COMMERCIAL.

Waikato Times, Volume XXVI, Issue 2154, 29 April 1886, Page 2

COMMERCIAL.

Waikato Tunis Office, Wednesday. q B\l)NE\ MVRKETB. .j^lkwrs Monr and Co, Limited report under data, Sydney, Apnl 15:— Woou — Tlic season which has just closed was entered upon with considerable misgiving* on the part of both growers and purchasers, the foimer finding it h .ul to make th>< conce3-«i'>ni» which the latter, , smarting under the fitter disappointments (*, Qf the proceeding reason, domanded. Aft a consequonce it seemed* likely after the earlier auctions had boen held, that the fifties in the colony would prove unusually limited. Gradually, however, buyers' and sellers' ide is of v.iluo becime mure in acv, cord, and thereafter a larger volume of bU-i-ness resulted from the weekly auctions ; in i^the" light of recent English ad vies it would, it appears, have been well for growers generally 'had buyeis' overtures v to jjo busine.-B been more freely mot. But it is not snrpriMng that there should at tl)e time have been great disinclination to accept values so much below the average of previous years. We confess that in many vJjfeMW at the commfneement of the season we he-iit.ited to recommend our constituents mmJUMoB* and it was with the greatest reluctance, and only after careful consideration of the situation, that we felt bound to advise that realisation on the spot was the more prudent course, especially as it became evident from day to day that the execution of American, French, German, and English orders, was likely to keep ' prices in this market almost, if nor Jqnite, equal to those of London. It is calculated that values are now at a lower level than has obtained for nearly 40 years ; and at ' '' present there does not seem to be any * "lifting of the cloud which so heavily over-abadowa the 'chief industry , of the colonies. Indeed we regret to say that latest cablegrams point to a further decline in values rather than to a re- • , jCovery. As a whole, the clip of the past J ' aeason is acknowledged! to be one of the wont that has come to market for many years ; the effects of the past seasons being noticeable in the harsh, tender and earthy i condition of the fleeces. This inferiority in condition and quality has, of course, accen- ' tu»ted the loss in value caused by the depression in the European market arising from other causes. The question of vital interest now is : Does the present depression arise from over production of the raw material, and inability on the part of civilised nations to consume the stocks offered to them, or is it part only of the grent wave '• of commercial depression which is now ■weeping over the world. We are inclined to favour the latter theory as to - ', justify that of over production we ought to .be able to show an increase in the amount of wool imported into Europe and America, ' .approximately equivalent to the fall in values. But this great increase does not exist, indeed Australasia and the Cape of Good Hope show an actual falling-otf in their exports of 21,000 bales, from 1,303,000 . in 1884, to 1,232,000 in 1885. ♦Against this there is an increase from the River Plate of 32,000 bales, from 358,000 bales in 1884 to 390,000 bales in 1885 ; but this quantity is insufficient to account for the serious fall in value which has taken place during the year. Were other industries flourishing, and wool alone depressed, we should feel far less hopeful of ultimate reaction, but with the remembrance in our mind of the years following 1869, when in the face of a steady increase in production, prices rose as trade improved, we do not see why, with another turn in general business, such as may fairly be expected, the value of our staple should not again rise to a remunerative level, although the time when this turn in business isjto come is not at .present very clear. As a natural consequence of drought and low price* we have a tightening money market, and all those unfavourable surroundings naturally restrict dealing in pastoral securities. But there is without doubt abundant, capital in the colonies awaiting investment, and every prospect of an additional inflow from the Old World centres as soon as profitable outlets are available. If we are right in our anticipation of a recovery in commerce, this money "will be at once available, for in the course of nature good seasons must follow bad ones, from which we are now suffering. We then look forward to some such activity as followed tha depression of 1869 and 1870, when we made some of the largest sales which have taken place in the colony, and with this expectation we are now receiving particulars of valuable squatting properties which we hope to realise satisfactorily, -if not too hurriedly placed upon the market. Among the gloomy surroundings of the wool market this veir one fact stands out sharply and clearly defined, and that is that breeding and condition in the wool will tell, especially in times of severe depression like the present ; as, while some clips are selling at the lowest prices ever experienced and others not saleable at any figure, these dips which have shown pretension to breeding and "get-up" have been placed without difficulty at prices comparing most favourably with those realised for ill-bred and carelessly prepared wools ; indeed, for some extra superior washed the prices at this year's sale have been almost if not quite on a par with the best ever realised for the * same clips. CHAIN. Wheat.— The drought has caused a short supply in this colony, in consequence of which country millers have secured the grain in their districts, and many of them have' had to get large supplies of Victorian and New Zealand via Sydney. Quotations :— New South Wales, none available ; Ne# Zealand, 3s 9d to 4s 3d ; Victorian, 4s 6d to 4s 8d. — Oats. — Supplies are coming forward freely from New Zealand, and ■easier prices nave been lately ruling. We qnote oats 2s 3d to 2s (id per bushel for best lines.— Maize.— Market fluctuating. Old is now selling at from 3s 4d to 3s Gd ; new, 3s to 3s 3d.— Bran, 14d per bushel.— Pollard, 14d to 14.jd ]*v bushel.