WELLINGTON NEWS

Hokitika Guardian, 29 September 1927, Page 4

WELLINGTON NEWS

THE PAST WOOL SEASON. (Special to “ Guardian WELLINGTON, Sept. 26. The clip of Australasia in the season 1926-2“ was of record volume, it provided the largest turnover of any season in history, and notwithstanding the admittedly grave difficulties at the consuming end. values were stabilised at satisfactory averages. The average value per bale, according to Dalgety’s Wool Review, besides an increased production, of substantial proportions, shows a marked increase, and although the inflated level of two season’s ago was not approached, the season’s average per bale was £2l Ids, as compared with £2O His Id in the previous season. Tice grand total of the amount realised for’ wool sold in Australia and New Zealand amounted to £04,818,38(5, as compared with .£(53,980,8(52 in 1923-26. £69.083.182 in 1924-23. and £64,920,290 in 1923-21. The gross values of the Australasian sales in the pre-war year was £26.079,336. The Review states that in a general way wool-growers find the English trade better than it has been for a long time, but still beset by many difficulties. They find tin- Rritish spirit is still sound and that leaders in industry are fighting to restore and develop trade and all things considered are justified in looking forward to good solid Yorkshire .support. Crossing to Prance improving conditions are noted, a wide discrepancy in many respects iron) normal. hut generally a hopelul and optimistic outlook, fn Germany the conditions arc* such as to justify the confidence that German buyers will play again a forceful part in the Australian and New Zealand markets. Holgiuni, Italy and other European centres do not promise much expansion, but indicate continued support, Russia, it is claimed, looms large as a potential . buyer of groat magnitude, and whose operations may have tarreaeliing effects. In the immediate ]>ast .Japan lias played a splendid part, and looks luce retaining its prominence in the future. The demand troin tho United States is an uncertain factor, that has always been the case and it is therefore impossible to sav much about America. History has proved, it is pointed out. that periods ol disaster in the wool trade, were generally the aftermath of a previous era of undue prosperity. The perilous point in the wool market was not increased supplies, but the possibility of glutted markets—a deluge of wool on the market irrespective of the industry’s requirements.

Referring to tlio Dominion particularly the Review states that the outlook appears healthy and it seems as if prices were now fairly well stabilised. *■ There is no doubt," states the Review. " that the pulse of the wool auction room provides an interesting indication of the state of trade in consuming countries, and from business lately contracted in London June,filly series, it is evident that confidence is being gradually restored and the outlook is bright for sound business when the new season opens in November. The world is able to absorb all the wool produced, but the basis of values must necessarily llurtuate with and depend upon the purchasing [rower of the wool-using public.” HANK SIIAHES. Investors in Stock Exchange securities have, for the past two years or more, shown a marked preference for hank shares, and twelve months ago the prices were so high that the return was under 5 per cent in most cases.

It was realised that even in safe bank shares the investors are entitled to at least 5 per cent if not a little more. Compared with a year ago the quotations for bank shares are lower all round, and the return, except in respect of one or two hank shares, is well above 5 per cent. Owing to the relatively high prices ruling for commodities, it takes a larger volume of credit to move crops, clips and products, and the banks have done everything possible not only to provide more capital, but they have also increased their reserves and undivided profits. The twelve trading banks in Australia and New Zealand are very sound, and they are well able to successfully help the community in a time of stress.