PRICE OF WOOL

Otago Daily Times, Issue 19473, 7 May 1925, Page 9

PRICE OF WOOL

DEPRESSION IN AMERICA. EFFECT OF WIRELESS AND MOTOR COMPETITION. Prau Association—By Telegraph—Copyright. SYDNEY, May 6. The Australian High Commissioner in the United States (Mr J. A. M. Elder), in a letter, says that the general use of motor-cars and wireless is a factor which is causing depression in the woollen industry in America.’ The American press contends that the price of wool is too high, and this has farced the American manufacturer to a point where it is impossible for him to buy. After a visit to Boston, the wool centre of the United States, Mr Eider has reached the conclusion that the state of affairs is due to local conditions, as the increases in wool prices which have occurred during the last two years do not amount to more than one dollar in a suit of clothes. On the other. hand, the costs of manufacturing, tailoring, and other incidental expenses have tremendously mcreased. Tailoring wages are 300 per cent, higher than they were in pre-war days. He says there are 17,000,000 motor-cars in the’ United States, of which about 75 per cent, are purchased on time payment. There axe also about 4,000,000 radio sets, the greatest number of which have been bought on time payment. Mr Elder considers that these purchasers meet their obligations by saving on clothing. Radio keeps people more at home, and they do not 1 dress up to go out so frequently. The American bankers say people do not wear good clothes for motoring, and this clothing does not wear out so rapidly. The artificial heating of houses is extending everywhere among all classes, consequently woollen underclothing is going-, out of fashion. The demand in America for wool will continue unsatisfactory for same time, but the country is prosperous and wealthy, and wages are likely to increase because of the operation of the-new immigration restriction laws. -LONDON SALES. 20 PER CENT. DECLINE LONDON, May 5. The wool sales opened with a 20 per cent, decline. The withdrawals were very heavy.—A. and N.Z. Cable. 60 PER CENT. OF WITHDRAWAL QUESTION OF FUTURE SALES. LONDON, May 5. (Received May 6, at 8.15 p.m.) At the wool sales there was a large selection of low crossbreds and few merinos. There was a crowded, attendance at all sections, but many were attracted only by curiosity. The bidding was slack and numerous lots did not attract a single bid, the withdrawals being estimated at fully 60 per cent. Occasionally there was good competition for super merinos, in wmoh there was a decline of 10 per cent., which is less than was anticipated. Selling brokers will meet on Thursday to decide whether to curtail or abandon the remainder of the series.—A. and N-Z. Cable. EXCESS OF WOOL IN SIGHT. WORST CONDITIONS FOR TEN YEARS. LONDON, May 6. (Received May 6, at 5.5 p.m.) - The .Daily Telegraph states that no serious London wool sales since NovemberDeoemher, 1914, have opened under such bad conditions as the present one has. The whole trouble seems to be that there is an excess of wool in sight, and prices have reached a level at which the consumer has rebelled. It is also probable that the first half season was conducted at too hot a pace, partly through the operation of speculators who had no interest in wool or wool textiles.—A. and N.Z. Cable.