EASIER TENDENCIES.

Star (Christchurch), Volume LXVI, Issue 20222, 5 February 1934, Page 1

EASIER TENDENCIES.

Several Factors Affect Wool Markets. TRADE POSITION SOUND. United Press Assn.—By Electric Telegraph—Copyright. (Received February 5, 10.40 a.m.) LONDON, February 4. Mr W. Devereux reports that easier tendencies have developed in most ci the wool markets, partly as a result of profit-taking, the financial strain of early overseas purchases and the currency uncertainties. The trade position is sound. Bradford quotations for merino tops show a somewhat irregular tendency, with very little new business. Crossbred yarns are very quiet, and prices are a shade easier. The Continental futures . markets are quiet, currency • fluctuations b:ing a disturbing factor. The Wool Outlook. Describing the wool outlook, H. Dawson and Sons write: “The slight reaction at the London sales from the peak values is healthy, and should not cause any disturbance of confidence The consumption of wool continues apace without any material alteration in the machinery activity of the consuming centres. Wool has been at an extraordinarily low figure for practically three years and had definitely stimulated the demand for itself. The major proportion of the advance has been in a measure corrective, but must be digested throughout all sections of the industry. The competitive power of other textile commodities, including silk which has dropped four shillings a lb in the last six months, will be felt more keenly now that wool has reached a higher level. Botany tops are selling at eight times the value of American cotton which, together with Rayon produced on highly scientific lines at a steadily increasing pace, places the manufacturer in a difficult and complex situation. The world’s stocks of cotton total forty-one million bales. The carry-over of American cotton is almost equal to a full crop. BRITAIN TO RETALIATE. LONDON, February 3. The “Daily Telegraph” says that in view of France’s decision, the British Government’s decision to impose relatiatory duties will be enforced in the coming week. Details of the French reply have not been disclosed, but it is known to be entirely disappointing and unsatisfactory. To-day’s consultations at the Foreign Office and the Board of Trade resulted in the decision that retaliation is the only course open. The time limit, which expires on Monday, may be extended for a few days to permit of the careful drafting of the schedule of new duties. Ministers feel that as France intends to use the quotas to counter trade negotiations only relatiatory duties will enable Britain to negotiate on equal terms.