WELLINGTON NEWS

Hokitika Guardian, 5 December 1929, Page 3

WELLINGTON NEWS

THE WOOL TRADE. (Special Correspondent.) WELLINGTON, Dec. 2. . The market for wool in all selling centres appears to be quite satisfactory. In London the tone of the market is reported to be good with competition well sustained and prices remain firm. In Australia, owing partly to the curtailment of offerings, prices have firmed and merino wool appears to have recovered from 10 to 12| per cent. It cannot be said that the wool markets in New Zealand have been tested. The offerings in November were small and there was a lack of quality. For the December sales there should be very full catalogues, with wool to suit the requirements of all consuming countries. At all the sales held so far it has been noted that 'Bradford - has bopght sparingly and some fancy that Bradford is playing* a waiting game by allowing those in urgent need of wool to satisfy .their requirements, and coming on the market later when competition' may bo less severe and with prices more in line with Bradford’s ideas of values. This view is hardly correct and it is more likely that Bradford is holding back for quality wools. . . Messrs Winchcombe, Carson, Ltd., woolbrokers, of Svdncy in a recent circular state that; indications point to the production of artificial fibres having overtaken demand and moderate wool prices will tend to check the consumption of them.

They are now manufactured in almost every country. Unlike wool They can be successfully produced anywhere. It is estimated that in 1929 will reach 397 million Ik, which is equal at least to twice that, weight of greasy wool and consequently almost equals the quantity of wool grown in Australia annually. Artificial silk is not only competing with wool, but it is also a serious rival of cotton. “Plenty of scope for the use of wool still exists (observes the firm) but we must get down to tintaeks and realise that the sheep’s staple, has a competitor. And that competitor has the advantage of being a factory product the price of which does not vary much, while wool has of late years fluctuated considerably. The clear cost of average merino fleece wools is now 60 per cent‘less than in November 1924, and 36 per cent less than in 1927. More risk has therefore attached to the purchase of wool than of artificial fabric. If the use of wool is to be encouraged its cost must, keep moderate. We should realise that position and jettison the idea that wool is an indispensable article which will he used extensively irrespective of what its price may be.” CRASHES AND CONSEQUENCES. The yoar 1929 now nearing its close will go down to history as a year of financial crashes, monetary upheavals and currency distiulbances. The big financial crash of the year was of course the cataclysm on the New York Stock Exchange on October 26. The New York “Times” described it as “the most disastrous decline in the biggest and broadest stock market of history rocked the financial district.” The break carried down with it spec--

ulatops big and little, in . every pan of the country wiping out thousands of accounts.- 'Total sales on the New York Stock Exchange were 12,894,669 shares and a total of 974 separate isues were dealt in. Then there was the. Hatry crash in London which occurred about the same time as tin New York crisis, and there was a violent disturbance in Germany owing to ” failure of a big insurance company. The aftermath of these financial upheavals are only now beginning t< manifest themselves. The Hatry crash brought down several trust and other companies. And now there is reported the bankruptcy of a prominent city financier in tin? person of Mr H. S. Horne. He had latterly interested himself in newspapers. He was associated with the Carmelite Trust which was responsible for tinflotation of the Anglo-Foreign Newspapers, Ltd., and his concerns we.r" closely associated with Lord Rotlimere’s grmm of newspapers and with, the Northcliffe Newspaper Trust. There was recently heavy selling of these newspaper shares which depreciated in value very consideniblv and no doubt left many high and dry. In the United States it was r". ported that a meat economic disaster occurred at St. Paul’s Minnesota, through the failure <'' a big company controlling banks, newspapeis. steamers, etc. James Riordan, President of the County Trust tampan v. committed suicide following on the loss of millions of dollars. The en>nlov''<>.s of the jlndustria' Bank of Michigan were arraingod for ! embezzling over £600,000, the monobad been used for speculating. L' Oklahoma City a dozen hanks, small . ones it is reported, were closed down

owing to the holding of frozen assets. This does not complete the list, nor yet lies the debacle ended. Rover-. 1 ' 1 11 e’s ci the crash ale 1 1kel\ to ho heard more loudly and more widely next year.