FUTURE OF MARKET

Evening Post, Volume CXVIII, Issue 50, 28 August 1934, Page 12

FUTURE OF MARKET

AN AUSTRALIAN OPINION

The Australian Mercantile, Land, and Finance Co., Ltd., in a report just issued, reviews the present position, and compares it with conditions prevalent in earlier years. Dealing with the present outlook, the company says: "We have persistently refused to allow ourselves to believe that the indifferent demand1 for wool at sales in all centres in the last few months could be regarded as a guide to the near future of the market, when the sales programme has the opportunity of getting properly balanced. Though the position is causing anxiety, we are unable to recognise that, as yet at any rate, it embodies the . elements of'disaster; consequently we think the view permissible that it is well within the bounds of possibility for. values to average better than appears to be generally anticipated. It will be no surprise to us if market events dispose of much of existing misgivings as unwarranted. Whether or not, it is certainly hard to reconcile a lack of confidence in a vender with an earnest desire for improvement in selling prospects. "Throughout the worst phases of the world depression wool was the outstanding world commodity in regard to the freedom with which it was purchased and used, improving the statistical position of the staple. Having satisfactorily survived that stressful period, circumstances 6eem to be positively against it becoming a comparatively worthless product overnight as it were. Towards the close of the July London scries of auctions brightening features made their appearance in the market, and should they be given confirmation at Brisbane auctions the effect in the direction of stimulating demand for subsequent offerings will be very substantial.

"Latest reports from Italy are that a final decision regarding restriction of imports of raw wool has been deferred. This implies that the matter is being gravely deliberated upon, and suggests a dominating recognition of the desirability of hasteniug slowly in tho handling of a matter undoubtedly of extreme importance. There is some comfort in the announcement that whatever may be decided regarding import restrictions, application will. be general and imt aimed specially at Australian wool."