THE GOLDEN FLEECE

Te Awamutu Courier, Volume 53, Issue 3840, 30 November 1936, Page 4

THE GOLDEN FLEECE

THE natural elation which will be felt throughout New Zealand at the phenomenal rise in the prices of wool which characterised the opening series of this season’s sales at Auckland on Saturday last should assist to reinforce that confidence in the future which has so surely but certainly been

obtruding itself during the past twelve months. Competent observers had been predicting a substantial advance, but events have proved that the most sanguine expectations have been exceeded. In the circumstances it is not surprising to be informed that “ expectations of a rise in prices were exceeded up to 60 per cent, 1 even hardened buyers appearing nonplussed by the wonderful sale.” A comparative table of present and past prices indicates the magnitude of the increase, namely:—

In other words, the proceeds from last Saturday’s sale represent an increase of nearly £190,000 over the previous year. But to comprehend the true importance of the rise it will be noted that the figures for 1928 and 1929 “ the halcyon years,” as the sheepfarmers fondly remembered them during the days when New Zealand was deep down in the dark valley of depression—were exceeded in comparison with 1928 by £24,000. Again the the advance compared with 1934, one of the worst years so far as the opening sale was concerned, represented the large total of £341,750. These figures are impressive in many important respects. Principally it is reassuring to note that “ competition though steady was at no time excited, the opening values being well maintained.” This psychological state is certainly better than a wild gamble which might turn out to be merely a “flash in the pan.” The steady competition is indeed a good augury for the maintenance of Saturday’s prices throughout the remainder of the series, which will not terminate till March or April next. Then, again, the keen demand serves as a reminder that, despite all that has been heard about the progress of the manufacture of synthetic textiles, “ wool is still king.” The fact that the whole catalogue was cleared is proof positive that the manufacturers do not regard this threat as a serious one, certainly not at the present juncture. As to the causes of this spectacular rise, many and varied factors seem to contribute. The prevailing, popular idea is that the vast military preparations now being made by the leading Powers are, in the main, the controlling cause. No doubt this has had an appreciable effect on the demand for cross-breds, but in other respects it does not apply. The Coronation festivities, too, may account for their quota, while the boycott of Australia by Japan, whose buyers operated freely in Auckland, appears as a predominant contributor to the demand. However, ail sections of buyers participated, and that appears as the most gratifying feature of the sale. That the buoyant market will continue will be the fervent wish of all who hope to see one of New Zealand’s primary industries restored to its former prosperity—a condition which will in itself re-act to the material well-being of the Dominion as a whole.

Average Average Per bale. Per lb. Value £ s d d £ 1928 22 11 0 15.64 406,009 1929 15 9 2 10.95 238,125 1934 7 16 21 5.62 88,250 1935 12 2 0 8.27 240,156 1936 *20 0 0 14 430,600 * Estimated.