WOOL TRADE

Gisborne Times, Volume LXX, Issue 11115, 27 January 1930, Page 5

WOOL TRADE

ARE CONSUMERS GETTING FAIR DEAL?

A JUSTIFIABLE COMPLAINT.

United Pros* Assn, by El. Tel. Copyright (Received Jan. 20, 5 p.m.) .LONDON. .Jan, 2d. .Discussing the wool situation, a Bradford correspondent- says:—

“The decline in London lias not made .trading'" conditions better in Bradford, where thcro is at present no sign of a movement to take advantage of the current, low prices, but spinners make no secret of their intention to buy heavily when they are satisfied .that the decline' lias" reached its limit. Hie position of the. wool market ag--siin brings into prominence llio justifiable complaint that, while the raw material has sagged hack to or somewhat below the level ot values current before the war there is no sign that the advantage of cheap raw material is being reaped by the ultimate consumer of wool commodities. It is now becoming recognised in Australia, as in Bradford, that excessive retail changes lor wool attire constitute the sole serious impediment to that free flow of manufactures into the hands of tho public which is essential if the industry, from the woolgrowers onwards, is to operate in a sound and healthy manner. There is a block in the stream between the. manufacturer and the public, consisting of excessive charges, which raise the cost ot clothing so high as to curtail the demand. Long charges rather than short dresses have been the cause of the sluggish demand in wool textiles.”

VALUES RULE HIGHER L\ AUSTRALIA. SUDDEN RISE PREDICTED. (Special to the Times.) WELLINGTON, Jau. 2-1. Despite the .further slump iu wool prices, a number of prominent brokers are confident that there will be a recovery before much more of the Dominion’s clip is sold. London wool sales, now due to open, have to show prices 10 per cent, lower than those of closing values before they can reach the level which has been maintained in the Dominion. This is considered by some higlv experienced men to be very unlikely and it is also thought that the possibilities of prices remaining down are moio remote. It is pointed out that, despite the fact that there are over 1,000,000 more sheep in New Zealand this year, the fleece, taken all through, is lighter and the clip therefore not as big as last year. In addition, authoritative report is that the Australian clip is lower by 100,000 bales. Reports of values ifom Australia show that wools which realised IJ<l in Christchurch have been selling there for 16d and over. Besides this, wool is now'down below cost of production aud most unlikclv to stay there. Up to present one third of the clip lias been sold, so that , the country will benefit materially by a sudden vise in value, such . as is now predicted.