WOOL.

New Zealand Times, Volume XXIX, Issue 4245, 28 October 1874, Page 3

WOOL.

TO THE EDITOR. Sir, —Opinion prevails to the effect—■ Ist. That the woollen manufacture is declining in England or Great Britain, and betaking itself to the Continent. 2nd. That the prospects of prices in Europe and America for coming clip are very inferior to those of last year; and, indeed, very unpromising. With reference to first statement, I have met with no documentary evidence to sustain it. The stock of wool in England was larger Ist January, 1874, than Ist January, 1873 — greater than the deficiency of four million pounds less retained in England of imported wool to the 31st July, as per Customs return. Decline is not to be found herein; there has been rather an increased consumption in fact. The decline is in non-progress, in fact, not absolute diminution of production of the woollen manufacture —whilst the increased production of the Continent is very great, and its apparent suddenness raises the question as to its being temporary or permanent. AVith reference to the bad prospect of price for coming clip, the relative circumstances of the seasons 1573-1574 and 1874-1875 do not appear to warrant any such belief. Last clip was preceded and attended by bad harvests; two consecutive bad harvests made the mind apprehensive of a third. The doubt must have been great, and the diminished purchasing power must have operated to disadvantage of price for wool. The fear of war was considerable, from rumors to that effect; whilst the united action of England, Germany, France, and Austria, in reference to Spain, necessarily augments confidence.

The clip of 1874-1875 is preceded by general good harvest, almost world-wide. A correspondent of The Times estimates the increased purchasing power of France alone, this, as compared with last wheat season, at £15,000,000. The price of food interferes largely with prices of other necessities —tho more funds required for the former, the less for woollen and cotton goods. Money is not dearer, nor docs it appear likely to be this than last year, looking only at ordinary circumstances, with which alone we can deal. Money should be cheaper this than last year. Employment for the people in Europe has not declined—does not appear likely to be less this than last year—rather otherwise, if cheap bread and cheap money are main motive powers. The American buyers coming thus early into the markets of these seas, leads to the belief that they contemplate an early revival of trade in the United States, and that they had better be early than late, as buyers of the coming wool crop. That the large quantity of wool taken by the Continent up to 31st July was not excessive, was proved by the large purchases made by foreigners, and to go abroad, of which but 4000 bales were reported for the United States. The quantity offered at sale from August 18th to October 3rd, at protracted sale of nearly seven weeks, is by telegram stated to have been over 260,000, of which 120,000 bales were taken to go abroad, leaving for home use, of imported wool, 140,000 bales. This sale may be taken as a most important point, bearing on the price of wool for the coming clip. So much being taken so soon after the very large supplies the Continent had so lately obtained from abroad, may be dwelt upon as justifying no warrantry for bad wool prices during next season. The annually growing effect of the telegraph in favor of fact and opinion becoming more closely allied, doubtless had made buyers from the possession of the latest possible news, alike from Australasia and Kio Plata, bolder in operations, and justifiably so; but also strengthens our belief in the fair prospects of the wool market in the coming season. The telegraph causing opinion to rest immediately on fact is a guarantee for more regular prices and steady markets in the future, compared with even the immediate bygone. In reference to the future supply, I think the late sales in Europe, and the movements of the American buyers are facts favoring the belief that buyers do not anticipate any extraordinary increase in supply of next over last year. There were offered at the series of five sales held in 1872 in London, 657,086 bales ; in 1873 there were 717,219 ; and in the three sales of this year of the series of four, 718,423, or in the three sales rather more than at the five sales last year. It has been telegraphed that 100,000 bales were exported from the colonies between last sale and the close of 1874. Such a receipt will be nearly 14 per cent, increased offer at the public sales of colonial wool in 1874 over 1873. The market appears to warrant it, whilst a careful consideration of the circumstances willnot warrant, Ithink,belief that the increased offer at sales will exceed that of last crop, namely, 14 per cent. To the wool-producer the question is not who takes the wool, though, as English or British, we like not to hear of any decline at homo, or even arrested progress ; but will the market take all we can supply ? Experience says yes. —I am, &c., Samuel Eevans. Woodside, 25th Oct.