FARMING AND COMMERCIAL.

Manawatu Standard, Volume LI, Issue 199, 24 July 1931, Page 5

FARMING AND COMMERCIAL.

the wool industry. REVIEW OP POSITION. The wool industry to-day is passing through one of the most difficult periods ll ) t? , hlstor y. remarks the annual review °t Dalgety and Company, Ltd. The regrettably low average of 5.67 d per lb realised for the season’s clip sold in the Dominion is much below the cost of production, and is the lowest return recorded for 28 years. The phenomenally abnormal conditions throughout the world in producing as in consuming centres—have rendered a return to the ~ su PPly an( l demand exceedingly difficult, says the review. These unfortunate conditions have made it impossible to market and dispose of the Doniimon a wool clip at a price in keeping with the cost of production, with the result that many growers refused to accept ruling rates, preferring to hold over their wool in the nope of prices improving during the 1931-32 season. BURDEN OF CARRY-OVER.

Unfortunately, not only has wool been carried over from tho 1930-31 season, but also from the previous year, and with the outlook as at present it seems as if growers would have been well advised to have met the market and sold their clips at the ruling rates. To restore confidence, wool must be kept moving freely to the public in the form of manufactured goods, and the fear of accumulated stocks must be eliminated from buyers’ minds. The carry-over of wool in the Dominion as at June 30 is considerably heavier than for some years, and the outlook for any decided rise in the near future is far from reassuring. Growers who have held their wool will probably be disappointed with opening rates when the new season starts in November; and there is no doubt that the held-over wools, when opened for valuing, will have a stale off-colour appearance and compare unfavourably with the new clip. After pointing out that “exaggerated statements have been freely circulated from Bradford as to tho Dominion’s carry-over of grease w 001—300,000 bales being an estimate given by some authorities,’’ Dalgety and Company state that statistics compiled by tho firm show that the hold-over of greasy wool in the Dominion at June 30 was 181,803 bales — “which under present conditions is a heavy weight of crossbreds to have on hand.” The Dominion wool sales of the 1930-31 season are reviewed in detail by Dalgety and Company. Regarding the heavy Jastminute withdrawals at the first Wellington sale, the review says that “buyers who spend many hours valuing the wool must naturally be disappointed- to find that just before an auction takes place many clips have been withdrawn.” At. the February sales the speculative element was fairly pronounced, and a certain amount of buying was done in order to establish credits in London. “While this competition may be described as in the nature of a false stimulus in that wool so purchased was not for immediate consumption in New Zealand, it must be granted that such purchases had the effect of placing values locally on a more satisfactory basis than in London.” JAPANESE COMPETITION. At the March sale Japanese competition was very pronounced. “Without doubt,” state Dalgety and Company, “the buying from this country has been a valuable asset to Dominion growers, and Japanese competition has done much to keep prices on the present level. It is well-known that Japanese buying is non-existent in London. That* Japan bought approximately 360,000 bales in Australia ind New Zealand this season shows how valuable the competition from such a quarter is.” The sharp drop in prices at the April sales was a disappointment. “On the completion of the March sales growers were elated over the sharp rise recorded, and ae London March sales had also shown a phenomenal appreciation over the January series, it was confidently expected that prices would show no recession during the final sales.” The opinion that the rise had come too suddenly was unwarranted and unlikely to be sustained was correct, as the decline at tho April sales was “more pronounced than generally thought by casual observers.” THE QUALITY OF WOOL.

A very important point in sheepfarming to-day, remark Dalgety and Company, is the quality of the wool produced, “and without doubt many breeders have been sacrificing quantity for quality regardless of whether their land and the climatic conditions are suitable for growing a fine count for which high prices have been paid for some time past. “It may seem an anomaly that at the last two sales of the season Lincoln and strong quality Romney were averaging more per lb. than the finer crossbreds, but this was due to a shortage of the former combined with a special demand from Japan for preparing wools of 36 to 44 quality. These coarse wools are yearly becoming scarcer. . . Since the Lincoln ram fell from grace, the trend of the Romney breed has inclined to a fineness rather too pronounced for a long-woolled sheep. It is pleasing to note that a number of breeders who previously discarded the Lincoln are now using a proportion of such rams in their flocks, these being mated with the finer Romney-cross ewes.” To further the wool industry of the Dominion, Dalgety and Co. believe that outside markets must be sought. During recent years valuable competition at Dominion sales has been given by Japan and Russia. Wool for the Japanese textile industry is all imported, principally fine wool from Australia and coarse sorts from New Zealand. The Dominion’s Lincoln and strong Romney and Southdown wools suit Japan’s requirements admirably. “To retain this ever-increas-ing trade we must have, the goods to offer, and as Japan’s production of manu. factured woollens is steadily being enlarged, she is a client well worth catering for. Between Australia and Now Zealand this year, her purchases will run close to 400,000 bales.” LOW-PRICED WOOL.

Illustrating ' the remarkable fall in wool values, Dalgety and Company show that while the total quantity sold last season increased by 19,294 bales to 445,196 bales, the gross realisation at £5,130,896 wtas well over £1,500,000 less than for the 1929-30 season. The average weight bale was lib greater, but the average price per bale fell from £l2 Is to £7 19s lOd—a decrease of £4 Is 2d per bale. The average price per lb. last season was only 5.67 d, as compared with 8 55 in 1929-30, a decline of 2.88 d per lb. ’ Carefully-checked figures show that the total quantity of wool hold over in the Dominion at June 30 was 209,727 bales—lßl,Bo3 bales of greasy wool and 27,924 bales of slipe. The figure include 131,531 bales of last season’s clip and 50,272 bales of the previous years’ clip. The total production of greasy wool in the Dominion in 1930-31 is shown by Dalirety and Company as 677,964 bales of greasy wool and 107,412 bales of slipe, a total of 785,376 bales, so that the hold-over represents 26.70 per cent, of the total pro- , duction for the year.

WELLINGTON STOCK EXCHANGE. YESTERDAY’S BUSINESS AND PRICES. A fairly lengthy list of quotations yesterday indicated a better and widpr-spread inquiry on tho Wellington Stock Exchange. There was a restricted demand for Government stocks and bonds. The 4j per cent, stcok, 1939, were steady at £9B 16s; tho 4j per cents., 1930, wero 5s higher at £99; the 4i per cent, bonds, 1939, were 2s 6d higher at £9B 17s 6d, and the 4j per cent, bonds wero up 6s at £99; tho hi per cent, stocks, 1933, at £99 12s 6d wero 2s 6d higher. Auckland City 5j per cents., 1944, Wellington City per cents., 1940, and Wellington Harbour Board'sj per conts., 1940, wero all again in demand at £97 5s each, with no sellers. Bank shares wore in good demand. Bank of Australasia dropped 3s to £8 17s, the price at which they were quoted on Tuesday. Australian Bank of Commerce wero unchanged at 13s 9d. Commercial Bank of Australia, ordinary, were Id higher at 14s Id, cum dividend'. Commercial Bank Corporation of Sydney were in demand at £l2 5s for tho first time in months. English, Scottish and Australian Bank at £3 16s were down 4s. National Bank of New Zealand woro in demand at £4 ss, a rise of Is on tho previous offer. Bank of New South Wales advanced 5s to £24 ss, with a sale reported at £24 12s 6d. Bank of New Zealand were wanted at 48s 7d, and the long term shares were firm at 26s 6d. Union Bank at £6 14s were down Is.

Dalgety and Co. were 2s lower at £6 ss. N.Z. Loan and Mercantile, ordinary, advanced, £1 to £4l. There was a bid of £6 5s for Wellington Trust and Loan. Insurance shares were firm, National Insurance at 12s lid. New Zealand Insurance at 40s 9d, and South British Insurance at 50s. Christchurch Gas were again wanted at 255, cum dividend. Huddart-Parker, ordinary, at 20s and Union Steam at 19s 9d wero steady. Westport Coal wero again wanted at 235, and Leyland O’Brien Timber were firnh at 21s. New Zealand Breweries were a shade higher at 32s lOd, with a sale reported at 335; British Tobacco were steady at 24s 2d; Colonial Sugar were 2s 6d down at £33 ss; Elctrolytio Zinc wero in good demand, tho ordinary at 7s 6d and the preference at 15s lid. For N.Z. Drug 51s was offered, but sellers asked 555. N.Z. Paper Mills were firm at 17s, and Wilson’s Cement wero up 3d at 35s 9d. King Solomon mining shares were in demand at 2s lid and three parcels changed hands at 3s.

YESTERDAY’S QUOTATIONS. Buying and selling quotations at yesterday’s final call on the Wellington Stock Exchange were as follow:

Deposit 0 10 3 N.Z. Loan and Merc., ord 41 0 0

Wellington.—Bank of New South Wales, £24 12s 6d; New Zealand Breweries, £1 13s; Electrolytic Zinc, preference, 16s; King Solomon Mining (3), 3s. Auckland. —War Bonds, 4i p.c., 1938, £99 10s; Insc. Stk., 4£ p.c., 1938, £99 73 6d; Bank of Austraalsia, £9 la; Commercial Bank of Australia, 14s Id; Mount Lyoll, 17s 9d. Late sales Wednesday: King Solomon, 3s; Waihi Grand Junction, 4s Id; Aucklan4 Gas, contr-., 18s. Christchurch. —Insc. Stock, 5j p.c., 1932, £99 12s 6d; New Zealand Breweries, £1 13s sd; Mount Lyell, 17s lOd, 17s 9d, 17e 8d; King Solomon, 2s lid, 3s, (2) 2s llid;

Mahakipawa, 6i,d, 7d, 7id; Okarito, 10s; Golden Point, Ts paid, Is 9|d, do. Is lOd. Sales reported: Govt. Bonds, 4£ p.c., 1938, £99 10s; Eng., Scot, and Aust. Bank, £4 Is; Bank of Australasia, £9; N.Z. Breweries (late Wed.), £1 13s 6d. Dunedin. —King Solomon, 2s lOd. Sales reported: N.Z. .Refrigerating, 10s paid, 3s Id; N.Z. Drug Company, £2 12s; N.Z. Breweries, £1 13s 4d; Mount Lycll (2), 17s 10d.. New Plymouth.—Govt. debentures, 4£ p.c., £9B ss; Moturoa Oil, ss. SYDNEY MARKETS. - SYDNEY, July 23. Wheat ex trucks, Sydney, 2s 2Jd; at | country statiops, Is 7£d. Flour, £lO I per ton; bran and pollard, £4 per ton. 1 Potatoes, Tasmanian £7, Victorian £5 10s per ton; onions, Victorian, up to £5 10s per ton; oats, white and Algerian, 2s 6d per bushel; maize, 3s 8d per bushel. CANTERBURY MARKETS. CHRISTCHURCH, -July 22. The potato market is more depressed than ever. July deliveries were sold today at 37s 6d per ton f.0.b., s.i., and Augusts are quoted at 40s. Orders are 60 few from the north that business is very restricted even at these low levels. Enough potatoes aro being sont north on consignment to meet tho consumption. The milling wheat market is very quiet at tho moment, and quotations are unchanged. Otago undergrade fowl wheat continues to exercise a restrictive effect on tho price of Canterbury fowl feed. Tho former is quoted at 4s lOd f.0.b., s.i., whilst Canterbury is unchanged. Tho oat market is lifeless, and no demand has set in so far for seeds for spring sowing. Tho following are quotations for produce to be paid to farmers, on trucks, free of commission, sacks extra, except where otherwise stated: —Wheat: Tuscan, 5s 5d on trucks; Hunters, 5s 6d to 5s 7d. Fowl wheat, to 5s Id prompt, f.0.b., s.e.; August-Decem-ber, 5s 3d. Oats: A Gnrtons, 2s 6d; B’fi, 2s 4d. Bhrley : Cape, 2s 9d to 3s, malting, 4s. Potatoes: White, to 255; Dakotas, 255. Chaff, £2 15s. Partridgo peas, 4s 3d. Red Clover, 6d to 6£d. White Clover 8d to 9d. Italian Ryegrass, 2s. Perennial Ryegrass, Canterbury, 3s to 3s 3d. Cocksfoot: Akaroa, 3d to 3£d; Plains, to 3d. Bran: Local, £5 a ton, f.0.b., shipping, £4 a ton, f.0.b.; 10s extra for smaller packings. Pollard: Local, £5 10s a ton, f.0.b.; shipping, £4 a ton f.0.b.; 10s extras for smaller packings. Flour: Wholesale price, £l6 12s 6d a ton for 2001 b sacks, with the usual increments •for smaller packings.

FARMING IN U.S.A

NEW ZEALAND SUPERIOR. POOR PASTURES; SEVERE CLIMATE. After farming for six years in the United States, Mr H. A. Goodhue, formerly a farmer at Motatau, in the Bay of Islands district, has returned to New Zealand with the conviction that the Dominion offers greater attractions for the man who seeks a living from the land. . Mr Goodhue told an Auckland reporter that he took up 40 acres of land within 18 miles of the city of Portland, Washington. It was considered to be one of the best farming districts in the United States. He found that taxation was very heavy compared with New Zealand. In March of every year a taxation official visited his place and valued the house, its contents—even the pictures and floor coverings—and then the land, the stock and the crops. The total value was halved, and then a tax of 6 per cent, was imposed. In addition there was a property tax of 10s an acre.

Last season, said Mr Goodhue, the price of butterfat ranged from 9d to iOd, eggs sold at 7d a dozen, potatoes at 2s a cwt. and onions at Is 3d a cwt. Stock had to bo hand fed throughout the winter, and pastures, compared with New Zealand standard, were very poor. One of the winters he experienced was so cold that the Columbia River was frozen for a depth of ten feet at a place where it* was two miles wide. Mr Goodhue mentioned that strawberry growing was regarded as a profitable business in Washington State. The berries were packed in layers, with layers of sugar on the top, and then frozen, and shipped all over the States. For canning purposes the strawberries were sold at 3d per lb. “When I left for Now Zealand I did not bother to try to get forms for re-entry into the United States,” said Mr Goodhue. “The climate conditions in New Zealand are immeasurably superior. In fact a farmer in. New Zealand is at least three times better off than he is in America.”

SHEARERS’ WAGES. Parties to tho conference having failed to agree, tho New Zealand Shearers’ Union and the Sheepowners’ Federation have decided to go to the Arbitration Court for an award covering the rates of pay of shearers and woolshed workons. The sheepowners’ offers for the coming season were as-_ follow, the shearers’ counter-proposals being given, in parentheses: Shearere, £1 per hundred (£1 4s); pressers, by the week, £2 7s 6d (£3 3s); by the hour, Is 4id (Is 9d; shed-hands, by the week, £2 2s 6d (£2 18s 6d); by the hour, Is 2id (Is 8d); youtns, by tho week, £1 2s 6d (£2 ss); by tho hour, lOd (Is 4d); cooks, £2.17s 6d (£3 15s); ooolcs’ assistants, £2 7s 6d (£3 3s). Both sides were agreeable to tho continuation of the sliding scale at present in operation, but the rates offered by the sheepowners were not acceptable to the shearers’ representatives. Mr H. D. Acland, president of the Sheepowners’ Federation, expressed regret that the industry was in such a serious state that the representatives at tho conference could not take tho responsibility of paying a wage which was not warranted by present economic conditions. * The caso will come before the sittings of tho Arbitration Court in Wellington at the beginning .of September.

BUTTER AND CHEESE. . The New Zealand Loan and Mercantile Agency Coy., Ltd., have received the following from their London house under date of the 23rd instant:—Butter: N.Z. choicest salted, 114 s, 115 s; market quiet owing to German situation. Chceso, white, 61s; coloured, 635; market quiet. LONDON WOOL SALES. Levin and Co., Ltd., have received tho following cable from their London agents, dated 22nd July, 1931: Tho wool auctions closed here to-day at their best point, with keen competition from all quarters. Compared with tho opening rates, prices generally show little change, if anything slightly in sellers’ favour, especially holfbreds.

STOCK MARKET. Associated Live Stock Auctioneers, Ltd., report on a clearing sale held on behalf of the estate of the late Mr W. Osborne, Glen Oroua, on the 21st inst.: — There was a good attendance of tho public and we havo to report having held a very satisfactory sale. Tho sheep eamo forward in good order, whilo tho dairy cows vyero showing nice quality, but wero rather low in condition. However, all the stock sold under the hammer. Implements, etc., sold at market rates. We quote:—S.m. owes r.w. S.D. rams, 7s 2d, 10s lOd, 11s 7d; b.f. hoggets, Is IOd; dairy cows, £6, £6 10s, £7, £7 10s, £B, £8 10s, £9 10s, £lO to £l3; later calvers, £2, £3 ss, £3 15s, £4, £4 ss, £5 to £5 15s; empty cows, £1 to £1 10s; heifers, r.w.b., £2 2s 6d, £3 15s, £4 ss, £4 15s to £5 10s; wcaner heifers, to 16s; horses, 7-yr. gelding, £29 10s; 8-yr. gelding, £2l 10s; aged gelding, £l4; aged mare, £2; pony, £5; pigs, ramworth sow to farrow, £6 ss; Berkshire sow to farrow, £4 2s 6d; Berkshire sow, £2 17s 6d; store pigs, 13s to 275; milk'ing plant, £42; 3-stand shearing plant, £25; swamp plough, £6 10s; harrows, £6; sawbcnch, £4 17s 6d. Sundries, etc., sold at late rates.

Associated Live Stock Auctioneers, Ltd., report a moderate yarding of sheep • and cattlo at tho Huntorvillo salo on Thursday, when there was fair competition for sheep but littlo demand for cattle. Quotations: B.f. lambs, 7s 6d; wether lambs, 7s 7d; fat ewes, 13s sd, 14s Id; fat hoggets, 16s IOd; heavy fat wethers, 19s Id; dairy cows, £5 to £5 7s 6d. Associated Live Stock Auctioneers, Ltd., report as follows on a clearing sale held on behalf of tho Hcrmansen estate, Maharahara, in the Woodvillo saleynrds on the 22nd inst.:—Tho cows which were mostly Jersey and Jersey-Shorthorn cross camo forward in very heavy condition. Calving dates and factory returns wero available. Tho attendance of tho public was fair and bidding for best cows was good, but late calvers and aged cows attracted littlo attention and in many cases failed to roach tho vendor’s reserve. Wo quote: Best cows, £6 ss, £7 10s, £B, £9, £9 ss, £9 15s, £lO 10s, £ll to £l3 10s; backward calvers, £2 53, £3 to £3 10s.

Buyers Sellers N.Z. GOVT. LOANS— £ s. d. £ a. d. 4£ p.c. Insc. Stk., 1939 98 15 0 — 4£ p.c. ditto, 1938 99 0 0 .99 10 0 5£ p.c. ditto, 1933 99 12 6 100 0 0 4£ p.c. bonds, 1939 ... 98 17 6 — 4£ p.c. ditto, 1938 99 0 0 99 12 6 5£ p.c. ditto, 1933 DEBENTURES— — 100 2 6 Rangitikei County, 6 p.c., 1943 Lower Hutt Boro., 6 — 101 10 0 p.c., 1944 Auckland City, 5£ p.c., — 101 10 0 1949 — 96 5 0 Auckland City, 5£ p.c., 1944 Wgtn. Harbour Board, 97 5 0 t - 5£ p.c., 1940 N.Z. Breweries bonds 97 5 0 — 1 1 4 — BANKS— Australasia 8 17 0 9 4 0 Aust. of Commerce ... 0 13 9 — Comm, of Aust., ord. 0 14 1 *0 14 4 Comm. Bank Co. (Sydney) 12 5 0 13 5 0 Eng., Scot, and Aust. 3 16 0 4 2 0 National N.Z — 4 4 6 Nat. A’asia. (£5) 4 5 0 4 12 6 New South Wales ... 24 5 0 25 0 0 New Zealand 2 8 7 2 9 0 Ditto, long term 1 6 6 — Union of Australia ... 6 14 0 *6 16 9 FINANCIAL— Dalgety and Co • Abraham and Williams 6 5 0 — 3 17 6 Goldsbrough Mort 1 0 0 . 1 0 6 N.Z. Guar. Corp., ord. N.Z. Invest., Mtg. and 0 4 9 0 6 2

N.Z. and River Plate — 1 4 3 Well. Trust and Loan GAS6 5 0 . 6 15 0 Christchurch *15 0 — Ditto, contr 0 12 0 — INSURANCE — National 0 12 11 0 13 3 New Zealand 2 0 9 2 1 6 South British 2 10 0 — TRANSPORT— Huddart, Parker, ord. 10 0 — Ditto, pref 0 16 0 — Union Steam pref. ... 0 19 9 — P. and 0. stock — 1 10 0 WOOLLEN— Wellington, ord — 4 15 0 COAL— Westport TIMBER— 13 0 — National — '0 7 6 Levland-O’Brien 1 1 0 • Taringamutu Totara . — tO 5 2 BREWERIES— New Zealand MISCELLANEOUS— 1 12 10 1 13 4 C. M. Banks, ord. and pref — 0 12 0 British Tobacco, ord. 14 2 1 4 10 Burns, Philp and Co. — 1 11 3 Colonial Sugar 33 5 0 — Consol. Brick — 0 9 3 Dental and Medical . 0 4 3 : — Eloctro. Zinc, ord. ... 0 7 6 — Ditto, pref 0 15 11 0 16 4 Howard Smith, ord. — 0 8 0 National Electric — 0 10 6 N.Z. Drug 2 11 0 2 15 0 N.Z. Paper Mills 0 17 0 — Sharland and Co., ord. — 0 17 6 Ditto, pref Wilson’s Cement — 0 18 0 1 15 9 • Wunderlich 0 2 0 . N.Z. Newspapers MINING— — 1 4 0 Mount Lyell — 0 18 2 Waihi 4 15 5 — Waihi Grand Junction 0 3 11 — King Solomon 0 2 11 0 3 2 Cornish Point 0 0 7 — *Cum. dividend. YESTERDAY’S SALES. The following sales were recorded on the stock exchanges of the Dominion yester-1 da y :— „ . ,