WOOL TRADE

Southland Times, Issue 19025, 22 August 1923, Page 5

WOOL TRADE

trials of industry PRICE DOUBLED IN A YEAR (Per United. Press Association.) WELLINGTON, August 21. Mr W. H. P. Barker, chairman of Directors of the Wellington Woollen Company, in the course of an address at the annual meeting, said that never in the history of the Company had they seen wool doubled in price, from one season to the other. On December, 1921, rates for half-bred advanced 100 per cent, in the next season. Comparing all qualities for two years, the average increase was 75 per cent. “I mention this,” he said, “because such a disturbing variation in raw material makes for a good deal of misunderstanding with buyers. Another unusual circumstance of the year was at some sales New Zealand wool auctioned 3d per lb higher than the London parity. For some little time past there has been an undoubled financial stringency in England, the textile trades there finding it difficult to keep mills running full time, which perhaps accounts to a large extent, for the volume of low-priced goods, coming forward, and for large import figures. I have dwelt on some difficulties, met with to illustrate to those interested, why it is often not possible to quote firm prices for but a short period, without taking undue speculative risks, and which buyers do not themselves care to take. As to the immediate future of raw material, it may be accepted, as obvious that fine wools will be again in great demand. Everything points to that, while crossbreds are rising in sympathy. The country is always prosperous, when wool is high in price, so that we are glad to see it, even if wc arc placed at a disadvantage with overseas' buyers. We have regularly made reference to company taxation, with its handicapping effect, but it does not seem necessary on this occasion, as the Prime Minister has promised a reduction in the rate of income tax. I would omit saying anything further about it, were it not that every industry, except farming, is popularly supposed to be able to pass it on. It can only be monopolists who are in that position. After what I have stated as to competition existing, it cannot be said that the New Zealand woollen manufacturers hold any monopoly, which enables them to obtain fancy prices for their products, or to escape sharing what profit is made with the tax.”