WELLINGTON NEWS

Hokitika Guardian, 17 November 1927, Page 4

WELLINGTON NEWS

THE WOOL POSITION

(Special to “ Guardian ”.)

WELLINGTON. Nov. 14

The wool sale at AA'ellington which opened the selling season in New Zealaml left no doubt as to the position of wool. The raw material of the woollen textile industry is in stroll" demand, otherwise there, would not have been the keen bidding and the definite rise in prices. This is ol extreme importance to the nominion, for there is a double gain, gain in value and gain in quantity, as. with an increase in the Hocks as compared with last year of 711.1)00 head, there will lie an additional quantity ol wool to market this season. The increase in the quantity alone which should approximate to lo.fillO hales, should mean an increase in the income ol the slieeplarmeis of (.'290.00U. lint it is very desirable that we should not he carried away by the advance in wool values. Will euiicnt prices hold in the succeeding months, when heavy supplies are available.'' Jt is impossible lor us at the producing end to estimate the probabilities at the consuming end, therefore it is necessary in obtain British opinion. -Messrs If. Dawson and Co., the well-known London wool brokers, writing at the close of the September, or fifth series of London sales, remarked: "The series has been remarkable tor its strong competition Irom all centres, closing with hardening prices at the highest point reached since last October I,! d-ki). •• Values have not advanced to the point expected in some quarters as is evidenced to a minor extent by withdrawals of speculators’ lots. Ibe advance m crossbreds lias been accentuated by scanty offerings in greasies, resulting in the attention ol top makess being turned to the combing lengths ol slipes. Medium crossbreds are now some 25 per cent higher than last December and are in a strong statistical position at consuming centres; early supplies cannot arrive for four months ••The condition of the industry does not warrant the almost over-confident feeding indicated by the prices paid for wool in London. The keen demand from Yorkshire and the Continent shows that, in face of the new clip and values much in excess ol what can be obtained for .semi-manufactures, there is an urgent need to lil! immediate requirements.” This scorns to indicate that the present improvement in prices may not he more than temporal \. io* the authority already quoted says: " The new season has opened with prices on too high a level tor the trade, hut some slight recession to come into line with tops anti yarns will be looked for after urgent needs have been satisfied. and should enable a good sound business to come out.”

In view of this it would be lonlish to indulge in extreme optimism; in any event we have the experience ol !9--> to remind us that a strong advance at the opening sale ol the season does not necessarily mean that prices will he maintained at Llie higher level throughout the season. There must also be taken into consideration tbc laet tliat the record wool clip of 1920-27 has passed out of the hands of the users, who find themselves short of supplies before a new season begins: in effect this means that the trade is closer to the sheep’s hack than for many a long period, and this is the position in spite of the bogey of substitutes and adulterants, stub as cotton and artificial silk.

There may he a recession in values, but it tenant he very much. Making all such allowances there must still lie a substantial gain to the wool-growers of Now Xenia nil. as compared with the returns they rcueived in the past season. In the [Tiited States, while there is ni boom in the textile trade as there l is in most other trades in that country, the volume of manufacturing has been slowly hut steadily improving over the last few months, and consumption of wool and cotton has shown good increases. Stocks of wool are rapidly decreasing, and there is little sign of importation on the part ol the dealers, (lermauy, it is said, has its production up well into next year, and is passing large business in semi-manufactures In l-Ta nee'. Gerinuny’s prosperity is largely internal and due to heavy I orrowi ng.