London Arrests the Slump.

Waikato Times, Volume 109, Issue 18342, 30 May 1931, Page 22 (Supplement)

London Arrests the Slump.

But so far from London selling brokers;being indifferent to the interests of their clients, and allowing either consumers or speculators to get possession of the wool at slaughter prices, they withdrew a considerable proportion of the wool originally included in the selling programme, and curtailed the duration of the sales. That action by the London brokers to safeguard the Interests of their clients, was quickly Justified. Those who had failed to cover in a favourable market, and one which was known to be bare of stock, fearing that they would bo caught short by this action on the part of the brokers, made haste to buy against their immediate requirements. These In the aggregate proved far greater than estimated, and forced a rapid upward movement of 'wool prices for the balance of the offerings at the first scries of London sales. It was feared that the advance before' the close of the sales had been too great, and that there would bo some degreo of reaction before the opening •

of the March sales. The opposite has, however, been the case. Foreign bidding at the sales In Australia, led by the Japanese, has lifted the, prices of merino wools to a still higher level, so that warp '64’s tops are now quoted on the Bradford market at from 4d to bd per lb more than what they were sold for during the first week of the opening of the first series of London sales this year. Cape wools have shared in the Improvement, and to a lesser degree so have crossbreds. The important point to note Js that the check to one of the most serious slumps ever experienced In the world’s wool trade was given at the London wool sales, and not. In Australia. Moreover, it was brought about largely by the sagacity of London wool brokers who sensed that tho downward movement was being pressed unduly, and who declined to throw the property of their clients to the “bears." Their action has been amply justified, and It is to London wool brokers that wool-growers are Indebted for the substantially higher prices they: are to-day receiving for their raw material and those who have wool still to sell In London will get far better prices than those who sold earlier in the season at the wool sales in Australia. London wool sales and London wool brokers have given a most effective reply to their critics in Sydney.