SHIPMENTS OF WOOL.

Dominion, Volume 1, Issue 191, 7 May 1908, Page 2

SHIPMENTS OF WOOL.

RECULATINC THE SUPPLY. SOME PRAISE FROM- BRITAIN. Some time ago wo published details of . a joint arrangement madia by a nurhber of big run-holders to send their wool Home by sailing ship; one of the objects being—besides economy in freight arid storage—to withhold . the wool from the London markets till tho later sales, .when' it. was hoped the prices would have recovered. V;, •; , Writing in reference to the question, Messrs. Willans and Overbury, the v.;ellknowu Lotidon agents, say:— ".Wo havo read with great < intoreSt the.' statement appearing in your issue of January, referring to the shipment of wool from New Zealand ,bv sailing shift, and welcome the evidence that growers iii the Dominion are taking stops to correct the uneven distribution of wool. During the past' four years; the high values ruling for all Classes' of crossbred wools naturally induced growers to realise at the earliest opportunity, .frhile . special circumstances existing) in tho Wooli. trado enabled buyers to absorb without dim- ' cully the large quantities of New Zealand wool iplaced on the market within' tho spice ~ of a few, months.; Since, however, ' the wool '• / trade is subject to tho .fluctuations which affect all other great industries, it is clear ■ that these favourable conditions cannot-be expected indefinitely to continue; and,that. > time must again arrive when the condition of business does not encourage the trade to' purchaso two-thirds of the New Zoalihd Slip in the first six months of.the season, Under ' an arrangement which involves'the arrival . ih Europe of. very heavy quantities, between: March and May,-'and a resulting lack of supplies of crossbred wool during the latter half ; of the year. ■ ■ ■. , ■■. ■>. Three Months 'of Plenty. ■: V - /.v "The following figures show'hew'large a proportion, of tlio "Ne.w Zedlaiid bli'pduring" the past few. years has arrived " practically • within three months: —" i" ' ' B®les. 1904 March-May gross arrivals ... 203,700 1005 : S, ... 243,000 .. 1906 ■ „ ' „ - ' ... 261,700 1907 ■ „ 259,400 . "It must be recollected that the - iib6\;B figtlreS do hot represent tho amount of wool ■' avaijablo'for the London .wobl sales, but 4fo ' ihcliisive of large quantities sold in the Dominion and shipped direct, but-we. give the. gross figures as shoeing the large proportion . which arrives ill liurope within a very short period. ' 1 : . •, • ... Three Mdritiis of Scarcity. ''Tho amount available during thb latter seven months of theso years affords !a : 'strik-. ing contrast:— ■ y ■ ' . . . ; , Bales. ' 1904 June-Dec. gross arrivals ... 14Oj00O-. 1905 „ „ ■■'. ... 117.000 1906 '-119,800 1907 . „ , „ , ... 143,300 i: "These figures serve to. Show the. uheyen- . ness of 'tho distribution of the New Zealand '; clip during these years, the irregulaHty being the outcome .(as we have pointed out), of a period 6f high values, which has lel.'to.ihe ' almost complete" abandonment of system of shipping "rt'ool by sailing vessels, to arrive for later, auctions.- ■ '. : , t When Supplies were Regulated. "Tho importance of shipping for the later, auctions was, in.fermer daj'S,.realised,-as is, Shown by the following figures: ■> .'■■■■'■ ■■>-■I.': . J.. Bales. -, 1900 July-Sept. • gross arrivals -' 182,000' 1901 . „ ' ■>. ' ... ,190,700 1902/ -. „ ...' 218,100 1903 „ ' „ 176,500 . How li Affo'cts the Boars. ' ■;> "The .given certain conditions of the market, .pointed out by.'you,, which are obtained by shipping ( by. sailing .vessels, Viz., saving in- freight and free, storage. ,on. sea for three months, 'are in themselves sub-, stantial, and there'.is also a'further • advantage in. this method, whichj .though less direct; is yet appreciable. In times of dull trade, when prospects are lino&rtain,' a'.Very large quantity of wool 'in sight' tends to. foster , tho belief' that'supply is overtaking demand, and pessimistic views due to, this erroneous impression are a{>t to ! gaiti • served credence, thus ! giving 'assistance toany 'bearing' myvemeril which may .be in'prog, grcss. . A' more even distribution: of •'raw'; ihaterial should go' far to correct a belief, \ which, when the automatic _.increase 'in the, J ■world's cdhsumptidii of wbol.is placid against,' the very doubtful possibility of increase in 4 tho world's' production, must admittedly bo', unsoniid, though fluctuations in values will .necessarily froin time to time occur.-. A Fall In Prlcos Is Infectious. ; ; "Compared with tho large holdings in ' Australia, the bulk of New Zealand flocks are ' small/and the humbor of owners is relativeJy large, but tho-interest of. all growers' is identical; and a poor sale'in"one place, when prices are unsatisfactory owing to lack' of competition or other causes, reacts unfavourably on other auctions. In recent years. prices havo been at a point which has prac- . tically relieved owners of the need of taking much thought when to sell, but , for a time, at least it would seem that; this agreeable," state of affairs is at an cud, and the news that owners aro taking steips to rectify a system of marketing, the clip, which is only suitable to times of exceptional prosperity, . will; ■ we think, be gratifying to all, who, like ourselves, havo been for so many years closely connected with the, wool-growing industry of New Zealand. —Wo are, otc., . "WILLANS AND OVERBURY. ; "7, 9,: and 11 Moorgafe Street,. • "London, March I' 3.'.''':... - ■ ■ Tho wool of | the'sailing ships referred to in this lotter will bo sold iiv. London 1 iii Ju!y> ■ About five sailing vessels were specially char- ; tered for'tho purpose by; Mr. G. H. Scales. Against, tlife. saving -in freight- and storage, tliero was some lops in increased insurauco rates. It remains, as an interesting fact, to be still discovered ho* prices will bo affected , .by the later marketing.':' • »•. •