THE WOOL MARKET

Taranaki Daily News, 28 January 1921, Page 4

THE WOOL MARKET

The latest report of the tone of the wool market in London is encouraging, there being stronger Continental competition at the “free wool” sales, owing to appreciation in the value of the franc. At the recent sale at Timaru it is stated that a feature was the demand for good, light three-quarter and cross-bred wools suitable for the American market, a full bench of buyers being present, repre-

senting English, Continental, American and colonial mills and scourers. While dusty halfbreds receded about a penny, good light half-breds maintained their prices. This would seem to indicate the existence of a steady demand for manufacturing purposes, and points to a probable revival in the trade. It is only a question of time when normal business in the wool trade will resume. The feverish rush to secure large profits is over, and the precautions taken against the operations of speculators, though temporarily affecting prices, cannot fail to result in protecting the interests of the growers. It is fairly certain that wool prices will not revert to anything like the high values obtained during and since the war, but the demand for manufactured goods is greater than ever, though at prices which must be within the reach of the masses, and the sooner manufacturers and merchants adapt themselves to existing conditions, the sooner will the trade revive on a permanent basis The purchase by the British Government of the South African clip, which, it is considered, will be handed over to the Australian Committee for realisation, should be a factor in steadying the market Naturally . this deal has met with hostile criticism at Bradford, as it must operate by way of a further check on speculation and profiteering, especially if the New Zealand wool is controlled by the same organisation. The Bradford Observer pretends there is a danger of a complete corner in wool being established, and that Mr. Hughes’ dream of “dictating wool values to the world” may be realised. .That line of argument is so evidently biased that it defeats its own end. The wool realisation scheme, if capably handled, should be an object lesson to the Dominions in marketing their produce to the best advantage. The haphazard measures of the past should be replaced by systematic organisation for selling and distribution, also for manufacturing. It is only by united action that the producers will obtain the best return for their commodities and be able to face the keen competition of the future.