WELLINGTON NEWS

Hokitika Guardian, 16 September 1930, Page 2

WELLINGTON NEWS

CHEAP SUGAR. <*/• , t ' ! ( •’.» (Special Cdrreispondeht).*

WELLINGTON, September 15. This staple article pf food Was nfiver so .cheap as it is now.- -it being<jbne of the victims of the general debacle in the values of all conimodities. Stigar prices look diminutive wlien compared with current. prices, for a number pf foodstuffs, or even cattle feeding stuffs. In a review of the international sugar market in a London trade circular it-is pointed out that sugar represents' one of the cheapest of al] human food, products, and; is only slightly , ahead in value of some cattle fodder articles.

A 150,., that-sugar, the product of, u most complicated, elaborate, extepsivjß and expensive procedure, consisting first of first labour in field, and afterwards of production in the factory and the refinery, appear to rank inV,value on a par with potatoes, which are pfdr duced by the mpst simple method, djr ' rect from the fields. The beet product provides the further and most remark* able and probably unique feature of its by-product, dried beet pulp running it very close in value; so that cattle may lay claim to food material almost as expensive, antl in part even more expensive, than the food article employed by humans.

The review adds: “It might be mepy tioned that outide the so-called staple commodities a varipty pf others can afford to look down op sugar.' Sucji delicacies as peanuts and much favoured by the populace, feijoji higher wholesale prices than sugar, although undergoing no ppo.ceps of inarjufacture whatever. Sugar'; is further distinctly a loser when compared with a number of 'stable qommodities representing semi-finished and finished articles outside human and . cattle fppdstllffs.” ‘v- • THE WOOL MARKET This week we will hear a good deql about wool, because of sales in Sytjhpy and London. The Australian ing season opened with the' sale- at Perth on September 9. when 20,05) bales were offered and the sale was reported seatisfactory. Thai,'howpvpf’, was a comparatively, spiall salp, bptiibe the sales at Sydney this week slidijld give a better indication of the market trend. Added to ihis ia the sanie in London, which is the fifth of the, series. ■ ■

The quality to be offered in *Londpn is fairly, large, for the cfirry oyer irom the July sale, plphe °y* r n-'OjflQO bales of which 56,00 Q b|UfP ; wb.M.; offered at all. It spenjfi pWleis lqp)<. ing for an improvement iq bpt it will be encouraging If value's jjre maintained, During the past twelve months wool values have flqctu<ij:ed; In a very distressing manner ifid thereby wrecking confidence. If wfe are spar-* ed such fluctuation this, season confidence will be gradually restored and Mis-, iness will proceed in a normal manner.

Finance is the principal factor in the situation.' Bradford manufacturers have lost a good deal of money and are not in that healthy financial position that makes for big business. On the other hand, by the recent reduction in wages in the wool textile industry there should be an appreciable decline in the costs of production. Germany has always been an active buyer of both fine and coarse wools, but the economic conditions in Germany at the present time are very unsatisfactory, with unemployment rather pronounced and money, very scarce.

Germany is bound to buy very sparingly. Belgium is a small buyer, but nevertheless her purehasesa are helpful in sustaining the market. Trance is financially in an excellent position, and France promises to be the mainstay of the market in Australia and here. The United States can almost be ruled out but America will need a little foreign wool; she will want the best .and will no doubt be prepared to pay accordingly. Japan is very much like Germany as regards finance, ■ r ■

Japan reverted to the gold standard early this year and will no douht be very anxious not to jeopardise her position and impair her credit. Japan is bound to be very modest in her wool purchases. Nothing much is to be expected from Russia or China, for both countries' are suffering from economic chaos. Wool is .in a good position statistically, for there is practically very little held over wool to cause any disturbance. Wool may not rise, but it should not drop as things are.