The Star. MONDAY, JULY 17, 1876.

Star (Christchurch), Issue 2593, 17 July 1876, Page 2

The Star. MONDAY, JULY 17, 1876.

The further fall in the price of wool, which was announced by telegram* a few| da J 8 ago, is so serious a inhtter for the Oolony at large, and for this dis* trict in particular that it would display culpable indifference, to the prosperity of Canterbury, and to the misfortune which has befallen many of her best settlers, were we .to let the matter pass without some notice of the faot. It is easy to see that the principal cause to which the fall is to be attributed is the fltimu|us to production in other partd of ihe world, afforded by the high prices prevailing a short time back. This has really had the effect of overstocking the market When to this oavse is added the general dullness of tradibvii} America and Germany for ■everfti years past, it can scarcely be matter of surprise that the fall, which has long been foreseen by those intimately acquainted with the market, should at length. have taken place. On the other hand it must be granted that the depreciation is extreme, and exceeds the expectation even of those who had the best opportunities of forming a judgment. This very extremity will, however, be the chief instrument in bringing Qbout the inevitable reaction at an earlier date than could otherwise have been anticipated. It will have the effect of putting an absolute veto upon tho production of wool in many parts of the world, for the simple reason that growers will not continue to sink capital in a losing industry, and the dimensions of the latter will therefore naturally contract, until it again leaves a fair margin of profit to the sheepowner. That it will be needful for this purpose to wait the time when production shall absolutely have fallen to the same limit which bounded it prior to the high prices of 1871 and 1872, is out of the question. The recent low prices will themselves be found to have produced a greatly increased demand for the manufactured article, which can of course be more cheaply produced now tban was the case a few years ago. Now this .demand is one which will not readily -contract, notwithstanding that a rise in prices may take place. Comforts once attained are not readily given up, and it is undeniable that many who would heretofore have been debarred from using woollen goods for clothing, &c. and would have looked upon them as unnecessary luxuries, will of late have been able to use them freely ; nor will they be willing, except under an extreme stress, which is unlikely to ensue, to forego them again. On the whole, therefore, although fully alive to the magnitude of the present evil, we do not think that the outlook is one which offers no grounds of comfort, and we are confident that the operation of the fixed economical laws will in due course bring about a recurrence of prosperous times. Meanwhile, it is worthy of remark that under no . circumstances can the depreciation prove as ruinous to the wool-growers of the Colony now as it would seven or eight years ago, for the simple reason that they are not now as then entirely dependent upon thia one industry.