WELLINGTON NEWS

Hokitika Guardian, 3 May 1929, Page 5

WELLINGTON NEWS

LONDON WOOL SALES. (Special Correspondent.) WELLINGTON, May I. The third series of London wool sales is now current having commenced on l’uesday last with a total offering of about 130,000 bales, of which a considerable quantity is of New Zealand origin. Nothing has happened since the close of the second series to warrant any expectation of improvement in values, but if prices keep up to the level of the closing rates of last series the position will be quite satisfactory. At the opening of the second series a drop in value was registered as compared with the January sales, but in the interval there was a depressed feeling and the Bank rate was advanced. Accounting for the unsatisfactory position, Messrs Dawson and Co., the well-known London woolbrokens, who have also a branch establishment in Wellington, state in a recent circular that the chief trouble has been a complete shaking of confidence in every manufacturing centre and in practically every section of the industry. Prices for the naw material have gradually weakened, contrary to earlier expectations, and now that the early purchases are too dear, it adds to the general depression. The weakness in - January unfortunately disturbed, the price-goods market and altered the policy cf cloth merchants. Orders which manufacturers hoped ti> have on their books before now have; been with-held in, fear of a further de- ,; dine. Consequently the demand for : goods has been only slow, but given out in retail manner. These deferred'i~ hopes, it is stated have made the mar- f ,kets very sick, and have further added to the undermining of confidence. It is presumed that foreign sections, which operated freely and confidently before Christmas in the overseas centres, found that they had reached theft safe limits of absorption, and expected that the Home trade and the United States would support the markets more strongly ,but in this they have been disappointed. Some favour the opinion that tire expansion during 1928 of artificial silk consumption for hosiery, knitted ware and ladies’ goods has carried some displacement, although it is being more largely and generally blended with wool than ever before. The financial factor has not been altogether absent in the effect on the markets, especially with failures and restricted credit. The firm was of the opinion that the depression was being over expressed, for there appeared to be more hopeful prospects for the Home trade. . Yorkshire; it was said, was not overburdened with heavy supplies of wool. There is also a general agreement that at the piece-goods end stocks are comparatively light. The restoration ■ of confidence in present values would speedily give an impetus to demand and there are good grounds for an early return of better feeling. But a revival in the general trade of the country is the greatest help that could eventuate, to support the textile markets, and happily there are indications of such improvement. BUTTER PRICE DECLINE. It will be remembered that throughout January the price of New Zealand butter in the London market ruled at over 180 s, but after the first week v in February a decline set in and prices now arre comparatively low. Messrs Samuel Page and Co., of London, in the latest circular to hand, furnish • an expanation of the movement. The influence on the market of increased supplies is often not observable until some little time after arrival, unless the larger quantity is exceptional and received within a strictly limited period. The total imports of butter into the United Kingdom in January showed an increase of 75,981 cwt.' as compared with the corresponding month of 1928. The principal sources of the excess were Australia and New Zealand, the former accounting for 46,427 cwt., and the latter 24,354 cwt. These increased sup-' plies did not noticably \affeet January but Hiey resulted in a depressed market in February, culminating in a fall of 10s per cwt in the value of these descriptions in one week, notwithstanding the fact that current arrivals in February marked a decided falling off as compared with the previous January and with February 1928. At the heavy reduction the market steadied, that is, the declining tendency was checked (but only for a time as has been since shown), but the demand was far from brisk. It must also be admitted that at present there are. no signs of betterment. Since then there has been a. steady fall, and it would appear that prices are now at their lowest.