AMERICA AND WOOL.

Press, Volume LXIX, Issue 20881, 14 June 1933, Page 16

AMERICA AND WOOL.

BUSINESS REVIVAL AND SUPPLIES. "Winchcombe, Carson, Limited, the Sydney woolbrokers, in their latest report, state: "Enquiries for wool privately in Sydney and the sale of over 90 per cent, of the wool offered at recent London sales give an indication of confidence in the wool outlook. It is impossible to foresee the level to which the effects of inflation in the United States may influence prices and for what period America will prove an active buyer of the staple. During the latter part of the recent London sales 3000 bales were bought for the States. In the whole of 1932 only 1000 bales were bought for that quarter in the English centre. No doubt portion oi the United States demand latterly experienced is the investment of funds in commodities owing to the fear of depreciating currency value. But apart from that aspect, if inflation in the States produces the prosperity which the authorities hope, millmen in the country will require larger supplies of the staple. In 1932 the United States imported only 56,200,0001b of wool. The 1931 imports were 157,700,0001b, 1930 220,476,0001b, and 1929 270,948,0001b. Production of wool in the States was 6 per cent, less in

1932 than in 1931. Any appreciable revival in business would, therefore, lead to manufacturers being short of supplies: , "Time will alone supply proof of America's attitude in purchasing wool, but a brightening in business would unquestionably necessitate her securing foreign-grown supplies in appreciably greater quantities than she has purchased of late years. In Australia American competition chiefly centres on free, well-grown wools of medium fine quality. "The ultimate test of rising wool values is the purchasing power of the public at the retail stores. Advances so far recorded, however, should not ; retard trading turnover. A2O per cent, increase in the cost of greasy wool at an average of lOd per lb in ; Australian currency is 2d, in English currency Oid less, and in terms of gold Id less. When wool was realising two to three times its present figure advances piled up costs on prices, which were already high, and checked trade considerably. But the rises experienced on current levels do not make wool dear. Prices for the staple and for all raw materials have moved towards payable levels, which will help to create purchasing power for manufactured goods. Improvement must be gradual to be sound. Sensational rises would eventually create nervousness. If success is achieved at this month's World Economic Conference, a further "gain in purchasing confidence is probable, just as the agreement at the European reparation conference last June gave a fillip to industry and prices. The outlook is certainly more hopeful than for the last four years, and upward movements undoubtedly look more likely than a recurrence of the extremely low prices for the sheep's staple seen so often since the depression started." SPORTSMEN, FARMERS, GOLFERS'. Your footwear needs PLUVOL—leather's best friend. Treat all leather goods, harness, sporting gear, canvas, oil coats, etc., with PLUVOL, and get years of extra service. PLUVOL is not painted on to keep wet off—it penetrates in and keeps wet out. There are a hundred jobs in home, garage, and farm that only PLUVOL can do. " —2