CONFIDENCE RETURNING

New Zealand Herald, Volume LXVII, Issue 20481, 5 February 1930, Page 12

CONFIDENCE RETURNING

LONDON MARKET. STRONGER.

" MUCH IMPROVED SPIRIT."

GRADUAL RISE ANTICIPATED.

An increase in the price for wool on | the London market was referred to yesterday by Sir Emmanuel Hoyle, managing director of Joseph Hoyle and Son, Limited, one of the largest woollen manufacturing firm 3 in England, as a definito sign of returning confidence. A cablegram, dated February 3 f receivod by Dalgety and Company, Limited, from its London house, was referovd to Sir Emmanuel, who is in Auckland. Iliis was to the effect that the wool salo3 were continuing with a much improved spirit. Merinos wero generally 5 per cent, higher and crossbred was very firm, and the chango, if any, was in favour of sellers. " As I stated previously, all the market needs is confidence, the scouting of pessimism and tho total cessation of attempts to enforce fictitious values," Sir Emmanuel said. " I have no doubt that if Australia had not withdrawn offerings at the start of tho season and destroyed the confidence of the market, prices would not have dropped as far as they have done. Wool will right itself when it is allowed to come fully on to the market and when prices can bo adjusted to suit actual and not artificial conditions." Sir Emmanuel said ho had just received a telegram from Dunedin stating that at tho local sales there had beon an increase of a'halfpenny a pound for Merinos and a farthing a pound for crossbreds and that all Yorkshire was buying freely. He took this as an indication that wool had been offered freely, with few withdrawals, and that the buyers had responded accordingly. "As long as there is no attempt to cre.nte a fictitious market everything will be all right,".Sir Emmanuel.said. "The principal thing to do is to create confidence. This will react ; right along tho lino through woollen manufacturers to wool buyers, and will result ir? a gradual increase in prices until they adjust themselves at a fair economic levol. " The increase in prices for Merino wools on tho London markot amounts to about a penny a pound and, I should say, has been brought about by the activities of Yorkshire buyers. I can definitely state that Yorkshire will buy wool if* it feels that it is at a price in'keeping with market conditions. Yorkshire manufacturers at present have not sufficient money to speculate in wool and there is no likelihood that this advance in prices is only speculative. It is indicative of the general tone of the market. " The dealers, I take it, feel that the New Zealand grower realises the position and is selling his\vool freely at the best prices ho can obtafti and is not withholding offerings from sale. Had there been extensive withdrawals this advance would never have occurred, as nothing is calculated to destroy confidence so much as attempts to regulate prices in an- artificial manner.' If New Zealand growers continue to produce good wool and to put it freely on the market, a gradual increase in prjees should continue. Of course, wool will not reach the inflated figure of the boom days, but* it will reach a sound economic price, acceptable to both growers and buyers." LONDON WOOL SALES. MARKET FIRM ALL ROUND.

GOOD GENERAL COMPETITION.

LONDON, Feb. 3,

At. the London wool sales to-day 10,284 bales were offered, including 3869 from New Zealand. There was a moderate selection o! greasy scoured Morinos and a fair lot of greasy crossbreds. The market was firm for. all sorts with good ' general competition at late rates. Withdrawals were few.

New Zealand greasy crossbred clips sold as followsE. and E.S." lid," averago 10^d; <J " Titi*" 12£ d, average ll|d ; " Tautane " lljjd, average ll£d. The Bradford tops market is fairly firm and some business is passing in Merinos. An improving tone is apparent in crossbreds.