Talk In England Of Famine Prices For Wool

Northern Advocate, 10 May 1937, Page 6

Talk In England Of Famine Prices For Wool

(Received 10 a.m.)

mt;' • i • LONDON, May 8. ipy A FTER a violent readjustment, the outlook for commodities v is again healthy. Outstandingly strong among commodities is wool, especially medium and low crossbreds, the unsold stocks of which are the lowest ever known. It would not be surprising if it were difficult to obtain all the wool refer quired before the arrival, of the new clips. The Coronation has helped the consumption of wool, a considerable af * amount having; been used in the production of flags, bunting and unarms. Dealers, however, are not encouraging, and talk of famine prices. f

• Total Rise Not Passed On. It is pointed out that the full extent of the .rise has not been passed on to the consumers, and, if- this is attempted, it may materially, affect consumption. Manufacturers, however, are beginning to be faced with difficulty. Formerly, s stocks bought lower down enabled them to average prices and to give the consumer the benefit, but, as stocks are depleted, this is becoming impossible.

It is not sufficiently realised, for instance, that the lower quality Argentine wools, which could be purchased at 5d in 1934, now cost 22d. The position is that the price of the raw material is well ahead of anything yet established in the price of finished goods. Evidence of Continued Prosperity. “Wool remains sound and impervious to the cyclonic storms which disturbed other commodities,” says H, Dawson, Sons ' and Company, Ltd., commenting on the London sales. “The moderation of the recent advance has been its salvation. United Kingdom stocks have been reduced to less than nomal proportions, but buyers are cautious. There is every evidence that wool Will continue to enjoy prosperity.’, 5