MARKETING THE WOOL.

Dominion, Volume 1, Issue 290, 1 September 1908, Page 3

MARKETING THE WOOL.

HOW TO CET THE BEST PRICES. ADVICE FROM MESSRS. WILLANS AND , OVERBURY. To the Editor, The Dojokion, Now Zealand.

Sir—Our attention has been drawn to a letter dated May 11, signed "Interested," which refers to a letter sent by us to. one of yonr contemporaries in which wo advocated a more -even distribution of the New Zealand clip than has during.recent years been the case. In his letter, to you "Interested" suggests tho possibility' of tho sale of tho United.Kingdom wool'. clip competing to the disadvantage of wool arriving from Now Zealand for salo hero in September-October, and .says: "I would at once say. that it, is to, the advantage of the New Zealand grower, that his clip'should bo' .marketed certainly hot later tnan July." A considerable experience of the often inexplicable influences which from time to time affect the value of wool prevents 'us from venturingivto imitate, the example of your correspondent in . ; telling New - Zealand growers-when to, offer or when riot to, offer thein clips; but probably many of your readers will rccollect occasions when those who havo T Sold at the London SeptemberOctober series h'avo had reason to congratulate themselves, and though apparently "Interested" only refers to crossbred New Zealand wool our letter, of course, included the merino flocks, owners of-which will remember, this year we foar'regretfully, the rise of 15 per cent., as compared with July'rates,' which 1 took i>laco'at tho London SeptemberOctober auctions of 1907.

But, we think that' "Intcrested's". letter, no doubt unintentionally, might lead owners to suppose that tho .United Kingdom clip is disposed of in the same manner as that from New Zealand, and is of equal importance to tho world's-wool" trade, which is, of. course, not the case. Tho moral effcct of large supplies of wool -arriving from overseas within a short period (and - it must be recollected that the published lists of Australasian shipments 1 are carefully noted in all tho wool centres of the United Kingdom, France, Germany, Belgium, and Russia, etc.), has a marked influence on values, especially when the 'trade is in- a somewhat ; sensitive condition, while it is-, surely obvious that, when business is difficult tho difficulty of arranging finance so as to absorb any exceptionally heavy weight of wool at one time may easily force prices down to an unnecessarily low point, and . create a-feeling of insecurity and want, of oonfidenco which reacts-unfavourably to tho interests of growers. Tho.i importance of .the United Kingdom clip is,, undoubted (according to official figures it is'.not greater ■as "Interested") says than that of New. Zealand,, but some nine million pounds less),, .but its i distribution -is. so'wide and the | transactions are so largely private that its sale does not attract an attention in any way comparable will that aroused by tho disposal of the New' Zealand clip; while as far as public •'auctions are concerned it may interest your readers ',to'know, that there are no fower than ninety wool "fairs"'held'ln; different .parts of the Home Counttv, and the period during which auctions are held extends over four months. Wo would further. point out that transactions in the Homo clip-are mainly confined to the Home trade, while-New-Zealand "wool is competed for. by practically all section of-the industry to an increasing extent, the low prices of IDOI having stimulated tho consumption., of coarso wools in quarters whero thdso grades were hitherto .unused. In conclusion wo repeat'our belief that a mora general distribution of the' Now Zealand clip, in accordance with tho practice of former years, would generally'b'enefifcigrowers,' and also venture to oppress tho opinion that, having regard to the' greatly-increased consumption' of. wool, which is l 'not counterbalanced, hy' arij;''corresponding jrtcrease in production,' the ' present level 1 'Of Wool;"' though' some'' 20 per cent, 'above-the' lowest point'of this year,' is yet unnaturally low. This is due entirely to the depression which has affected all other great trades, and is in no way to bo attributed to any excess in production; therefore, • a return to a far more; satisfactory'range of- prices may reasonably be expected totake placo before long. ■ Yours ; faithfully, - WILLANS AND OVERBURY. .