"ROUND THE CORNER."

Auckland Star, Volume LIV, Issue 287, 1 December 1923, Page 11

"ROUND THE CORNER."

TALE OF THE WOOL SALES. "WHAT A PENNY RISE MEANS. SWING BACK TO PROSPERITY. The recent rises in the prices obtained for New Zealand wool, butter, cheese and mutton have led to a general feeling of optimism and buoyancy in regard to the prospects for the forthcoming year, and there is a widespread public impression that the country in general, and tlie producers in particular. are " round the corner" so far as the commercial depression is concerned. Financial experts, who look to the reactions and reflexes beyond the primary production prices, are yet hesitant about expressions of optimism, possibly because commercial stability after the #ar debacle is subject to a set-back from so many quarters and so easily that a prophecy has to be hedged about with qualifications. But evidence that local financial experts are secretly rejoicing in the outlook is not lacking. Incidental to another matter, a man who is in a position to know what they think on the subject declared this week that with the recent move upward in the prices of New Zealand's staple productions it was impossible to believe that builders in New Zealand would not be as fully occupied in six or eight months' time as they are to-day, "when every available carpenter is on the job.

A Penny Means a Million. A statement which vividly indicates the dependence of the Dominion on its primary products was made to a "tStar" representative by a commercial man who said that every rise of a penny per pound in wool means an extra million pounds sterling to New Zealand. This was referred to Mr. A, W. Perkins, manager of Dalgety's, Lfd., who pointed out that the review of Ills firm—a publication of recognised authority—-showed that last year New- Zealand sold 583.440 bales", or 214,705,0201b of wool. It would require the sale of 240,000,0001b of wool to put the statement quoted on a basis of mathematical accuracy, but it is near enough to be accepted as a handy gauge of tlie situation. Mr. Perkins added that so far as the recent wool sales are concerned, producers got a return on an average of about £4 per bale more than they got last year, which is an advance of more than 2£d per lb. The average price per bale, in 1914, was : £12 l"0/,but it rose under stress, to £22 in 1919. Last year it was £14; and this year it has opened at £18. i These fluctuations, with varying out- | side conditions, indicate just why financiers are chary of expressing opinions. But with the present coincident rise in the prices obtained for butter, cheese and mutton, there seems to be good reason for the feeling, despite the decline in beef prices, that the country is well round the corner, so far as the produce depression is concerned, and ,tbat the complaint of money shortage will soon be a thing of the past.