SOME ASPECTS OF N.Z. WOOL TRADE

Shannon News, 6 December 1929, Page 3

SOME ASPECTS OF N.Z. WOOL TRADE

Demand for Product

Some important aspects of the Dominion’s wool trade were embodied in a very interesting address delivered to members of the Rotary Club at the weekly luncheon recently. The speak■or was Mr D. 0. Williams, M.A., lecturer in economies at the Massey Agricultural College, Palmerston North, and lie confined his remarks to the demand —an aspect about which knowledge is somewhat vague and unpreeiso. Rotarian L. H. Collinson presided. Questions of wool research were now occupying the attention of all the chief wool-growing and wool-manufacturing countries; and within the British Empire comprehensive investigations into wool production, marketing and utilisation were being undertaken, said the speaker. It was one function of research now under organisation to make the peculiar difficulties of both grower and user clearer to each, for the distance between them was great and the knowledge that each had of the other’s problems was necessarily scanty and often grotesquely wrong. Knowledge was vague concerning the demand for wool; in fact, we were surprisingly ignorant of most matters that it would be of interest and importance for the grower to know. England’s Quota Less.

Each year a large quantity of our wool exported to the United Kingdom was re-exported from there to .other countries, chiefly the • Continent. Twenty-five million pounds worth of this was thus re-exported in the period If,-23-27 and probably £20,000,000 worth went to Europe.

If the amount re-exported was deducted from the amount imported into the United Kingdom the resulting figure gives the amount retained, which was the figure that measures the importance of England as a customer. “In the 1909-13 quin-quenuium Eng land retained about 75 per cent, of our total export of wool; but this proportion has fallen in the 1923-27 quinquennium to not more than 56 per cent. : Tn terms of volume this decline represents a drop from 140 to 120 million pounds weight. In the same period our total exports have increased by about 25 million lbs., so that outside countries have absorbed not only the 20 million lbs., no longer required by the United Kingdom, but an additional 25 millions as well. In other words outside countries have increased their consumption of our wool from about 47 to about 92 millions per annum. The chief increases have come from Europe and next from America and Japan.

‘ ‘ Unfortunately there is no way o.f accurately measuring the amount taken by each country. From our point of view this lack of precise knowledge is a serious defect. Wo are sellers who do not know except in a very rough way who our customers are; and this, in spite of the fact that we are dependent to a peculiar degree upon external trade for our prosperity. All we know is that England takes less of our wool than she did in pre-war days, while other 'countries take twice as much' as they did, until now their combined demand is almost as great as that of the United Kingdom. Depression in English Textiles.

“A .succession of events has', militated against the recovery of the depressed industry which is unable fully to occupy all its plant and equipment The French occupation of the Ruhr, labour troubles, the initcrru.ption of normal trade with China, fluctuating prices of wool, competition of other countries, the depressing incidence o' the return to the Gold Standard at prewar parity, high taxation and loen' rates, high annual charges on account of capital, and the competition of new textiles have all been contributory-cairn cs. Again, England has long since lost the advantages she had. over other countries in the nineteenth century and is now paying the penalty of the pioneer. Much of her industry is organised on the nineteenth century scale while that of her competitors is on the twentieth century scale. The’ wool textile industry in England has so far done little in the way of reorganising. “For one reason or another the industry has been unable or unwilling to adjust itself t.o changing conditions; and however sympathetic wc may be

to the difficulties of the manufacturer, we cannot help seeing that in most cases he has proved unequal to the task of dealing with the new problems confronting him. After ten years there is still no clear sign of a determined' cooperative effort to deal with the situation. The experience of these postwar years does. not suggest that the salvation of the industry mil come from the manufacturer, who in many cases still appears to be eager to discern possible weaknesses in his rivals but is less enthusiastic about strengthening his own defences. Growth of Rival Industries.

“Although about 80 per cent of French plant and equipment was destroyed in the war she has so reconstructed her industry that it is now probably greater and sounder than ever before. Belgium too possesses a highly competent industry capable of considerable expansion. Germany is rapidly emerging from the economic chaos of the war and, despite the loss of Alsace, is almost as important a wool consumer as formerly. Italy since the war has changed from a buyer of textiles to a producer with an increasing surplus for export and is now one of the chief wool .textile countries of the world. The Japanese industry has expanded greatly since 1913 and a determined effort is being made to. make the country self-supporting in this respect. “All of these countries show greatly increased demands for wool and there is no apparent reason why their new importance as customers should not be maintained, if not increased. In view of these .changes it is obvious that any plans which may mature for the modification of the type or quality of our wool must take account of this new situation. We can no longer be content to hear the case of Bradford alone; but must call evidence from these other centres whose demand has

become so important to us. Artificial Fibres, Silk and Wool,

In conclusion the speaker stated that the great growth in the artificial silk industry had considerably diminished the demand for wool in certain classes of goods, although as the result of growth of population and the wider geographical .distribution of wool textiles the world demand for wool continued to increase.

“Recently there has been considerable activity in the experimental manufacture of wool textiles made from an admixture of natural and artificial wool. Artificial wool has already passed the stage of incubation in the inventor’s mind; ami it would therefore be stupid to dismiss this development as unimportant or chimerical,”' he declared.

“It is reasonable to suppose that before long the new fibre will enter effectively into the industry. The question that concerns us is whether it wil! be an ally .or a rival to natural wool. As an auxiliary, owing to its low cost of production, it may greatly benefit the woolgrowing industry by opening up markets for wool textiles 'hitherto inaccessible on account of the high prices of the goods. “But quite obviously it has competitive as well as complementary potentialities and the wool grower will need to be alert to the possible effects of the innovation on - his economic position. In this connection campaigns of hate against an “artificial” product are mere waste of emotion and energy. Once the invention is proved a practical commercial proposition it might as well be accepted and such energy and ingenuity as we possess be devoted to adapting ourselves to the new regime.” A hearty vote of thanks was accorded Mr Williams on the motion of Rotarian B. J. Jacobs.'