WELLINGTON NEWS

Hokitika Guardian, 21 May 1929, Page 2

WELLINGTON NEWS

THE WOOL MARKET.

(Sped al Correspondent.)

WELLINGTON, May 18. London wool sales closed last, week and the close was disappointing. Throughout the sale there were reports of a big attendance of buyers, animated bidding and so forth, but the lad remains that prices for all classes o, wools were lower than at the Morel sales, fine wools showing the heaviest drop. Of course woolgrowers in Australia and New Zealand are not keenh interested in London sales just now because most of the wool produced here during the season has passed out ol growers’ hands, that at least is the case so far as New Zealand is concerned, and the rise and fall in prices affects buyers or those who have bought wool, and not the growers.

Still we cannot be wholly indifferent to pri'i movements, for if the present low level is maintained it will make the outlook for wool growers rathei discouraging, Prices dropped last season, they dropped again in the season now closing, and from present indications they are likely to go lower in tiie new season. AViiy this steady downward trend? Wo have not had any satisfactory or convincing explanation for the movement. It, is obviom that the demand lor finished woollen goods is poor and spasmodic. There is no decrease in tlu- European and North American'populations, who must continue to wear warm woollen clothing and yef the demand is relatively poor and weak.

What are thu’causes of this weakness? The ‘prune tlnctor is no doubt one important element. The people cannot afford the high prices asked for woollen clothing. Me know that; the cheapest suit to be had from tin cheapest tailor costs Irom 5 to 6 guineas, and for a decent suit a man is lucky if lie can get one under S guin eas, that is wartime prices. The position appears to be the same in Lit rope, with the result that men are doing with fewer suits and wearing them longer. The women are wearing less clothes and shorter dresses, which means that less material is required. The short dress would not matter a great deal if the hosiery were of wool, but that Is. not the ease, for silk and artificial silk and other substitutes art used in -the manufacture of stockings. Then again'it seems that the motor car has Jlad some influence, for those ■who drive cars save their clothes and shoe leather. The price factor is no doubt the main one, and it is not the price of raw wool, but the cost of the suit of clothes or dress' that is still excessive, and this is driving people tr buy the cheaper substitutes. And that, menace of substitutes is potent and al textiles and fibres suffer from thii menace. The Commonwealth Gwiers’ Asso. nintion is taking active stops to pro mote a publicity campaign with a view to securing greater use lor wool, anc so to counter the competition of sub stitutes. As a basis ot financing a wide advertising campaign in favour ol the use of wool, it is proposed to make an export levy of Is 3d per bale, or one-sixteenth of a Id per lb, or J per cent on the flirt sale of wool, and the opinion of the New Zealand Farmers’ Union is to be sought so that it mai receive consideration by the Advisory Committee in Australia. Id is pointed out by the promoters that within the past two years the world’s textile industry has experienced vast changes, to which the exploitation of rayon, the invention of now manufacturing processes for cotton wool, and certain new textile fabrics have contributed. The attractive superficial qualities of rayon have resulted in an amazing growth in the demand for ic and manufacturers- have been quick to exploit its advantages because" of the low- cost of the raw materia! and its adaptability for producing new and beautiful textiles, leaving a handsome profit to the manufacturer. .The product a>n o.i rayon in 19.11 was iG.'H.'Olb and it is estimated that the production this year will be quit/ 4(10,000,00011), and with the growth id production a vast improvement bar taken place in quality. Figures show that there is actually less wool used to-day in Lite United States than years ago, despite the increase in population ami tlio enormously increased spending power. It is pointed out as a remarkable fart that in smb a rigorous v inter diim.’e ... I'mt of the T.S.A. woollen ii n<l-- c* :• ■ n.'-iii.-. are worn vc-' - \ little as compamu wnii rayon, silk r,...: cotton.

The idea underlying the scheme is to encourage a greater use of wool, and it is pointed out that if the demand for wool were increased wool prices would probably rise also and be maintaihed at the highest levels hitherto reached, if not higher. If wool prices advanced as suggested through increased consumption., what would the manufacturers of rayon be doing? Would they take their beating lying down?