FULLY JUSTIFIED

Poverty Bay Herald, Volume LX, Issue 18202, 25 September 1933, Page 7

FULLY JUSTIFIED

HIGHER WOOL PRICES DEMAND WILL CONTINUE LONDON, Sept. 23. Tho Morning Post says: “Notwithstanding tho rise in wool, it is not yet a clear conviction that the era of low prices has passed. There is an improved demand for manufactures, and the industry is busy with substantial orders.”

Tim Economist, reviewing tho world svool situation, and after analysing tho consumption-' figures, concludes that tin* sharp improvement in values in recent months was a natural result of tlie revival of demand, coupled with the expectation of a. decrease of supplies. The improvement, therefore, was fully justified.

Present indications are that the expansion of tho demand for raw wool will continue in the near future. The advance is not fully reflected in retail prices, but it is believed, in the absence of a serious recession of the world’s industrial activity that it can be passed on to the consumer without reducing either tho demand or the price of wool. Discussing a table showing the retained supplies of raw wool, it emphasises that Japan’s figures for tho years 1928 to 1932 were 115,000,0001 b., 107,000,0001 b., 119,000,00011)., 189-000,-0001 b., and 204,000,0001 b. respectively, "which suggests that she can absorb and develop the manufacture of woollens at tho same rate as she has expanded her cotton industry.”