THE WOOL TRADE.

Otago Witness, Issue 3103, 3 September 1913, Page 15

THE WOOL TRADE.

PROSPECTIVE WOOL SUPPLIES. Though there will bo some increase in wool supplies during the ensuing year, thanks principally to the splendid season being experienced in Australia, the net increase in the wool clip will not outweigh tho increased requirements under ordinary trade conditions, for in attempting to estimate the increase in tho Australian clip the tremendous losses of grown sheep and the poor lambing of 1912 must bo borne in mind.

According to latest reports there should be some slight increase in tho wool output from South America and South Africa, but by the time supplies are available to manufacturers stocks promise to become exceedingly meagre. Prospects for the world’s crops are particularly good, so that if nothing unforeseen happens, employment should bo plentiful and food cheaper, and tho spending power of tho masses greater; but in this latter connection tho one aspect of tho present and the future presents itself, inasmuch that throughout the world the financial position is one of great anxiety. LEVEL OP WOOL VALUES.

There are some who argue that wool values stand at too high a level to permit of expanding consumption, but wo do not agree that wool is relatively too dear at the present time. It has not increased in cost during the past 10 years in anything like the same ratio as its great competitor, cotton, for instance, and many other of tho world’s chief commodities. A sovereign cannot buy anything like the same quantity of building or clothing materia! as foimerly, why should it be expected to purchase as much wool? Certainly with wool scarce and cotton plentiful, as is the position to-day and outlook for the year ahead, there is some likelihood of greater adulteration of woollen goods during the coming year than was the case during the past 12 months, when one of the features of the textile industries was the increased demand for wool and pure-wool garments to the detriment of cotton and wool and cotton mixtures.

j We express the opinion that wore it not for the difficulty of finance, wool values, and more particularly merino woo! values, would be more likely to advance than decline. Merino wool is mentioned by us as being more likely to maintain or improve its position in comparison with crossbred, be--1 cause at the present time crossbred wool is relatively quite a* dear as merino; furthermore, the rapid expansion of the frozen meat industry in the more important woolproducing countries is encouraging the increased breeding of crossbred sheep to the detriment of the merino. In discussing the financial position and tho world’s wealth, there is the indisputable fact that crop prospects are good, the gold output increasing, and that the actual wealth is in the world somewhere; but, sound aa those arguments may appear, past history lias, unfortunately. proved that panics are caused not by actualities, but by apprehension**, and

for that reason growers will probably be satisfied if wool values during the coming year do not decline from the payable level that obtains at tflio present time.