H.—2B

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ever, have been generally busy all the year through. The preparations in connection with the Coronation, both in the United Kingdom and in India, proved of considerable benefit to the trade, and machinery has been pretty well occupied. On the Continent, too, trade has continued fairly satisfactory, though the political complications during August and September naturally disturbed the course of business both there and here. Taken all round, the decline that has been registered in quotations during 1911 has not been so great as might have been anticipated, and the fact that rates at the close were only 5 to 7J per cent, lower than those ruling in January affords undoubted testimony to the general soundness of the trade, and wool-growers have cause for congratulation that after all things are not so bad. An interesting feature of the year is the continued improvement shown in South African wools, evidencing the care and attention that is being paid there to improve the type and breed of sheep. Coining now to the sales themselves, it will be recalled that the catalogue for the second series, which terminated on the Ist April, was larger than had been the case at that time for some years past. Competition, however, was keen, and, the general position being sound, a decided advance over January rates was established, a good inquiry being noted for superior sorts. Conditions of confidence ruled during May, and the third series opened with bright prospects, an increase on the March-April rates being obtained all round. As the sales progressed, however, this briskness was not maintained, the Continental demand being less active towards the middle of the second week, and American competition for the better wools being almost absent. Superior scoured and greasy merinos and coarse crossbreds were at the close selling at rates equal to those ruling at the end of the previous series. Other sorts, however, besides losing their initial advance, weakened to a little below March quotations. The carry-forward, too, was larger than was thought' would be the case, and the total purchases for the States only amounted to about a thousand bales. During June business in Yorkshire was interfered with by the strike amongst the woolcombers' operatives, and, although spinners were able to keep their machinery going, consumption was to a certain extent checked. The dispute, happily, was settled before the opening of the fourth series, though it had the effect of reducing the size of the early catalogues, and for a short time causing irregularity and lack of confidence amongst holders. A firm tone soon became apparent, however, there being good competition from Home and foreign buyers. Merinos were not plentiful, and the better sorts sold slightly firmer, others fully maintaining previous rates. Coarse crossbreds also fetched May prices, but medium and finer sorts weakened from 5 to 7J percent. Scoured wools sold rather irregularly all through. During August came the labour troubles, while political complications in regard to the Franco-German-Moroccan crisis caused a deep feeling of uncertainty at Home and abroad. At the opening of the Australian sales, too, a distinct fall in prices of from 5 to 15 per cent, was noted, so that the fifth series of London sales opened in September under difficult conditions. However, there was no heavy drop in values, competition, to the relief of all, being brisk, and the tone of the market distinctly good. A large proportion of the lots put forward were of faulty and short descriptions, but owing to the carry-forward from July there were good offerings of crossbreds. Superior merinos finished up at practically last sales rates, but medium and inferior sorts were not sought after, and fell sto 1\ per cent. Coarse crossbreds in the grease were firm all through at about July rates, fine and medium qualities dropping from 5 to 10 per cent., while scoured and sliped sorts also declined. America was not very well represented at the sales, and about two thousand only were taken for the States. During October the political horizon cleared, and, despite the usual "bear" movement in tops, the November-December series opened with good prospects. There was a large attendance of buyers, and, as wool was wanted in many districts, competition was animated, Home, Continental, and American buyers being well represented. New-clip merinos were in good supply, and rates hardened as the sales progressed, finishing up at from par to fully 5 per cent, dearer. Crossbreds were not abundant, but for the few better lots there was keen competition, and values rose by about 5 to 7J per cent. American purchases amounted to four thousand bales, and nearly all the available quantity was sold, only ten thousand bales being held over. The first series for 1912 opened on the 16th January with strong competition and a large attendance of buyers from all parts. Since the close of 1911 the signs of unrest in the industrial world had a somewhat depressing effect on confidence, and trade in the various consuming centres was rather less active, so that buyers generally acted with caution. As regards merinos, demand was keen for greasy descriptions, and these advanced about 5 per cent., all finer sorts maintaining last rates, while mediums and inferiors could be quoted at the close at from par to 5 per cent, cheaper. Crossbreds met good competition, Americans being especially interested in the finer grades. The new clip New Zealand wools comprised a good proportion of light-condition bright fleeces, and these sold very well at late rates, higher prices being paid for lots suitable for the States. Coarser descriptions all round, though firm at the opening, weakened slightly, and finished at about 5 per cent, cheaper. About seven thousand bales were taken during the series on American account, and, indeed, it is a good while since competition from this source has been so active. Between the finish of the sales and the close of the official year the great disturbance amongst the miners in this country has so upset trade that the Importers Committee decided to postpone the opening of the second series until the 11th April. It is reported that advices from various centres indicate a slight falling-off in the consumption of wool amongst European manufacturers, but on the whole the future is not regarded with much misgiving. It is known that stocks in manufacturers' hands are in moderate compass, and it is not considered that supplies during the coming season will be in excess of requirements; so that, even should the American demand prove to be only equal to that of last year —and until the question of the tariff has. been settled it is natural to expect that United States buyers will act with discrimination—the outlook for the continuance of prices on a reasonable level is certainly favourable.