LOWER WOOL PRICES

Wanganui Chronicle, Volume 72, Issue 260, 1 November 1929, Page 10

LOWER WOOL PRICES

SOME SUGGESTED CAUSES. CONFLICTING OPINIONS. Two prominent Australia graziers, who arrived in Sydney a few days ago, expressed conflicting opinions concerning the drastic reduction in the price of wool, that has caused concern in Australian pastoral and financial circles Mr R. J. Fagan, of Sunny Ridge, New South-Wales,‘said that throughout Europe, except in a few out-of-the-way villages, the population wore woollen clothing in place of cheap cotton materials, that were the rule previously. This showed that wool was being used to a greater extent than formerly, and that substitutes had not affected sales to anv extent. Mr>agan said that the fall in prices must be attributed to other factors, and blamed deliberate engineering of values by the buying interests. Speculation had been organised, and whenever wool sales were held in Australia there was almost certain to be a wave of subtle, but nevertheless effective, propaganda to cause a depression, and reconcile sellers to the low prices that they received. Most of the news of depressions camo from Bradford just before sales here. So enamoured had the Bradford merchants become of the campaign of organised pessimism, said Mr Fagan, that when they were greeted with the words “Good day,” they replied “Trade’s dull.” Mr R. Campbell, another prominent New South Wales grazier, said he did not agree with Mr Fagan. He said that priocs were low because of inescapable economic conditions. More silk and artificial substitutes wore being used daily in his opinion, and this was having an evil effect on the wool trade. “Wool costs Is a pound to produce, and at the last Sydney wool sales prices were, on the average less than that sir.i,” said Mr Campbell, quoting figures to show what a widespread effect the fall would have on Australian conditions Mr Campbell, who owns properties >n New South Wales and Queensland, said that Australia would have to set hei house in order, and, in spite of the agitation to maintain high wages, he thought that they would prove to be economically out of the question It would be a serious matter to bring down costs of production and at the same time maintain the high standard of living that had been built up in Australia.