THE RISE IN WOOL.

New Zealand Herald, Volume XXXVI, Issue 11243, 12 December 1899, Page 6

THE RISE IN WOOL.

[BY JESSE KING.] The importance of the rise in value of merino wool— reflected in improved value of longwools here —will have a farreaching effect, and good prices will doubtless rule for years, and bring on a long period of prosperity throughout the man} ramifications of trade in these colonies.

In the Australasian, of November 25, Mr. J. S. Horsfall gave his views on this matter. There is no one with more complete knowledge and ability than he on the wool trade. At the age of 17 he entered the office of Mr. Richard Goldsbrough, the wool king. a typical John Bull," as generous in nature as lie was bulky in body. In a rival wool store, I, myself, got my drilling in the business before adopting banking. Then Mr. Horsfall had risen to the management of Goldbrough's. I therefore speak with confidence of the man I saw much of, who heralds the good news, one who almost saw the start of this enriching staple in these colonies, and now a man of wealth, and the most important in this great industry. The merino wool has won a gr&t name. At the first famous exhibition in Paris the Victorian wools caused a One statement of a judge is recorded : " That the grower of such wool deserved to go to Heaven without dying." A competition took place for some of the prize wools, when "Ercildoun 11 was knocked down at 5s Ojd per lb, the highest price gi v en before or since.

Before picking out the convincing points of Mr. Horsfall's statements it is well to :m- - those who read this that prosperity, or depression, alike affects Australia and New Zealand. The banking system is a federated system, and the rise and fall of the financial barometer is felt from the Bluff to Carpentaria. The miser may bank his money and not use it ; the banks, however, do not let it lie idle.

The additional millions sterling the rise in wool represents, which the Home and foreign buyers will have to pay over to the growers into the banks at this end, creates at once a vast circulating power, the happy growers will be active agents in this respect, and, in turn, every department of trade joins in the general activity. The drought-stricken squatters, those who have not succumbed financially, now find relief, not from the rains from heaven, but a change from " too much wool" to " too little wool." The terrible losses of some 32,000,000 sheep, of a total of 64,000,000, has had the effect of raising wool to an unparalleled price. Top. price greasy fleece 19|d, and for scoured fleece 29|d. Drought has spelt ruin to very many, but yet it has not been an unmixed evil. It means a rapid recovery to those that have stood the strain. Mr. Horsfall's words are, " I have a strong belief that high prices will rule for fully seven years, not on the present level, but at very remunerative rates We can hardly expect to breed up the thirty to forty millions of merino sheep that have been lost, in less than that period, even with fair average seasons, and all the time the population and consuming powers of the world are increasing." Mr. Horsfall's argument convinces the reader of his soundness of opinion. Not only does the rise in wool bring profits to the growers; some.indication of its influence on station property, profits greatly exceeding that of wool, bring out an enormous result. Speaking of the result of the sale of station property after the drought, at the end of the sixties, when wool rose in the seventies, Mr. Horsfall says:—"This was the effect of the great rise in wool, and the break-up of the drought on one concern alone. What must it have been on all Australia? To give one instance, out of many within my knowledge, I may state that one property, which, in 1869, stood in our books at £94,000, was not then even salable at £20,000. If the latter price cculd have been obtained, the bank would have sold it. I saw that property sold in January, 1878, aftei taking a clip of 2000 bales of wool off it, worth £30,000 sterling, for £154,500, and the greater portion of it was sold twice afterwards at over £100,000 profit." Marl; well the value of the clip and the value of the station, to gauge the enormous value of the property over that of wool! Again, the great wool firm of Goldsbrotighs owed the bank £100.000, over and above advances, against' firm's securities. Its losses were £232,000 sterling, caused by large advances on station properties. Richard Goldsbrough was a grand man, but the bank, in any case, could not help itself. Mr. Horsfall's words are: " And he had his reward, for the balance-sheet of the year ending June 30, 1872, showed a net'profit of £85,000 on the year's transactions, and when the balance-sheet of the following year was made out, the assets were sufficient to pay all outstanding liabilities and interest, and to leave a surplus of £120,000 sterling." This wave of prosperity, with enteqirise rampant at the dawn of federation, could not have come at a time more opportune, and its far-reaching influences should mark a period of peace and plenty.