THE FALL IN WOOL.

Wairarapa Daily Times, Volume VII, Issue 2145, 14 November 1885, Page 3

THE FALL IN WOOL.

Some correspondence which has recently appeared in the ' Times' relative to the low prices lately rulin« for wool in the London market is thus referred to in the ' European Mail':—lt is pointed out by a correspondent of the 'Times' signing himself " 1.C." that in twelve months to date the drop in the price of colonial wool lias exceeded 25 per cent, representing a sum of not less than £4,000,000 sterling, " This ruinous fall," observes the writer, "is due to several causes, notably to increased production from the River Plate, wool consigned direct to the continental consumers, and largely to the huge adulteration of the raw material with shoddy, The last element the Legislature should deal with in no unsparing way—say by malting it penal to mix shoddy with wool in this country; and further, by putting a protective duty on foreign woollen manufactures adulterated with shoddy. If such a law were passed it would give an impetus to legitimate Homo and colonial enterprise, such as 1 submit could be obtained in no other way." It will be observed that the correspondent assigns various reasons for the depreciation, but does not refer to gold. "It would be interesting," the Times says, " if those authorities who have given it as their opinion that prices have fallen owin? to an appreciation of gold would tell us if the same process is still in operation, bringing prices down further in other departments, and how it is that some prices fall and others do not. That more consideration will have to be paid, to the River Plate supply of wool in the future is now freely admitted, alike by Australian and South African woolgrowers and importers," " Wool-broker," continuing the correspondence on the following day, observes:—"'l.C appears to lay too much stress on 'shoddy' as the cause of the fall in wool, which has now been continuous through the year. , Tho main causes are the undiminished supply from our colonies and the increase of River Plato produce competing with Australia, A nothor and a very important one is tho continuous increase in old stock at the close of each series, circa 70,000 bales having been held over in July, for September sales, and of those at least 40,000jhave been once or more on offer and withdrawn by merchants to their own detriment and that of others' who meet the market freely, In nino cases out of ten, no good results from thus 'fiddling' the market with unattainable limits imposed by consignors, whose agents have to follow their orders implicitly, without regard to the fact that purchases in the Colony last year were made under the exaggerated fears of a short supply arising from drought. The present decrease in prices is intensified by the depressed state of the French woollen and yarn trade, and the subsequent incidence of a larger proportion on the Home trade thanpresent requirements will allow it to Ske, except at depressed rates."