WOOL MARKET.

Taranaki Daily News, 1 October 1921, Page 10

WOOL MARKET.

MR. MASSEY INTERVIEWED. “LOW PRICES WILL NOT CONTINUE.” ( 'The Prime Minister (Mr. Massey), after a few days’ visit to Bradford for the purpose of inquiring into the position of the wool trade as it affects New Zealand, informed a London Morning Post representative in August last that he had been afforded by the leading firms the fullest possible opportunities of learning the truth about the trade, not only as to its present conditions but also as regards its future prospects. Speaking generally, Mr. Massey found the position more hopeful than he had been led to anticipate. “The impression received was that the present low prices of wool would not continue much longer,” he said. “Much of the present temporary trouble arises from the fact that the Imperial Government are holding a large accumulation of wool. The stooks remaining over from the purchases of New Zealand wool are alone equal to one season’s clip in that Dominion. That fact alone creates a feeling of insecurity, because there is always the possibility that the British authorities holding these stocks might be tempted to do what is called the loss’ by putting these stocks on the market. On the other hand, private stocks are low, and there are no heavy holdings in warehouses in Bradford—in fact I heard in several directions that speculators are already beginning to operate in anticipation of a possible rise in price. THREE IMPORTANT FACTORS. “There are other factors which may tend to strengthen the position from the producers’ point of view. The first of these is that the number of sheep in the world to-day is very much lower than it was at the time of the outbreak of war. In the second place, I am informed that according to reports received in London from -South America the sheep farmers there are reducing their holdings of sheep, and stocking up with cattle, for the reason that in the Argentine beef is just now a more profitable export than mutton. In the third place, the cotton crop is said to be not very good, and a shortage in that direction should be made up by an increased demand for wool. “Add to these factors the further consideration that some of the most populous Continental countries are suffering from a shortage of clothing supplies, which must be replenished of the particular grades of wool which New Zealand supplies, and you may make out a good case for the optimistic view which I have reasort to believe is how held among Bradford authorities on this subject)” CONTINENTAL MARKETS. Mr. Massey admitted that against all, these encouraging anticipations there remained the hard fact that there was in the hands of the British authorities a vast accumulation of wool remaining over from their war purchases, and much care and provision would have to be used in placing those stocks on the market. He, however, hoped for great relief from the re-opening of Continental markets, which in pre-war days absorbed very large consignments of wool, particularly of the crossbred variety which New Zealand produced.