THE PRICE OF WOOL.

Rangitikei Advocate and Manawatu Argus, Volume XXXIII, Issue 9147, 16 May 1908, Page 2

THE PRICE OF WOOL.

This year wool had fallen euoranonsly ir. valnf*, ami there would be about t\v-- fuiilions less to spend.—Mv -T who presided at tl.-- {farmer** 1 Union diuuei at Palmerston North on ..nesday v, evening. . k When Mr Balsillio made the fore''i'going utterance he was not aware or ! the father decline in wool values. ' since reported from London. Cablegrams published in the yesterday announced that “business is -brisk at 5 to cent, decline.” Yesterday a representative of the Post waited on the chairman of *f f directors of the ! Bank of New Zea- ■ laud (Mr Harold Beauchamp), with a request for his views on the position. / , . , He said he regarded it as a hopeful omen that, notwithstanding the low Y prices, a strong demand and a large ■ . attendance of buyers had been reported. This looked as if manufacturers were anxious to buy freely at present prices, which, admittedly, were lower than they had been since 1900 or 1901. It was possible that the aspect ho had referred to was going to apply the cure to the present condition of affairs. When the American buyers came into the - market again—as come they must enhanced values woulid have to be paid. So far as he was personally concerned Mr Beauchamp said he did

• not take an unduly'pessimistic view. r While frequently low prices had to ,’Y. he accepted for wool at different Jt periods during the last twenty-five years, the market had never remained for a lengthy period in a

poor condition. “This drop in prices,” Mr Beauchamp continued, “only emphasises " what I have frequently expressed as '•’chairman of the Bank of New Zealand—that it is unwise for farmers and others to base their ‘land values on the assumption that high prices for products are going to rule indefinitely. ” Declines in laud values were bound to result, and he de- * dared without equivocation that lie - would not regard a decline in land values as an unmised evil, ANOTHER VIEW. Mr A. H. Miles, senior partner in the firm of Murray, Roberts and Co. , was also asked for his views. Prices,-he said, were down to such a low rate* that the demand was bound to expand, especially in the face of the low bank rate. What he thought people had to against at the present time was getting into the state of the London market, which a leading broker described to him as one of “universal funk.” “Of course,” he continued, “the figures cabled oat make very dismal reading. We have had some estimated averages cabled out to-day which show that North Island coarse

crossbreds are down as low as they were in 1900-1901. The position will - be brought home to yon when you realise that some of these coarse, heavy crossbreds are only fetching 4>£d to 5d per lb ” “There seems to be a state of ‘universal funk’—as my friend described it—in the Home trade at the moment; and all our advices point to trade being “paralysed on the Continent, and although apparently good business is being transacted in Yorkshire and Scotland, it does not reach anything like the volume recorded in recent years. The position . has been intensified by the holding over of large quantities—7B,ooo odd bales—from the previous sales. “Of course, there is no doubt that tfaefpcsition is a very abnormal one, and that things for some time past have been at the mercy of the ‘ bears. ’ In the second series of sales the catalogue shows that all faulty scoured wools and low crossbreds were a drug on the market. “You ask me my opinion of the future? Well, it must be purely conjecture. My own belief, however, is that the pendulum will swing in the other direction as it has always done before, and just as I have pointed out to you on more than one occasion in the past, that when price are very high the pendulum will swing back again. The good prophet is the man who will tell you when it- is going to wing, and at what rate ! “It would be a very had look-out for us if a strong demand at present prices was not recorded.”