WOOLLEN GOODS

Greymouth Evening Star, 16 August 1920, Page 8

WOOLLEN GOODS

SLUMP IN RAW MATERIAL, FALL OF 30 PER CENT. PREDICTED IN PRICE. (Own Correspondent.)

WELLINGTON, August 12

“The bottom lias fallen put of the wool market,” stated a- merchant to your representative yesterday. The merchant was asked for a reason why wool had become a glut iu the Home market, and he replied that lie could not explain the actual cause, but the fact remained that the demand had declined to an appreciable extent.

GOOD DEMAND FOR MEAT

“It will yet- be found tdiat- meat w:3l be the saving of the farmer,” lie added.. America consumed a large quantity annually of meat, SO per cent, of which was pork and beef. The sheep in America wore of poor quality, and ■considering the size ox the country, sheep-farming was not extensively carried on, and in Canada there were only 7,C0G,C00 sheep. Once the Americans get accustomed to eating New Zealand lamb the trade was bound to grow and a great market would be opened up. AY it h wool, however, it was different. Late advices from New York state that greasy pieces only brought 4d per pound, and a number of mills have closed down.

EFFECT ON NEW ZEALAND BRICES.

Your representative drew attention to the fact that manufactured .woollen articles were still high in New Zealand, and that .-there did not appear to be any immediate prospect .of a fall in prices.

“No,” replied the merchant, “the public cannot reasonably expert a sudden decline in '’allies. The importers, practically without exception, have purchased on the top of the market, and in many instances they did not know what the goods cost until the invoices came to hand. It was a case of buy where you could, and at any price that was asked, or go without. Contracts were entered into during the war, and some of the goods are only now coming to hand. These goods will have to bo disposed of at as low a profit as possible, otherwise a loss will be made. It is safe to say that within the next two 'months woollen manufactured goods in England will drop from 30 to 40 per cent., and as there are a number of business men waiting to operate when prices become more reasonable, it wdl not be long before competition regulates the prices in the Dominion.

“COMPELLED TO UNLOAD. “Is it not possible that the fact cf it being summer time in Europe may account for the falling off in the deand for woollen goods !” “That has practically no bearing on the position,” stated the merchant. “Manufacturers are not concerned about the present summer, but the requirements for next winter and rummer. Orders are booked a long way ahead,- There has been an immense shortage, and it will probably take a long time yet for the orders in hand to be fulfTied, and this fact makes the drop in word the nwo significant. It must also be remembered that a considerable amount of profiteering has been going on at Home in woollen prods as well as other closes of merchandise. The manufacturer is not always the culprit, but the factor, and now that he has become alarmed he will unUad as fast as he can, and at the best prices he is able to obtain.”