PRICES STABILISING.

Shannon News, 16 January 1925, Page 1

PRICES STABILISING.

The results of the Christchurch wool sale held on Monday last must be considered satisfactory from every, point of view. It fully confirmed the' views expressed in these columns on several occasions that no serious de. cline in values is likely during the present wool season. It also vindicates the action of the wool committee An reducing the offerings at the various sales. It will no doubt be found,; that the prices realised in Christchurch on Monday will more or less form the basis of values for the rest of the season. This must certainly be satisfactory to the wool growers of the Dominion, and will even be of greater benefit to the industry than a further rise, followed perhaps by a 1 decided' decline. * B The fact that 10 to 15 per \vool was passed in at Christdhurch appears to indicate that, a number oJt; wool-growers—or should we say woo* speculators—are still anticipating a further advance in values. There are, of course, a number of individuals who are- prepared 'to take a gamble at any price, and in this connection It would be of interest to ascertain how much wool is bought and resold la New Zealand a second or even a third time. ' 1 I

Touching upon the question oi stability of present values, it is In. teresting, to note what the representative of a large wool firm (Winchcombe Carson,'Ltd.) has to say:— • On one hand the prophecy is heard that wool will cheapen; on the other confidence is held in the general stability of rales, writes thi s firm* We retain our, previously expressed S opinion that no, decided decline hi values is likely. It cannot be ( stated that no change will be recorded itt the market from January to April. Welcome though that happening would be, all previous experience has been that the market does not proceed month in, month out, without: some variations, either upward or downward, occurring. Even the value of gilt„edged bonds, bank shares and other securities varies. A hundred and one influences can affect the wool market. A cool summer .or a warm winter will have effect on trade in fabrics in any country, and consequently be reflected in the demand foi wool from that quarter. No, person can anticipate changes of-that character, but manufacturers are, to all *•' intents'and purposes, right on the sheeps’ backs so far as raw material supplies are concerned, and no let up from that position is at present in sight. At this time last year buyers and sellers of wool were all convinced that rates at new year auctions would be higher, and those convictions prov. ed right. It must be admitted that such definite optimism is not about on this occasion, but prices have been 20 per cent higher from September to December this year than last "year* Expectations of a further rise could, not reasonably be held. Faith in the soundness of the current market is encouraged by the fact that business has not shown any of the characteristics of a boom. Prices have • been high, but the amount of wool acquired by any one section been

on the conservative side in volmue. Necessity has apparently dictated buying operations, and while that pressure exists we see no reason to assume that demand can slacken to any decided extents”