Review of the Wool Trade.

Otago Witness, Issue 1764, 12 September 1885, Page 14

Review of the Wool Trade.

From the Argus of Ist September we take the following review of the wool trade : —

One of the features of the last London wool sales was the striking fall in the value of superfine greasy crossbred wool which took place towards the close of the series. At the commencement these wools were selling remarkably well, compared with the prices realised by other descriptions, one nice parcel selling at 14|d per lb. About a fortnight later, however, JB over V, which, when sold last season in' Geelong was 'considered to be one of the most perfect lot's of crossbred ever seen, almost equal to the celebrated DB wool, was sold in London at only 13Jd. As it was valued by almost everyone at Jd a pound more than the wool which had previously realised 14§d in London, the fall during the three weeks which intervened between the two sales was l^d a pound as far as can be measured by these two wools. Of course the irregularity of the market at a dull period was to some extent the cause of the difference, but at the same time there is evidence of a lessened demand for a class of wool which has held its own remarkably well during the last few years.

With regard to the probable course of prices at the fourth series of Colonial wool sales, which are to open in London on Tuesday next, September 1, it is difficult to speak with confidence. On the one hand, the quantity held over from the previous series — 70,000 bales— is by far the largest ever known, and cannot fail to have a depressing effect upon the market. On the other hand, however, it may be that the conviction that prices have now fallen so low that it is safe to buy and hold stocks is spreading in the trads at Home But it is difficult for anyone out Here to arrive at a decided opinion on the subject. We all know that the supply of wool coming forward will be very large ; but what the demand will be cannot be foreseen. The views held on the subject by the leading wool authorities in London when the mail left do not appear to have been very sanguine ones. Messrs Charles Balme and Co. remarked on July 10 : —

The present outlook can hardly be said to offer much prospect of substantial recovery. The uncertainties and difficulties of the situation have no doubt induced a general indisposition among manufacturers, spinners, and dealers, to carry any stock of raw materials not actually needed for current use ; and a freer scale of purchase, which a more confident feeling in the trade would engender, might, no doubt, for the moment, react in a favourable sense on prices. Apart, however, from any temporary movement ot this kind, the circumstances at present affecting consumption are such as appear likely to yield only, in any substantial degree, to influences of comparatively slow operation, and if the necessary conditions of a widely-increased spending power should in the event be realised, their immediate effect upon prices will be qualified by increased production aud supplies, both from the Australasian Colonies, and especially from the Kiver Plate provinces. And Messrs Jacornb, Son, and Co. wrote on the same date : — ltegarding the present and future value of our article, it is disappointing, when we consider the enormous increase of population to be clothed, and the largely increased proportion of wool which figures in the dress of the present generation. Our old enemy, "mercantile depression," may bear part of the. blame, but the amouut of wool grown at the moment in all quarters of the world seems to be adequate to any probable powers of consumption for some while to come. The Eiver Plate is and will be the most formidable competitor of Colonial wool growers. Messrs Buxton, Eonald, and Co. also remarked :—: —

Next to the only too palpable reduction in values the dominant interest has centred in the possibility of recovery. This might involve two chief elements (a) a revival in the demand for merino manufactures, and (b) the state of supply. With regard tothe former, it can be only be affirmed that the very low point to which values have receded probably constitutes in itself the best hope for an ultimately increased consumption, thpugh not necessarily at enhanced rates x&v at a very early date; for, in ttffc meantime,

accounts from all quarters refer to the continued preference shown for coarse-haired goods. As to bupply it may be finally dismissed as a recuperative factor for this year. Any lingering hope respecting a deficit from Australia was dispelled aome months ago ; while the increase in the imports of wool from the River Plate iuto European, markets are now computed to have amounted to the equivalent of about 150,000 bales of Colonial wool. A good harvest may help to renew confidence, but meantime buyers hay« little encouragement to anticipate the future. Another authority wrote on July 16 : —

Crossbred wool is in fashion now', and would have held its position better but for the enormous quantity brought to market, which has quite satiated buyers. An explanation of present low prices, and a consideration to be borne in mind for the future, is perhaps to be found in the largely-increased supplies of merino wopls from the ltiver Plate—these are mostly sold in Antwerp and other Continental towns'; the holders are content with very low prices —aay, equivalent to s§d or 6d per lb for grease wools, and the quantity is now said to nearly equal the whole Australasian product. There has been no drought for some years in the Iliver Plate, and so long as growers there continue to have favourable seasons they will probably flood the European market with their wools, the quality of which, though far inferior to Australian, is still available for most of the same manufactures under proper treatment. The general future of the wool market is therefore in an extremely doubtful state. The advisability of our making some endeavour to create a market in China for Australian wool is, in consequence of the enormously increased production during recent years of our staple in South America as well as Australasia, becoming a subject of some importance to our woolgrovvers. We are aware of course that no practical proposals have yet been laid before them, and that the question is one beset with many difficulties. The immense advantages, however, which would result from finding an outlet for wool in that part of the world certainly do appear to make it worth the while of some of the leading woolgrowers and the trade generally to meet together and discuss the matter. In the meantime the following extracts from a volume just issued in London by the Foreign Office will serve to show that in the opinion of well-informed authorities there seems to be more probability of the Chinese barriers of exclusiveness being gradually broken down than many people out here have been accustomed to think. After referring to the increased business done in many other articles of commerce, Mr N. E. O'Conor, of the British embassy at Pekin, remarks :—: — Woollen goods seem to be growing in popular favour, though as' yet they are not sufficiently known to be much used in' articles of native dress. In time they will probably in some measure supersede the more common and cumbersome native skills and furs, particularly if they are specially manufactured to Buit the Chinese taste. Doubtless the best plan would be, if possible, to induce the Chinese to manufacture our wool themselves into whatever description of cloth they require. . Nor does this appear to be so hopeless a task as 16 sometimes assumed, for Mr N. E. O'Conor, who speaks with an intimate knowledge of the habits and requirements of the Chinese, remarks :—: — The time cannot be far distant when factories will be established in many of the principal ports and towns of China; at first probably under foreign supervision, but ere long-worked as a native enterprise by the ingenious inhabitants. Within the last tew years a sugar factory and a tannery, &c, were started at Shanghai, but owing to the financial crisis then prevailing the effort does not Beem to have been attended with success, although no doubt prosperity will ere long reward the pioneers' of the industrial enterpriae in China. The New Zealand and Australian Land Company, whose total clip has for the last eight years averaged oxer 10,000 bales a year, is probably the largest flockowner and woolgrowers in the world. On two occasions the value of its clip has amounted to more than £180,000, and during the 13 years prior, to the 1883-4 shearing it has grown 123,595 bales of wool, which have sold for £2j045,605, or an average of £16 11s 2d a bale. The following table shows the particulars of each of the clips from JB7O to 1882 :— New Zealand and Australian Land Company. Particulars of Clips sold during 13 years,

In Australia the company owns Bundure, on the Murrumbidgee, an extensive freehold^ estate ; Till Till, on the Lachlan; and Wellshot, in the Mitchell district of Queensland, these two latter being leasehold runs. And in New Zealand it owns some very extensive freehold properties, the principal marks of the wools being N.Z.A.L. Co. over Levels,' over Clydevale, over Hakateramea, over Moeraki, over Kawarau, over Ardgowan, and over Pareora.

Amount Average Clips. Bales. Healised. Per Bale. ££ s d 1870-1 ... 7,933 138,88,7 17 10 2 1871-2 ... 8,199 184,326 0 7 [872-3 ... 8,465 169,439 20 0 4 1873-1 ... 9,238 179,0153 19 710 1874-5 ... 9,084 165,731 18 411 1875-6 ... 9,051 149.779 16 10 11 L 876-7 ... 10,435 163,130 15 12 8 :577-8 ... 10.623 153,495 14' 9 0 :878-9 ... 9,668 114,843 11 17 7 [879-80 ... 10,084 181,722 ,18 0 5 [880-1 ... 10,18<i 146,787 14 8 2 [881-2 ... 10,506 156.298 14 17 6 1882-3 ... 10,128 142,105 14 0 7 Average Per lb. d 13 3-10fch! 14 4-oths 13 12 3-sths 12 l-sth 11 l-sth 11 9 7-10thi 8 3-10thi 12* 10 l-sth 10 l-sth 0 3-10tbi 123,595 2,045,605 16 11 2