WOOL PROSPECTS.

Taranaki Daily News, Volume LI, Issue 74, 17 March 1908, Page 2

WOOL PROSPECTS.

According to Dalgety's Review for l-'eb-ruary there is good reason to believe that* wool will recover from its recent, drop as the textile trade of the world continues to manifest healthy conditions. The upsetting of values during the last few mouths lias been caused by dear money and financial stringency. Cermanv appears to be more responsible fur the drop in wool than the financial panic in America, although the higli bank rale consequent upon that event had a great deal to do with it. Vet wool lias gone into consumption at about the same rate as it had during the previous year, iu fact with wool coining in freely several good woolcombing linns resumed iiighlwork in December. At the time the Review's correspondent wrote tops wen.' being taken readily from the combs, and «oine were asking to have their .January contracts carried 'out by having tops delivered to them in December. This, the Review says, shows that although spinners do not want to buy at present they want the stuff, and that means that wool must go forward to the combs. Reports of Germany's trade, however, is not good. JSradford top makers report tliat neither orders nor money me coining forward from Gcrniiiiiv. Remittances are much delayed and 'limited, and husim-- is thus not encouraged. The Review lears that <•<>- hmial-hought wool may be re-ull'ered in Bradford, "and ihut would be bad for wool value?. "So far."' adds the correspondent. "1 have seen no evidence of this, but if Herman importers follow the lead of a big JSradford iion-e we have not yet by any means seen Hie lioltojn. Croat surprise has Ijecn expressed in Bradford and London woo] circles at what wu« looked upon as about the first wool house iu Bradford offering both top, and wool at absurd prices. It is current gossip that a big overdraft 01 else big contracts had to be met at the end of Decemk'r both in this country and America, and that nothing but hard cash would do. The rcstill is that everybody unwilling to do likewise has had to stand on one side ami allow these cheap tops to go by and be sol,! while they did nothing. Some seem to thing that the principal of this big firm knows a little more than anybody else, and that it is policy to .jet out at the liest price possible before there is another serious fall. My own view is that it has been purely and simply a question of satisfying the banks, and of providing the requisite cas], to ease a tight financial corner." Probably the correspondent's view is correct. With wool being taken freely by manuafet'urers whose, works are, doing overtime to keep up with the de mands upon them, the matter of lowprices appeal's to require only a little more time for its adjustment. The position, however, is so delicate that although the ultimate outlook appears to be good, it will be wise not to discount the future on too sanguine a basis.