WELLINGTON NEWS

Hokitika Guardian, 24 October 1930, Page 2

WELLINGTON NEWS

THE WOOL MARKET. (Special Correspondent). WELLINGTON, Oct. 22. With anything like favourable weather" shearing will he pretty general presently, especially -in the North Island and the marketing of the clip is naturally engaging -attention, and some concern, because there is an unprecedentally heavy carry over, estimated at 116,000 -.bales, and the pre-

sent exchange rates on London rather ' favour the wool-grower . who de-i j cides to consign to London., The carry over is somewhat heavy in the Wellington district, about 28,000 bales, and tho wool brokers here are somewhat apprehensive that growers may bo lured ibv the favourable exchan, eja and go past the local market and-forward their c-lips, to London for sale. They have decided upon an equitable arrangement* with respect to the offering of carry oyter wool, .but th’ry are 'nlfraid, or seem to be that the v favourable exchange, on London will' sss} way prove detrimental to local selling and so to emphasise the importance of marketing wool locally they point out that norjnaily 500,000 bales are sold in New Zealand, and tho’. wages and outgo in' connection with the handling of the wool and preparing same 'for sale - are circulated in ithe Dominion and the money is spent-’Here. 'lt is estimated that this amounts to £375,000 per annum If any portion of this sum is not kept, in tho -Dominion, but is. spent overseas) Now Zealand will be to' that extent l ,.jshort.....in. .spending power arid our unemployment difficulties ‘ proportionately increased, with prospects- of further taxation tomeet this ■ shortage. ’Thi's appeal -.to sentiment ' is 3n ushy, and is- •_ sob-stuff of ; an unpalatable nature. The wool!'.grower' must not (be* swayed: by sentiment or altruism but must do the bent he. can for himself, that is sell 11%, wool for as high a price as lie can get and in

doing the best for lumsolf he will lx; doing the 'best-for the community. To buy in the cheapest market and sell in the dearest is commonsense for it is human nature. Wool brokers no doubt follow that rule, and why they think that wool growers this season should be philanthropists and help tlie unemployed is beyond comprehension. If wool growers feel convinced that they will get a better return by consigning their clips for sale in London, they .must do so, indeed it is a duty that they owe themselves and tho country that they should do so and there is no sentiment about that. The more money the farmers ot New Zealand get for their produce the .more wall they ha.v© to spend, and the more will the country benefit. Mamwool growers rnav be influenc(ed (by tho favourable exchange on London to act; unwisely in their own interests, that is to'say that'they may decide off-hand to consign to London to take advantage of the exchange position. But the grower who decided to market his clip locally will also get the benefit of the favourable exchange, for the foreign buyers who operate locally will take the exchange into consideration and regulate the pride accordingly just as they take into consideration other factors affecting the- wool trade. Broadly speaking, the grower who ships to London and the grower who elects to sell in the local market stand equal so far as the favourable exchange is concerned, the only difference being that one gets it directly and the-other indirectly. The wool grower when considering tho marketing of his clip may safely dismiss from his mind tho advantages of the exchanges,, for tJie ; advantage will accrue to him whether he sells in, London or sells in New Zealand. The problem that the wool grower has to solve for himself is whether be will get a better price for bis clip in London or New Zealand. Unemployment, keeping the money in the' country and other alleged patriotic slogans need not trouble him, hi.s. sola aim should be to secure the, greatest benefit for himself, and in doing so, it must again be said, that

he will confer a benefit on the country. When the farmers are prosperous t'lio country cannot help being prosperous. London sales or local sales? That is the Nvool grower*,’ problem and it is a serious one. Without in any way desiring to tender advice' it is a noteworthy fact that season after season prices realised in New Zealand and Australia have been above London parity, at any rale that has been the case during the past two or three seasons, and the proof o: it lib's in the fact that wool /speculators who bought in the Dominion were heavy lovers when they reoffered their purchases in London. Even at the last London sales there were heavy withdrawals of speculators’ wool because the price bid was to.) low. Gn the whole growers will in the, long nip- find that selling, at the local isiilrs is the best policy. They must, however, be prepared to sell.