WELLINGTON NEWS

Hokitika Guardian, 7 January 1929, Page 2

WELLINGTON NEWS

THE WOO], POSITION. [•Special To The Guardian ] WELLINGTON, January 4. Now that the holidays are at an end wo may expect a resumption of market talk. Tlie wool sales have been resumed and on Saturday, January 12th, the third sale o 4 the season to be held in Wellington will be in evidence when a fine representative catalogue will be submitted. There is no reason to anticipate any great variation in prices up nr down. If anything, the market is likely to present a firm tone. Merino wool dominates crossbred and the tone of the merino market is all important. The Australian Mercantile Land and Finance Coy. Ltd., Melbourne, in a review of the wool situation, issued recently, says that there is still a huge stock of wool in sight, but its presence is known by the trade, and so, beyond surface ripplies on the market the position could scarcely be more satisfactory, all circumstances considered. Japan, the Continent and Yorkshire continue to take the bulk of offerings. What activity there has been on American account has been marked by an absence of enthusiasm, while buying for Russia has been spasmodic.

Compared with the prices at the opening sales in Melbourne in October last medium to good quality merinos are about at par, but strong quality merinOs,- comebacks and fine crossbreds have recorded an increase in price of 5 or 10 per cenjt. The sustained demand on Japanese account has provided a very important stimulus to competition generally, and it seems reasonable to expect a continuance of strong buying from that quai;ter. The sparing nature of purchases so far the United States suggests an improved inquiry ifrom that source, but without it conditions are not disquietening. The most impressive market feature this season has been the increased prices—using the phrase in a relative sense—paid for skirtings of all descriptions, prices that make good fleece wool seem low. This market feature has existed for some years, but during the present season it has been more pronounced. The testing period having passed long ago manufacturers, especially those in the Continental group, df certain classes of goods have found skirting wool superior to any other for their special requirements. The total quantity of skirtings of all classes, however, is very small in proportion to the supply of fleece wool. At present, and for the last two or three years, trade in woollens is very much better than for worsteds. That explains the popularity of shorter or softer wools, which are found in great quantity amongst skirtings. It is doubtful if experimenting in the textile industry has been more earnestly engaged in than to-day, and it is difficult to forecast the effect of further changes in methods to say nothing of fashion. If by improved methods in manufacture and in a reduction of cost between the manufacturers and the people wool can be transferred from the sheep’s back to that of the people at lower prices, the people will enjoy more extensive and more frequent' use. Manufacturers are bent on the introduction of more efficient organisation and machinery. Economic pressure has forced new ideas. The evidence in the Australian woolmarkets in recent years of the East becoming Westernised has furnished a striking examples of what can take place. Prior to the commencement of the current selling season buyers indicated their desire to secure a proportion of the better class wools concurrently with that of other classes. A plan called ,soring was devised whereby, in addition to the wools drawn from early shearing districts, a percentage of freer and stylish wools from later stations should be included in catalogues. For cataloguing purposes each district is treated separately and the Wools take their turn of offering in rotation as received. According to the reports the experiment is giving satisfaction, and promises to become permanent.

BOEING FOR OIL. Boring to locate oil pools is very costly and a great deal of money has already been spent in the Dominion in the search for petroleum and success has not yet been achieved. The Taranaki Oil Wells, Ltd., an Australian concern, has spent a huge sum of money in a scientific and systematic search for oil. But it is obvious that the company must spend a good deal more money and this fact is probably disheartening shareholders for it is now announced that the present limited liability company is to be converted into a no-liability ’organisation, in which present shareholders will receive new shares of the denomination of 30s each. The scrip will be issued as paid up to 20s each, so that the Board will have a calling power of 10s a share. This will mean that all shares will have to contribute equally in future. The immediate object of this conversion is said to bo to test an area in the South Island where it is reported that “very generous surface indications of oil exist.”