WELLINGTON NEWS

Hokitika Guardian, 8 March 1927, Page 4

WELLINGTON NEWS

BUOYANT WOOL MARKET. (Special to “ Guardian.”) WELLINGTON. March f. The woo! sales held in tlio North Island last month were all very satisfactory for prices were good and clearances excellent, the result of these sales will he that during the fortnight or thereabouts of this amount approximately £1,500,000 will be turned over to the woolgrower.s. With the sales to be held this month practically the entire clip of the season will have been marketed, and the proceeds which amount to about nine millions sterling will have been distributed by the third week in April. Growers, by the commendable disposition displayed hj them of meeting the market have heaped to give stability to the market, for the trade has been encouraged to buy. flow very different is tbe state of tin dairy market. Owing to a mistaken and foolish idea that any board or organisation dollied by the Legislature with certain arbitrary powers can fix tbe price of a commodity in a competitive market, a very considerable quantity of New Zealand’s new season’s butter remains unsold in the cold stores, and unless there is phenomena! selling (luring the next two or three months the European output will be in keen competition with our stored butter. In the opinion of men capable of judging there is hound to he serious loss owing to this storage policy. The butter factories have -not the same advantages as the wool growers. The latter if dissatisfied with the price offered locally has the option of trying the London market, but the butter producers have only the one market where the competition is keen.

However, to return to tho wool market. In a statistical review of the wool and wool textife trades from 1912 to lf)2;>, .Messrs If. Dawson and Co., of London, provide a fund of information relating to both sections of the wool business. The review deals with the position in all countries and causes of marketing movements are hrielly but adequately explained. Dealing with 1921) the firm states that extreme pressure for raw material supplies disappeared early in the new year and steadying influences gained ground in all centres. Heavy weights of material had to he financed through various processes, and though woollen textile machinery continued to run at a high rate of activity everywhere new business was in smaller compass'-and buyers were more discriminating regarding price. The merino trade was in a fairly comfortable condition, hut crossbreds lacked the usual German demand, and prices weakened under restricted competition. Later in the year trade suffered from the general strike and coal stoppages in England and the currency crisis in Europe. The fact that prices were firm at the end of the year testified to the underlying soundness of the position.

Another view of the situation is furnished by the recently-eleeied President of the British Wool Federation, M.r \V. Hunter, who speaking at the annual meeting said that there were serious problems ahead, but lie felt unit the trade bad weathered the worst of the storm. He anticipatid a considerable increase in the consumption of wool in West Riding during the year and thought that when spring orders were being placed distributing bouses would turn to Bradford instead of tlie Continent. Many people thought tho prices of lower crossbreds were on too low a basis, but they should not overlook the fact that America was handicapped in her purchases by the enormous duty on such wools. If America had taken her full share of supplies of wool crossbreds would have shown a more normal relation to the value of finer woofs which were in some degree of harmony with the world’s consumptive requirements. Three years after the war America consumed Gib of wool per head of population whereas now her consumption was only 2 ; \lb. Mr Hunter expressed optimism regard-

mg the Home trade. He looked forward to sudden lluctuatious in prices after the buying season in tho Dominions closed, owing to unequal distribution of raw material and varying circumstances in the different consuming centres, hut thought that on the whole the trade would look iorward to an improvement on conditions that had existed during the past two disastrous years.