TRADE.

Hawera & Normanby Star, Volume XLII, Issue XLII, 7 October 1922, Page 4

TRADE.

Writing to a friend in New Zealand, a resident in Buenos Ayres has some very interesting remarks on the position of wool and also on other conditions which reflect on all other countries. Inter alia, he says, quoting from the National Bank of Boston: "The enormous weight of surplus..wool-which, it. was generally believed, would require years to absorb, has vanished, and wool has doubled in value within a year. Money is now plentiful at low rates, New York call rates being about 3 "per cent, and the securities' rates, Tvith occasional setbacks, continue an upwards swing. It is interesting to note, as evidence, of the, existing ease of money, that the bill holdings of the Federal'lteserve- Banks have shrunk from over three billions in October, 1920, to less than half a billion. "As regards leather j hide's and footwear, the markets have brightened and there is an inclination to buy leather in larger quantities. The leather industry has benefited to no small extent by this change, the better demand being evidenced especially in sole leatheT. Prices advanced and the volume of business increased to the extent that some tanners actually sold ahead. Prices on hides advanced two to three cents per lb., and some operators predict a similar rise in the near future, with possibilities of even higher pfiees._ The entire foreign' trade situation in hides and leather looks brighter at the moment.! The wool manufacturers have found it necessary to advance prices on cloths to a-point somewhat commensurate with the advanced prices of raw material. Mill consumption has declined lately, however. The Government estimates the consumption for the four months ending April 30 at 218 million pounds, including 40 million pounds of carpet wool, against 144 million pounds for the similar period last year, including 11 million pounds of carpet wool. Local stocks of wool are getting within a narrow margin. About 95 million pounds of wool suitable for clothing purposes remain in bond awaiting the passage of the new tariff, -which the trade expects about September. This amount is about one-third of a yenx's normal importations, and recently a few small shipments of this bonded wool have been made to Europe, where the mills, in some instances, are sold ahead to September and beyond. Apparently there is to be an era of high priced wool.''