PRICE OF WOOL

New Zealand Herald, Volume XLV, Issue 13762, 29 May 1908, Page 7

PRICE OF WOOL

REASON FOR THE DECLINE. [BY TELEGRAPH. OWN* COItn£SPOKDEXT.] Ellington, Thursday. Is? a private letter to a woolgrower, Messrs. Willana and Ovcrbury, the well-known wool buyers, have written, from London some notes as to the apparent causes of the slump in wool, and the outlook for the future. . To attribute the present unsatisfactory condition of affairs, they state, wholly, or even mostly, to the financial troubles of the end of 1907 would be incorrect. Two of the great wool-consuming nations of the world, Germany and America, have lately been passing through a period of unusual depression, and their decreased purchasing power has largely contributed to the general decline. The trade of this country is not in an unhealthy condition, but with little encouragement to buy more than is needed for immediate wants, and with the prospect of ample supplies ahead, manufacturers and others are disposed to hold back orders, with a view to buying at the lowest possible level. For some years past we have enjoyed a period of advancing juices for both tine and coarse wools, and while the present trade conditions compare unfavourably with those of 12 mouths ago, we cannot see in the existing situation any real justification for the severe fall in values lately established. Reports from America are rather more optimistic, and the close of the last series witnessed a slight recovery in the value of medium and coarse grades. We incline to the opinion that the worst is over, and we sincerely trust that the future may justify this belief.