The Station. LAST YEAR'S WOOL TRADE.

Otago Witness, Issue 1480, 27 March 1880, Page 6

The Station. LAST YEAR'S WOOL TRADE.

{(Adelaide Observer )

The year 1879 makes a gloomy chapter in tho history of the wool ttade. Not since 1869 has there been such a low raii!<e of prices, and the effect of this was to create anunwontod depression in the producing countries, particularly in the Australian Colonies, which were suffering alao the ill effeots of a poor harvest and reduced rates for copper and other produce. The fall in the value of wool ten years ago and cousequont disasters were ascribed to the too sadden growth in tho productive capacity of the British oolonies and Southern America. The great fall last year is attributed not to an over-supply but to arestrictioo intheoowera of consumption, not bo much of the Continent, but of the United Kingdcw. It i 3 known that for years past the the export trade of Great Britain in woollen jroods has been on the decline, an<J the Bourd of Trade returns amply ooufum this. Iv 1872 she exported no lees than £38,500,000 worth of manufactures and yarns, butiu 18/9 the amount had Buuk,to £19,600,000, or to £28,100,000, computing the value of the gfoods on the basis of the oxporl prices in 1872. Compared with tbo preceding year cf 1878 tbo failing off is aboub one million sterling. Until lately the trade lost abroad was generally made up by an iucrmsed consumption in tha home markets, but this lookedfor compensation was entirely wanting lust year. In former years tha supplies from tho British colonies were generally pretty evenly divided batween foreign and home purchasers. Thus in 1869 the purchases for export were 302,000 bales ngainsfe 347,000 bales retained forhomeconaumptiou jin 1874 the quantities were 408,000 and 395,000 bale?; and iv 1877 484 000aud 465,000 bales respectively. "In 1878," aa Helmuth. Soliwartze & 00. put it, " there is the first appreciable falling.off in the home share, and 1879 shows it in an unprecedented proportion," tho respective figures being •533,000 Bgainsfc 441,000, and 649,000 against 334,000 balea. It will thus be seen that the Home trade instead of retaining about one-half rf the one million bales supplied by the colonioa did not take much more tbau_ ona third— a circumstance which could not fail to have a marked effect in lowering prices. Consequent upon tho [failure ia the middle of 1878 of of the Glasgow Bank, followed as it •was by numerous suspensions of mercantile houses, general trade became so unhealthy thut at the wool sales of November in that year greatly reduced values were established ; and with trifling variationo this low leval was maintained until tho November sales of 1879. In that month there was a decided recovery, crosabreds gaining an advance of 25 and Merino wools 10 V<tt ceut. But for thia improvement; the average value of tho bale for the year would have been much less than ib has turned out to bo As ib ia ib is £2 per bale lo&s than the rates of the last ! three yours, and £10 per bale loss than tho rate ! obtuinablp in 18J± The following figures a.ro I /|iven by Messrs IT. Schwurtzo and Co. iv their i annual review of tho market?, to show fcho averI pge value per b. ale of colonial wool during the pasb

It is surprieinsj to note what a high position Australasii occupies both ao a producer of the raw notarial and as a purchaser of woollen manufac'ures. In 3870 tha Oolotiies, with New Zealand, sent homo 5i9,264 bales, and the Cape contributed j124,050 bales, while all the other countries pub together did uot furnish more than 214,803 bales Since then the proportion has been yearly advancing in favour of Australia and New Zealand' In 1879 the importa tions of wool into the United Kingdom were as follows :— Australasian .. 82(3 37 River Plate .. 5,837 Otne .. .. 175,79 i Peru Limi, and Qeimau.. .. i0,60Z Ch 11 .. .. 34,164 Portugocie aud Al.^ca „ „ 83,190 fcipanl h .. 11,457 Modno>r<nsan Esat India .. 70,047 and Afiicau .. 20,636 Persian „ .. J 5,312 Mohair .. .. 40 782 Ru3Blsn .. .. 88,389 Sundry „ .. 20 728 Totslbule* 1,32i,814 But while Australasia contributes so largely to the supply of the raw material, she is as the same time one of Great Britain's best customers for her own product when ib is made up into a manufactured form. Taking the year 1878 which is the latest return issued, we find that while in the aggregate Germany, Franca, Holland, the United States, and China and Japau ootne before the Australian Colonies, yet in many linc-i the 1-tter purohaso more oxtenavely than all the otherp, and in one instance to more than all tho rest pub together. Of plaia nilwool narrow cloths, coatings, duffels, &a , Australia was the largest purchaser in 1878, taking 1,785,400 yards, valued ab £262,816, France comini? second with 1,287,900 yards, valued at £166,393- In all worsted Btuffs China comes first, Hongkong second, and Australia a good third ; while iv worsted stuffs of wool mixed with other materials the leading purohasers are France, the United fcStabo<, Germany, Australia, and British North America. With regard to blankets und bl mketiug aud oar pets Australia stands conspicuously ahead ; while in r6specb to flannels she bought more than all the bthar markets comoinrd,' her purchase of this article alone' amounting to 5,9-11,800 yards, valued at £284,728, againet a total quantity sold of 8,912,900 yards, worth £432,870. Those figures illustrate the value and imponauce of the trade which has sprung up between Australia and Britain, and tho reciprooal benefits which both have eujoyed. # , The rovival and improvement whioh have taken place in the wool market appear to be due almost entirely to the demand which has set in from America, and ibis from this source that we must look for a maintenance of prices. Ib is true that stooka ia the home market are now very low, but the consumption there is not likely greatly to iucrease during the current year. On the Continent, too, owing to the deficient harvests, trade will probably not be very brisk, even should peace be preserved. If, however, the consumptive power of America continues at the same rabe as has marked her trade during the past; four months, whpu she purchased some 90,000 bales in tho < Bngliah and colonial markets, there ia every likelihood of quotations bting sustained through the year.

fifteen j with in years ; and tl itoreßti— ley will, we 1 think, be perused ■ i i "" ~i ■ Year. 18d5 im 180? 38.1S lbO3 1870 1871 187 i 187 1 1&74 1875 18T6 1877 Ib7s 1879 loipnrted ir. 43<,6 r )l 465 812 641,069 CS'J.ISi 6.» 9 9 673 3 4 C9S«OJ 661,601 705.0-.il 815,770 87>,a)8 938 776 , 991,7,7 961,560 1,002 I.W Avig valut par ba"o. sof JBJ l&J 1«§ 204 26* 24$ SBi . «vj JBJ J8» 18J To'al rsluo in round numbars £10-275.t00 11187 409 li,'iv*7.«(o 11,713 000 9,034: 900 11 U7«i OUO [14,^8 80 » 17,632 400 )7 tfiO.^OO 18 98tf,70il 10 451.3C0 17,8 '2.' 00 18,632,900 17,?4! 600 18 516,500