Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE, MONDAY, APRIL 16, 1928. THE WOOL MARKET

Poverty Bay Herald, Volume LIV, Issue 16623, 16 April 1928, Page 6

Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE, MONDAY, APRIL 16, 1928. THE WOOL MARKET

The increased part played in the wool market by buyers from foreign countries, which has been most noticeable of late at New Zealand and Australian auctions, appears to be causing a good deal of concern amongst interested people at Home. Mail news received from London last week reported that at the annual meeting of one of the large woollen and worsted manufacturers the chairman described how conditions in the woollen, trade had changed during recent years. He said that the state of -the woollen trade in the United Kingdom no longer dictated the prices of wool, as it had done in .the early days of his association with the company. There was now competition and very, serious competition from practically every country in the world, and heavy purchases by Japan, Germany and even Russia —to mention but three —had forced wool ,to a value that was not reflected fully in prices obtained for the finished article. The same, complaint has been reiterated in recent reports from Bradford, where the manufacturers are feeling seriously the stress of foreign competition. Perhaps the most outstanding feature of the season's sales just concluded in Australia had been the increased activity of Japan, which has bought at least 10 per cent, of the wool sold. From a very small buyer a few years ago Japan has developed into one of the best buyers of Australian wool and ; has been coming steadily with greater prominence ,on to the New Zealand market. This season Japan has bought over a wide ra'ligo, extending from good type merinos to strong crossbred, but chiefly the former. A few years ago she purchased only wools of high quality because her machinery was not modern in type and she had to concentrate on W9OIS which yielded well. But Japan v has made remarkable industrial progress in the past few years. New machinery has been installed in tho factories, and modern methods are being practised.. The works are able to handlo all classes of wool. Japan used to buy tops in Bradford, but now buys the raw material in Australia and does her own combing, thus saving a good deal in freight. Her manufactures are mainly absorbed by her own population, though some • portiou of the output from her mills is exported to China and it is here that the future extension of Australia's and New Zealand's wool trade is considered to lie. Just as Japan has been Westernised so it is thought that the development of China will eventually come from Japan and with Western ideas inculcated in that vast country ,the demand for Western clothing is expected to develop just as it has done in Japan itself. There are wool brokers who express the opinion that within ten years Japan will easily be the largest buyer of wool. At tho recent Brisbane sales she bought 20 per cent of the catalogue. Germany operated freely in the early stages of the New Zealand and Australian sales, but more quietly in the concluding stages. Her factories have been equipped with modern machines, and it is predicted that she will be a big factor in next year's sales. With France and Belgium, Germany took most of the' lower grade wools. France has been a good buyer, and although mainly buying fine wools, it is likely she will turn her attention to what are known as comebacks. The buying of the United States in Australia was a disappointment, the purcliases being only half those of Japan. It is doubtful whether this country will come back as extensively as before as manufacturers arc devoting more attention to their own domestic wools. Russia operated extensively and one firm took 20,000 bales from Victoria alone. Britain, of course, is still the principal market for the wool that these Dominions produce, and it is gratifying to learn that there has been a revival of activity at the Yorkshire mills, coincident with an improvement in the trade of the Homeland. On the whole the outlook for our pastoral industry for the next few years may be taken to be fairly bright. So far none of the official substitutes for wool have affected the price, and it is not considered likely that they will displace wool. While the level of prices is not such as to breed uneasiness, there is a general feeling that any further upward movement might, tend to lessen consumption. Wool prices are to some extent swayed by fashion, but it is believed tho market is'now settled on a fairly permanent; basis.