REVIEW OF THE WOOL TRADE.

Clutha Leader, Volume XVII, Issue 833, 4 July 1890, Page 6

REVIEW OF THE WOOL TRADE.

A rather sensational cable message from London has been published during the past week, in which tho opinion is expressed that comparatively few European buyers will attend the wool sales held in New Zealand during the next season. It is alleged in London that experience has shown that buying can be done much more advantageously in London than in New Zealand. It is said that a comparison between tho prices paid for parcels of wool bought in Duucdin and afterwards re-sold in London at the April- May series, which have just closed, shows that in frequent instances buyers have lost LI- a halo on the resale of their Dunedin purchase. Tho statement is a sufficiently serious one, especially when wo remember that during the iive months of October, November, December, January, and February last, when the high rates wore ruling, some 550,000 bales were sold in Australia and New Zealand. Wo shall probably bo well within the mark in saying that if tho value of wool in London remains throughout the remainder of tho 3 ear at its present level, tho average loss to buyers upon their Australian and New Zealand purchases will not be much less than 30s per bale, or say L 825,000 in round numbers. The first fact to be noticed is that if the buyers of these 550,000 bales are to lose L 825,000 by their purchases, then the growers of wool who sold their clips in Australia and New Zealand must have gained the same amount through their patronising the Australasian markets. This is one of those facts which the wool-growers are not likely to forgot.

But while it is evident that tho buyers of wool in Australia and New Zealand last season are likely to be heavy losers, and the sellers heavy gainers, we must strongly dissent from the opinion that on this account there will probably be comparatively few European buyers at our local sales next season. Tho experience of the past is altogether against this view. This is by no means the first, nor the second, nor the third time that buyers have lost heavily by their purchases, but in all the record of the wool sales they have in every case appeared here again in full force the succeeding season, their bvying power as great as ever, and just as ready as ever to operate to the fullest extent of their orders and limits. Those large and wealthy top makers, spinners, and manufacturers who buy their wool in Australia and Now Zealand are not men who are daunted by tho disaster of a single season. They are accustomed all their business lives to frequent and serious fluctuations in the value of the raw material. So long as they remain in business they must go on. buying wool, and they have come to the conclusion, for various reasons, that it pays them in the long run to buy a considerable portion of their supplies in New Zealand. To very many of the largest operators the fact that heavy losses took place from last season's purchases is an additional in-

ducomoiit for them to - operate . here largely next season, for they will argue that wool is bound to be cheaper for that very reason. Indeed, it is often found that a heavy fall in the value of any article attracts many buyers, some no doubt anxious to recoup themselves for previous losses, and others more desirous of making their purchases at a low price than they are to buy when prices arc 'high.

Doubtless the London brokers may reply that if we have any European buyers out here next season, .it will only be the prospect of buying at low prices that will attract them. But it is a matter of indifference what attracts them out here so long as they come and are prepared to operate largely, and we have, not the least doubt that they will do so. What the course of prices will be here next season it is impossible for anyone either in London or Now Zealand to forsee at present. It is a matter, in short, which may be safely left to the future just as may the question as to what prices will be ruling in London 12 months hence. But of this we may rest assured, that, when our season opens in November next, no recollection pi previous losses, nor of previous gains, will pr.event the buyers paying the highest possible prices that the state of trade and the prospects of the market will. justify. No one therefore need be under the least apprehension' regarding any possible lack of buying power at the opening, of our season five months hence. — Farmers' Agoncy Circular.