SPECULATION IN WOOL

New Zealand Times, Volume LI, Issue 12009, 11 December 1924, Page 5

SPECULATION IN WOOL

; B3UCHT in DOMINION PROFITABLE RESALES ON LONDON MARKET. STATEMENT BT BROKERS. >- Arising out of a letter received from \ London firm of woolbrobers suggesting that speculators were buying wool In New Zealand ami selling it again in London at good profits, a statement was made by Mr H. D. Bennett proaident, at the meeting of the Wellington Chamber of Commerce yesterday. He remarked that it was evident that a good deal of wool was bought at New Zealand sales, and sold again on the : London market. He had oeen looking j into the matter, but had not been able ito get down to it, as there were *0 I many factors at work. It was almost 'impossible to bring down a statement showing the true position of the amount of wool bought by speculators in New Zealand, and resold in London. He thought those interested in the matter might try and get some information, for the letter received from the firm of London brokers tried to show the extent of the speculation, but the figures were not conclusive. Members should consider if a report could bo made upon it. INTERESTING FIGURES. The following are extracts from the fiondon letter:— ‘ ‘We have gathered in conversation With various New Zealanders who have recently visited this country, that until they reached London and could judge the position for themselves, they ware under the impression that the London sales were becoming a dead letter. Tho , impression is of course produced by tho very large proportion of the clip sold in the colony in recent seasons, but is immediately contradicted when it is : realised that a very large quantity is ■ resold in London' at * profit to tho original buyers. . . ‘‘Since it seems probable that this erroneous idea as to tho London* market is general throughout New Zealand we give below some figures which we think go to show: (1) That the London sales have not decreased to the extent, that New Zealand sales have in creased, in fact, when it is remembered | that the presence of B.A.W.R.A, wool | tended to keep free wool out of the [ market, the decrease is. comparatively Ismail; and (2) that while the number | of sheep in New Zealand is smaller, the total quantity of wool - sold -in Hew Zealand, and London is greater, - thus proving that a large number of bales , are sold in New Zealand and resold in [London.” I The figures quoted stated that tho quantity of New Zealand ‘ wool catalogued in London in 1913 was 883,148 bales; in 1923, 303,7831 tho latter not Including “Bawra” Wool. Another table showed the quantity i of wool catalogued in New Zealand and London and ths number of sheep in New Zealand, as follows:-—Wool in New Zealand and London,' 1913. was , 674,293 hales; in 1923 it was 780,749 i bales, an increase of 106,486. The number of sheep in 1913 wag -24,798,763, and in 1923* it was 23,685,789, a decrease of 1,213,974. FARMERS HANGING BACK. Subsequently Mr H. D. Bennett, Speaking to a “Times”'representative, said local sales had been' encouraged in New Zealand, but farmers were now hanging back and hesitating as to the wisdom of putting up their -wool in New Zealand rather . than in the open market .in London oh account of the. fear that there is speculation going on. There was a want of direct information as to whether that was so or not. They did know that quite a number of speculators had been running round I the oountry offering all aorta of prices, [for wool at the.shed doors, and a number of small clips had been sold. This all added to the confusion in the minds of the farmers. They knew there is some speculation, but they did not know what the relative position was between prices in New Zealand and London. "Assuming that about 60,000 hales wore /bought by speculators, that was twice (the quantity bought by the local milk, and that was supported by Dalgety’s review. The matter'required to be looked into.