LONDON WOOL REPORT.

Hawke's Bay Herald, Volume 1, Issue 26, 20 March 1858, Page 2

LONDON WOOL REPORT.

16th December, 1857. The last sale of colonial wool for the year closed on the 4th December, and the number of bales catalogued consisted of 9884 bales Australian ; 9392 bales Port Phillip ; 8328 bales Van Diemen*s Land ; 1885 "bales Adelaide ; 8511 bales New Zealand ; 16,853 bales Cape ; total, 44,583 bales ; of which as nearly as may be about 39,000 bales were sold ; the large withdrawals of offered wools and second-hand parcels swelling the total offered to 3300 bales more than the actual stock of first-hand ■wools, and in addition about 2000 bales, principally Cape, have not been catalogued. The satisfactory close of the July-August iales had imparted a very firm tone to the market, and several parcels from second.hands were sold at an advance of Id. to 2d. on the average of those sales ; this feeling continued for about five weeks, all parties looking with confidence to those rates being maintained in the November sales. This feeling, however, soon gave way on receipt of such unfavourable accounts from America : and business both in London and the manufacturing districts became exceedingly limited. The certainty of so serious a panic there producing its effect at home had its effect, and the continued rise in the value of money, coupled with extensive failures, brought business in every branch to a complete stand-still. The announcement, however, had been made that the sales would commence on the 12th of November, and wide indeed were the quotations -of a reduction which most persons anticipated to a more or less extent in proportion to their views. Contrary to the expectation of nearly all, the sales opened with a yery large attendance of both home and foreign buyers i

and although great irregularity was observed in the bids as to real value, stillthey were animated, and foreign competition helped much to so satisfactory a result, the decline quoted being 2d. to 3d. per lb. The stringency of the money market, and difficulty felt in discounting paper with the best names at any price, produced a gloom which spread more and more every day, and at each night's sale, notwithstanding the large withdrawals, amounting in some cases to nearly half the sale, and generally to one-third, prices gradually gave way, until the decline as compared with the closing prices of August, might be quoted — good and fine flocks, 2d. to 3d. per lb- ; average to fair, 3d. to 4d. per lb. ; ordinary and moaty, 4d. to 5d. ; scoured, hand washed, &c, 3^d. to 4^d. per lb. ; and grease, 3d. to 3|d. This declension in price not leading to the slightest improvement in demand ; the sales closed very dull and without animation at the extreme reduction quoted.

Notwithstanding- a result apparently so unsatisfactory, the wool trade have much to congratulate themselves upon, for a market was also to be found at a price (higher be it remembered, than 1852, with discount then at only 4 per cent), while in many cases other produce could not be sold, except at the most ruinous decline.

It is generally expected that the February sales will comprise about 44,000 bales and not the slightest improvement is anticipated. Indeed if the fact be verified of an early clip, nearly all buyers will merely supply immediate wants (a prejudice existing among dealers against wools from winter sales j, and a decline of Id. to 2d. may have to be submitted to.