THE PRICE OF WOOL.

Gisborne Times, Volume XXVI, Issue 2191, 15 May 1908, Page 2

THE PRICE OF WOOL.

“UNIVERSAL FUNK.”

AN EXPERT OPINION

(Special to “Times”.) WELLINGTON, May 14

■Local authorities seem to ‘get a crumb of comfort out of the fact that though London prices for wool are very low, the demand is good. Mr Mills (Murray, Roberts and' Co.) said to a “Fost” reporter that prices were down to such a low rate that the demand was hound to expand, especially in the face of tlie low (bank rate. What he thought people had to guard against at the present time was getting into the state of the London market, which a leading broker described to him as one of “universal funk.”

“Of course,” he 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 1900-1901. The position will he brought home to you when you realise that some of these coarse, heavy crossbreds are only fetching 4£d to 5d per lb. 'There seems to he a state of ‘universal funk,’ as my -friend described it, in the Home market at the moment, and all our advices point to trade being paralysed on the Continent and although apparently good business is being transacted in Yorkshire and Scotland, it -does not reach anything like the volume recorded in recent years. The position has been intensified by the holding over of large quantities (78,000 odd hales) from the previous year. 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 “hears.” In the second series of sales the catalogue shows that all faulty scoured wool and low crossbreds were a drug on the market.”

“You ask me my opinion of tlie future? Well, it must Ibe purely conjecture. My own belief, however, is that the -pendulum will swing in the other direction as it lias always done before, and just as I have pointed out to you on more than one occasion in the past that when prices are very high the pendulum will swing hack again. The good prophet is the man who will tell you when it is going to swing and at what rate. -It would he a very bad' look-out for us if a strong demand at present nrices was hot recorded.”

Mr Beauchamp, chairman of the Bank of New Zealand, 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 were anxious to buy freely at nresent prices which admittedly : were lower than they bad been since 1900 or 1901. 'lt was possible that the aspect he had referred to was going to apply the cure t 0 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 concerned, Mr Beauchamp said he did not take an unduly pessimistic view. While frequently low.prices had to be accepted for wool at different periods dm mg the last twenty-dive years, tho market had never remained for a longtby Period in a poor condition. “This drop in prices.,” Mr Beauchamp continued, “only emphasises wJiat I 1 have frequently expressed a v chairman of the Bank of New Zenland that it is unwise for farmers and others to base their land values on the assumption that high nr ices for products .are going to rule‘imlcfimtely. Declines in land values were bound to result and be declared without equivocation that he would not regard a decline in land values as an unmixed evil.