THE WOOL TRADE.

Dominion, Volume 3, Issue 907, 29 August 1910, Page 8

THE WOOL TRADE.

.*:'/ ''.-'* ■'.''.■■•'.' ■-—-—-—'' '.* ■■'''■' ' CONDITIONS. ,; :V ; ; The following article appeared .in, tho /';■//': London"Times",., of July I:—' , '■'-- ... The dates marking beginning-and !■:'*';.;. jelose/of the 'wool, season differ so widely .'■■, from; those of the calendar, year that for :•'.;'■'■.; statistical *. purposes '* a. new wool year v ';. begins to-day, while'in Queensland, two '>•■■ . : ;,.-■ sales of the new season's clip'.have ;al■V.-':-'..--.-". ready., been held. ■ Improvements,., in '•:■;' .communications throughout Australasia,. • .the disappearance of- sailing ships, ': : earlier shearing, and the growth ■of ?•'.:.'■ local selling ■'_ have greatly, altered tho ~,!.. period during which,the bulk of the ■'..'.~ : Australasian clip;.'-isbought and sold,. j-'",': "and-as faras'the Commonwealth is con- '■'.. ceraed, the first three months after the '(:../,' ■ regular; siiles-.begin■ witness .'a larger, '-.:'.', quantity disposed of than was. the,case '/'".,. in' nine ; months under the old isystem. ;'-;■'/■'.'.' Nowadays,. when 'the London January '.''■*,*'■ .'auctions., are over), buyers in'normal r ...',*: years can find but' little -Australian ;'."-• : merino" to fill outstanding wants,- and ';, shippers may benefit by a demand, often'. ; .-;-.. ■•.'- much in;exoess of'supplies; Tnis state *•'■'-!"• : of affairs forms a remarkable contrast :.-',,-.' to the.'time,, by no means.,remote,^wheii :',' -. many growers entertained a- prejudice: . . again-st tbe.:London.''auctitons, -Held.in '■■: ihe spring, as a series when quantities "; : " were apt to "be excessive aad; "beaT 1 ' ■'•":'• inovements therefore;to:be apprehended '•■■' on the part of those who,- as things are. -'.''■' to-day, with the bu]k of the clip already. '. : in-buyers' hands,' would be; likely to be,. ';,>:■?:': iko 'chief:supporters of a weak market v.. '61 the earlier London sales. : -i _■...'-.-.■,'.■-„-■.! '! "A Favourable Outlook.' ;',,.': [-'"■ Reviewing",the results of :the sneces- .;.:.: si vo 'auctions' 'already held, lvalues - now /currant for"; nearly all qualities confirm ,';., the belief that wool is. another instance ...;.:'.of one of the, great staple commodities ':'.:: the 'initial cost.' of 'which tends to'.'in- .'■"•' ;'•' crease. • .The..latest figures shown down I*'.;'.* . to May. 31 :an increase; from Aiistral; ;';'•-..'• Bsia,; : of: 136,000 bales for the present .; Beison, which, it must be borne in mind, '■: r 'follows .three .years of plenty; while ■■" reports -from"Australia indicate that.the '- I ,';.;■' coming season.may. show'ian increase. .*;'* .0ver.1909-10.-. Trade has been good, but '~.; -~ has,not-been distinguished.by unusual .ertmty.pr'., stimulated ,--by' exceptional •"*. causes,-.'.yet any' change, in values: for .'. :.; : taerinos since last January has favoured ,!.;'-. *'. sellers,' aid except-for short periods in ■■.*'■-,. {1906. and 1907 the leading qualities of ;.,v...;'fine.;tops.-are, now at!the,,highest point :';.;: reached',' since the extraordinary. level ; '- ; ; recordel ' at. ;_clqse of 1899, thus '/■<''■-,•: ishovra'ng that :seinsibiy. increased produc- ;';;,' Jfcion.h'as been .met.and more than.b'al- . nnced.by; expanding 'consumption. ; . ;.■,: ;-.' ; ;' ; .' •■ During -the. past fortnight it' : is: true ; ;'■ -that /reports from.'Homo and : Contin- .: ■'.; ; Rental ■ centres, have - been'"'-less , satisfac- '*•*.'. tory. 'and indicate; some .weakness, but ':y. .-ftt'this period,:when the opening of the *":.-•■■'. jnow.iseason in .Australia .is' not far dis-. ; tantj there is.'a"natural disinclination to -■push/new;,business 'with jalues,on the; vi ■-..'; ; [present -; basis.'-. -; Lo.wer- ,'■ prices would; no .'.::: -idbnbt.be. welcome to many, but-for tho :;.: .-'.inext'lsix -months;only;very limited im-' ;_:;;.;; g)orfcs from Australasia can be expected, ' : ;.': .; Jand-aiiy:decline might well be, follbwed ;^Si reaction.; ::: ■ ';-.";;..:-.'.■':,. ' ■';'*■ 'jlapk-of Amerloan Support;-; ;/- •■' .-*■.--. :■:"'": V'Confidence : in the genuineness: : 'aild. ;.., (duration, of prosperity is strengthened fiinceit has'been, achieved, .though ah mportant SMtion/'of' the ..trade'; has :, (failed;.to;-gi*?ef'i*as support: that':had -been ;*'' : -. •:* toenerally;: 'anticipated. ■: ;The'- "rather Sensational methods of American buyers' j-;.. ;. '.-sbmetimes .causeditao much importance, '•.';..;'■•''.*•'"«) be attributed to their: operations' in' ;; ' : *'.'*;' "London and '.Australia, i',b*nt-'■ ,-iiridireiJtly, : V-.';' ; '; pS'W^'.M'directly:they;.influence pn ■; :: ■'/to *. a '-'.wry., .considerable .extent,; and. .to! :: "■.;}..; (their; active competition'.'.during; ■ last .'; : : '.<., ireaf. was largely due the'-.satisfactory i position/which marked tho close of 1909. ;..',',,; yfflw'consistency -of, this support through- ;'.';.'.; jout: that season was, indeed .unusual,- ''..- i *.' put the large a&K>itnt of neW'-machihery Jerected''in.i tho .-United' v;r::-jgarded'.as needed:by ,; '■)*. creasing demand,, and when soon': after, ':':■•: *h<i opening^of sales'/it "/'' - gewme; clear,that .purchases of vraerinos ;■';:,..• for the United'States-iwonld:be■ '-groatly' >.;.-*. -; the; disappointment"/'felt ,'by ■:,;.*. owners was; proportionately, acute.. ;-;;..: Crossbreds:at'first benefited; buyihg'in'- •.';."':' : : : p«w Zealand: being brisk, while a 'total ;.;. ..*. :jof.:l2,oPobales was taken for American .::; ' ; a«»unt,.-at-' :'.the,. London,',' January. 7 . ■ Pactions, but both in March. and' again :.'-Mv'.May'.,.the falling-iff . became very !. '.'■;;.* (marked. : :' It is tlierefore significant and .... : ;■ to:note that the trade.has■ .j: jshpwn its' capacity- to'';,absorb ' ample; i - .-supplies, ..while maintaining prices' at * ,;; Relatively .high-level, •' .largely ;. without ■;:' {American assistance, .and. .though' it- .■■.'.'■. ,; [would not.be-safe to attempt tpfore- .;, ;. jcast.the effect were this abstention .\ : longed or .intensified,, there : seems'some' ■-. jgrouidd for the belief-that ■the-'-:with- <:/■■ idrawal.of _their support will-be ■'■■ ;. idnration,; and for ascribing it rather-to' ;,- ;*;,te. temporary breakdown:.due' to over-' ; ; [trading.; than; to any. deop-rooted com- - taercial weakness. .'-'■"' •'*.'": Coarise Descriptions. * ' ; : /. ■.'.-■'■*' ../Coarse Bradford', style...drossb're-is, (though selling at prices which*" giVb' .. .a'fair return,', are'still below-'the point' .;,which, values for : the- finer grades :.', ■■; //justify ;■ 40's tops are quoted now at -.;.';.; 14-Jd.,, and 60>. at 27Jd. Three years :; ' i 3? o ', w^en '"for. quality was. at ;:; ; .;26id.,.40's stood at l-74d.', while tho '■//iyear previously they had reached 19d., '.':., the price for,6o's, then being'2Bd. Tho :,. wide gap separating these - standard ;.,. qualities, has - existed since ■; the Jattor ':. part, of 1908, and at the beginning of ; , : the year;it was generally, thought that :-.;.this season would seo it lessened. Tho v. .falling-off of American'business has no . doubt adversely influenced indirectly ..; ~,:the lower grades as well as directly the /imedium;and fine qualities, ...•,-■■■.■; ' . ; .Alternative Marhet Neetlsd.'".'. To judge irom opinions . rnpoatcdlj .'!'■'■ expressed, tho extremists in Australasia ; .would ivelcome the extinction 'of tin, home auctions. .■'• Such ■',- a■ -.result —txj ' suppose for a'moment the impossible-- • Vyould be; a disaster of the .'.greatest ■magnitude .for, the whole/-pastoralist .-■"' industry of Australasia, affecting the increasing number'of snmll owners, equally with the big squatters, loan, ' land companies, and banks. In times .... -of'trouble the greater, financial capacities :of t London are invaluable; tho existence of a central market and tho- 1 "conservative" methods of Coleman Street become of vital importance. To ! prove this, statement it is not necessary- '.; ■'-.-1 , to•*. carry one's recollections far back. .; The' panic prices at which wool was, •■:/. sold-in. Sydney during the carliei part .•'of-1908 came, fortunately at tho end of .; the woolyear.; but if, owing to'special /./.', causes,.values should drop, on some ■pecasipn, to, ii similar extent- early in ■ ■'■• ...tho'."season,^; vast quantities of wool ../withdrawn: and*unoffered would rapidly accumulate throughout 'Australia, and, without the ..' alternative - fil London "*'■".-' (with-'its .'unequalled system .of six successive auctions held at fixed dates, of an average, duration of about 18 days e'achi with an ample-interval, separating each series), the disorganisation of trade, apart, from the actual monetary loss to growers, would be so complete ' and .far-reaching as ,*.o delay the re- .-■''.' covery in values - for a very., extended period. It may reasonably be claimed, . therefore, that growers' who support the London market—for obviously without such support, it would cease to exist— are acting'in,the interests of the;whole.

pastoral community, arid if; as the experience of-yoars has amply'proved, by adopting this policy they also profit financially while ,at, .tjio same timo benefiting -others,. unusual combination should not subject them'..to as. its 'authors well"know',"no"grounds exist.