WOOL PRODUCTION.

Taranaki Daily News, 26 June 1928, Page 9

WOOL PRODUCTION.

PROSPECTS DISCUSSED. t.From Our Wellington Correspondent.) On the production of wool in the United States depends largely the volume of purchases made in Australia and New Zealand. In its wool trade review for 1927, the National Association of Wool Maunfaeturers of America says, with regard to the domestic wool yield that “according to the estimate made by officials of the United States Department of Agriculture the total produce of shorn wool in 1927 was 278,037,0001 b, and of pulled wool 50.1000,0001 b, or a total of 328,137,0001 b, This is an increase of 17,000,0001 b over tie estimate made by them in 1926. For the- latter the estimate should be decreased 1,000,0001 b because of an error of that amount made by a large wool puller in reporting hie pullings for 1926 and only recently discovered. The estimated total for 1927 is larger than for any year since 1893, and is 27,000,0001 b, 45,000,0001 b, 62,000,0001 b and 67,000,0001 b heavier than for the years 1924, 1925, 1923 and 1922 respectively. This largo yearly increase, it is claimed, places in a peculiar position those advocates of compulsory textile branding legislation, who only a few years ago, when clamouring for such a law, declared that unless it were enacted the wool growing industry, which was then being undermined by the use of re-worked wool, would be destroyed. The danger being imminent, they declared that immediate action was necessary if the threatened disaster was to be prevented. “The larger sheep numbers and the larger wool product prove (says the association) how- wrong these advocates were.”

Messrs H. Dawson and Co., in their wool circular for May, when the third series of London wool sales opened, writing respecting the wool outlook, remarked that the interval between the second and the third series had been devoid of incident. There had been a minimum of new business, and the markets had lapsed into a state of quiescence. Spinners and top-makers were engaged on old contracts. The advance of the previous series had not then been enforced, and had therefore materially cheeked new business. Manufacturers were then beginning to show their new spring goods, and they, along with cloth merchants and distributors, were waiting (or the verdict on the vital question of wool values. The resistance of merchants to an advance or even a partial advance on cloth is difficult to explain, considering the startling rise in raw material, . for merino wools have shown fully 20 per cent, and cross-bred wools 30 per cent, to 40 per cent, appreciation on last spring season's rates. The attitude naturally s.frns inexplicable to the producer, especially when he finds retail profits are substantial as indicated by the leading stores and distributors. The recent habit of giving some tiling with every yard of cloth sold must soon have an abrupt termination Meanwhile the manufacturer is now being forced into a position of stolid indifference as to raw material moveI ments, until either cloth is dearer or • wool is cheaper. The latter eventuality appears to be a somewhat remote possibility in the present state of supplies. Any hope in this direction must at any rate be deferred until the prospects for next season are more clearly defined but even if a largely increased ; clip should be likely, onr consuming markets cannot be fully relieved before the end of the year. The result of the French elections ha-s conferred on the President a mandate which should enable him to take the final steps necessary to put the currency on a permanent basis. The effect of such action on the wool market is not likely to be immediately important, but must make ultimately for confidence. Holders of stocks in the consuming centres do not appear to be anxious and from every centre the report is confirmed that wool is still passing steadily into consumption. Employment in Yorkshire shows some improvement, especially in Bradford and the Huddersfield worsted section. It is also good in Scotland and the West of England generally, hut in the Yorkshire woollen trade the position is not bo good. In the U.S.A, market conditions have not been satisfactory, but latest reports are’ a little brighter. Dealers are just now interested in the purchase of their domestic elip.