THE WOOL MARKET.

Taranaki Daily News, 22 April 1920, Page 5

THE WOOL MARKET.

difficulties in shipping. SMALLER EXPORTS TO BE 'MADE. By Teloerapli—Press Association, Wellington, Last Night. A letter dated February lfi, and sent by the Director General of Raw Materials, London, to Mr. Mussev, contains the following passages: — ''l am sorry to say that very considerable difficulty is expected in carrying o'ut tin; arrangement!) to lift the whole of the Australian and New Zenland wool before the end of the year. Steamers carrying meat and wool are experiencing very great delay in the Thames and elsewhere in British waters, very largely owing to the .liUUully ip dealing with meat. The carrying yow,nr on the steamship lines working with New Zealand and Australia is thereby reduced by at least 3D per cent, anil they arc finding it Impossible to deal with the cargo offered for shipment in the two Dominions.

"It is true that this Department has a contract with the Australian refrigerated tonnage committee which positively binds their steamers to lift the entire balance of the Government purchase of wool before November 36, but unfortunately the Shipping Controller has intervened to press upon these steamers shipments of wheat which were not specifically contracted for. We are protesting against such interference, but the fact ; s "that as regards 465 wool our market is very well supplied, and as regards coarser grades of wool considerable stocks ars lyi/ig dead in our hands. "it is therefore extremely difficult for us to maintain that the shipment of 70,000 bales of new won! per largely consisting of medium and coarsj erossbreds, is indispensable, and we are afraid we shall be compelled for some months to allow the sh'pments from -New Zealand to fall to 40..CC0 bales per taonth, or even less.

"The existing market conditions Indicate pretty dearly a probability that as regards low crossbreds a full'years clip equal to about 200,000 bales is likely to remain in the Impe:,'al Government's hands when jour next clip begins to be gathered. The time must surely come when large masses of people in thi impoverished parts of Europe, who cannot afford to pay for lu.vm':e,s will provide a demand on a large scale for useful woollen clothing made out of coa/ss brossbreds, but it nfiist bo admitted that, the market shows no sign of such a,d»mand making itself felt". On the contrary we hear that in the United States holders of crosses both from New Zealand and South America, are breaking prices badly in a de-i;cratc effo-t to fmd an outlet for this' dead stock, but are not finding that this helps sat«s much.

It must be clear to von that sooner or later the question must be faced whether too much coarse crossbred wool is not being grown in -view of Ibe infinitely better price,; which are now being paid for fine crossbreds."