WORLD’S WOOL TRADE

Hokitika Guardian, 8 November 1930, Page 2

WORLD’S WOOL TRADE

TIIE TURNING TIDE

MORE CONFIDENCE WANTED

WELLINGTON, November 3

“Just as I was leaving England there seemed to be more confidence coming into business and trade,” said Mr Bernard Tripp, o'f Timaru, who returned from abroad by tire Makura. to-day. “This could be seen several ways, each quite significant, and tilings .seemed to be just about on the turn. J noticed this morning a cablegram irom London saying that the worst days ol the depression were probably over. J am in agreement with that. Rays of hope are certainly appearing.’ Some of the cotton mills were reopening, Mr Tripp continued, and certain of those had been closed previously for two years or more. Signs of the t mes were appearing in different ways. 'Business people were beginning to gain more confidence, although it had to be admitted at the time he left Home that prices were not much improved. Another thing that had impressed him. was the fact that the Under-Secretary of Labour had received more applications for night shifts than had been roceved for a very long period. All-night shifts had to be applied for to the Und-er-Secretary, and it was an index, of course, to manufacturing activity.

“The telegram in to-day’s paper,” said Mr Tripp, “rather bears out what appears to be happening in England. A big world-wide depression becomes almost mental eventually, and it is a mistake to talk about it too much. At Home, just as in other countries, what is wanted now is an infusion of confidence into trade and business relations. That seems to he all that is required to turn the tdo definitely.. It will he r, slow process perhaps, seeing that all classes of business have been buying on a hand-to-mouth basis during the depression. More confidence, however and growing stocks will bring round satisfactory times ngaui.” Air Tripp attended the big wool conference at Bradford on June 24 and 25. The general opinion there, he said made it fairly clear that the stocks of wool were not above normal and perhaps below. In this connection! Air Tripp quoted some remarks made by Air Wal - ter Andrews, a member of the British Wool Federation and a director of one of the largest firms in the wool trade. All- Andrews had -spoken in reference to a speech made by Air Tripp advocating the use of more wool. When the war ended, Air Andrews had said there were surpluses of wool in Australia, New Zealand, South Africa, the Argentine and America. All that wool had since disappeared. The world’s production had increased from 8,000,000 bales to 9,000,001) bales, but from the time when the war surplus had been worked off, which took about four years, until the present day the world’s consumption had been almost exactly equal to the world’s production, Air Andrews had said there was a lack of confidence in trade throughout the world which had depressed all raw materials, of which wool was one. Until there was a restoration of confidence and money began to flow more freely into industry low prices might st’ll remain, but in spite of that stocks of wool to-day were not excessive. If anything they were below normal. Advertising and research with the present situation of world production and consumption would create better prices, when confidence had /been established once more in trade.

While in Bradford, Mr Tripp visited the Wool Research station at Leeds. Experiments were being carried out on all the uses of wool and much good work had already been done. Finer goods had become possible. Shrinking had been overcome, the prickiness to the skin of the woollen .surfaces had

been remedied, and many other results had been achieved of great benefit to. the trade. The station was being maintained by a vote from the Marketing Board and a levy cl 2d a bale on all wool sold in London had been agreed to as a contribution to the working expenses of the station. In South Africa, said Mr Tripp, an Act of Parliament had been passed making a levy of a shilling on each bale. This would amount to £40,000 annually, and was used for various purposes in connection with the wool trade. Part of it was granted to the station at Leeds.