WOOL PROSPECTS

Wairarapa Times-Age, 22 December 1938, Page 3

WOOL PROSPECTS

COMPETITION OF SUBSTITUTES WARNING ISSUED. “NOT A PASSING PHASE.’’ LONDON, November 24. A warning that in considering the future prospects of wool, the effect of wool substitutes must be kept.in mind was given by Mr T. P. Spens, chairman of the New Zealand and Australian Land Company, Limited, at the annual meeting in Edinburgh. “In recent years, the market for wool has been restricted by the exchange difficulties of countries which were formerly regular purchasers on a substantial scale,” Mr Spens said. “These difficulties and the desire in certain quarters for national economic independence have led to the development of the manufacture of wool substitutes in one form or another, and their compulsory use by legislation, thus lessening the need for importing such natural commodities as wool and cotton.'

“World production of staple fibre in 1937 is stated to have reached 622,000,0001 b., a figure which on a clean scoured basis would exceed the weight of the whole Australian wool clip. It compares with 297,000,0001 b. in 1936 and 139,000,0001 b. in 1935. “The force of international conditions and exchange difficulties, which led to the manufacture of substitutes first in Italy and Germany, has now extended to Japan, where the production in these last three years has increased from 14,000,0001 b. to 46,000,000 lb., and then last year to 175,000,00 lb.

“It would be foolish to disregard this development in its influence on the market for wool. It may be hoped, however, that more friendly relations between the great Powers, which we earnestly desire to see, will tend to lessen economic stress, and so allow freer trade in some directions, including the importation of wool, thus stimulating greater competition in the purchase of wool. At the same time it may be submitted that in its wearing qualities wool remains unapproached by such substitutes. “The establishment of the woolsubstitute industry should not, however, be regarded as a passing phase, solely dependent on the economic conditions of particular countries, but must remain, even, with more favourable world markets, an influence in keeping wool prices from rising to the rates which were ruling generally in the decade after the war, and certainly to the high peak prices of that period.” '