PROSPECTS FOR TRADE

Auckland Star, Volume LXXI, Issue 71, 25 March 1940, Page 4

PROSPECTS FOR TRADE

WOOL AND THE WAR. COMPARISON WITH 1914-18. POSITION MOKE FAVOURABLE. Stating that the war in Europe contrasted with 1914 experience in many rc-pects, a report from Winchcoinbe, Carson, Limited, says that in her onward rush through Belgium and France in the early stages ~1 the last war, Germany was able to seize hundreds of thousands of bales of wool and to put the Belgian and the greater part of the French mills out ol ae.ion. In this war mi far all those establishments have been working and lOiisiiuipti ni of tiie sheep's staple has kept up. Provided raw material is available, there should be less tendency for stocks to accumulate than from 1914 to 1918France is normally a large consumer of wool. The latest available figures show that her imported and home grown supplier were the equivalent of 1,023,<!00 bales lor a year. War time conditions have curtailed her export outlets for manufactures, but with her army, navy and air force on active service and a fair civilian trade still in existence, her wool needs remain large. Somewhat similar conditions prevail in regard to Belgium. Her yearly needs are about 400,000 bales.

Wool Accumulated 1914-18. Wool supplies piled up from 1914 to 19:8, partly because so much machinery was out of action in Fiance and Belgium but also because wool became too dear. In June, _KHB, 64\s Merino tops in Bradford were ~sd per lb. Can even a reasonable war time consumption be experienced at such a basis? the present English control price for average 64's tops is 484 d. The tops look cheap on that basis compared with the 1918 figure. One fact can always be accepted as tiTie in regard to trade. If values for goods reach extreme levels the consumers of them decrease in number. Unless sea transport becomes interrupted, use will be found for at least the great bulk of the wool the world grows during this war. Great Britain must protect, herself with safe reserve stocks, but the British authorities can have mo desire to accumulate excessive supplies if they can avoid them. Australian growers have an interest; in the wool after it is appraised in so far that they are to get a half share in the profits on resales outside the United Kingdom. But the British Government; has paid for the wool. If stocks were allowed to reach unduly high quantities, a slump might occur when open market selling prevails. In that case Great Britain would stand to lose millions of pounds. About 2.750,000 bales have-been appraised in Australia since October 9, and approximately 600,000 bales will be dealt with during the next three months. New South Wales is chiefly responsible for this season's increased production. The State's clip is estimated to be over 20 per cent larger than a year before and will be in the vicinity of 1,700.000 bales