FINANCE AND TRADE

New Zealand Mail, Issue 1716, 18 January 1905, Page 66

FINANCE AND TRADE

In their report on the November series of London wool sales, Messrs Willans and Overbury state: —On the opening night a rise of 5 per cent, for the better classes of merino was established, and as the series progressed tliis advance extended to all descrip** tions of fleece, and was sometimes exceeded, the only exception being the best scoureds, which were not more than -£d per lb dearer. The selection of tine and coarse crossbreds has been very Limited. Some of the finest qualities in the scoured state have realised very full values, but for the most part quotations must be based on sliped descriptions. The advance of 10 to 15 per cent, on both fine and coarse slipes which can bo quoted at the close of this series has placed these qualities, for the present at least, out of the reach of that section of the trade which buys for ordinary purposes, but those purchasing on special account would have readily absorbed far larger supplies than liave been available. The few lots of greasy crossbred which were catalogued, though mostly out of condition and inferior, shared the full advance, Hid being paid for average coarse wool, while Is o}d was given for qualities very little finer. Competition has been unusually keen throughout. Continental buyers have mainly confined themselves to merino descriptions, and while the Home trade have taken a fair share of those sorts, they have also purchased the great bulk of sliped wool- America has bought all suitable wools at very full prices; 80,000 bales have been actually sold ; 42,000 taken for export, including 2000 purchased on American account. The whole available quantity has been offered), and only 1000 bales are carried forward to* the New Year. About 50,000 bales of new clip wool have been offered, as against 30,000 bales at the corresponding period last year. The wool is for the most part well grown and of fine quality, bur though less wasty than the previous clip, contains a good deal of burr and seed. The existing situation as regards the demand for wool is exceptional. America, the Continent, and the Home trade appear almost simultaneously to have agreed on the necessity of replenishing stocks, which as before mentioned are abnormally light. Except perhaps in the United States, there is nothing in the nature of a “boom” in the present inquiry, and it is only reasonable to conclude that the trade have every confidence in the future course of values. With a further reduction in the clips from both Argentina and New Zealand, buyers, during 1905, will not find supplies any too great for their requirements, a fact which is no doubt influencing them to some extent to-day.

Reviewing the outlook for the coming year, the “Sydney Morning Herald” says:—The outlook on the coming year is on the whole favourable in character, and should* seasonable rains fall within the next two months the situation can hardly fail to be improved, and more prosperous conditions be restored. All the time the flocks are increasing in number, it being estimated by the Government Statist that the total is now 32,500,000, against about 26,000,000 eighteen months or two years ago, and there is no reason to suppose that under ordinary weather conditions the number will not go on steadily growing. There is room for n any more, which graziers after recent experience will know how to provide for better than in the past. For between 32,500,000 and 61,000,000 depastured ten years ago, there is a difference which cannot Le accounted for by any insufficiency of grass and vegetation in an ordinary season. This year many more sleep could have been fed bad the flocks not been so reduced by the drought. And though it is rather dry- in some of the dairying districts, thei-e is still a very large yield of butter, which in the export list last year became a very prominent feature, with an outlook on still more magnificent results. Then agriculturists are extending their cultivated areas, and there, is a prospect of great expansion in this industry. Closer settlement is in the air, and large areas of new land will be brought under the plough, and with a fair season the produce from the land in the .coming year ought to be of much, greater value. Since public borrowing has received a check from which it is not likely t-o recover for years, an era of solid development of industries on the land seems assured—all the more so, perhaps, as the operations of the Arbitration Act are less likely to prejudice it than ordinary business undertakings in the towns and cities. Our silver, lead, tin and copper mines are now giving favourable results under the stimulus of good prices, and perhaps on flie whole these have freer scope than manufacturing or general trading industries. Everything but repressive legislation favours the outlook oil better conditions, for though money is not quite so cheap as it was, it cannot be called dear. Enterprising people would use it must more freely, and employ labour more extensively, but for the uncertainties of the situation. Still, on the whole, the growing industry on the land will create wealth, which the owners will invest in the safest channels

that must inevitably promote prosperity and make Australia to be regarded as a good home for the European emigrant, which at present it certainly is not thought to be.

New York files show that the forward movement in trade and industry continues- According to “Bradstreet’s,” of December 3, transactions through the banks have been quick to respond to the activity in speculation, general trade, and industry which first began to manifest itself in the summer of 1904. Monthly clearings had been expanding steadily since August; the October total was the third largest ever recorded, and the November aggregate, which was a full billion dollars larger than that of October, and over four billion dollars larger than that of November a year ago, was seen to be, next to the total of Maj r , 1901, the greatest ever recorded.