LONDON WOOL SALES.

Otaki Mail, Volume XXVIII, 23 February 1920, Page 3

LONDON WOOL SALES.

Another series of colonial won! 'sales I opened in London, and judging by a letter written last month wool still coin mauds high prices. Some wools realised Old (greasy combings), while other brands sold-up to 87Jd. A later date shows scoured merino combing wools to be fetching USd. Naturally with prices for wool being where they are, some concern is expressed regarding the future. AYJm! really can be expected? We must admit to tho position being very difficult to size up, and any opinion expressed regarding the future may be entirely falsified by succeeding events. Everybody to-day recognises that Wool values can no longer be played with, because it is going to take a round £IOO per bale to liquidate tho high-class merinos which have been bought this week. It is the financial aspect of the situation which undoubtedly is giving rise lo a serious consideration. Messrs H. Dawson and Co. wisely observe that “the dangorous element in the situation is the enormous' locking up of capital which is involved in turning over the raw material into cash under present conditions. Delays in transit and then at the combers mean a heavy accumulation of loss through charges and interest, but this is overshadowed by the heavier disadvantage of capital being, held up for long periods. It is a great testimony to the stability of the wool tradfe that adequate credit is forthcoming to assist at such a critical time, and on. tho maintenance of this credit tho future values will primarily depend. Happily there is no lack of good business available, and, in fact, mills everywhere can yet secure orders far in excess of their powers of production.”