COMMERCIAL

Poverty Bay Herald, Volume LXI, Issue 18590, 28 December 1934, Page 14

COMMERCIAL

THE WOOL POSITION

! EUROPE THE PIVOT POINT i SYDNEY, Dec. 12. Messrs. Winchcombe, Carson, Limited, report: “Values for merino fleece wool are on the average about 15 per cent, lower than at the first sales of the season, with skirtings showing a smaller decline. Despite that reduction the inquiry for tho staple is actually more sound than at the higher range. At the initial auctions, the market was too dependent on competition from Yorkshire and Japan for support for it to be regarded as healthy. Since tliiil period reduced prices have attracted more extensive bidding from the Continent. i “European orders have not been experienced in normal volume, but they have been more plentiful. They are not likely to reach customary dimensions until trading barriers are made less irksome. The Continental situation presents some surprising aspects. From January to September, Germany imported and retained for use 266.600,0001 b. of wool, or approximately 860,000 bales, the total only being about 2 per cent, loss than during the similar months of 1933. A good part of that wool was bought before the embargo came into force, at the end of March last, and moderate weights of it were secured in various parts of Europe by obtaining reciprocal orders for manufactures on a more or less barter system. It is a queer turn in commercial experience for a modern world to regress into barter arrangements, but monetary stringency, to a great extent caused bv world-wide tariffs, has produced it. “The Australian Government, recognising that national welfare, both primary and manufacturing, depends largely on the sale of the clip, is endeavoring to find means of stimulating German orders for the staple in Australia. It would be inadvisable for the authorities in the Commonwealth to watch German millmen permanently increase fheir wool purchases iu other countries. They have been large users of Australian staple for many years, obtaining from this quarter about one-third of their yearly imports of over 1.100,000 bales. I “In contrast to the decrease of 2 per cent, in Germany’s wool imports mentioned. France imported 37 per cent, less from January to August this year, than in 1933. The reduction in her buying is a substantial loss in competition. Decreases arc also shown by Belgium and Italy. Europe is, therefore, the pivot point of the wool market. Its general industrial and commercial revival is necessary to produce a sound, strong wool market as ’the annual European imports from all , quarters are normally in the vicinity lof 4,000,000 bales. “The most heartening feature of the situation is the sustained purchasing by Yorkshire. Of all manuj facturingcountries, England has been j most actively employed on internal and , export business. The continued purchase of raw' material indicates that consumers are not nervous regarding the future of prices. Generally (he opinion is held that values are not likely to show much variation, but I hiit in view of the absence of any shortage in supplies in conjunction with tho reduced requirements of Europe, a marked rise in rato,s is

not probable unless some unexpected change in trading conditions is seen. Considering the circumstances which have existed, the Commonwealth has done well to sell 976,822 bales from Jiilv 1 to November 30.”

GOLD MINING RETURNS

Skippers’ wash-up No. 2 to December 23 produced 120 oz. 18dwt. for nine shifts.

The Golden Sands wash-up ou December 22 produced 2Soz. lOdwt. for 30 eight-hour shifts. The Australian company which has been prospecting in the vicinity of Kanieri has decided to take over a property and construct a dredge. Work testing tho ground has been carried on for the past 12 months, and results have been sufficiently good to warrant further development.