THE WOOL INDUSTRY

Taranaki Daily News, 9 July 1929, Page 16

THE WOOL INDUSTRY

Sj 1 A 25 PER CENT. DROP SERIOUS POSITION IN AUSTRALIA. A > WOOL PUBLICITY SCHEME. (From Our Own Correspondent.) Wellington, July 6. The drop in the average price of the Australian clip for the season just ended a» compared with the previous season is estimated at 25 per cent., and this was rejected the other day at the Sydney stud sheep sales, for it is estimated that puces were down by 30 per cent. Wool is the staple product of Australia, and it occupies a prominent place in the export trade of New. Zealand, and if the present low prices are to rule in the season of 1929-30 farmers and others , will be forced to readjust costs; indeed [those costs require to be adjusted now. Reports from consuming centres indicate that the period of stagnation has • hot yet come to an end. Stocks of tops in France, Belgium and Germany show an all-round increase of 15 per cent, as compared with last year. During the , came period there lias been a reduction of 10 per cent, in wool prices, which, however, does not appear to have stimu- ; fated consumption. ' Quotations for Merino tops in all markets are below , cost, even if made from the cheapest wools that have been bought during the season. Stocks of wool and tops in ■.. Bradford are heavy in Merino and fine crossbred qualities, but the same cannot be said of low crossbreds, yet 40’s and 44’s Lincoln prepared tops are being taken direct from the combs and there seems to be no accumulation of these sorts. There have been signs that the movement towards lower wages in the textile industry, which began in the Clekheaton area, would spread. Two firms made a separate arrangement with their era- & ployees which involved a 10 per cent, reduction. This move has been followed "■' by quite a number of other firms. » In the meanwhile, the seriousness of 1 the wool position is fully realised in . Australia, and the Graziers’ Federal ■-* Council has affirmed the principle that extensive propaganda was desirable in ■ the interests of the wool industry, and /' took preliminary steps at a meeting in Melbourne; towards enabling such i propaganda, in the form of a publicity ' campaign, to be disseminated. The purpose of the publicity, which will be world-wide, and of every form and kind, '■ will be mainly to bring before the people of all countries the essential qualities of wool, and its advantages from hygienic and other - points of view over artificial silk and wool substitutes, against which the contemplated publicity . campaign will be chiefly directed, owing to the inroads of the wool substitutes on the'markets formerly held by wool, and 'the consequent precariousness of the wool industry, particularly in Australia. The means proposed for financing such a campaign was a levy of Is 3d ■; per bale on all wool marketed, which provide £150,000. It is proposed to augment this amount by a contribution from the Commonwealth Government. The meeting did not commit itself upon the question of the levy, but . Appointed a sub-committee to report on the possibility of such a publicity campaign, in the practicability of it, and the . most satisfactory method of financing it. A wool publicity committee was also appointed, .and fio doubt more will be heard of the matter. The woolgrowcrs of New Zealand have 'been invited to join in the publicity campaign, and it would be to their interest to do so. It is estimated that the Australian wool clip for 1929-30 would be approximately 2,585,00-0 bales, or a decrease of 102,000 bales on the total production of the previous season. Of the total 200,000 bales are to be offered before Christmas. The Australian wool sales will begin next month. ■ i The Australian wool clip is worth £7O,000,000, and a fall of 25 per cent, is a eerious affair.. Although the demand for wool for Some months has not been brisk Winch- - combe, Carson, of Sydney, say that this is apparently a passing phase. As the wool bought during the season goes into consumption the necessity for further supplies will gradually be realised, and the orders for the raw material gradually become more plentiful. The firm does, not anticipate any sharp increase in prices, but it is of opinion that when tne new season opens tliQ. recent purchasing diffidence of operators will disappear and all classes of the staple will onc-e again sell with readiness. The firm adds that it looks as if a measure of prosperity is returning to the English mills. Yorkshire’s chief activity centres in the manufacture of fabrics for men’s trade, and is therefore less affected by the competition of silk and artificial Bilk goods than business in France, where the mills specialise in women’s materials.