The Gisborne Times. PUBLISHED EVERY MORNING. THURSDAY, JULY 22, 1909.

Gisborne Times, Volume XXVII, Issue 2560, 22 July 1909, Page 4

The Gisborne Times. PUBLISHED EVERY MORNING. THURSDAY, JULY 22, 1909.

THE OUTLOOK FOR "WOOL. The consideration of the wool market is not a question that receives a great deal of attention from the average citizen, who is usually more concerned in learning of the Australians’ latest cricket score in England, or the doings of some famous oarsman. Yet the extent to which our farmers are able to produce wool and the price which the fibre brings in London is a matter of vital import to every household in the Dominion. Roughly speaking, there are about 22,000,000 sheep in Now Zealand —an enormous number for so small a community—and the part these quadrupeds play in the prosperity or otherwise of the community can scarcely he over-estimated. From the natural increase of these flocks the numerous and extensive freezing works of the Dominion obtain the supplies whereby they are able to ship hundreds of thousands of carcases to England every season, and the wool from the sheeps’ backs is sent to the same market. Amy rise or fall an London values must obviously have a material effect upon the spending power of our people,Sand for this reason even so prosy a document as a review of the wool trade* becomes a matter of keen consideration. - ' Messrs Dalgety and Co., who have an extensive connection with the wool . trade throughout Australasia, have been in the habit for some years past of publishing a report detailing the events of the last twelve months, and outlining the prospects for the future. Their study tof the subject is so thorough, and their opportunities, for collecting information so excellent, that their finding is entitled to considerable respect. Those who have followed the markets during thg season that has just closed will, of course, have noted the remarkable manner in which values, after the disastrous slump of 1907-8, steadily, hut surely, recovered. We are still a shade below the prices realised before the slump, but even the hardest-headed farmer will scarcely complain if next season’s wool cheque is as handsome as that received during the twelve months just closed. The prospects are fully dealt with by Messrs Dalgety and Co., and they summarise the (position in favor of a continuance of high prices thus:—

Moderate stocks in manufacturers’ hands. Abundance and cheapness of money, and likelihood of a continuance of such conditions for some time. Natural general expansion of the world’s trade after a period of depression and economy. The knowledge that America wants more wool; and is not unwilling to pay high prices' for it. Peaceful industrial and. international outlook, yet large circulation of money ou account of great expenditure on armaments. Growth of desiro all over the world, including Japan, China, and India, for woollen garments in preference to cotton or shoddy; and the firmness of the terminal markets.

On the other hand, forces which they mention may militate against a continuance of presentprates are: Present values for merinos are well above the average of recent years. Prospective slight'increase in production of merino wool from the chief exporting countries. Dear foodstuffs; 'and possible resort"to adulterants, on account of , the relatively high prices for raw wool.

It will bo noted that the factors likely to operate against high prices chiefly 'Concern merino wool. These, if operative, -would be serious for Australian growers,’ with whom, the merino is preeminent, but crossbreds would only be affected indirectly. New Zealanders nowadays ship comparatively little merino, and the farmers of this district confine tlieir attention entirely to the coarser crossbreds; so that from the point of view of Dalgety’s review bur prospects are exceedingly rosy. The only unsatisfactory, feature of the [pastoral industry at the moment is the low prices ruling for frozen meat. In this connection the only gleam of hope ts that, as jblie' result of these prices, the demand may receive a stimulus that will bring about a permanent benefit to the trade. Unfortunately, the still more practical solution of the present surplus of production in frozen meat -

the opening of the Continental markets —seems as far oil as ever. Germany, France, and the United States need our frozen moat even more urgently than they do our wool, but so long as the agrarian interests remain paramount, there seems little chance of the trade getting a. foothold in those countries. Meanwhile, the masses in Germany have tc he content with horse flesh, whilst prime New Zealand mutton is selling in Smithfield market at from 2d to 3d per lb.