THE WOOL MARKET

Northern Advocate, 18 June 1925, Page 4

THE WOOL MARKET

Proposals to endeavour to stabilise •the wool market, are to be considered Shortly by Australian grauiers, and their decisions will be awaited with interest in this country. The market is suffering from a lack of confidence, and buyers have no working basis on which to trade. The aim of any effort that is undertaken should be to restore confidence, but it is open to doubt whether a scheme which is promulgated entirely by producers, excluding buyers and manufacturers, can prove successful. The necessity for a scheme even in question, for the wool position is not really as bad as some people, would have us believe. Before the war the grower who obtained more than 12d a pound for wool of the finest quality was considered very fortunate. Last November prices went as high as | 46d, which was equivalent to more than ; £50 a bale, and the average price for; the season is considered to be little ] short of £30, which is more than i 7 I double the pre-wiar average. There ' was a great slump after the phenomen- J al opening of the season, but it can- i not be supposed that the change in | relative values has caused the pro- | dueers any great hardship. Efforts to stimulate and stabilise the market by restricting offerings and postponing sales have not been successful, and it may be that no similar scheme will i be productive of results, for finance j the great difficulty. The stocks purchased early in the season, on which i heavy losses must be made, will have | to be liquidated before fresh credits

can be made available for further purchases, and the condition of the market must be affected for some time. Growers may be assisted to regard the position with equanimity if they remember | that the market a quarter of a century ! ago had an experience similar to that of today. In December, 1899, wool reached 26d, and in February, 1900, it sold for 12d, while a further drop of 3d was recorded in the following September. The statistical position was sound at that time, for Australia was smitten by a severe drought, ami for nine months Queensland had no sales. The market was allowed to take its course, and buyers and sellers adapted themselves to the changed conditions. The statistical position is sound today, and if the ability of the consumers to buy is allowed to regulate the market little harm can result.