S6 Journal of the Department of Agriculture. 



To summarize the position, which presents obviously many difficult and 

 even illusive features, it should be borne in mind that at the time of the 

 armistice the general opinion in the wool trade was that the Continent would 

 purchase any quantity of wool which the Allies had to offer, the result being 

 that prices advanced even higher than during the period of the war. Owing 

 to the economic conditions of Germany and Austria and certain parts of 

 Russia and Poland, the demand for wool which was anticipated did not 

 materialize. This fact has been the dominating feature of the market during 

 the past year, and, as the Continent has not been able to purchase either 

 supplies of raw wool or manufactured yarns, the result has been that large 

 stocks 6f wool have accumulated both in the countries of origin and in the 

 United Kingdom for which there has been practically no demand. 



The position to-day is that a good proportion of the stocks of low-class wools 

 cannot be sold to the Continent, either in the form of tops and yarns or in 

 the raw state, and there does not appear to be any likelihood of an immediate 

 demand being created in the absence of some unforeseen development in the 

 political and economic situation. The wool trade, as well as others, is suffering 

 from the effects of over-speculation and fictitious prices, which we shall have 

 to live down, but in the best informed trade quarters it is felt that there is 

 already promise of better things and that, perhaps, the worst of the crisis has 

 been passed. 



COMMISSION TO GERMANY. 



In view of the serious firancial position of the wool farmers, due to the 

 depression in. the wool market, the Government, being anxious to render such 

 assistance as can practicably be cai ried out, has appointed n Commission to 

 investigate the prospects of disposing of South African wool in Germany and 

 other continental countries. The prevailing adverse conditions of exchange has 

 hitherto made it impossible for continental countries to purchase wool to their 

 full requirements, but it is thought possible to establish some arrangement 

 for the exchange of our products for manufactured articles. The Commission, 

 consisting of Mr. E. C. Reynolds, General Manager of the National Bank, and 

 Mr. Chappel, of Johannesburg, left London on the 6th December. They are 

 accomparied by Mr. Canham, Trades Commissioner for the Union, who will 

 also take the opportunity to inquire into the possibilities of trade generally. 



Cabled Advices from London during the Month of 

 November, 1920. 



Wool. — Extra super scoured 34d. to 45d. per lb ; snow whites, 20d. to 

 33d. per lb.; super long deep grown, 12^d. per lb; super sorted, \2 n.onths, 

 16^d. per. lb. ; super long, 14^d. ; long combings, 14d. ; Cape long wools, 64d. ; 

 tops, 54d. Remainder, greasy combings, range down to : Heavy faulty, 6 to 9 

 months, lOd. per lb. ; croi5sbreds, 4d. to lOd. per lb. nominal. The postponed 

 17th series of Government wool sales opened on the 9th and closed on the 

 20th, the available quantity being 90,000 bales. On the opening day 12,000 

 bales were catalogued. The attendance was very large, but competition was 

 marked by considerable hesitation, comparatively few lots of Merinos passing 

 the hammer. Judging from the character of the competition superior sorts 

 were 10 per cent., and average and inferior 15 per cent, to 20 per cent., below 

 the close of last sale. Crossbreds declined 20 per cent, to 25 per cent., and 

 there was very little demand for coarser qualities. 



At the sales on the 11th and 18th inst., at which about 23,000 bales free 

 wools, including about 10,000 bales Cape wools, were offered, there was a good 

 attendance of buyers, but the demand was poor, a large proportion of the offer- 

 ings being withdrawn. Compared with the last series prices of all descriptions 

 declined 20 per cent, to 25 per cent., with prospects doubtful. 



A cable dated 27th November quotes Cape long wools 64d., tops 54d. 



Mohair. — There is no demand, and prices are continuing downwards, with 

 little prospect of any improvement in the tone of the market. 



Cape Hides (15th). — Best heavy dry, IS^d. per lb. ; dry salted, 14^. pet 

 lb. ; wet salted, ll^d. to 12d. per lb. (25th) Sun dried, sound, 15d. per lb. 



Sheep Skins (25th).— Sound, lOd. to lid. per lb. ; Cape salted, 120s. per 

 dozen; Cape sun dried. 80s. per dozen; coarse and coloured skins, sound, lOd 

 per lb., prices nominal. 



