TUG-OF-WAR WITH WOOL

Evening Post, Volume CIX, Issue 102, 4 May 1925, Page 4

TUG-OF-WAR WITH WOOL

Something like a tug-of-war istaking place in Australia between wool buyers and wool growers. A meeting of considerable importance to the trade is called for Wednesday next in Melbourne, when the brokers will discuss the latest developments of the struggle. The present state of the -market is such as to induce growers to hold back their wool, with the result that the Adelaide sales fixed for this week have been postponed. In fact, all sales fixed for early dates have been or are likely to be similarly deferred, unless the market prospects materially improve. It is all a question of price, and considering the handsome returns that they have received for wool during the past six months growers probably feel that they can afford to sit tight, on their bales until buyers come to terms. Recent cabled remarks of so eminent an authority as Sir Arthur Goldfinch, to the effect that production is now hundreds of millions of pounds of wool below consumption, and that "half a world clip has disappeared," will no doubt justify wool growers in their waiting attitude. The struggle between growers and buyers is likely to be keen, but not prolonged. How keen, may be determined by the results of the London sales which begin to-mor-row. But in any event a decline is expected to be recorded in Coleman Street. New Zealand is not likely to be so immediately affected as is Australia, but even in this country there is a substantial quantity of wool unsold, perhaps between 66,000 and 70,000 bales, and its value is, of course, affected by current market rates. A London cablegram to-day suggests that a decline in merinos of fifteen per cent, is inevitable, unless the Contment, especially Germany, comes to the rescue. The "Economist" asks if British buying power is not really greater than it appears. The answer cannot be furnished from this quarter of the globe. But there is always the danger hanging over the wool trade of the ultimate consumer being forced to take a substitute and of that substitute's usurpation of the place of the genuine article. Science acts quickly and efficiently to-day, and it is always possible that something nearly as good" may be found to take the place of wool or anythingelse when the price becomes practically prohibitive.