WELLINGTON NEWS

Hokitika Guardian, 25 June 1928, Page 3

WELLINGTON NEWS

WOOL PRODUCTION. (Special to “ Guardian.”) WELLINGTON, June 23. On the production of wool in the United States depends lavgely the volume of purchases made in Australia and Now Zealand. In its wool trade review for 1927 the National Association of Wool Manufacturers of America says with regard to the domestic wool yield that “according to the estimate made by officials of the U.S. Department of Agriculture the total product of shorn wool in 1927 was 278,037,0001 b. and of pulled wool 50,100,0001 b. or a total of 328,137,0001 b. This is an increase of 17,000,0001 b. over the estimate made by them iii 192 G. For the latter the estimate should he decreased 1,000,0001 b. because of an error of that amount made by a large wool puller in reporting bis pullings for 1920 and only recently discovered. The estimated total for 1927 is larger than, for any year since 1893, and is 27,000,0001 b., 45,000,0001 b., 62,003,0001'b. and 67,000,0001 b. heavier than for the years 1924, 1925, 1923 and 1922 respectively. This large yearly increase, it is claimed, places in a peculiar position those advocates of compulsory textile branding legislation, who only a few years ago, when clamouring for such a law, declared that unless it wore enacted, the wool growing industry which was then being undermined by the use of reworked wool, would be destroyed. The danger being imminent, they declared that immediate action was necessary if the threatened disaster was to bo prevented. “The larger sheep numbers and the larger wool product prove (says the Association) how wrong these advocates were.”

Messrs H. Dawson and Co,, in their wool circular for May, when the third series of London wool sales opened, writing respecting the wool outlcok, remarked that the interval between the second and. third series had been devoid of incident. There has licen a minimum of new business, and the mar : kets had lapsed into a state of quiessenoe. Spinners and top-makers were engaged on old contracts. Tho advance of the previous series had not been enforced and had therefore materially checked new business. Manufacturers were then beginning to show their new spring goods and they, along with doth merchants, and distributors, were waiting for the verdict on the vital question of wool values. Tho resistance of merchants to an advance or even a partial advance on cloth is difficult to explain, considering the startling rise in raw material; for merino wools have shown fully 20 per cent .and crossbred wools 30 per cent to 40 per cent appreciation on last spring season’s rates. The attitude naturally seems inexplicable to the producer, especially when lie finds retail profits are substantial as indicated by the leading stores and distributors. The recent habit of giving something with every yard of cloth sold, must soon have an abrupt termination. Meanwhile the manufacturer is now being forced into a position of stolid indifference as to raw material movements, until either cloth is dearer or wool is cheaper. The latter eventuality appears to be a somewhat remote possibility in tho present state of supplies. Any hope in this direction must any rate be deferred until the prospects for next season are more clearly defined; but even if a largely increased clip should be likely, our consuming markets cannot be fully relieved before the end of the year.' The result of the French elections has conferred on the President a mandate which should enable him to take the final steps necessary to put the currency on a permanent basis. The effect of such action on the wool market is not likely to be immediately important, but must make ultimately for confidence. Holders of stocks in the consuming centres do not appear to be anxious and from every centre tbe report is confirmed that wool is still passing steadily into consumption. Employment in Yorkshire shows some improvement, especially in Bradford and the Huddersfield worsted section. It is also good in Scotland and the West of England generally, hut in the \orkshiro woollen trade the position is not so good. In the U.S.A. market conditions have not been satisfactoiy, but latest reports aie a little brighter. Dealers are just now interested in the purchase of their domestic clip.