WOOLLEN INDUSTRY.

Auckland Star, Volume LXII, Issue 85, 11 April 1931, Page 4

WOOLLEN INDUSTRY.

OPINION IN LONDON.

SIR THOMAS WILFORD'S APPEAL,

Those who had the privilege of attending the annual dinner of the British Wool Federation in February will remember with abiding pleasure the speech of the High Commissioner for New Zealand, Sir Thomas Wilford, writes "Pedlar," in the "Wool Record." It would be difficult to say whether the matter or the manner of its delivery was the more pleasing. The J charming phrases, the perfect enunciation, the delightful touches of humour gave the speech a literary excellence which was rivalled by the proud note which pervaded it of .faith in ultimate recovery and/success. To our minds and hearts alike Sir Thomas gave a tonic which was indeed welcome; and among his listeners there wp surely not one who did not feel the stimulus of his calm and statesmanlike survey of the present position of the wool industry, and not one who did not respond in spirit to his dispassionate plea for a display of greater confidence. It is quite possible that, when we try to translate these feelings into practice, most of us realise that we are somewhat helpless. We are creatures of circumstance. Our freedom is'limited. Our buying power is slight, our borrowing power still slighter. With the best will in the world we cannot thaw the frozen capital to which the High Commissioner referred. Though oijr confidence be ag strong as a fortress we are not justified in buying a lot of wool for Avhich we cannot pay; and it must Be acknowledged that, since the primary markets took a turn against the buyer two or three weeks ago, the response from the consuming centres has not been such as to encourage the trader to buy except in the capacity of a speculator. This, in the case of the man with limited means at his - disposal, might result in freezing the bit of liquid capital he possesses.

Uselessness of Pessimism. But when all is said we gain nothing by slipping into 'a groove of pessimism and remaining there. Without confidence a return of prosperity is impossible; and the lugubrious way of talking about trade into which we have drifted of recent years is anything but helpful or healthy. If we -will look further ahead than our immediate surroundings and examine the position of our industry in all its bearings, we shall find some grounds to justify a moderate optimism—some foundations on which to start rebuilding the shattered walls of our confidence. • It is something that we are assured at least for a year or two of a plentiful supply of cheap raw material —the first inducement, after a debacle such as that from which we have suffered, to the resumption of buying on a large scale. I think it will be generally agreed that the first stimulus to recovery must come from the distributors rather than from the man in the street. Surely one is not unduly optimistic in suggesting that with prices around their present level there is a good deal of temptation for merchants and large storekeepers to abandon their hand-to-mouth policy and to enter upon bolder buying methods. Owing to' the downward tendency 6f commodity values, and the restricted purchasing capacity of the general public, they have carried caution to an extreme point; but, if they be once persuaded that more is to be gained by buying than by waiting, they will not hesitate to buy. Attitude of the Retailer.

Another factor which justifies a degree of optimism is the evident change in the attitude of the retailer, and the tendency, long overdue, towards adjustment of retail prices with those of raw materials. I It is a tendency which wiH possibly continue, and which must result in a larger turnover and' ail increased consumption which is of far more value to the productive industries than is a high scale of profit. Unfortunately, some larger issues are still clouded. We receive no clear indication of a return to economic sanity _in international relationships. The barriers to trade in the form of tariffs still rise like battlements towards the skies; war debts still crush us like a Juggernaut car; the hoarding of gold continues. We are not allowed to forget for a moment the extravagance of our public services nor the utter disregard by successive Governments of sound financial administration. Yet, in spite of everything, there would be a better chance of overcoming such adverse factors if we would school ourselves to a more optimistic frame of mind and to greater confidence in our powers of recovery.