EFFECTS OF EXCHANGE

Evening Post, Volume CXI, Issue 84, 10 April 1931, Page 12

EFFECTS OF EXCHANGE

ABOVE WORLD PRICES

Winchcombe Carson/ Ltd., reports: The abnormal Australian exchange has placed •wool rates in Australia above ruling world prices. Values need to rise considerably overseas before the selling figures for tops and yarns enable millmen, without assistance from the exchange, to pay the recent Sydney average of 12% d per lb for the Australian clip.' It is not likely that prices will continue to advance as rapidly as they have since January. The rise has been phenomenally : quick, and usually when such circumstances are experienced a halt, and sometimes a slight downward variation, is soonei" or later noticeable. The urgent need for supplies becomes more or less satisfied, and some consumers sit back until they become sure of subsequent events. ' . No person can say how long the Australian money exchange ..will remain afc 30 per cent. Possibly the value of wool may rise before it goes back to normal. But in Australia's present position it is absolutely essential that facts should be faced as they exist, and the future judged on them and not on possibilities which may or may not materialise. Without -the help of the exchange, the average price obtained for the more than usually attractive catalogues latterly _ submitted in Sydney would have been 'in the vicinity of 9d per lb.' That is the unassisted safe basis on which sheep earnings should be regarded. If a better figure is secured in the days ahead, so much the better. But the pastoral industry, after_ its experiences of the past two years, is in no situation to take risks. AVo feel confident that wool prices saw their lowest level last January. There is no reason to be nervous respecting, the future of the market. But we cannot too strongly advise all concerned not to count tlieir chickens before they are hatched. Conservative ideas will keep the sheep industry on solid ground.