MARKETS AND PRICES.

Manawatu Herald, Volume XXX, Issue 442, 26 November 1908, Page 2

MARKETS AND PRICES.

The recent improvement in the price of wool has come at the right moment, says an exchange, and if sustained will do much to put heart into our farming community, and as a natural consequence into the country at large. It is an instance of the incalculable nature of the market for such commodities that no one can forsee its fluctuations, and we might add that no one can explain them after they occur. Hitherto the only reason given for the phenomenal drop in prices is the monetary crisis in America. That had, of course, far - reaching effects, although the continuance of the depression seems longer than could be acccounted for on that ground. Anyhow, if that is the real reason we have good ground to hope for our early recovery. The election of Mr Taft has had a wonderfully recuperative effect on American finance. Securities have appreciated to a remarkable extent, and there will consequently be much more confidence in the money market. That may be expected to have its effects throughout the world in relieving the pressure. It is only a week or two ago that high authorities in the trade declared that we must not expect any immediate improvement in the situation. There was nothing in sight to warrant any such hope. Yet we have already had two sales which showed a distinct upward tendency, and reports from Home are to the same effect. An interesting suggestion is contained in a contemporary's Bradford correspondent’s letter. He quotes from a communication to the Economist hinting that the drop in prices had been caused by a bearing movement in the buyers’ ring with a view to making up their losses on the previous year. The suggestion is consolatory from one point of view, because if it is true it indicates that the period of depression will shortly come to an end.