WELLINGTON NEWS

Hokitika Guardian, 29 July 1927, Page 4

WELLINGTON NEWS

THE WOOL .MARKET. (.Special to " Guardian.") j WELL INC TON.. .July 27. A comparison of prices realised at the last London sales shows very little difference in the values. There was a drop in the .May sales, hut at the re-

cent sales there was some recovery, and. its Messrs 11. Dawson and C,o. state, it remarkably sound basis of values lias been established, and the

position of the raw material Is strengthened. This is due to the operations ol Continental buyers, who in spite ol the credit difficulties, seem able to absorb increasing quantities of the raw material. Uradford and Hie ('nited States appear to be much perplexed. who see little to encourage such conlidelice. I he wool textile industry in both countries has been very much depressed during the past year or two ami. it anythin;', the position lots been worse in the ('nited States than ill Yorkshire, ami the Anicriean Wool

Company, the largest organisation m the conn try. he.t heavily during the pa-I Inn seasons, and a lot ol foreign wool imported into America was earlier in the year re-shipped to Londuii for -ale. In both eniilil lies the costs i>! pi,,dm lion are beyond the prices that ,an lie obtained lor ihe finished product ; manufacturers find it ilillietili to .-ell their bonds to the wholesale houses, simply because the latter find a slow sale for bonds at current prices. That is lo say that the prices asked for ei'o’thing and clnlhiiib lahrics are ecu el'; illy beyond the purehasiiib power of the community. When the I' roueli were indtilbin.b in tbe doubtltll luxury of a depreciated currency they were able to Hood liritain with their textile o, MM |s. The position has eased since

steps were taken to peb down the exchange value ol the lratie. Germany now is the formidable competitor in

flritish markets and Germany cannot be accused of playin" with depreciated currency. She is on a bold basis and lias been since the Dawes plan came into operation. Ihe iact is that the Germans have settled down to industrial life and are producinb on a lower basis of costs than the British. .Messrs H. Dawson ami Co. also state that there is considerable- apprehension m all circles except that of woolgrowers, lest the new season's values tor raw material should open too high thus retarding the chances of good business in 1928. This is a roundabout way or admitting that the sales in Australia and Now Zealand govern the market, and as a matter of fact they do. Imt values are not fixed by the growers Tint by the buyers. The buying strength for the coming season has been nugmenloil by the appearance ol Russian representatives in Australia, and their competition must add strength to the market ami tend to improve values.

CO.tl PETITION FOR DEPOSITS. The Post Office Savings Panic is non openly competing for deposits, and a handbill has been circulated among householders touting for deposits. The circular says that deposits of one shili'ing or any multiple of one shilling can he made. Interest is allowed at the rate of C 4 per cent on the amount at credit, in-*- exceeding L•">()(), and at the rate of t'.'3 os per cent, per annum oil the sum in excess of t-1011 up to £'•1000. Depositors may obtain repayment of deposits at the principal office in the postal district, and at a number of other offices without the necessity ol malting application in writing. This special canvass for deposits by the Post Office Savings Hank at this particular time is significant. There is no doubt that if the Savings Hank can get any volume of deposits through this special effort, the amount will be invested in the Rutal Credit bonds whitli the Government contemplates issuing. This political use of the Savings Rank is reprehensible, and is a vicious departure from the reasons that brought about the exi.stem'e ol the institution. It was established to encourage thrift, hut it is nut following this poi'icy when it accepts deposits at call up to CIO.T) and allows IP, per cent. The principle is not only wrung hut against the public interest. Deposits over CIO) should not he accepted, the private savings hanks limit deposits to £2OO on which a good rate of interest is paid. A man with a credit balance of £.IOO should he forced to look for his own investment, at all events he can lodge the money with any of the trading hanks and got a good rate of interest. In the hands of the trading hanks the money would be used for developing trade and commerce and tlie overdraft rate would be reduced. Unfortunately the community has not much scope for saving because of the shrinkage in the national income, and for that reason also it is doubtful whether the proposed issue of Rural Credit bonds will be taken up as readily as the authorities would wish.