OPTIMISM

King Country Chronicle, Volume XXV, Issue 3374, 6 October 1931, Page 5

OPTIMISM

WAVE IN AUSTRALIA. WOOL BAROMETER. Sydney, October 1. Following quickly on the results of England’s action in abandoning the gold standard, a wave of optimism has swept over the whole of Australia, and on all hands it is being said that the corner has at last been turned. There has been a spectacular rise in the price of shares on all the Stock Exchanges, notably Melbourne and Sydney, and the stock most affected are those associated with pastoral and mining concerns. Actually, there has been an advance in the price of wool of about 20 per cent., and if this is maintained it will mean an addition of £5,000,000 to the value of the whole clip. Average prices in Sydney last week were £9 4s. 4d. a bale, as against £8 15s. 3d. for the sales during the week ended 10th September. The movement is regarded by wool people as a sure indication of returning confidence.

It is pointed out that the increase in the price of wool practically coincided with the depreciation of sterling. The gratifying feature of the sales has been the keenness of operators to make purchases. The competition between Japanese, Continental and British buyers has been most marked, and the withdrawals last week were few. All proposals for limiting the amount of fleece to be offered have been abandoned, and growers generally have every reason to be excited about the turn of events. They are confident that before long there will be a return to prices which will make production payable.