BOYS' INSTITUTE

Evening Post, Volume CXVIII, Issue 96, 20 October 1934, Page 5

THE COMING SEASON

IMPORTANCE OF GERMANY

Dalgety and Co. in their remarks on tlie 1031-35 New Zealand wool-selling season—to open in Auckland on November 27 —remark that with the near approach of the season the prospects become important.

'•'Unfortunately it is not likely that the return tp growers for the 1931-35 season will be anywhere near so high as in 1933---3-34. The heavy clearances effected of the new 1933-34. clip, combined with the disposal of the heavy carry-over' from the 1032-33 season of 147,300 bales, is a matter for congratulation, and had if not been for the marked fall in prices at the Dominion's April round of sales, this year's carry-over of greasy wool would probably not have exceeded 35,000 bales, instead of 01,469 bales. Of this carry-over 55,817 is in the North Island and 5652 in the South." After setting out in tabular form the sales and realisations of the last five New Zealand seasons, the firm proceeds:—"lt is difficult to forecast what the future has in store for the Dominion, having regard to the fact that we are so dependent for our prosperity on conditions entirely outside our own control. . . PURCHASING POWER. ''The purchasing power of Great Britain, and the Continent rules the matter, while the former is also dependent largely on conditions prevailing in other countries. It can scarcely "bo conceived that the present unsatisfactory position on the Continent can long continue, or should the recovery of Germany be delayed beyond a Sew years. With the latter and Trance and Italy settled down to retrieve their positions, new economic problems will ari.se, the result of which is impossible to foresee, but which sooner or later must have a bearing upon our own trade. ''The recent fall in wool values is hardly a true indication of the world's wool markets, and growers should not view the future with pessimism, remembering that the consumption of wool is yearly increasing, and despite temporary, set backs, is still further increasing. The world will always need a big yearly production of wool, and it is obvious that no country can afford to allow one of the greatest industries to languish for lack of raw material." AN IMPORTANT BUYER. Germany's importance as a buyer in the New Zealand wool market is emphasised by Dalgety and Co.,'who remark that it was fortunate for New Zealand that the major portion of the 1933---3-34 clip was .marketed before financial troubles fully developed in Germany and, in a lesser degree, France and Italy. Thqr most important happening was the susi pension of wool imports into Germany, pending a readjustment of import and export figures. There does not at present appear to be much prospect of an early .volution of these difficulties. The -German Minister of Commerce has decreed that as the foreign exchange situation is still precarious, it is necessary to coiir tin ue the curtailment of imports. . The textile industry has been ordered to reduce working hours to 36 a week, no newconcerns are to be started, and the_ extension of existing mills is prohibited.' "it during the coming season Germany is going to make drastic reductions in he" buying of raw wool in Australia and New Zealand, such a decision will be regrettable, for Germany yearly uses, a huge quantity of the textile—more than i» generally known." Returns are given showing that Germany purchases ,in New Zealand about 40,435.!)001b of wool annually, and its total purchases in London, Australia, New Zealand, South Africa, and South America amount to approximately 923,384 • bales, and in addition washed wool, tops, and noils are purchased, accounting . fo. an equivalent of 350.000 bales of greasy wool in addition, in all some 1,303,384 bales of greasy wool per annum.