The Nelson Evening Mail. MONDAY, MARCH 19, 1877.

Nelson Evening Mail, Volume XII, Issue 67, 19 March 1877, Page 2

The Nelson Evening Mail. MONDAY, MARCH 19, 1877.

Tue wool trade of New Zealand has assumed such importance, and the resources of ; the, colony are so largely affected by the fluctuaations of the London markets, that the sta: tistics which we propose to give to-day cannot fail to interest a large number of our readers. They are collated froin the . annual report, of Helmuth Schwartze and Co., of London, which contains a deal of information beyond that to be found in ordinary trade reports. Without further preface we will from the figures before us proceed to show the immense strides made in the Australasian colonies in this particular industry since 1867. In that year the total amount of exports from New South Wales, Queensland, South Australia, Tasmania, Western Australia, and New Zealand was 412,641 bales. Since then the export from these colonies has been steadily on the increase with the exception of the year 1872, when, for some reason of which we are not aware, the product was 45,000 bales less than that of the previous year. After this there was again a very large annual improvement, which iu 1873 amounted to 29,000 bales, and in 1874 to the enormous sum of 100,000 bales, and so op, until in 1876 the exports reached 768,868 bales, showing on the whole an increase of more thau 356,000 in the decade referred to. During the whole of this time New Zealand had been making steady progress, her contribution having swelled from 76,364 to 162,154 bales, until she is now second only to Victoria as a wool producing colony, the amouut furnished by the latter bpjng 306,803 bales, New South Wales and Queensland, which are classed together, supplying 169,874, or about 7600 more than our own colony. The magnitude of the trade, however,. will be better understood when represented by pounds sterling instead of the number of bales, and a tabulated statement which shows the average value per bale, and the aunual value of the commodity which found its way into the Loudon market assists us in arriving at a more intelligible result, while it is also interesting as showing the enormous

fluctuations that take place in the market. Ifor instance, iu 1869, the sheepfarmers' year of famine, the average price per bale was £15 15s, and the number of bales sent home, 633,950, realised £9,984,900. In 1872, the sheepfarmers' year of plenty, so far as prices were concerned, the number of bales had only increased by about 28,000, but on the other hand the average price had gone up from _Jls 15s to .£26 lCs, and the total value was £ 1 7,532,400. The average annual value of the wool imported into England from British Colonies during the years 1866 to to 1870 inclusive was £ 1 1,074,000, from 1872 to 1876, also inclusive, it was £18,144,400, although in the latter year the average price per bale was £3 10s less than in 1875, £4 10s less than in 1874, £5 10s less than in 1873, and £7 15s less than iu 1872. The value of the New Zealand wool imported into England in 1876 was, even at the comparatively low prices that then ruled, £3,040,387. The following extract from the report before us gives the reason of the remarkable fluctuations which occurred during 1876:— " The past year has been remarkable for strong contrasting fluctuations; first a heavy decline, later on an equality decided rapid rise. ; If the advance was a surprise to the trade, as much cannot be said of the decline. For years it had been impending, heing necessiated by the manifestly anomalous condition of the industry: " When, partly owing to excessive enterprise and partly to the growing tendency to division of labor in the manufacturing processes, more washing, more combing establishments, more spindles, more looms had been put up than the actual consumption required, the injurious consequences met the manufacturer at every turn, whether he bought or 'sold." Excessive competition keptjthe raw material up, the market: for goodfe L.i-.vn. In such a position the industry could not remain indefinitely. To extricate it from it there seemed but two ways, either the abandonment of establishments (which has ihdeed been, done, though on a small scale|) or a reduction in the price of the raw material. Ever since 1873, therefore, this reduction "has-been expected, though under what combination of circumstances it would be brought about, could not been foreseen. At length it has happened, very suddenly and like all deferred eveuts, in ad excessive form. In the course of four months, from March to Jnly, avool fell nearly 30 per cent, touching almost the low level of 1869-70; the lowest the article has known for years. The condition of the wool trade itself at the time, hardly warranted a fall oisuch extent. Like all other trades, it was depressed, suffering from the want of all healthy enterprise, but its requirements would probably have been met by a smaller decline. What then caused the greater? The explanation is, a fall had so long been expected, so many reasons converged to render it imperative, that when it occurred the overwhelming majority of the trade at once believed and accepted it as perfectly legitimate and lasting. It had nothing in common with a passing fluctuation, but appeared the inevitable readjustment of a notorious, long standing, and in its effects ruinous anomaly. The wonder was not that wool declined, but that prices had kept high so long. Although, therefore, the trade got its wool cheap, and cheaper than it had a short time before anticipated, it by no means considered or treated the opportunity as either particularly favorable or exceptional. The spinner made his contracts ou the cheap basis, the dealer sold his cheap wool cheaply, and seldom, probablv, has a large fluctuation in wool occurred in which the disadvantages on the side of sellers were so little counterbalanced by advantages on that of buyers as in this fluctuation last summer."