THE WOOL MARKET.

Taranaki Daily News, 13 September 1921, Page 7

THE WOOL MARKET.

' A MORE HOPEFUL’ TONE.

THE WORLD’S REDUCED FLOCKS.

The Minister of Agriculture (the Hon. W. Nosworthy) suggested last week that there was now a more hopeful tone in the wool market. He referred particularly to the reduction in the world’s flocks during the last seven years and the consequent decline in the production of wool. He believed that there was evidence now of an upward movement in values.

“In the many reviews that have been made of the present wool position,” said the Minister, “it does not appear that sufficient consideration has been given to the reduced number of sheep throughout the world. Much has been made of the carry-over stocks of Imperial Government wool which have obsessed the minds of producer, manufacturer and consumer alike. When the worst is said the total stocks held by the Imperial Government at the end of December, 1920, amounted to something less than the equivalent of the 1919-20 Australia, New Zealand, and Cape clips.

“Is it not a fact that in normal times this quantity of wool, and perhaps more, would be held as a matter of course at the commencement of the marketing of a new clip by manufacturers in the United Kingdom, France, Belgium, and Germany? For once in the world’s history this wool has been all in one hand, counted, and held up as a bogey before everyone’s eyes.

'“.lmmediately after the war the world wds starved for woollen goods, and the demand forced up the prices for both raw and manufactured goods to abnormal and unjustified prices. The orgy of spending had the natural ending of empty pockets, and the sudden cessation of demand, coupled with heavy working costs, labor troubles, and the delay in determining the German reparations and the basis on which business would be done with late enemy powers, resulted in a panic which brought prices down in a -few months to the lowest’this country has ever seen and far below the cost of production. “Comparison of the world’s flocks of sheep in 1914 and 1920 indicates that every bale of the carry-over wool will be needed for consumption, and the increased activity lately evidenced in manufacturing centres justifies the belief that an upward movement in values, bearing at least some closer relation to the cost of production, is now in progress.

“The following figures are compiled from official statistics, and show the number of sheep in the principal countries producing wool with which New Zealand wool is in competition:—

•Uruguay, 1918, latest figures available. “There is no suggestion that the production of wool in 1914 was in excess of the world’s requirements—rather the contrary, as wool rose gradually in price from 1906 to 1914. Yet it is seen that in 1920 there were in these eight countries 71,817,312 sheep fewer than in 1914, the annual reduced production of wool at 71b per head and 3501 b to the bale being no fewer than 1,436,346 bales. “Of the principal Continental sheepbreeding countries the mos.t reliable figures show that the flocks of France, Germany, Spain, and Italy combined have been reduced by over 10,000,000 sheep. Of Austria, Russia, and Turkey, there are no late statistics, but even if the usual quantities were available from these countries, which is impossible, the wool does not come into competition with the wool of the Dominions. “Careful consideration of the above facts will, it is hoped, assist to produce a more hopeful financial outlook for our sorely embarrassed wool growers.”

Country. No. of Sheep. No. of Sheep. 1914. 1920. United Kingdom 27,886.095 25,107,806 United States . . 49,719.000 45,067.000 Canada 2.175.302 3 720 783 Argentine .. ... 83,54'6.000 45,300,419 Uruguay .... ... 20,286,296 *11,472 852 South Africa ... 357io’s43 29,305,241 Australia ... ... 78,600,334 73,002,250 New Zealand .. . 24,798,763 23,919,970 Totals ... ... 328,722,633 256,905,321