MONEY FROM WOOL

New Zealand Herald, Volume LXXIV, Issue 22617, 4 January 1937, Page 5

MONEY FROM WOOL

AUSTRALIAN PREDICTION CHEQUE OF £50,000,000 REVENUE FOR COMMONWEALTH In emphasising that results sinco the commencement of this season's wool .sales have been more satisfactory than even the most optimistic anticipated, and that it is doubtful whether competition at the sales has ever been better, the December' wool report of Australian Mercantile Land and Finance Company, Limited, states that, unless values decline during the remainder oC the season, the proceeds of the Australian elij) should exceed £50,000,000. The wool proceeds are the, main item in tho national income, continues the report, but the true value of the wool clip of Australia cannot be measured by so many bales sold for £50.000,000. The shearing, delivery to store, and sale of the clip to buyers from most parts of the world, comprise merely the lirst stage in a long line of revenue-producing activities. * After the wool leaves the stores of brokers it passes through many more stages, from the scourer to the factory, to tho warehouse, and to the tailor or the retailer, providing employment all the time, till in the end this wool clip, which is sold in the raw state for about £50,000,000, comes to be worth ten times as much, and possibly more, and constitutes orn of the great wealth and employment producing industries of the world. The wool clip is the mainstay of Australia, but it is of value to the industry of almost every other country, and there are few parts of the world which would not be affected adversely should anything happen to supplant wool or to impair the stability of the wool-growing industry of Australia. Reasonable raw-wool prices are essential to maintain sound economic conditions within the Commonwealth. Reasonable prices have been realised this season to the present. The outlook for a continuation of good values for the rest of the. selling season is promising, and the encouraging outlook for wool is creating confidence throughout the country, concludes the report. SALES KEENLY AWAITED THE AUSTRALIAN SERIES JAPANESE OPERATIONS (Received January 3, 5.5 p.m.) LONDON. Jan. 2 Bradford is keenly awaiting Japan's operations at the Australian wool 6ales. Most of the top-makers are quoting higher prices in anticipation of firmer markets, though they consider that it would not be surprising if Japan bought only normal quantities, in view of the heavy purchases elsewhere during 1936. The Financial News says it considers that the wool outlook is very healthy. It points out that, in spite of tho greatly increased activity in the textile industry, most countries' stocks are smaller than in January, 1936. There is no danger of a scarcity of the raw material, but also there is no danger of an unmanageable surplus. Confidence in the present price level is unshakable, though it would be wrong to expect startling increases. Most buyers would follow a rise reluctantly, especially as increases in wages have affected costs. Thus, there is no danger of a repetition of the 1933 boom. The whole of the 1936-37 clip is likely to be absorbed in the current season. Carry-overs at the end of June may even show a reduction on the year. LONDON SUGAR MARKET STATISTICAL, POSITION (Received January 3, 5.5 p.m.) LONDON, Jan. 2 The statistical position of sugar improved in the past year. Stocks are nn longed heavy, and consumption and production are fairly well balanced. This justifies the belief that sugar will be cheap compared with some other commodities. QUOTATIONS FOR HIDES (Received January 3, 5.5 p.m.) LONDON, Jan. 2 Quotations for hides are:—Meat works, drv salted: Queensland, 35-401 hj., 7jd; 30-401b., 7d; 25-351b., 7d; 20-301b. t 7d. New South Wales, 7gcl, 7\c\, 7£d and 7£d. Wet salted: Queensland. 50-601 b., s id; 40-501b., od. New South Wales, sj?d and s|d; Victorian abattoirs, ojd and sd.