Colonial Wool Report.

Manawatu Herald, 20 June 1896, Page 3

Colonial Wool Report.

■ ♦ ■■ The New Zealand Loan and Mercantile Agency Co., Ld., have received from their London brokers the above report;. London, 14th April, 1896. The commercial record of the first quarter, not only compared favourably with the corresponding period of last year, but afforded valuable evidence of national vitality, which promises well for the future. Home industries, as a whole, are better em ployed and in a more prosperous ■tate than was the oase twelve months ago. On the other hand, it is commonly recognised that present conditions of business, owing partly to the increasingly influential part played by rank speculation, and partly to tariff uncertainties and restrictions, require greater vigilance than ever; and hence a spirit of ■^k caution which is more or less always to the front, and as consequence, pulsations of value which makes themselves felt, especially in a rising market for the raw material. Nothing is however more striking at the present juncture, than the fairly even course of trade in communities freed from tariff disabilities, compared with the extreme alternations of prosperity and depression, which so readily occur under the aegis of protection. La3t year, the chief im petus to European activity was derived from the United States. This year bo far, it has been quite the reverse. It remains to be seen what the ulterior effect of so sudden a change, may be upon the world's commerce. The experience of the present year, in respect of wool, bids'.tair, indeed, to provide a wholesale example of the process of adjustment, both of quantities and values. The distribution ef a large proportion of the dip on Colonial markets before the full circumstances of either supply or demand can possibly be under* stood, must, until growers care to study the question of wool-celling from a larger point of view than that which comes under their own immediate notice, continue to be a recur* rent and fruitful source of trade disturbance. For instance, on this market, Colonial wool has enjoyed a large measure of favour since the beginning of the year at an advance of some 15 to 20 per cent., particularly on the lower middling sorts. In the United States, on the other hand, wool has been to such an extent a drug in the market, that inducement to ship direct Australian £- Australian importations to London for realization, has engaged widespread attention. Belief of this nature has however, so far, only taken form in the shipment of American grown staple to this country ; but much in this connection, must depend upon the further upward oourse of this market. In Surope, as a whole, although the dullness of Amerioan trade is recognised as the serious feature of the moment, stocks of wool are in such A narrow compass, that placing one consideration against another, confidence in the position of tbe article is altogether unshaken. The course of the March series hero was however, both interesting and to some extent puzzling ; interesting because reverted to a basis, to which Colonial wool had been ft stranger for nearly five years, and puzzling because of the really onesided character of the strength which was developed. This }afct«r circumstance is especially

worthy of note, since it may not be without effect at the next series here, in* view of the advance having been in excess of general trade anticipations. There is nevertheless 6very probability that as the year progresses, the true circumstances of supply and demand will make them selves felt with increasing clearness and effect. Continental terminal markets have continued to fluctuate in their usual mysterious way. From frs. 4.12£ d (18d per lb) at which point River Plate • tops ' stood on the 18 th February, quotations had moved up to frs. 4.25 (18J6) by the time the Lpndon March series opened, then advanced to fre. 4.80 (18$ d) on the 17th ultimo, since when they gradually reoedtd until on Slst idem the figure had again relapsed to frs. 4.12£. It is difficult to understand the immediate significance of what is, after all, a mere gamble, but Which is nevertheless entered upon with a definite ulterior purpose. Such transactions may seem to have but little concern for the Australian wool grower ; but as a itiattfcr of fact, they have everything to do with his closest interests, and their inner working may be studied with profit. Operators in Australia have done well this past season, and once more demonstrated their superiority in organisation and judgment, over those entrusted with growers' interests on local markets. Private enquiry has been on the most limited scale during the current interval, __^