WELLINGTON NEWS

Hokitika Guardian, 22 November 1928, Page 2

WELLINGTON NEWS

WOOL AND MODERN INVENTIONS

[Special To The Guardian.]

WELLINGTON. November 19

The Inst of tlie series of London wool sales for the current year begins on Tuesday, November 20th, and there are no indications that prices will improve. In Australia the sales in Sydney and Melbourne show steadiness in prices. Winclicombe Carson Ltd., the Sydney wool brokers in a result report say that America is the only consuming country which has not so far tin's season come to light as a buyer of wool. For some years turnover in the American mills has been below par. Five years ago America bought .186,000 bales in a season in Australia. Last year she purchased 75,000. To an extent the increased production and use of United States grown wool is responsible for that decrease. But America’s wealth is also a factor.

Up to recently in all'’countries, increased wealth meant larger expenditure in clothing, and, therefore, greater use of the ship’s staple. But with the invention of convenient facilities for the heating of residences, factories, theatres, trains, and other means of conveyance, and the means to pay for the installation off those heating systems the need for woollen clothing in the States has declined and Australia’s choicest* merino wool was, a few years ago, largely bought for the highest class trade in women’s fabrics in the States. It has not been purchased extensively by American buyers of late years. Feminine America, in an artificially heated atmosphere has been enabled to discard wool in favour of silk, and put on fur coats, etc. when the rare necessity of protection lrom.cold arises.

It may be asked when will such a position be seen in Great Britain and the Continent. These countries, however, have not the money at their disposal for the general erection ol modern equipped buildings suitable foi heating facilities. They also have not the driving force of necessity to make them do so. The ,cokl in Europe and in the" British Isles is not so extreme as in a large part of the States. Maybe also they must pot take to artificial heating so readily. “Hot-house” living may not be good for the stamina of the raco. -

TO OFF-SET HTGHEII COSTS. Production costs have increased in Australia in common with other countries, but there is little doubt that they are higher in Australia than elsewhere. Mr W. Forster Woods who has been elected Chairman ol tin l Melbourne Stock Exchange lor the eighth consecutive year, in addressing members on his re-election spoke on this subject. He quoted from the latest report of the Tariff Board with the object of showing the seriousness of the position. The Board had pointed out. he said, that, while the costs of production of competing countries hart declined, costs in Australia generally had risen thus increasing the already wide margin of difference between costs in overseas countries and those in Australia. He agreed with Professor Keynes that an attack on wages was not only politically impossible, but also maladroit, because the wage rates which would be most likely to yield before the assault would be those in which wages were already relatively low.

Mr Forster Woods believed that a sounder solution lay in an effort to increase productivity. That might be brought about by economies of management, improvement in the technique, and a greater effort by employees. Slipshod methods, antique machinery, or the “go-slow” policy would not get them anywhere even with high protective duties. They wanted more self reliance, more individual thought and effort. They should maintain the high standard of living which existed in this country by mtnc productivity rather than by. high wages. They should do everything to increase the purchasing power of money and thus reduce the cost of living. Closely allied with the problem of cost of production was that of the effect ol protection, and that called for investigation by our leading economists. If should not lie made the sport of party politics.