Wool.

Cromwell Argus, Volume XLIII, Issue 2283, 5 February 1912, Page 6

Wool.

(‘ Southland Times ’) The welcome rise in the price of wool, which has occurred this season will make a material increase in the Dominion’s receipts from that important branch of its export trade, and for this reason alone the value of the wool exports for 1012 will very considerably exceed that for 1911. But in addition to the in- • crease in the price there is reason to believe that the receipts from wool will show a substantial improvement by reason of an increase in quantity. The figures available appear to show that owing to the late season a very large number of sheep which should have been shorn in 1011 were not shorn until 1912, or until so late in 1911 that their wool was not available for sale until this year. The value of the wool exported in 1910 was £8.270,903, while in 1911 the value was £0,548,509 —a decrease of £1,722,000. The quantity exported fell from 201,386,8951bs in 1910 to 109,461, 7SI lbs in 1911—a decrease of 35,000,000 ibs. The shrinkage in the value of the trade was due partly to a fall iu values, which may be estimated roundly at Id per lb, and to a heavy decrease in quantify. To account for the decrease in quantity one naturally looks for a decrease in the number of sheep. Taking 7lbs of wool as the average quantity produced by a sheep there would have to be a decrease of 5,000,000 sheep to recount for the difference in the quantity of wool exported in 1911 as compared with 1910. But the last annual sheep returns showed that the net decrease in the hocks of the Dominion was only 515,000. The return was made up to 30th April last, and during the balance of the year the number of sheep ml lambs frozen and exported was less than the number for the corresponding period, of 1910. It is probable that the aggregate flocks of New Zealand at the end of last year were not much more than half a million sheep,less in number than at the end of 1910. It is obvious, therefore, since there is a difference of 5,000,000 sheep in the quantity of wool exported and only a difference of half a million iu the actual number of sheep iu the Dominion that the wool from 4,500, 000 sheep did uot come ou to the market and was not exported in 1911. This wool should swell the returns for 1912. It is worth roughly £1,000,000. The rise in prices ought to represent a very large sum iu itself, so that we may conlideutly expect an increase in the receipts from wool almost equal to the decrease which occurred in 1911. The influence of the increase should make itself felt almost immediately, for wool transactions arc largely on a cash basis. If this estimate of the position is correct there should be an improvement in the banking position as revealed at oist March. An extra million or so in the form of wool receipts will show itself in v an increase in the amount of ready money available at the banks.