WELLINGTON NEWS

Hokitika Guardian, 21 March 1928, Page 3

WELLINGTON NEWS

LONDON WOOL MARK LT. (Special to “ Guardian ”•> WELLINGTON. -March 1!). The .second of the series of Lomhm wool sales, which began on Tuesday of last week, was expected to show, a slight improvement, hut the actual results exceeded expectations. All crudes of wool exhibited advances, and crossbreds in particular; in fact the coarser wools, in which we are iuteiostod, show the most improvement. '|’his dearly indicates that there is a demand for the staple, and (his is emphasised by the fact that European conditions have improved. It must he borne in mind that with the increase of population there is a natural increase in the demand for wool, while supplies are not keeping paee with the demand. The lloeks of the world have not increased so much as to make .rood the requirements of this demand. This season the drought In Australia and South Africa, and the adverse climatic conditions in the Argentine caused a shortage in supplies ami this was not made good by the increase in the flock.-, in the other countries. Tn the earlier days of the post-war period European countries, owing to lnck of purchasing power, were unable to supply their demands. The wool was wanted, hut the money could not ho inland to pay for it. Tn the last year or two. the circumstances of most of the European nations have improved. Most- countries have reverted to the gold standard. Trade is Ireer. and with the improving trade purchasing power has expanded and people are naturally satisfying their long-lclt wants. To stimulate the trade in woollen goods manufacturers everywhere have endeavoured to reduce costs and with some success. It was i hoped with the aid of substitutes to further reduce costs, and the artificial silk was held up as a menace to wool. Actual experience, however, shows that •artificial silk, instead of being a men , ace. is rather a help, and it is stated that more wool is going into consumption than ever before. Artificial silk is apparently killing the '‘rag and shoddy” trade, for consumers can get fabrics of better quality at almost as cheap price. However, whatever the real cause is it is making lor the increased consumption of wool, the fact remains that the higher price for the staple is changing the economic conditions of Now Zealand for the better. Wool and dairy produce have helped us to recover our position, and to place the trade balance on a satisfactory footing. Tn addition to improved prices there has boon an increase in the outputs of both wool and dairy produce, and our condition to-day is infinitely better than it wus twelve months'ago. In saying that it does not follow that wo are out of the wood. During the period of adversity there has been an accumulation of liabilities which must be liquidated before we can lie sure of a solid basis of prosperity. Tn view of this the Auckland Chamber of Commerce lias taken up the attitude that it would 1..- unwise to press for a reduction in the Bank rate, and most thoughtful people will agree with this. A state of normality in trade had not yet been restored and it would be better to wait until more stable conditions obtained to press for a. reduction in bank overdraft rates. Unemployment is still a marked feature of our economic position which iu itsell shows that 1101mality has not been reached. Ihe Municipal Conference sitting in Nelson. is troubled with this question of unemployment. The Dominion is slowly emerging from the depression and it would be safer to let the recovery tnki its natural course than to try and on,rce it. furthermore, the produce senin is rapidly drawing to a close, am resentlv we will be able to take stud E the achievements of the past am lake our dispositions accordingly. W ave made headway, hut a great ilea lore remains to be done. Productioi ost must he further reduced. Cnpi 1 and Labour must enjoy peacefu lines, and we want the whole coni 1 unitv giving its best iu work am mlulging in a lull measure of haj iiness. The one big thing that w iave to accomplish is to impress upo he Government and the local author ies the imperative necessity for eci loiny in administration. Helping tl: limners is commendable, for the exis

cnee of the community depends upon the income derived from exports. \Ye can face the future with equanimity for our circumstances are steadily improving and there is disposition on the part of all to help in this improvement.