WOOL'S RECOVERY

Northern Advocate, 21 September 1933, Page 4

WOOL'S RECOVERY

While the people of Northland will naturally be more concerned about the, very gratifying ‘ increase which -has taken place in the prices of dairy produce, they cannot but rejoice that a marked recovery has been made by the wool industry. Prices obtained at the Sydney scries of sales have been, reflected, in the London sales, and, as a result of the big improvement registered, tlTc English financial press has been moved to make optimistic comment. There have boon so many occasions. during the past four years when various au•thorites have predicted a, definite ’ and permanent improvement jn ' the Dominion’s affairs that the animation of the dairy produce and wool markets may be surveyed rather sceptically. But as New Zealand’s prosperity is dependent upon the prosperity of Britain, and / as there is pority is. and as there is increasing evidence, that Britain’s economic position is improving, )fnll importance can he attached to the pronounced rise that has taken place in prices efor some but not all of our staple exports. At the moment the wool market is commanding the liveliest interest. Demand for wool has revealed the fact that manufacturers’ stocks arc low. Particularly is this said to be so iiv the case of Japanese demand. Some little while ago there was talk of Japan retaliating because of: the outcry against the Japanese trade drive in Australia, this to take the form of transfer of her wool-buying from these parts of the world to South America. Happily for our pastoral interests, what is known as the statistical position forbids any country being able thus to pick and choose as to the origin of supplies of raw material. Because of losses in the flocks of parts of Australia which were visited by the old enemy, drought, the Australian clip will he smaller this season. At the same time mills in most textile centres are short of stocks, while they have been favoured wit'll orders which involve as speedy a replenishment as can he accomplished. The renewal of activity in the West Riding of Yorkshire is attested by a drop in the unemployment figures by considerably more than half. There may not be so much actual revival in some Continental countries, but a disposition on their part to buy wool in advance of actual requirements or on more than a hand-to-mouth scale is stimulated by a realisation that stocks of wool bought at a reasonable price may be a better security than a doubtful currency in these days of uncertain and fluctuating exchanges. The difference which the rapidly changed market spells to wool-growers hero is indeed great.