WELLINGTON NEWS

Hokitika Guardian, 21 April 1925, Page 4

WELLINGTON NEWS

WILL WOOL RECOVER?

(Special to “Guardi wi”.)

WELLINGTON, April 17

As AYednesday last was prompt day in connection with the last wool sale hold iii Wellington, men interested in the wool trade were about and conversations with a number of them were interesting because of the conflicting views held respecting the future of the wool market. Some consider that an improvement will he shown at the next London sales to begin on May -3, while others consider than the trade will he lucky if current values are maintained. Those who hold optimistic views fortify themselves with the statistical position, which has served all the optimists in the wool trade for some time past. While the cry of shortage was warranted twelve months ago it is

scarcely warranted now is the contention of others, lint what has boon the cause of the set hack is the question asked by some, for when one knows the cause remedies may he applied. It is stated that several factors have contributed materially to the serious fall which has occurred, for instance there is tlie state of trade in France, which has declined very materially. I here is shaken conUdeneo everywhere, America has been a disappointing factor for the past twelve months in me wool world and has failed completely to anticipate future requirements, buying a mere handful of new clip Australian wool. Furthermore there has been a gradual decline in the state of trade at Home, which has found its climax in spinners being forced to run short time and niamifactiirers unable to run looms more than CO per cent. There lias been

for months keen opposition against the verv high wool values which have been ruling. That opposition has taken practical shape in wholesale fabric leavers refusing to purchase only hand-to-mouth. all of which means in the l agview of the situation is that the recent downward tendency of wool values is largely due to the decrease in the consumption of that article, which for certain purposes has been displaced bv artificial silk. There has keen, an aliivisf universal discarding' ol Cashmere hose lor la-dies' wear. “ Rayon 01 url silk hose is now the rage, and it is

said that nianv spinners are beginning to think that they will have to take under their wing this new article, lor however much it may have disturbed trade it appears to have < oaie to stay. It is the appearance nf llie art silk varus when converted into a wearable article that appeals to the taste ol the gentler sex. Apart from appearance there is said to he little to commend art silk. All the same it is interesting to know how far. it has allected the consumption of merino and also crossbred wotd. The wool position, the

more one examines it. seems to he an enigma. It has already falsified the prediction, of the optimists, and it may as easilv discount the opinions of the pessimists. Alter all it is the purchasing power ol the eeusiimer that decides the point, and if European trade shows nnv revival wool will eoii’.e hack'. TIIK DAIRYING INDUSTRY.

As forecasted some time ago. Mr A. ,| Highway has been appointed Managing Editor of the -‘New Zealand Dairy Produce Exporter.” which will he the organ of the Hairy Control Hoard and will no doubt he used during the next twelve months to justiiy absolute control ol the industry. Mi Highway was Publicity M anager of the N.Z. Co-operative Dairy Association, ~f which Mr Claude Motion is Chairmen and Mr \V. Coodl'ellow Managing Director, and both cf whom are members of the Control Hoard. This Hoard has yet another appointment to moke and that is the position of Manager in l.oud. u of the agonrv to he sat up by the Hoard and of which Messrs Motion an.l I runs are to I e mwibei's. |: i, rumoured tb A Mr AY right. "!>" i ill- 1 Inn icpre v'lC'l i* e"I lb" N.Z. Co-operative Daily Assec.iiDnii, is likely to receive the appointment ; il so this AVaikalo concern will he in practical control of the Dairy (ontrol Hi,aril. Apart from the functions and operations of the Control Hoard there are those interested in the trade "ho i laim to see important changes taking place, tlmsc changes being in the nature of increased competition. It is an old and true saying that high prices stimulate production, nml high prices have ruled during the past tun in three years. The high values must rei ede. Production lias steadily increased in Australia and Xew Zealand, the industrv is being developed in South Africa, and Argentina is coming to the fore very rapidly. The Republic’:; exports have hem expanding and now approximate to about lll.tltll) tons. Hut the scope tor expansion is very great and the Government of the Republic lias engaged competent instructors to teach the dairymen their business. I 1 urtherm.nethe Argentine is importing high grade milking cattle and some ol Lhc best of Xew Zealand’s Friesians are being sent to Argentine. The dairy farmer there is settled on land much less expensively than in Xew Zealand. r l lie laud is quite as productive, there is ample cheap labour and he is nearer the terminal markets. Russia. Siberia, Finland, Latvia and Esthonia are increasing their pioductioii steadily and it will licit lie lung before their output exceeds what was contributed by them prior to the uni. All this means an enormous production lor a single market to consume, for in the natural course of events Germany will, to a very large extent he able to supply her own requirements. The outlook then is not so rosy as one would like to believe, but it should have no terrors if we know how to trim, the c osts of production.