RISE IN WOOL VALUES

Hawera Star, Volume LIII, 25 September 1933, Page 5

RISE IN WOOL VALUES

REVIVAL OF DEMAND. EXPANSION EXPECTED. (United Press Association—By Electric Telegraph Copyright.) *-.* - LONDON, Sept. 23. Notwithstanding the rise wool is not yet dear, says the “Morning Post. The conviction that the era of low prices has passed has improved the demand for manufacturers, and the industry i,s busy with substantial orders. The “Economist,” reviewing the world wool situation, after analysing consumption figures concludes: “The sharp improvement in values in recent months was a natural result of the revival of demand, coupled with the expectation of a decrease in supplies The_ improvement is therefore fully justified. Present indications are that the expansion of the demand for raw wool will continue in the near future. The advance has not been fully reflected in retail prices, but it is believed that in the absence, of a serious recession in the world’s industrial activity it can be passed on to the consumer without reducing either the demand or the prices of wool.” Discussing a table showing the letainecl supplies of raw wool the “Economist” emphasises Japan’s figures from 1928 te 1932—115,000,0001 b, 107,C00,0001b, 115,000,0001 b, 189,000,0001 b and 204,000,0001b—“which saggests she can absorb and develop the manufacture of woollens at the same rate as she has expanded the cotton industry.” “London’s substantial endorsement of the oversea- wool rates, though not sensational, confirmed mast people’s desire te see steady mantenanee of a level commanding, general support, anil contributing valuably to home confidence and increased consumption,” says the “Yorkshire Post’s” wool expert.

STEADY RISE DESIRABLE.

AVOIDANCE OF BREAKDOWN

AUCKLAND, Sept. 23. Mr .Thomas Millear, jun.. a New South Wales pastoralist, predicted that if the present wool prices held New Zealand growers at the coming season’s sales would be agreeably surprised to- the size of their cheques. He said that Australian graziers did not want to see a too rapid rise m trices, or too high a price, lest there be a breakdown, with a consequent disproportionate decline in prices.