What the Rise in Wool Means.

Daily Telegraph (Napier), Issue 4659, 13 July 1886, Page 3

What the Rise in Wool Means.

The causes which led to the rise in wool it is a matter of difficulty to name. Wool brokers themselves who have had years and years of experience in tho wool trade are unable to say definitely. Mr R. B. Ronald, one of the London Board of tho Australian Mortgage, Land and Finance Co., says that the wool market was of all markest the most difficult to understand, rises and falls in prices taking place with almost electric suddenness. The cause of the present, rise, however, he explained in the following way : " The effect of the long winter has worked off the stock of woollen goods, and clothiers and cloth merchants have gone to the manufacturers with eirclers in their hands, and the manufacturers, taking these orders when the price of wool was so low that it would not do for him to run any risk, determined to buy as much wool as would supply their orders for cloth. Our representative had also interviews with other gentlemen intimately associated with the wool trade and sejuattiug interests. Frpm them he ascertained that the general opinion was the present rise in tho price of wool was similar in character to that which took place iv 1870, when, along with a general break-up of a disastrous drought, wool suddenly increased in valuo in the London market. This wax what was called tho "double event," anel the wool merchants and stock and station agents say the experience has now been repeated. Already tho rise will mean £2,000,000 of money to Australia. While there are not wanting voices counselling care, and issuing warnings that tha favorable features may not be permanent, tho majority of those entitled to form an opinion agree in predicting a long run of prosperity. The general rainfall has not had any direct effect upon tho wool market, but of course it has given station property a " boom." Inquiries have been made for properties which have been for many months available for purchase, without the slightest sign being shown of a willingness to buy. The future as painted by those best qualified to judge, is a rosy one. The immediate causo of the rise is that the "top-men" at Home worked out their stocks, and were compelled to buy, and buy largely, of second-class material ; but a simultaneous demand of the kind from all three manufacturing centres—tho North of England, Germany, and France —is unprecedented.—Melbourne Telegraph.