PRICE OF WOOL.

Wairarapa Daily Times, Volume LVIII, Issue 9069, 15 May 1908, Page 6

PRICE OF WOOL.

DECLINE ON THE LONDON MARKET.

VIEWS OF PROMINENT BUSINESS : MEN IN WELLINGTON.

This year wool has fallen euorinously iv value, and there would be about two niillou sterling less to spend. •■ So said Mr J. Balsillie, who presided at the Farmers' Uuiou dinuer at Palmerstou North ou Tuesday evening. When Mr Balsillie made the loregoing utterance, he was not aware of the further decline iv wool values, since reported from London. Cablegrams published yesterday announced that "business is brisk at 5 to IU per cent, decline." Yesterday a representative ot the Post waited on the Chairman of Direcors of the Bank of New Zealand (Mr Harold Beauchanip), with a request for his views on the position. He said he regarded it as a hopeful omen that, notwithstanding the low prices, a strong demand and a large attendance of buyers had been reported. This looked as if manufacturers wore anxious to buy freely at present prices, which, admittedly, were lower than they hud been siuco 1900 or 11)01. It was possible that the aspect he had referred to was goiug to apply the cure to the present condition of affairs. When the American buyers came into the market again—as come they must —enhanced values would have to be paid. So far as he was personally concorued Mr Beauchiunp said he did not take an unduly pessimistic view. While frequently low prices had to bo accepted for wool at different periods during the last twenty-five years, the market had never remained for a lengthy period in a poor condition. "This drop in prices," Mr Beauchanip continued, "only emphasises what I have frequently expressed as chairman of the Bank of New Zealand —that it is uuwiso for farmers and others to base their hind values on tho assumption thut high prices for products are going to rule indefinitely." Declines iv land values were bound to result, and lie would not regard a decline in. land values as an uumixed evil.

Mr A. H. Miles, senior partner ir the firm of Murray, Roberts aud Co., was also asked for his views. Prices, he said, were down to such a low rate that the domaud was bound to expand, especially iv the face of tho low bank rates. What lie thought people had to guard against at the present time was getting iuto the state of the London market, which a leading broker described to him as one of "universal funk." "Of course," ho continued, "the figures cabled out make very dismal reading. We have had some estimated averages cabled out to-day which show that North Island coarse crossbreds are down as low as they were in 11)00-11)01. The position will be brought home to you when you realise that some of these coarse, heavy crossbreds are only fetching 4kjd to 5d per lb." There seems to be a state of 'universal funk'—as my friend described it. in the Home trade at the moment; aud all our advices point to trade being paralysed ou the and although'apparently good business is being transacted in Yorkshire and Scotland, it does not roach anything like the volume recorded in recent years. The position has been intensified by the holding over of large quantities— 78,000 odd bales—from the previous sales. "Of course, there is no doubt that the position is a very abnormal one, and that things for some time past have been at the mercy of the 'bears.' Iv the second series of sales the catalogues shows that all faulty scoured wools and low crossbreds were a drug on the market.

"You ask mo my opinion of the future? Well, it must be purely conjecture. My own belief, however, is that the pendulum will swing in the other direction as it has always done before, and just as 1 have pointed out to you on more than one occasion in the past, that when prices are very high the pendulum will swing back again. The good prophet is the man who will tell you when it is going to swing, and at what rate ! "It would be a very bad look-out for us if a strong demand at present prices was not recorded."