Hawke's Bay Herald. WEDNESDAY, OCTOBER 28, 1885. NEW MARKETS FOR WOOL.

Hawke's Bay Herald, Volume XXII, Issue 7304, 28 October 1885, Page 2

Hawke's Bay Herald. WEDNESDAY, OCTOBER 28, 1885. NEW MARKETS FOR WOOL.

We are glad to see that the efforts of Messrs Synnot, Bros., of Melbourne, to re-open the question as to whether a market for wool cannot be found in China and Japan, are meeting with more appreciation and practical support than were accorded to the late Mr Monckton Synnot when he made the first attempt to establish a market in China some years ago. The various Chambers of Commerce in New Zealand have expressed their approval of the suggestion that a more thorough test of the Chinese and Japanese markets should be made, and promises of considerable pecuniary aid have been made. The sheepfarmers are undoubtedly the most vitally interested in this question, but indirectly it concerns our merchants, onr banks and finanoial -institutions, and even our working men, for everyone is interested in the prosperity of the colony, and the opening of a newoutlet for the congested wool market would undoubtedly go far to restore prosperity. In Victoria the question is exciting great interest, and the meeting recently called by Messrs Synnot Bros, was attended by over two hundred gentlemen concerned in the production or handling of wool. At that meeting Sir George Verdon, the president of one of the chief banks in Victoria, spoke of tbe wide-reaohing effect of any new opening for the sale of wool,- and emphasised his remarks by giving one hundred guineas on behalf of his bank towards the fund being raised to aid the movement. There was complete unanimity in the desire expressed that a proper and thorough test should be made of the possibility of opening new markets for wool in the Bast, and on the whole the views ez-

pressed were decidedly hopeful. The i chairman, Sir James M'Culloch, in tho . course of his opening remarks as re- ■ ported in the Argus, said : — j Iv 18G9 and 1870 we had had quite as low price b bb now, and a great change had come about without any apparent cause ; but there were other circumstnnces at the present time which had to be taken into account in connection with the wool market. There had been a great increnoe of late in the importation of Wool into England, aud he would call their attention to one or two figures which would show that it was a matter of grave consideration as to whether some steps should not be taken in order to alter tho position of affairs in regard to tho price of wool. In 1870 the wool imported into England from Australia, exolusive of New Zealand, amounted to 307,000 baloM. In 18S4 there were imported no less than 700,000 bales. This was an enormous increase, and it would require a very large increase in tho consumption of wool to maintain the prices that had been ruling for some time past. Tho importations fiom South America had also to be taken into account; and these had also been increasing at a very rapid rate. In ISB2 there were imported into England from South America 234,000 baleß of wool, but as these bales were about double the weight of Australian bales, 468,000 bales wore in reality imported in that year from South America. During theyear that had justpa.sed there was an actual increase in the importations from that part of the world of 40,000 of these bales, or equal to about 80,000 Australian bales. These were circumstances that must tell on tho wool market, and the question now was as to what could be done to meet tbe case. . . They knew that if it were possible to get the Chinese people to use wool rather than cotton, or to use both together, a very large market would immediately bo opened Up to us, offering far better facilities for the disposal of Australian wool than could be obtained elsewhere. . . . He had spoken on the subject to Mr Kong Meng — a most intelligent gentleman, and one who was well known in his native country — and he said he had not tho slightest doubt that if woollen mills were established in China this would go a long way towards inducing tho people to use woollen fabrics. The establishment of mills would make the movement popular, and the Chinese would soon find the advantage of us.ng woollen in the place of cotton goods. Mr E. W. Synnot detailed tho steps taken by tho lnte Mr Monckton Synnot to test the Chinese market, and the preliminary difficulties which he overcame. As our readers know, Mr Synnot was left to work almost alone, and when he died the matter was allowed to fall into abeyance until rocently revived by bis sons. Mr R. W. Synnot added that his firm had now revived the movement because the present seemed to be an opportune time, und as illustrative of the change taking place in Chinese feeling he said : — As regards China, there could be no qupstion that during the last few years a wonderful chauee had taken place in the material progress in public opinion, and the adoption of European systems (partly due, no doubt, to the necessity for providing against external enemies), the extension of telegraphic communication, and the groat expansion of missionary effort. Much was also due to the general prosperity and settled internal condition of the Empire. Then, as illustrating the remarkable change in public opinion, only some nine years since the first line ot railway in the country — that from Shanghai to Wooeung — was approaching completion and partially open for traffic, when, iv deference to popular outcry, the line was taken up and the material removed. Quite recently, the cable informed us that the Chinese Government were negotiating a large loan in the European markets expressly for the extension and development of railways. Indeed, the removal of difficulties in the way of internal traffic might be considered as a leading feature in the national policy, and, under these cirj cumstances, expansion of the trade of ■ foreigu nation, with the great centres of population in Middle and West China was confidently looked forward to. The 1 question arose, How would England and her dependencies fare in the race in a country where so much depends on the favorable disposition of the Government ? On this most important point there was ample evidence that England stood on tho footing of the most favored nation. The always occupied a leading position in respect to foreign import and export trade, and with that of the Australian colonies, were now very far ahead of all competitors. Recent events had done much to cement the very cordial diplomatic relations between England and China, and could not but have a very marked effect on present and future business relations The facts were evidence that the present was a most favorable opportunity for pushing our trade with China, Japan, more accessible, less conservative, and better prepared for industrial works, presented a large field for systematic effort, more particularly aa this country had already established woollen factories, and had shown a marked disposition to cultivate relations with the Australian colonies. Another baße of operations was suggested through British India, where a large trade was established over the Burmese frontier with the western districts of China, and where attention was now directed, in view of the low value of wool, to establishing a trade in mixed woollen fabrics in connection with the great mill power available there. There was not wanting corroborative testimony from authoritative souroes. It was mentioned that Sir Hubert Hart, an officer high iv the Imperial service at Pekin, had cabled to the Premier a message couched in very hopeful terms. A letter was also forwarded by the Chamber of Commerce, in which tho writer, who had just returned from a two years' special mission in the East, described the promising nature for the opening to British trade in Eastern- Asia, especially iv China and Indo-China. Mr Herberte, of Ballarat, a thirteen years* resident in China, Mr W. P. Buokhurst, a recent traveller in China and Japan, and others also gave warm support to the Bcheme of the Messrs Synnot. By way of corroborative testimony we may add that at the recent meeting of the [ Napier Chamber of Commerce Mr Coleman mentioned that several years ago he met a Japanese deputation sent to Australia to buy sheep, and as the result of several conversations with with them he gathered the irapres .ion that a large amount of wool could be consumed in Japan, They did not, however, wish to purchase wool from Australia, but to grow it themselves. The question of the Japanese and Chinese growing their own wool, if they were " educated " to the point of using woollen garments largely, was raised at the meeting in Melbourne, but several gentlemen who had been in the East pooh-poohed the idea, and pointed out that the population was too dense, and the cultivation of the soil too olose, to allow any considerable number of sheep to be kept. Now that such prominent j

ta.M^.^dh_______________M__MpMM_ attention has been called to the subject, we sincerely hope that our wool growers will rally to the aid of the Messrs Synnot, and provide them with sufficient means to enable them to place a considerable quantity of wool on the Chinese aud Japanese markets at prices low enough to ensure its use by the native weavers. That is the only way to test the markets there, and expense should not be a bar to the test being made. Should the experiment be as successful as its promoters believe, the ultimate return must be a thousandfold on the initiatory expenditure, and there is quite sufficient favorable evidence to justify the experiment being made.