021 to C921.53M,513 in 192 b. The year’s trade had thus contracted by Cbb.0'90,3 17. the excess of imports over

exports lieilie, L‘ 100.0'JI, lOli ns comparotl witli Co! I,Til .0-39 lor IDtM. As tlio result of investigations into British invisible exports, the Board of Trade estimated that income from, this source in IfCM was l;:i70.0<K).000, of uliicli L'l). 1)0(1.(Mill was derived from shipping, fJISo.U()U,(IOU from investments and Coo.Oo'j.ijtiii from other sources. Assuming that this income was derived from tluise .sources last year, the trade deficit for Ifl'Jd would he reduced f; 030.000,(100, while ill lOl’l there was a credit balance. This shows that Britain s lending powers to the Ilominioits and foreign countries has heen malerially lessened and horrowers must, tlierelore expect to pttv rompa ra lively hitch rates of interest. In sjiite'of this adverse showing firilisli hankers and British statesmen express the utmost confidence in the future because of the fact that instead of having adopted a policy of inflation or resorted to other unsound methods. Britain lias maintained her credit intact and lum conserved her resources, so that in contrast with tin* widespread shortage of credit, prevailing in many Continental countries, interest rates in Great

Britain are amongst the lowest in the world. Britain is undoubtedly facing difficult times, but she is by no means at the point of collapse.. It is an accepted fact that inflationary methods of finance lead for a time to commercial activity, as wo have seen in the case of France and Italy, and it is equally admitted that the sacrifices necessary for the restoration of a sound financial position may temporarily give rise to, or aggravate a commercial depression, which is the case with Britain, ft is the- obvious duty of the outlying portions of tho Empire to place every order possible with Britain and thus give the Old Country a chance to recover speedily.