THE WOOL SITUATION.

Manawatu Standard, Volume LIII, Issue 255, 25 September 1933, Page 8

THE WOOL SITUATION.

POSITION IN REVIEW. IMPROVEMENT JUSTIFIED. LONDON, Sept. 24. Reviewing the world wool situation, the Economist, after analysing the consumption figures, concludes that the sharp improvement in values in recent months was the natural result of a revival in demand coupled with an expectation of a decrease in supplies. The improvement therefore is fully justified. The present indications are that the expansion of the demand for raw wool will continue in the near future. The advance is not fully reflected in the retail prices, but it is believed, in the absence of a serious recession of the world’s industrial activity, that it can bo passed on to the consumer without reducing either the demand or the prices of wool. Discussing a table showing the retained supplies of raw wool, the Economist emphasise Japan’s figures for 1928-32, as follow: 1928, 115,000,000 lb:. 1929, 107,000,000; 1930, 115,000,000; 1931, 189,000,000; 1932, 204,000,000. “The figures suggest,” says the Economist, “that Japan can absorb and develop the manufacture of woollens at the same rate as she expanded the cotton industry.” The Morning Post says that, notwithstanding the rise, wool is not yet dear. The conviction that the era .of low prices has passed has improved the demand for manufactures, and the industry is busy with substantial orders.