OUTLOOK FOR WOOL.

Evening Post, Volume LXXXIII, Issue 73, 26 March 1912, Page 7

OUTLOOK FOR WOOL.

EFFECT OF THE COAL STRIKE. PRICE LIKELY TO BE DEPRESSED [BY TELEGjIAPH— SPECIAL XO THE POST.J DUNEDIN, This Day. Those engaged in the woo] trade in Dune din seem to be generally of opinion that the closing down of Yorkshire mills will depress the price of the raw material ajt the London wool sales next month. Mr. Price, of the firm of Swift and Co., in the course of an analysis of the position, stated that, although the natural result to expect was a weakening 1 of the market, he did not think there would be a serious giving way of prices as he believed that selling brokers would rather hold the wool than let it go at a sacrifice. It was, be said, largely a question of finance as to whether the brokers could hold on until the industrial troubles were over. Those forced to sell would probably have to take a little less than January rates, as buyers would be unable to offer these latter. Selling brokers and merchants holding wool on behalf of consignors would at such a time as the present exercise their discretion, and would not allow wool to go at below 1 what they regarded as its value. The question had evidently been a burning one, otherwise the dates of the London wool sales would not have been altered and the March series cut out. Offerings had also been limited to 250,000 bales at the next sales, which it is intended to hold in April. This amount was fixed as being all that the woollen manufacturing trade would probably be able to absorb. As to the present state of the market, Mr. Price admitted that t^e position was not very hopeful, judging by reports he had received. A recent cable received by him led him to the belief that business could be done at a price. For instance, for wool which he could have sold two weeks ago at 8d a lb he would probably now have to accept £d less if he wished to do business. In the meantime the Yorkshire manufacturers were either unablet to get coal or forced io pay extreme prices for it. Later on, when full work was resumed, the diminished purchasing power of the people, due to the present enforced idleness, would become a factor to be reckoned with. This also would tend to depress the market unless it was helped by some special outside influence, such as an expansion of the American demand for wool. It had been hoped that American buying support would have played an important part in this year's London wool sales, but, as Mr. Price pointed out, America has had labour troubles of her own. However, he believed that America wants wool, and that her representatives will be found bidding for it at future sales, as they did in January, particularly as such an unusually long time will have elapsed between the first and second series. "There is no question, about it, that New Zealand growers have done right," continued Mr. Price, "in offering their wool at the local sales. It is a case of a certainty against the uncertainty connected with shipping their clip for sale in London. The email farmer cannot afford the latter course. At the local Bales all sections of the trade are ,repreeented among the buyers, and there is plenty of competition, co that' the grower has every opportunity of realising full rates. In fact for the last two or three years they have been getting above market rates. Had they shipped their wool to London they would have lost heavily. As to those who have shipped their wool for sale in London it may be taken for granted that the selling brokers are keenly alive to the interests of growers, and the sales have been arranged with a view to preventing congestion of the market." A« to the effect, on New Zealand generally, Mr. Price said the probability was that there would be a strengthen' ing of the tendency towards a tightening of money, which he was assured by bankers was already beginning to be felt. This tendency probably had lt.i birth in the comparative decrease in our export© as compared with our imports. So long as our exports showed a safe margin over our imports, the country would be prosperous, but at present New Zealand was not maintaining the ratio of exportation to importation, nhich commercial men desired to see. We specialise in Roelyn Pure Wool Unshrinkable Flannel and Underwear, "Delta 11 finish, for men, women, and .sbM&ti. ..Wejluteton BBuoflra-ssAdvi,