NEW ZEALAND WOOL

Auckland Star, Volume LXV, Issue 252, 24 October 1934, Page 13

NEW ZEALAND WOOL

NEXT MONTH'S SALE. WILL GERMANY OPERATE? RETURNING BROKER'S VIEWS. The opinion tlmt Germany would buy little New Zealand wool during the forthcoming season was expressed by a well-known Christchurcli woolbroker, who arrived in Auckland to-day by the Rangitiki after a visit to Europe. "All concerned in the disposal of the Dominion's wool clip are interested in the part Germany will play during the forthcoming wool selling season, whij.i commences at Auckland 011 !Novembei 27," he said. "It is probable that there will be little or no competition from Germany throughout the 1934-33 season, on account of her financial position being such that little or 110 funds are available for the purchase of foreign exchange.

"Germany is one or New Zealand s best customers, whose competition is strongly felt at the various wool sales, and while her purchases are normally about a fifth of the total wool offerings, it is not only these actual purchases which make her support so valuable, but her consistent competition, which affects price.J realised," the broker added.

"Although for some months Germany has been unable to compete generally m the world's wool markets, she has made and will continue to make considerable wool purchases in South America, the payments for which have been made possible by the accumulation of trade balances arising' out. of Germany's exports to South America.

"Tho present financial position of Germany allows lier to purchase only a small proportion of lier normal wool requirements, which situation is likely to continue until larger trade balances become available overseas. Wool manufacturers in Germany are anxious to continue to buy our wool, and greatly deplore the present prohibitive situation, which they contend can only immediately be remedied or improved by New Zealand taking more German goods.

"In 103.'!, Germany spent 700 per cent moro in New Zealand than we spent in Germany. The following statistics from Germany, covering 19.'10 to lO.'i.'i inclusive, will show that Germany's purchases from New Zealand have slightly increased, while New Zealand's purchases from Germany have decreased by more than 02 per cent. Germany's purchases N.Z. purchases i'rom N.Z. from Germany. Year. Murks. Marks. 10,W 21,000,000 12,400,000 11)31 20.500.000 8,400,000 lf)3'2 10,500,000 3,500,000 1!)33 24,900,000 3,500,000 "The suggestion presents itself that, without prejudice to our Empire agreements, increased importing _ of any German goods would give assistance to a good customer, to our own ultimate benefit, by creating German-owned funds in New Zealand which would be used for purchasing our wool."