WOOL AND THE LAND.

Shannon News, 5 December 1924, Page 1

WOOL AND THE LAND.

MORE INQUIRY FOR FARMS. BETTER TONE IN ' EVIDENCE.; _ PRICES IN CLOTHING TRADE. IMMEDIATE RISE NOT EXPECTED The confirmation and strengthening at Napier of the high prices, paid for, wool at Wellington are facts'.that are already having a beneficial influence on the business life of the community. The general effect is good, i’nspiring confidence and optimism in the outlook for the man on -the land. Two special effects may be noted. One is better inquiry already evident in .the. l'and market, particularly for sheep farming propositions, and the other is the stimulus higher prices should give to the woollen manufacturing trade, which in New Zealand has recently suffered a somewhat severe depression.

A better tone is noted by land agents. This applies to almost all classes of farm lands, for it ,is not only wool, but butter, mutton, iamb and cereals that have opened the season well. People are beginning to talk periously about ~farms again instead j of dismissing land offhand as a hopeless proposition. That more hopeful attitude is important. It indicates a reaction from that concentration of finance and enterprise in the cities and towns which has held such dangers for the true prosperity of the Dominion.

To-day there is plenty of inquiry for farms. “We can sell any number of them if we could only arrange for finance,” declared one well-known Auckland agent on Saturday. “In the last few days there has been inquiry particularly for sheep country. That is natural with the prospects so good for both wool and lamb. But there is also a demand for. small one-man dairy farms. , What An Extra Penny Means. “Finance is the sticking point. New Zealand has great funds in London but the question is how to bring the money here without dropping too much bn the way. A rise of Id. per lb. on wool, such as was recorded at Napier, means an extra million pounds in the aggregate, as the Dominion’s clip amounts to about 240,000,0001 b. The rise so far recorded this season over prices ruling last March means an increase in the farm, ers’ receipts Of from £5,000,000 to £6,000,000. But we have got to get. hold of that money first. When it is in circulation it is going to make a great difference in the complexion of affairs, not only .on the land, but throughout every phase of the country’s v life.”

Other agents had the same story to tell of a more hopeful tone and better inquiry.' It was time too, they considered, that attention was turned from bricks and mortar i’u the city. Urban values could not be maintained if the country were neglected and allowed to stagnate. A favourable disposition toward rural securities was essential and the buoyancy of the primary markets was producing the right atmosphere. An easing _of the exchange position and the opening of the minds of large trustee concernsand financial organisations was needed now to consolidate the greater health apparent in rural affairs-Ad-mittedly the golden fleece was having a great Influence in that direction, and would/, moreover, encourage the farmer to launch out, whether by stocking up his present holding or inducing him to undertake the farming of a larger area. Reaction on Clothing Prices. High prices for wool are bound to re-aot on all woolle'n goods, state® the head of an Auckland wholesale firm. It is not, however, expected that the effect will be immediate, The woollen trade in the Dominion has been .depressed as a result of heavy importations. , Until these are cleared and demand sets i’n, there should be no increase in prices. A dead loss to New Zealand mills is certain at the quotations at which they are executing orders if they have to manufacture the articles at the present prices of * wooL They have been working recently against keen outside competition,, and have had to cut 1 their prices drastically. To meet the position created by heavy imports and heavy stocks prices were cut to induce peoples, to buy. Certain lines are at present selling at a dead loss, and even so the demand has not been Sufficient to e’nable the mills to work full time.

Referring to a report from Palmerston ; North, forecasting a rise in the price of suits above that asked during the war period, the warehouseman considered this rather ,a rash statement. If, the retailers were well stocked, as they had been, they were not going to put up prices immediately. Until they sold out present stocks the rise would not have any effect on prices. Good Effect on Trade. Of course the prospect of higher prices ultimately might induce the basis. ■ . farseeing of the buying public to take advantage of present prices. But more business might be. expected from the retailers who were short-stocked, but : had been holding back fa the expectation of lower quotations, The recent sales would convince them that

that expectation was vain, and they* would try to get in on the present, present stocks and starting sooner or, , later-on the higher basis made neces-,.' In that way the improved value for; the raw material was bound- to have f a good effect on trade, apart from the, greater purchasing power placed in ; the farmers’ . hands. Quotations for; j British woollens had already increase ? ed, compared with a few months ago.sf and this"-was all in favour of clearingsary by wool prices.