WOOL PRICES.

Otago Witness, Issue 3961, 11 February 1930, Page 13

WOOL PRICES.

BETTER TONE IN LONDON.

SOME HOPEFUL SIGNS. AUCKLAND, February 4. lire recent increase in the price for wool on the London market was referred to by Sir Emmanuel Hoyle, managing director of Joseph Hoyle and Soi”, Limited, one of the largest woollen manufacturing firms in England, as a definite sign of returning confidence. A cablegram, dated February 3, received by Dalgety and Co., Ltd., from their London house, was referred to Sir Emmanuel, who is in Auckland. This was to the effect that wool sales were continuing with a much improved spirit. Merinos were generally 5 per cent, higher. Crossbred was very firm, and the change, if any, was in favour of sellers. “As I stated previously, all the market needs is confidence, the scouting of pessimism, and the total cessation of attempts to enforce fictitious values,’’ Sir Emmanuel said, '■ I have no doubt that if Australia had not withdrawn offerings at the start of the season, and destroyed the confidence of the market, prices would not have dropped as far as they have done. Wool will right itself when it is allowed to come fully on to the market, and when prices can be adjusted to suit the actual and not artificial conditions.” Sir Emmanuel said he had just received a telegram from Dunedin stating that at the local sales there had been an increase of one halfpenny a pound for merinos and a farthing a pound for crossbreds, and that all Yorkshire was buying freely. He took this as an indication that wool had been offered freely with tew withdrawals, and that buyers had responded accordingly. “As long as there is no attempt to create a fictitious market, everything will be all right,” Sir Emmanuel said. “ The principal thing to do is to create confidence, and justified confidence, in the mind of the man in the street, who is the retail buyer of manufactured woollen goods. This will react right up the line through the woollen manufacturers to the wool buyers, and will result in a gradual increase in prices, until they adjust themselves at a fair economic level. The increase in prices for merino wools on the London market amounts to about one penny a pound, and I should say has been brought about by the activities of Yorkshire buyers. I can definitely state that Yorkshire will buy wool if it feels that it is at a in keeping with market conditions. Yorkshire manufacturers at present have not sufficient money to speculate in wool, and there is no likelihood that this advance in prices is only speculative. It is indicative of the general tone of the market. The dealers, I take it, feel that the New Zealand grower realises the position and is selling his wool freely at the best prices he can obtain, and is not withholding offerings from the sale. Had there been extensive withdrawals this advance would never have occurred, as nothing is calculated to destroy confidence so much as attempts to regulate prices in an artificial manner. If New Zealand growers continue to produce good wool and to put it freely on the market, a gradual increase in prices should also continue. Of course wool will not reach the inflated figure of boom days, but it will reach a sound economic price acceptable to both growers and buyers.”