MARKETS FOR WOOL.

Auckland Star, Volume LXIII, Issue 285, 1 December 1932, Page 4

MARKETS FOR WOOL.

CAUSE OF LOW PRICES. LACK OF SPECULATION. Contradiction of the sfa..tcrnent that a representative of the Chn . s , tcn " r ; C " Press '" Lack of speculation was the prmdptl factor depressing the industry, he U,X? emaTl catalogues, could not be anticipated th^ e ffr n a S the grading of New Zealand wool is concerned," be said, 'the standard k not as high as it used to be but ft by buyers that farmers have not the money to spend upon it Several "f the outstanding clips of the Dominion have shown this falling off recently, especially those of North Island crossbred The halfbred clips have been slight!* better in comparison, proving that monetary return is a big factor in setting the standard of grading. Improvement in Colour and Condition. "New Zealand wool, on the .other hand, has made a definite advance in the improvement of colour and condition, a fact which the Dominion's clients have appreciated. It hae brought increased competition. The Dominion clip used to have an inclination to yellowness and heaviness in condition in the tops, ihose factors have been removed to a large extent to-day. Continental clients have been, gained as a result, as the 2Sew Zealand crossbred wools, which have an advantage in strength over that grown in other parts of the world, are bemg sought more keenly. "There ie no inclination at Home or on the Continent for speculation in the wool industry, and that is practically the sole, reason why there is little chancein this season at any rate—of there being an advance in wool values ae compared with last season's average. A similar lack of speculation causing low values may be seen in many other markets—wheat, coffee and rubber for instance. In every case almost it is the speculation which is responsible for prices soaring. Thus, while people in England, and even to a greater extent on the Continent, are content to keep their money idle at ae low interest ratee as 2 to 4 per oent, values of wool cannot rise materially. The August Rise. "The rise of 25 per cent in values in August has been given undue prominence, and to it hae been attached a significance not deserved. It was caused by large interests having sold forward unsatisfactorily, and thus being- forced to cover themselves. There should not have been a rise at all otherwise, and that was borne out by the immediate decline. "Just as misleading are the statements that there is an over-production of wool and that it is being displaced by artificially manufactured fibres. The fact is that stocks in England and the Continent are normal. Artificial substitutes for wool have been over-stated, and recent cables concerning them and their claims quite exaggerated, to eay the least. In such artificial manufactures most of the principal qualities of wool are missing. They have no such warmth, and are merely showy. None is useful. "The true position is that the demand for woollen materials has never been better. As in New Zealand and Australia there hag been a general campaign to stimulate the purchase of woollen goods and the result has been eplendid. The competition with artificial goods has had one good effect, too. It has awakened many of the wool interests to the need for the expansion of their types of manufacture, and developments in the past year have been amazing. "Lace ie now made with wool," he concluded. "It is not New Zealand wool, of course, but the finest of the Australian wools. It is very popular, and is being used extensively for women's frocks, in London especially, already. As another instance cotton bathing costumes have passed, to be replaced by woollen ouee, and there are a host of other cases."