OUTLOOK FOR WOOL

Taranaki Daily News, 24 February 1931, Page 5

OUTLOOK FOR WOOL

AN AUSTRALIAN VIEW.

BETTER PRICES'LIKELIY.

Up to the present, the benefit of th® oversea money exchange has not been apparent in woolgrowers’ results, reports Winchcornbe, Carson, Limited, the wellknown Sydney wool firm, under a recent date. Falling markets abroad have offset the advantage of £lOO transferred from overseas having a purchasing power of £l3O here. They simply resulted, in. unchanged wool prices locally against receding rates abroad. With a rise in. the world parity of values an advance in Australia has become an accomplished fact. ■ ■ ■ ■ ■

Cotton prices have advanced. Apart from wool, therefore, conditions look brighter. In view of other ’ experiences of the past year, when the situation generally has temporarily brightened, and, after a time, lost its healthier tone, it would be unwise to become too optimistic over recent But there is no doubt that a definitely favourable turn in the world’s commerce is . long overdue. Humanity has far from satisfied its wants in the past one or two years. Admittedly unemployment and parttime working have diminished, purchasing power, but even those who could buy have not as a whole bought goods. They have postponed purchasing. Once they feel that the future looks more secure, and that prices are not likely to recede further, we are convinced that turnover in all sorts of commodities will expand, and wool values will benefit by that expansion. Within reasonable limits, we are, therefore, hopeful of better days for sheepmen in : the Commonwealth. But we do not expect to see wool prices again quickly reach the basis ruling from 1923 to 1928, and, consequently, are firmly convinced that the burdens which growers are carrying must be reduced before the industry is on & sound footing.