WOOL PRICES.

Dominion, Volume 1, Issue 21, 4 June 1908, Page 3

WOOL PRICES.

MORE EXPLANATIONS. , 'The wool-'market is •&©*' subject' of an article in thei-" Agricultural Gazette " . (British),'of'April 1 20;''just'''Arrived'. The "writer says:— 1 ''" • ;' "In the case' of an article like .wool, which is so essentially international : in..its production /anil use, ; it is. not'easy to forecast, or. follow' the ' changes' that .'from time to time occur, and the 'explanations of the causes of the rise in value of the last few years, and the recent 1 heavy fall, are many and .various. Changes in fashions, and fabrics exercise a considerable influence. in the extent of the demand for special descriptions of wool, but'the welcome advance of the last few years was due to.causes of a.far-reach-ing character. The drought in Australasia, which so seriously ' reduced the number of sheep, in these colonies, produced a diminu-tion-in the wool clip which was felt.all over the world. This was followed by. exceptional demands during the South African War, continuing : for years,. and the shortage of supplies thus occasioned had not been ma'do good when another period of spccial requirements followed- during the RussoJapanese War. A-general deficiency resulting from, these circumstances, together, with, a reduction, in thg numbers of flocks in several other countries; gave the opportunity for speculation, and'heavy purchasos .were' made on behalf of the United.Stated It is probable that much of the recent unsettlement iis due to the financial crisis in that country and to - the' disturbance .resulting from sudden realisations. There seems' to be quite as much uncertainty as to, the probable future course of business. It> is, However, to bo hoped that the present depression is only temporary, and that trade will speedily recover, when, the causes of temporary dislocation havo passed away! • If the present' lower range of prices should lead to an increase of manufacturing business, a natural advance in values might result. The drop in prices has mainly affected imported wool, and' perhaps before the Homo clip comes upon the market the.demand and prices will have again 'become more stable." .