WELLINGTON NEWS

Hokitika Guardian, 13 October 1927, Page 4

WELLINGTON NEWS

THE WOOL MARKET,

(Special to “ Guardian ”.) WELLINGTON. Oct. 10. It' the weather conditions remain favourable shearing should be in full j swing in many localities in the North I Island. The first sale of the new j season opens at Wellington tin Not-, ember 17th, anil usually about 10,000 to 12.000 bales are catalogued at this sale. Growers have an idea that the best results are obtained at the .January sales, and many of them bold their clips for that series. There is never any certainty about this lor two seasons ago the highest prices ueie obtained at the opening sales, and in the last season the. closing sales in March saw prices at the highest. The wool position on the surface looks very sound, but below the surface there is considerable nervousness. It ices show a firmness because stocks of wool, tops and yarn in the consuming centres have been allowed to become so low that the smallest improvement in demand is- likely to have a disproportionate effect on the wool market. The filling of urgent requirements at the beginning of the season has been responsible in past years for a temporary buying activity far keener than the normal strength of the market. There has been a slight improvement at the consuming end as evidenced by the slight advance that has been registered in the quotations for tops particularly the lower counts. It is stated that it is the strong call for cheaper clothing that prevents spinners convincing manufacturers of the need for dearer yarn. Gather than pay more users will explore every possible avenue and by the uses of a lower count, by introducing artificial silk, or where that has already been done, by increasing the proportion ol this substitute it short by every device at their elisposa manufacturers will produce a fabric a

the price they know that their clients can pay. Re-worked wool on the one hand and artificial silk on the other

exercise a powerful “ bear ” influence on higher-priced fibres. | It is the purchasing powers of the ultimate consumers of the finished goods that exercise control of tile ranproduct. A persistent obstacle to the stability of the textile industry lies in the high costs of conversoin, distrihu-j tion and tailoring. Until the public reaps the benefit of good quality clothing at prices commensurate with the. cost of wool, not only will demand not| develop to its normal dimensions but ( the possibility ol a further tall in j prices will never be far from the minds of cloth merchants and retailers. More powerful still is the factor of fin-, mice. Every European country is seeking credit, and credit is not easily obtained. It was announced last week that the German hank rate had been advanced from 0 per cent to 7 per cent and this hardening of money must have the effect of checking German purchases of raw material. | MONEY MAROMETEIL | The banking returns lor the September quarter while showing some slight improvement on the earlier quarters of the year are still very unsatisfactory. The figures show very clearly that the policy recently adopted b.v the associated hanks is proving effective. Tn May last the banks raised the rates for deposit and advances by 10s per cent with the object of attracting deposits, ' and restricting advances, and the returns show that compared with a year ago the fixed deposits were larger by 02.32:1,354, the actual figures being v 23,398,246 against 021,074,802. j An interesting feature of the returns is that there is a substantial decline in the free deposits or current account

balances. Eor the quarter under revieiv the amount was £21.815,051. while a year ago the total was £21,007,961. there was thus a shrinkage of £3,092.457, which means that the customers of the banks have so much less credit to draw on and their spending power has contracted by that amount. It is difficult to account tor the decrease, because imports have been declining and the money could not have been drawn for that purpose. However, whatever the cause, the fact remains that the spending power has been reduced. The note circulation at £6,279,388 is £20(5,050 less than it was a. year ago, and this is another contraction in spending power. The notes in circulation represent the money in the pockets of the people and available for immediate expenditure. Tims compared with a year ago the spending power of the people has contracted by 3$ millions sterling, and accounts in some measure for unemployment. The advances at £47,475,363 show an increase of £782,012, hut the bills discounted at. £1,399,867 decreased by £231,628, so j that the accommodation provided by i the hanks is really only £551,284 morel than in the September quarter of last j year. The aggregate of the deposits is £45,213,750, while the advances and discounts combined total £48,875,230, so that the advances exceed the deposits by £3,661,480, which is very unsatisfactory. The fact is that we; have not had a general clean up and that has to he faced. The drop in the j t urrent' account balance shows that some businesses are cleaning up, hut i 1 great deal more must ho done. A| great many business men are in hopes i that prices will advance and so ease' the situation, but the safe course is to reduce costs and overhead charges.

“What a blessing this smoking is Perhaps the greatest we owo to the discovery of America.” So wrote tin late Sir Arthur Helps, and millions of smokers the world over have doubtless endorsed his words. But great as is our indebtedness to America for giving us the priceless boon of tobacco, tbe fact remains that practically all the American brands in use to-day contain an excess of nicotine. Am! that is had, as any doctor will tell yon. It is no less true that the purest tobaccos of all—i.e., those compartively free from nicotine are our own .Vow Zealand varieties. They are so pure in fact that they may be indulged in with the utmost impunity. The leaf is toasted in the process of manufacture. Hence their delicious flavour and delightful fragrance. They come in several strengths and are thus adapted to all tastes. You can get them at any tobacconist’s. Ask for “Riverliead Gold” mild. “Navy Cut” (Bulldog) medium, or “Out Plug No. 10” (Bullsliead) full strength.—Advt.