THE WOOL TRADE.

Gisborne Times, Volume LXVIII, Issue 10711, 8 October 1928, Page 5

THE WOOL TRADE.

“SEVERE DECLINE IN VALUES” HOME COMMENT ON POSITION United Presa Assn by El. Tel. Copyright Preaa Assn.) (Received Oct, 7. 5.5 p.m.) LONDON, Oct. 6. The total offerings at the wool sales just closed were 140,000 bales, of which 92,000 were sold, the Continent taking 55.500, Yorkshire .35,500, America 1000. Expert commentators take none too rosy, a view of the future prospects. H. Dawison and C 0.,, state that the sales not qnly registered a severe decline in values, ’biut left both the producing and the consuming sections of the industry in a perplexing and uncertain position. Until the opening of the sales, there was no indication of such serious trouble. The scarcity of new yarn orders from Continental centres, combined with .the slight drop in Sydney, began the anxiety, which was intensified by holders of raw wool, who could ' not obtain adequate prices for tops and yarns, deciding to send, their stocks for re-sale. This decision to become sellers, instead of buyers, did much to shake confidence, checked new business at the manufacturing end and changed the fairly comfortable position of July and August into one that approaches stagnation. The whole, industry, from grower to distributor of cloth, received a great ■shock by the sudden change of,the riiarket, but there is no justification for the semi-panic felt in some quarters. New arrival Colonial purchases, though dear, will not be heavy and the stocks of raw material and manufactured goods are generally, light. The export demand for cloth/ is suprisingly good. Shipments for the first eight months of the year total 120 million square yards, compared with 112 for the same period last year.