WOOL TRADE

Hokitika Guardian, 1 November 1929, Page 7

WOOL TRADE

EFFECT OF AUSTRALIAN

TARIFF

A UCK LANI) AIKRCIIANT’S observations.

AUCKLAND, October 29. i he serious diminution of trade for sonic British woollen mills owing to the encouragement of manufacture in Australia by the protective tariff was brought under the notice of Air G. Hodgson, an Auckland woollen merchant, during a visit to Britain and the? Continent, from which he returned by the Ulimai’oa. Air Hodgson said that there was no sale for British serges and worsteds in Australia now. and he had met the manager of one firm which used to send £120,(ICO worth of manufactures to Australia, but was now able to send only £]o,ooo worth. The mills which had been concentrating on the Australian market had (been badly hit, as that country was taking only about To per rent of the quantity of woollen goods it used to, and, sneaking generally, those mills had recently been working only half-time.

The slackness in the woollen trade as a whole was partly attributable to the Continent having obtained command in branches which were previ.ou.slv controlled bv Bradford. At hen Mr Hodgson left England six weeks ago manufacturers apnear.ed to regard wool prices as at bedrock, and they were placing contracts for future deliveries, Whereas most of them had previously been buying from hand to mouth, they were then covering for rnientity,, and the stimulated demand should favourably affect prices.

“New Zealand wool is down a little, but prospects are still good, said All Hodgson, turning to the state ol the market from the primary producer’s point of view. On the other hand, he said, the price of Australian. fine wools was down as low as that for crossbred, this being due to the growing use of coarser wools and artificial silk.

Manufacturers in England were complaining of competition from foreigners and there seemed to be : a growing feeling in favour of trade within the Empire. Air Hodgson said that lie bad detected a strong demand for a protective tariff for everything but foodstuffs.