WORLD DEPRESSION

Evening Post, Volume CXVI, Issue 36, 11 August 1933, Page 10

WORLD DEPRESSION

SIGNS OF EMERGENCE

Dennys, Lascelles, the big wool firm, with headquarters in Geelong, in dealing with the improved commodity prices, remarks that it would appear that the world was at length steadily emerging from the depression of recent years, and countries were arranging reciprocal tariffs. In any world revival of itrade wool would be one of the first commodities to benefit. If conditions continued to improve it waß reasonable to look for the rise in wool values already established to be maintained throughout the currency of the next wool-selling season. Referring in particular to wool, the firm remarks that towards the end of June wool values hardened, and they had since been maintained in London. If such values were sustained a brighter outlook for the Australian flock owners presented itself for the approaching wool season. The wool-selling season, as far as Geelong was concerned, was a record in that more than 200,000 bales were dealt with. Although the values remain low, they were steady, with an upward tendency towards the close of the season. Fi'om • a trading viewpoint this was most satisfactory, as the top makers and spinners did not have the bogy of low replacement costs constantly before them, but were able to buy freely and lay in sufficient stocks to tide them over the off-season. Once again the feature of the Australian market had been the strength of the Japanese competition. ' The 'requirements of the East now cover every description, but particularly ordinary-style merino fleece wool and medium to fine erossbreds. Touching on the season, Dennys, Lascelles remark that conditions generally had not been favourable for the growth of wool. Australia, therefore, would market a lighter clip than.last year. 11ns falling off had been officially estimated at 300,000 bales. Such a loss meant £3,500,000 in money, but if market conditions remained as they were in July the loss should be offset to a large degree by the higher prices. As far as Victoria was concerned dry conditions had prevailed throughout the greater, part of the State, and a lighter clip must be produced. Over all the western plains country the clip would be light, and possibij' finer in quality, with a proportion of weak-stapled wool. Lambinc generally was of a lower percentage, and this.would have a reflex action on the following clip.