THE WOOL MARKET. (From the Evening Star.)

Tuapeka Times, Volume V, Issue 235, 1 August 1872, Page 5

THE WOOL MARKET. (From the Evening Star.)

The Lyttelton Times, of the 18th inst., devotes its leading column to the position of the wool market, chiefly as regards the statistical information given by Messrs Holroyd and Co., wool brokers, in their annual circular. The question is equally interesting to us in Otago, as to the settlers in Canterbury ; for it is important to ascertain what prospect there is of present prices being sustained. We need not follow our contemporary over ground involving unnecessary labor. The rise that has taken place was so sudden and heavy as to take most people by surprise. Messrs Holroyd describe it as " so natural, and yet withal so sudden, and so persistent, as to assume features not often observed, bringing with it results of great importance." The frequency of communication with Great Britain giving us repeated accounts of the same advance in the market has a tendency to confuse persons not actually engaged in that branch of trade as to its real extent : the following table, comparing prices at Christmas 1870 and 1871, will therefore afford data for arriving at a correct conclusion on that point : — 1870. 1871. Adv. d. d. p. oent. Port Phillip, scoured ... 18 28 554 Do. clean washed 17 26 53 Do. greasy ... 84 154 8 %2 i New Zealand, clean ...154 24 55 Do. greasy ... 8 15 874 Sydney, scoured ... 16 28 75 Do. fleece ... 144 23 59 Cape, super, scoured... 17 26 53 Do. fleece ... 114 18$ Gl From this it will be seen that the average advance during the year was nearly 64£ per cent. ; and that the greatest advance was upon New Zealand wool ; the better qualities of which rose 55 per cent, and greasy wool 87^ per cent. The statistics of our exports do not tell us the proportion of washed and greasy wool produced in New ■Zea.la.ncl, and -therefore it is impossible to say what difference the rise in the market has made in the income of our wool-growers. Assuming the quantities to be about equal, and that the produce in 1870 and 1871 was about the same, it will be seen that the average advance was about 7l£ per cent. ; and as the export from New Zealand in 1870 was estimated to be worth £1,704,000, if the whole had been realized by the pastoral interest, it would have added one million of money to their aggrpgate income. Probably this was really the case as the clip of 1870 exceeded that of 18G9 in value by ,£332,714; and there is reason to believe the increased production of 1871 was equal to that amount. Messrs Holroyd state that the rise in the price of English, wool was greater than on Colonial, being fully 75 per cent. The most extraordinary feature of this l'ise in the market is, that it was not owing to any deficient supply, but in the face of annually increasing importations. We have not at immediate command the total imports of wool into Great Britain in 1870 and 1871. In 1867 it was 233,703, 1841b5. from all countries. Probably the import of 1870 was somewhat greater, but the importation in 1871 exceeded that of 1870 by 60,149,3731b5, and there was stock on hand amounting to 24,000,0001b5. When therefore .Messrs Holroyd and Co. describe the rise as " natural," we must not suppose that they mean it was to be expected from the position of the market, but that it appeared to be the result of actual demand : not a merely speculative movement. We think it may be accounted for in many ways. Wool, like most other articles of commerce, was at unnaturally low prices. War. after war had disturbed commercial relations. For about twenty .years the civilised world has been harassed by wars in various countries. The United States and the Continent of Europe had suffered, and every disturbance of the sort puts a check \ipon, industry and consumption of produce. Had these wars not occurred, in the natural course of events wool with other goods would have realised high prices during all that period. The circumstances of all classes of persons would have been much better, and their purchasing power much greater than at present ; and as the amount of bullion in the world is annually increasing, money, as compared with other commodities, it is continually decreasing in value. Apparently the stock of manufactured woollens must have fallen very low. Messrs Holroyd and Co. state that the manufacturing capabilities of Great Britain's machinery have vastly increased ; and as most probably this is owing more to improved processes than to the multiplication of woollen mills, notwithstanding the advance in cost of the raw material, this is a guarantee for extension of the trade through being able to supply goods at moderate prices. It is one of the remarkable features of the application of improved machinery to production that comfort and plenty are carried to the dwellings of the most humble. Thus every improvement tends to widen the market by reducing the cost of manufactured articles;- no matter whether it takes the shape of increased produce at the same cost, or being able to convey goods to buyers at a less rate of freight or carriage. We are therefore quite prepared to understand that the prices of cloths have not advanced in the same ratio as wool. Messrs Holroyd ,and Co. say :—: — " Some branches of the trade have indeed

realised* considenble advance. \v*qrsted manufactures and flannels are quoted in many classes of goods at an advance of from 10 to 40 per cent, but it may be fairly estimated that the warehouseman aud retailer have not yet experienced more than half this advance, whilst in many classes of woollen goods made in the Leeds district it is not open to doubt that, for a long time after the increased value of raw material was fully established large quantities of goods in stuck and even to manufacture (from old wools) have changed hands at a nominal advance on old quotations.

Another feature connected with the state of markets in Europe must not be lost sight of; the price of labor is rapidly rising. This must be considered an inevitable* consequence of the decreased value of money and the increased facilities for travelling that now ai c afforded. If there is one commercial principle that is worthy of being remembered more than another it is that the tendency of free interchange is to equalise conditions of production throughout the world. For many years labor has been exceptionally high in the Colonies. This has been really no drawback to them, since chief attention has been devoted to the production of raw materials. It becomes, however, a serious disadvantage when competition renders necessary seeking an outside market for goods the chief cost of which is labor. This inequality, compared with the old countries, is rapidly disappeai'- [ ing. The idea has been with most : people to equalise wages by reducing them here. Our idea has always been the opposite. We want to see labor l'eceive its clue reward throughout the world. Well paid laborers can afford to buy a full supply of manufactures. Not the least promising guarantee for a continuance of high prices of our produce is the increase in wages at Home. It will, in the end, place this Colony on superior terms as a manufacturing country. Our coal fields are as extensive as those of Britain ; our position commanding as a commercial nation, and our population can obtain greater abundance of Clie comforts of life because of the less cost of living. It would be too much to hazard an opinion that wool may not recede from its present value, but, if peace be continued, it is likely to maintain good prices.