WOOL SALES.

Hawera Star, Volume XLV, 9 May 1925, Page 5

WOOL SALES.

FALL IN VALUES. BOTTOM NOT YET BEACHED. by cable —cress Association —copvbighi. LONDON, May S. At the wool sales there was a rather better tone for mein nos, due to improved Continental competition, but other sorts were unchanged. A New Zealand clip, Craig Lockhart, brought. 28d to 24d. Bradford tops and crossbreds were quiet, but there was better inquiry for merinos. Sixty-fours brought 51d, .sixties' 46d, fifty-isixes 34d, fifties 29d, forty-sixes 221 d, ami forties 20d. The Bradford correspondent of the Morning Post affirms that on a low estimate from £8,000.000 to* £10,000,000 was lost on wool bought prior to December, and the , money has gone into the .pockets of Australian, growers. This has crippled the purchasing power of our importers, whose only chance of even partially recouping is buying the balance of the dip in Australia and the next clip at a rockbottom price. It will take two or three years for Bradford and the West Riding to recover even a reasonable part of the money lost through misjudgment of the outlook last autumn. The Yorkshire Post, in an article entitled “Australian Growers and Control,” says the prophecy of a wool famine is at a discount just now. The present problem. is how to deal with the large accumulations, which are unlikely to lie wanted for some months, by which time the new clips will he marketed. Australia was calling for the re-establishment of “Bawra,’' which is in marked contrast- to Australia's attitude during the latter half of 1924, when making allocations of the nevt wool to prevent over-hasty liquidation. Instead of this policy increasing their profits, Australian sellers let themselves in for a large share of the losses.

Growers are now being made to realise for the first time sine© the war that wo oil is finding its true economic basis. The boom lafter the armistice was .artificial. There iis now a surplus and not a famine, and the surplus is being carried not- by the Government hut by private traders. Our im.poretrs are facing their 'losses with courage .and without calling for outside astsa, stance.

■Wool-growers did exceedingly well for a long time, land have -small claim to special eonsiderafionisi now, but many who profited -by the mad competition in wool ad, the end of 1924 call for the re-establishment of “Bawra.” This means that the Australian woo 1 - g rowers want ,a combine amongst thmeselves for carrying a large quantity of wool into next season and arranging its liquidation with the new clip in 1925-26. That is their business. \ The slump has now gone so far that o-ne cannot help concluding the Australians were wise in not forcing the balance oif the wool isti.ll heldi in. Australia on the market iat this- moment. If they did 1 so they would possibly create a panic and play into- the hands of speculators. The low-water mark maJ not yet lie touched, but any attempt at forced liquidation would mean a severe depression in values, with a. subsequent violent reaction® when orders for tops, yarns and piece go-orb’ began to be placed, again in a normal manner.

SALES IN AUSTRALIA.. POSTPONEMENT ANNOUNCED. >Y CABLE—PRERu ASSOClATlON—copyright MELBOURNE, May 8. At the conclusion of the conference between the wool-growers and the''selling brokers to discuss the question of the slump in the market, it. was officially announced that it had been deckled that public .auctions should forthwith cease. They will be resumed on July 1 if circumstances warrant it. Sir John Higgins (chairman of “Bawra”), in an interview, said that if “Bawra” had been given power it would have regulated the supply, and thus prevented the slump occurring. He strongly urged the need of establishing the industry.

Asked if. “Bawra” would undertake this, he said that if the “Bawra” shareholders wished them to take up the task again and made such a recommendation the Australian board' would have to- consult the British board. It would mean that he would probably have to make a hurried visit to London.

Tlie “Baavra.” Dieting, decided, on the recomime ndiaiti on s of the clirecitons, that the question of liquidation be left in their hands. SHIPPING OONCERuVED. LOSS OF PROFITABLE TRADE. Received May 9, 1.0.10 a.m. SYDNEY, May 9. The decision to abandon all wool sales till the first of July was received with consternation by the oversea shipping trade, for it will have a serious effect on the export trade for the next few months. The chairman of the. Overseas Shipping Representatives Association said that the abandonment of the sales would inflict hardship on shipowners, who had already despatched ships from the other side of the world take their places in the loading berths for the various sales. These vessels could not find employment elsewhere. Apart from wool there was no other profitable avenue of employment for shipping from Australia to the United Kingdom. The only other cargo is wheat, which has been reduced to a bedrock figure.