WELLINGTON NEWS

Hokitika Guardian, 15 December 1925, Page 3

WELLINGTON NEWS

THE WOOL MARKET. (Special to “Guardian”.) WELLINGTON. December II

The wool sales in New Zealand so far as they have gone have puzzled flic woolbrokers, in fact it has got them guessing. When the first sale in Wellington was over there was an uncomfortable feeling heenuse of tho sphinxlike silenco of Bradford’s representatives, which brokers realised had considerable significance. The market was sustained by Continental buyers and as we know now the Wellington sale gave the best results of nil the sales held up to the present. At Wanganui. Auckland, and Napier, Bradford continued the policy of silence and it was obvious that low as prices were they were too high for Bradford. At Christchurch sale values showed a distinct downward tendency and crossbred wool was fully Ml |ht lb below Wellington parity. At Napier sale this week there was a further drop of I Ml per lb and more, and that Bradford was coming in with bids was encouraging. Clearly some of the prices tit Napier were within Bradford’s limits. The Continental buyers were inactive which seems to indicate that for the present at least they have filled their orders. One could wisli that the market would stabilise at the Napier prices hut there is little chance of that for Bradford buyers will not operate except at their own prices and those are below those current, at Napier. The Wellington sale at the week-end is certain to reflect the changed position, that is to say values at Wellington "ill he below those ruling at Napier. The outlook is very disappointing for not only are wool prices disastrously low as compared with last season, hut the output of wool in New Zealand this season is likely to show a. considerable shrinkage. Owing to tla- severe climatic conditions experienced in the winter and spring there has apparently not been a full growth and the wool is tender. One authority estimates that the New Zealand clip will show a shortage of at least 35,000,f100Ris which is equivalent to 100.000 hales averaging 35011, each. This at the low average of £l2 10s per hale means a loss of C1.250.0ttH to the Dominion as compared with last year. The shrinkage in the wool revenue will la' a serious matter not alone tor the woolgrowers hut for the whole eommunil v.

BURDEN ON WOOLGROWER. At the annual dinner of the Colonial Woolbuyers’ Association held in London on December 2nd. the leading men in the trade in the speeches urged woolbuyers to accept more reasonable prices, allowing every section of the trade a fair profit and permitting millions of people to wear woollen garments ami buy two suits where at present they were only buying one. This is all very well, but the advice is based on false promises. It is not the grower who fixes the price, much a- he would like to do so, it is the buyers who regulate values and this can he seen in i he sales now being held in the Domin-

i-m. The unsatisfactory position of tla- market is largely due to the blunder.- committed by the buyers last sca--on when they paid absurdly high price, under the impression that there was an enormous shortage of wool. They neglected to take into account the purchasing power of the millions who need garments. The high price of wool was reflected in tho price of fabrics and those handling clothing soon found that business was slack. There was immediately a cry for cheaper fabrics and manufacturers laid to meet this demand. Bradford is said 111 have 1 1 ,s i cill. HlM). (too lienee the cry for reasonable prices. One writer commenting on lliis say-: “ What is a reasonable price? La-t season super crossbred wool was I etching from 22d in 25d ; it is' now down to ltd and I ltd with a downward tendency, and growers are naturaliv anxious to know the reason for ibis sharp decline. It cannot be claimed that there is ovor-pro-duction in wool, for all authorities agree that consumption is in excess of supply. New Zealand’s output for instance, tliis year has been estimated at being 10.000.00011, weight less than last year's din. It is the purchasing nower that is lacking. But why must the I,urden of reducing prices fall entirelv on the wool growers? Why should not other sections of the trade contribute to the general welfare? In spit<> of the low price of wool and except for the spurt last season, it has been oonsistonlly low for the past three years. Yet the suits of clothes continue to cost eight, ton and twelve guineas and over, and appear to have established at these prices irrespective of the cost of fabrics. People would buy two suits where at present they are buying one if those interested in the trade after the doth manufacturer would do their share towards ensuring a reasonable price for the consumer.’ Some people consider that a good deal of profiteering is still rife in the woollen clothing trade.