WOOL VALUES.

Dominion, Volume 1, Issue 258, 24 July 1908, Page 6

WOOL VALUES.

In the Htuso of ltoprcsentativcs yesterday, Mr. V, H. Field cntored a mild protest against the t6 "the .wool kings ' made by Mr. tfowLDS during the Budgetjdcbato. The number of. HanBard contaniug tho full ronort of tho

Minister's speech has just been printed, and that portion of Mr. Fowlds's remarks, to which Mr. Field objected is given as follows: — , '

" The larger proportion of tho wool revenue goes into tho pockcts of thoso who have been spoken of as tho •' wool kings'—woalthy pcoplo who, oven in a bad year, havo more money than they can spend in tho ordinary course of business. A drop in the price of wool simply means that thoy have so much less money for investment. A- fall in the price of wool does not so directly and speedily affect the peoplo as a whole as does a depreciation in tho prico of (lax, becauso in tho latter case the money is passing almost directly into' the hands of a large number of workers whose inconio- mainly- appends upon tho returns from that particular product. This is the most absurd thing that has been said in Parliament so far this session, and it' will surely remain " the record " for tho 1 year even when full allowance is made for tho singular statements ' that some of our legislators are capable of making. Even the most limited acquaintance with economics is sufficient to enable the average man to understand how tho fair in wool affects everybody in the Dominion. With less money coming in for the wool clip, every farmer who grows sheep finds .that he has less money to spend, and . the immediate result is a fall in the retail trade of the country, a lessened demand for labour, and a tightening of the money market through tho necessity for further advances to farmers. But it is unnecessary to point out Mr. Fowlds's error in any detail. It is sufficient to consider the broad fact that our wool export pays for a large proportion of pur imports and that, to take a still broader view, every human being in New Zealand depends for a living on the products of agriculture in tho wide sonse. Why, if low wool prices injure only the " wool kings," and high wool prices benefit nobody else, does tho Prime Minister lay so much stress on our exports ? v

We printed yesterday some statements by a leading wool merchant which must temper any great expectations that may have been built upon the recent 5 per cent, rise at the July sales in London. This observer remarked that that rise was " inappreciable "—it was certainly less than Australian growers expected^—and he added i

"Until.this big block of wool is got out of tho way wo cannot look for an improvement, and in view of tho fact that tho early Australian clip will shortly reach the market, wo cannot look for anything moro than a slow and steady improvement, and we should bo satisfied if wo got it."

It is known that there aro still heavy stocks of wool in storo in London. There wcro carried over from the May series of sales 120,000 bales, the largest carry-over since 1900. The view which wo have quoted is probably correct, but it must not be forgotten that the Australian clip, on good Sydney advices, is likely to bo, restricted. The most hopeful sign in tho present position is the renewed activity of America, where normal conditions have been restored, and' where the mills will shortly require a great deal moro wool than they have used in the last disturbed year. No large risoi in wool seems likely, but the upward tendency is practically certain to continue. The outlook for better prices, if not so brilliant as the Prime Minister would paint; it, is at any rate good. And, with all respcct to Mr. Fowlds, quite a. number of people beside tho " wool kings" will be glad to hear it. .