TOWARDS NEW PRICE LEVEL

Taranaki Daily News, 20 October 1930, Page 8

TOWARDS NEW PRICE LEVEL

SLOW READJUSTMENT PROCESS OUTLOOK FOR WOOLLEN GOODS. ‘ By Telegraph—Press Assn. —Copyright, v Rec. 8 p.m. London, Oct. 13. Discussing the wool position a correspondent ’.of the Yorkshire Observer says: Unfortunately the fall in values to the present level, while disastrous to pastoralists, has not yet benefited those engaged in wool manufacture. Tlie re-, adjustment process is a long one. Wool is merely one of. a multitude of primary commodities progressing towards x a new price level, but the best corrective or natural pessimism is recognition of the fact that when commodity prices. settle down to a new equilibrium sounder trade will spring up in the wake of the storm, and in this wool manufacture will share.

It is certainly a rather dreary business waiting for the expansion in the demand for wool commodities which the producers are justified in expecting.- Now that cheap ray material and lower conversion costs permit, West Riding textiles will be offered at extremely attractive prices, but unless all economic theory is wrong such a demand will eventually arise, and the industry will have cause to reflect with satisfaction on the possession of abundance of clieap wool. ' f . • ■