The Station.

Otago Witness, Issue 1244, 2 October 1875, Page 18

The Station.

OUR WOOL TRADE WITH AMERICA. The following extract from a letter from the United States upon the wool trade with Australia, to a gentleman in Victoria, has been handed to the Australasian for publication :—: — Dear Sir, — 1 apprehend that none of the American wool importers will venture thi3 year to Australia to effect purchases, in consequence of the unsatisfactory results of their operations last season. The stagnation of trade in our manufacturing districts and the restoration of heavy duties upon the importation of wool make our position still worse and it seems to me that nothing but total abstenation can save us from losses for the present. In the event of the Democrats ri3ing into power on the coming Presidential election next year, a change of policy towards free trade may be expected ; but this is not certain, although very likely to happen. It is, however, obvious that, under the most favourable circumstances, there are features in the wool trade of the United States -with Aus f ralia that will preclude its rational development for a long time to come, unless your growers take it upon themselves to send their produce to New York, Boston, and other places for sale. I

Thi3, I willingly admit, they are not likely to do, even were all the duties on imported wool withdrawn on our side, because the Australian staple represents a great variety of types, while the United States require but some particular sort, upon which there is no occision to dwell at present. We thus remain before the difficulties wbich originate in the peculiarities I have just alluded to, and which I wish to lay before you as one th;vt might, by his high position and influence greatly contribute to remove them.

In the first instance, the limited extent of the trade between the Australian colonies and the United States, coupled with the distance, are serious drawbacks. It was thought at first that the opening of a line of steamers between San Francisco aud Australia would have given an impetus to the wool trade between the two countries, but it soon became evident that to ship wool by San Francisco would be like sending coal to Newcastle in the old country, as our greatest wool producers Bre in the region of the "West. The freights are another item to be baken into consideration ; and last, but not least, the incidece of the operation, in a financial point of view, is fraught with such difficulties and risks as to permitonly a very small number of rich manufacturers or speculators to expose themselves to it, the bulk of them being unable to avail themselves of the advantage. The requirements of our manufacturing trade are not confined to the pnrclnße of Australian wools, as we employ largely other foreign wools, and it is not reasonable to suppose that many American houses could find it profitable to put in motion the expensive machinery they have now in use to buy such qualities ot wool as are but exceptionally adapted to the general wants. What we require is an open market nearer home, where we can find and pick up such and every kind of wool We require on equal term 3 with all other consumers in th 9 world ; and it is our notion that such a market does not exist at present, in spite of all the efforts that are made by Continental ports to represent themselves as such. Berlin and Hamburg are quite out of the question, owing to their situation ; Amsterdam has given up all pretensions many ycar3 ago ; the Havre, favourably quo fed, is trying hard for the prize, but, irrespective of the unsettled state of political affairs, does not offer the necessary elements for a Continental market — France being much in the same position as ourselves in Jfegard to the Australian wools, that is to Any, consuming only certain classes of this staple ; Antwerp is nearer the mark. She possesses the geographical situation for the position. She would have the market were it open to all-comers, and had she the Australian wools. Last c >mes London, which has every advantage — position, market formed by the congregation of wool from all parts of the world, great financial facilities aud accommodation) and all the seduction of a lon^-es-tablished trade, based apparently upon the broadest principles of genuine equity and free trade.

There v no doubt that were it not for the huge proportion of the London market, and the formidable ring that keeps it tightly within its grasp, we should never have deserted it, and it would still be the source we would look to for our supply of those foreign wools which we are now looking for in Australia, at the Cape of Good Hope, &c. I do not mean to allude, sir, to the recent remirks made upon some trifling discrepancies in matters of commission, charges, weights, &c, as regards the London account sales in re wool, but to fioinothin-' more Rerious — an evil that pervades the entire London wool trade, ftnd that, in distorting its character, diverts it from its legitimate channel, to the detriment of the producer and the consumer.

According to the condition of sales of the London market, it is to be inferred Mint ife is open to everybody, and that any one can go to a sile and buy what he wants. Such is, no doubt, the spirit and the. letter of the condition, but in practice the fact is quite different. As far as my exparience goes, I would say that amount those who regulate the wool *alo# in JUwloti ther« i# an undoubted

determination to prevent any buyer from escaping their interference in his purchases. Almost at every step the buyer has to make to be able to complete a purchase, let it be before or after the sale, he meets with insuperable difficulties, that the latent and seemingly passive influence of the brokers, which he disdained, have prepared for him. Everything seems to have been regulated for insuring the omnipotence and monopoly of the brokers. Rich and powerful, the financial establishments are indisposed to displease them. Hardly will the banks treat with you without interference. The seller and the warehouss-keeper are apparently acting under the same influence.

In summing up, sir, I can clerrly see that, for some time, we Americans must withdraw from purchasing Australian wools until something better turns up. To my deep regret we will be unable to go to Melbourne this season, and London, which was better, we have forsaken altogether as impossible. Ido not blame our British cousins for taking all the sheet to themselves ; but as in this case they have deserted their principles of fair play and free trade, Nemesis is sure to overtake them before long.