THE WOOL RISE.

Taranaki Daily News, 14 October 1921, Page 5

THE WOOL RISE.

WHAT IT MEANS TO NEW ZEALAND. A HOPEFUL OUTLOOK. The rise in the prices of wool at Home was not unexpected by those in close touch with the position at Home. Wool had got down to the lowest possible price—below the coat of production — due mainly to the economic crises in England and America. Tn both countries the manufacturers have for some time past been living from hand to mouth, buying little or nothing because of the diminution of orders for the manufactured articles. This condition could not last long, and the rise in prices may be accepted as an indication that the woollen mills are setting to work again. In the opinion of a well informed Taranaki agent, the recent rise (if permanent, as he’has no doubt it will be) will mean the addition of another million to a million and a half to New Zealand’s income. Before the war wool brought in about eight millions sterling annually. Tn 1919 it rose to over fifteen millions, but dropped last year to ten millions, the average annual value for the past five years being a little below twelve millions. If prices continue upward, it is possible tne value of wool exports this financial year will reach the pre-w’ar figures. But the producer will still be burdened by the cost of production and high freights. The latter ere being reduced, the latest reduction representing about three-quarters of a million. Were the costs to come down like the prices of wool have the sheep people would not be so badly off. Still the position is improving, and there is good reason for believing that the .lot of our sheep farmers will not be so desperate as has been commonly thought. It is certain that the worst stage has been past and that the future is full of hope not only for the sheep farmer but for every other kind of producer of essential raw materials and foodstuffs.