JACOMB AND SONS WOOL CIRCULAR.

Lyttelton Times, Volume IX, Issue 563, 27 March 1858, Page 4

JACOMB AND SONS WOOL CIRCULAR.

London, 4th Dec, 1857. The fourth and concluding sales of colonial wools, which commenced on the 12th ult., closed this evening. The quantities catalogued have been 41,200 bales, being irrespective of large parcels of wool iv second hands, and returns of late shipments of colonial wool hence to the United States from August sales, as well as some large parcels of the growth of North America. .

The sales commenced under the depressing influence of a restricted money market, consequent on the disastrous panic and convulsion of commercial matters in the United States, the rebound of which has been so acutely felt here and in Scotland, in the distressing failures of joint Stock banks and mercantile houses, with enormous liabilities, the effect of which, day by day increasing, had up to the afternoon of the 12th ult. brought the financial affairs of the country to a crisis as fearful as the panic of 1847.

On the opening day of these sales, however, the relaxation of "the Bank Charter by Government letter authorising the extension of the issue of notes, so far as might be required, to meet the exigencies of the case by extended discounts at a minimum rate of 10 per cent, per annum transpired. This rate has continued to the present time without immediate appearance of diminution.

The attendance of buyers from the commencement has been a full average; but from that time it-was clear that the market was a weak one. Prices immediately gave way, for first class fine wools, 2d., and for medium and ordinary flocks and scoured wool, from 3d. to 4d. per Ib. The unusually large quantity of colonial wool from second hands forced into the sales (apparently some 5,000 to 6,000 bales), mostly from Port Philip, Tasmania, and New Zealand, had a further depressing effect, and after the first week the prices again gradually receded Id. to l|d. per 1f).,-and may now be quoted a trifle below May fates for all Australian growths, while on the Cape produce the decline, as compared with that time, is larger. May purchasers have left an average loss of Id. to l£d., and August 4d. to s£d. per 16. to the speculators who have chosen this time for realization of their purchases. ,

From the numerous withdrawals orbuying-in, it is not improbable that some 7000 bales of the number catalogued, together with 3000 of those not offered, remain for sale at a future period.

Foreign purchases have been on a much smaller comparative scale than in August, but it Is ndiffieult to estimate their extent.

The extention of the panic to Hamburgh and other parts of the continent, has produced a general feeling among importers and buyers that there is nothing particularly encouraging in prospect for February sales; —hence a strong desire to realize all such parcels as could be cleared without unnecessary sacrifice. . With the exception of Cape wools, the large quantities of which hare borne down the market for all lower qualities of fleece, handwashed and scoured, the prices of colonial wool are even yet above the average of the last nine years, and must be satisfactory to growers^ although possibly not to importers.

Without taking credit for powers of vaticination, we yet recall attention to our circular of 17th August, when we inculcated rather less sanguine views than were then apparent.

Under all the circumstances of the times and money market, the result of this series is encouraging, the fall in prices having been moderate when compared with that of other produce; and the general adoption of short time working in all the manufacturing districts of the north and west, gives some ground for hope that the general cautious action of Manufacturers -will be rewarded by a revival of demand with the New Year.

The following important item of French news we find in the 'Express,' evening paper, of the 16th December:—

Paeis v Tuesday Evening.—lt is considered certain that a: decree imposing an important duty upon spirits (which, it may be remembered, have for some time been let in duty free, in consequence of the scarcity of wine for distillation) will be issued before the end of the year. The great question is what the figure will be. The general opinion at the Halle is, that the old duty of 15 francs the hectolitre will be simply restored, but, if the petitions of the Chamber of Commerce at Arras and other places in the north are granted, the duty will be raised to 30 francs, or even more, The excuse alleged by the Protectionists on this occasion is, that Prussia is paj-ing a large drawback upon the exportation of spirits, against which it is impossible to compete. " .