DEMAND FOR WOOL

Dominion, Volume 18, Issue 150, 21 March 1925, Page 7

DEMAND FOR WOOL

WHY UNITED STATES IS BUYING LESS TRADE COMMISSIONER INVESTIGATES HIGH PRICES EXPECTED TO CONTINUE (Rec. March ,20, 10.50 p.m.) By Telegraph.—Press Association CoPYBIGHT New York, March 20. Mr. Elder, Trade Commissioner for Australia in the United States, has just returned from a visit to Boston, where he went to inquire into-the state of the wool market and to ascertain why Boston recently ceased to buy the former quantities of wool from Australia. Mr. Elder conferred with Mr. R. N. Pitt, formerly of Sydney, and , Mr. Wing, president of the First National Bank- of Boston. Both gentlemen , are leading authorities on the American wool market.

The Commissioner learned that decreased consumption of wool by Americans is responsible for the falling off in wool purchases. The high price ot wool in Australia does not play an important part in the position, because it has been estimated that recent increases in wool prices in Australia only added a dollar to the cost of a suit of clothes. There has been, however, a 300. per cent, increase in the cost of tailoring aud a 200 per cent, increase in the cost of manufacture of cloth. These conditions, added to the fact that Americans are not buying so many new clothes, have tended to depress American purchasers of wool. Purchases of new clothes decreased not only because they are dear, but because Americans incurred new liabilities, the chief being automobiles and radio sets. It is estimated that there are seventeen million automobiles owned for. pleasure purposes, 80 per cent, of which were purchased on credit. There are four million radio sets in use, all of which are now being paid for. Americans, moreover, use automobiles excessively, with the result that then clothes do not wear out so quickly, and they do not co oso much, staving at home listening to radio programmes, all conspiring to reduce clothing purchases. Mr. Elder considers that these conditions will be overcome bv the passage of time, when an increase in the wealth of the people, an increase in workmen’s wages due to restriction of immigration, and changes in fashion will mduce consumers to purchase more clothing. All authorities agree thwool will remain a staple article n? trade and will continue at a high price for some time to come.—Aus.-N.Z. Cable Assn.