SYDNEY WOOL SALES

Press, Volume LXXV, Issue 22636, 15 February 1939, Page 13

SYDNEY WOOL SALES

KEEN DEMAND FOR FINE SORTS

PRICES APPRECIATE FIVE PER CENT.

(UNITED PRESS ASSOCIATION —COPTRIOHT.)

(Received February 14, 11.30 p.m.)

SYDNEY, February 14,

At the Sydney wool sales, 10,739 bales were offered and 10,280 sold at auction, as well as 439 privately. Fine wools showing length met a particularly keen demand, especially from Yorkshire and Germany. Prices fpr these showed an appreciation of 5 per cent. Greasy merino made to 24Jd.

MINING

MOLYNEUX

The Molyneux dredge return for the two weeks ended February 11 was 46 ounces for 183 hours.

QUEENSLAND’S GOLD YIELD

The Queensland gold yield for 1938 was 149,6710z fine, compared with 123,7£30k fine for 1037. The year's result places Queensland, although ranking far below Western Australia, in a position of being second in the list of gold-producing states. It has displaced Victoria, who production at 144,2430z fine showed a slight decrease last year. A sharp increase in production to 88,7Q80z fine has raised New South Wales to a closer fourth in the list of producing states than for many years.

TRADE IN CENTRAL EUROPE

A# ECONOMIST REVIEWS THE POSITION

Recent discussions in London have revealed some interesting facts concerning the development of German trade in south-eastern Europe, writes Professor D. B. Copland, in the “Herald,” Melbourne.

The Secretary lor Overseas Trade (Mr R. S. Hudson) was refreshingly frank in refuting the claim that Germany was forced into her present trade policy by an acute debtor position, and by the closing of foreign markets against her. No doubt’the burden of interest payments and the general spread of economic nationalism were contributory influences, but Germany’s trade policy is an inherent part of her general policy of rigid economic control in the interests of armaments, and with the desire to build up supplies of necessary raw materials and extend her sphere of economic influence to neighbouring States. In this, as in other aspects of economic policy, Germany has pursued quite unorthodox methods regardless of cost, Paradoxically enough, she tends to buy in the dearest market and sell in the cheapest. Her imports of grain and raw materials from the Balkans are purchased at prices substantially above world prices, and some of these products are eventually sold in other countries at lower prices to give Germany foreign credits for the purchase of war materials. The manufactured goods Germany sells are subsidised, and can be marketed below world prices.

This would appear to be a splendid bargain for the Balkan States trading with Germany, and a bad one for Germany. But it is not so, because all these Balkan States have large frozen credits with Germany which they can only realise by buying goods from Germany. In developing her trade In the Balkans, Germany has incurred heavy commercial debts against which the Balkan States have financed export sales by credit expansion and currency depreciation. Increased German Trade

If we take the six Balkan countries (Hungary, Jugoslavia, Rumania, Bulgaria Greece and Turkey), we find that the German share of their total imports and exports has expanded considerably in recent years. The table gives also the percentage going to some other countries. Imports. Exports (p.c.) (p.c.) 1929. 1937. 1929. 1937. Germany ..18 33 18 29 U. Kingdom ..8 8 5 9 Italy ~8 6 14 11 C.-Slovakia ..13 8 10 6 Austria .. 10 6 15 9

The expansion of Germany’s trading interests, shown in the table, has, however, been achieved not at the expense of Britain, but to the detriment of her leading partner, Italy, and the two countries, Austria and Czechoslovakia, she has now absorbed and controls.

Not Important to United Kingdom The importance of Balkan trade to Britain has been greatly exaggerated in recent discussions. The following table shows the percentage this trade is of British imports and exports. Similar figures for Germany are given, and both the sets of figures relate to 1937. BRITISH AND GERMAN TRADE WITH THE BALKANS. P.C. of U.K. P.C. of German Trade. - Trade.

Total p.c. 1.41 1.44 12.29 11.26

There are doubtless important political arguments in support of the view that Britain should seek to expand her trade with the Balkan countries, and for this purpose export credits will have to be supported by direct cuts in prices, and perhaps some willingness to purchase Balkan goods at prices above the world market.

This is not altogether a secure foundation upon which to build trade, and perhaps the greater benefit to Britain will be derived in the long run by pursuing on a grand scale her armament and appeasement policy, and leaving the smaller problems to be adjusted as part of a general settlement.

FELT AND TEXTILES

NEW PREFERENCE ISSUE

Arrangements for underwriting a fresh Issue of preference capital are being completed by the directors of Felt and Texiles of Australia, Limited. Two subsidiaries of the company, James Seymour' and Company Proprietary, Limited (wool tops manufactures's) , and Baldwin and ‘ Grant Proprietary, Limited (carpet makers), each increased its capital last month from £20,000 to £IOO,OOO by the issue of 80,000 shares of £1 each. The new capital was stated to be required for expansion of business. Paid-up capital of Felt and Textiles. Limited, on June.3o last, was £600,035,

Exports, ports, ports, ports. Hungary . 0.24 0.10 2.09 .1.89 Jugoslavia . . 0.25 0.18 2.41 1.87 Rumania . 0.44 0.32 3.29 2.27 Bulgaria . Q.H, 0.05 1.32 2.19 Greece . 0.21 0.53 1.39 1.15 Turkey . 0.16 0.26 1.79 1.91