WOOL’S EASING TENDENCY

Press, Volume LXXXVII, Issue 26394, 12 April 1951, Page 9

WOOL’S EASING TENDENCY

BRADFORD COMMENT ___ . (N.Z. Preu AMoetatiow—Copyright) (Rec. 7 p.m.) LONDON. April IL Commenting on the biggest decline re* glstered in th* Bradford tope market for 30 years, with • fall of nearly 8a per lb in 10 days, the "Yorkshire Fo«t" wool trade correspondent says: "There to no slump mentality in the wool trade today. Bradford is confident that world supplies are not over-plentiful for the total demand. . "The immediate cause of the present price drop is the temporary withdrawal at, American woolbuying for military purposes, which lately pushed prices to unprecedented levels. British traders are confident that a more settled price basis will emerge. Because moat firms have tried to keep their commitments within bounds, they are well placed far price adjustments. “The falling price tendency is welcomed as promising to ease the problem of financing wool imports and to modify the great commercial risks of dealing In a commodity which has lately cost 14 to IS times its pre-war price."

AUSTRALIAN PAPER'S WARNING

(N.Z. Press Association-Copyright) SYDNEY, April 11. “Australia should not neglect the warning sounded by the fall of 18 to 20 per cent, in wool prices since the sales were resumed tost week,” says the “Sydney Morning Herald.” “Although the downward trend at the current auctions may be only temporary, it should remind us forcibly of the dependence of prosperity here on the fate of wool on world markets. We should be prompted to examine our economy very strictly to detect any weaknesses which would be exposed in the event of a slump in wool. “The sober belief is towards an early recovery in prices, though this may have to wait until the new season’s sales, The principal consuming countries have allowed their stocks to run down rather than pay the inflated prices of the last eight months, but sooner or later their stocks must be replenished. The American wool clip is only half the pre-war level and production in other countries has expanded little. "The Joint Organisation, which has sold more Jhan 10,000,000 bales of war-time stocks since 1945, has fewer than 300 bales of poorer quality wool still to sell. World supplies are expected to be at least 10 per cent, below the demand in 1951.’’

PUBLIC SAVINGS IN N.Z.

INCREASE LAST YEAR Depositors’ credit balances held by Post Office and trustee savings banks at the end of last year totalled £208,706,000, according to figures quoted by the Reserve Bank of New Zealand. This figure, which compares with deposits of £226,153,000 held by the Dominion’s six trading banks at the same time, represents an increase of £7,123,000, or 31i per cent., on the December, 1949, total. Compared with the level five years previously the Increase is £41,444,000, or nearly 25 per cent. Funds to the credit of depositors with Post Office savings banks represented £172,778.000 of the total. These expanded during the year by £5,424,000, compared with a rise of £16,122,000 during the previous year, when amounts totalling £7,655,000 were transferred from war gratuity accounts to Post Office accounts. Credit balances at trustee savings banks maintained their steady upward trend with a rise of £1,701,000 to £33,928,000.

COMPANY NEWS

N.Z. AND RIVER PLATE COMPANY The outlook was obscure and he found it difficult to express any opinion about prospects, said the chairman, Mr C. H. Pearson, at the annual meeting of the New Zealand and River Slate Land Mortgage Company, Ltd., in Eondon. The sterling value of the company’s assets in Argentina had declined by £132,791. This was because of the depreciation in the exchange rate, at which they were converted into sterling. No losses had been incurred in the day-to-day conduct of mortgage business. “It is therefore to ah improvement in the relevant exchange rate that we must look for a measure of recovery in the sterling value and sterling earning capacity of these assets,” said Mr Pearson. “This can only be brought about by a strengthening of the Argentine economy and the adoption of fiscal policies directed to the attainment of that result, with practical evidence of a desire to accord equitable treatment to British capital invested in the country. A notable and indeed essential contribution to this end would He in fulfilment of the aims and implementation of the terms of the AngloArgentine Trade and Payments Agreement, concluded in 1949. Unfortunately, the first year’s working of this agreement did not turn out as well as could reasonably have been expected. All will wish that the second year of operations will witness a satisfactory solution of the difficulties and problems encountered." Electro. Zinc Output.—Production by the Electrolytic Zinc Company of Australasia, Ltd., for the four weeks ended March 7 was:—Risdon works: 6476 tons zinc. West Co«st mines: 11,677 tons ore treated for 665 tons lead concentrates; 3139 tons zinc concentrates and 237 tons copper concentrates. The reduction of power supplies at the Risdon works from March 3 caused a reduction in output.

AUSTRALIA’S MEAT EXPORT

SHARP REDUCTIONS RECORDED (N.Z. Press Association—Copyright) CANBERRA, April 11. Australia exported less beef, lamb, mutton, poultry, tinned meat, and cheese in the six months to last December compared with the same period of 1949. Figures compiled by the Commonwealth Bureau of Census and Statistics show, however, that exports of butter, wheat, barley, and dried fruits were up. The sharpest drop was in exports of mutton and lamb. The quantities, with those for the last half of 1949 in barenthesis, are as follows:—beef, 7,790.0001 b (10,176,0001 b lamb and mutton, 17,196,000 lb (67,151,0001 b poultry, 489,000 pairs (1.076,000 pairs); tinned meat, 35,463,0001 b (43,106,0001 b cheese, 6,898,0001 b (11,792,000 lb). High wool prices are blamed for the decrease. CEYLON TEA MARKET (N.Z. Press Association—Copyright) COLOMBO, April 10. At the Ceylon tea sale, held to-day, 3,715,1541 b was offered. There was a lower demand for all but orange* pekoe and dust grades. High-grown broken orange pekoes realised 200 cents per lb; medium liquoring broken orange pekoes 190 cents; medium liquoring orange pekoes 260 cents; low medium broken orange pekoes 180 cents, and low medium dust 230 cents. PRICE OF TIN (N.Z. Press Association—Copyright) LONDON, April 10. Tin is quoted at £1307 10s a ton for spot delivery and £1242 10s for forward.