THE Wairarapa Age MORNING DAILY. SATURDAY, OCTOBER 2, 1909. THE SUPPLY OF WOOL.

Wairarapa Age, Volume XXXII, Issue 9610, 2 October 1909, Page 4

THE Wairarapa Age MORNING DAILY. SATURDAY, OCTOBER 2, 1909. THE SUPPLY OF WOOL.

The price of wool is of such very great importance to New Zealand, where it is still the leading product, that there is a natural anxiety throughout its commercial circles regarding the prospect of recent market , quotation? being maintained. It has been suggested that these recent prices are ephemeral, but any impartial examination of the situation must lead to the conclusion that the tendency of the world's markets is upwards and not downwards. Prices have been hammered down in past 1 years by international causes over which our Government could exercise no control and with which our farmers had practically nothing to do. Prices are being forced up now • adays by a reaction of these international causes, and our farmers and the general community may legitimately hope to reap the benefit now as once they paid the penalty. The primary cause affecting the wcol market is the immense increase in I the number of wool users. The native races of Africa, of Asia, of South America, and of Polynesia are not wearers of woollen cloth and do not create any serious demand even for woollen blankets and rugs. But the nations of Western civilisations buy wool to an extent which is o<ly limited by their earning power, and even in their "shoddies'" seek to retain the appearance of woollens. While speaking of "shoddies--," which are commonly compounded of a mixture of wool and cotton, it may he pointed out that this mixing is largely affected by market prices; when cotton is cheap cotton is favoured, while any marked rise in the price of cotton sets up a tendency towards the use of a greater proportion of wool. Cotton is now exceptionally high, with no apparent prospect of decline, so that the woollen market is bound to feel the increased demand made upon it by the manufacturers of "shoddy." But apart altogether from tbis, we have had during the past half generation a remarkable increase in the wool-using populations. Since 1895 Europe alone has increased her population from 270,000,000 to 300,000,000, while the purchasing power of her peoples has still more greatly increased, particularly in the case of Germany. Russia, another great wool-using country, has increased from 127.000,000 to 155,000,000, and has entered into the industrial stage, which enables her to import as well aB to export. North America has nearly equalled J

the increase bf Europe, having now a population of 115,000,000, as compared to 89,000,000 in 1895. The European population of South America has Rained nearly 6,000,000

in the same time, and is now over 33,000,000*; while even Australasia has gained nearly 1,500,000 and South Africa 200,000. If we add to these increases a gain of 500,000 among the wool users of Asia and minor increases of miscellaneous character, we find that the wool-using population of the world is now 610,000,000, as against 522,000,000 in 1895. Therefore we have to supply 88,000,000 more consumers than ' existed half a generation ago. And where are the supplies? All statistics agree that the world does not contain nearly as many sheep as it di in 1895. when the wool markets ot the world were said to be glutte .. There is a decrease of close upon 40,000.000 sheep to supply n woolusing population which has increased by 88,000,000; and at the same time the partial alternative, cotton, has risen in price from to 5Jd per lb, and has passed the sixpenny mark several times during the present century. The deduction is obvious. Nothing is absolutely fixed, and the market price of wool may ebb and flow within certain limits in the coming as during recent years. But as far as can be foreseen from all the evidence, the general tendency of prices must be forward.