General Review of 1925. 
Progressive improvement was made during the years 1922-4, but 
the rude reaction in 1925 more than out-balanced all the advance made. 
Signs of impending trouble were noticeable in December 1924, and 
these rapidly developed into a slump in wool prices, which threw every 
section of the Trade into disorder. The previous rapid rise in wool 
values in October and November was never really justified, and succeeding 
events emphasised the underlying weakness. Several influences were 
at work .— 
(1) The rush to buy wool, irrespective of the strong resistance 
at the manufacturing end, prompted by low stocks in users’ 
hands. Speculation, encouraged by events in the two 
preceding seasons. 
2) There is no doubt that the total world’s clips were less than 
pre-war, but sufficient weight was not given to the influence 
of subnormal machinery activity. 
3) In 1921 and 1922, when prices were low, large stocks could 
be bought and carried, and current clips, together with 
the B.A.W.R.A. surplus, were successfully marketed ; but 
the volume of wool marketed under such conditions could 
not be taken as the normal amount actually consumed, 
nor as the amount which the Trade would absorb at a much 
higher level of prices. 
1) The strongest influence of all was the inability of later 
sections to continue converting to more advanced stages 
at unremunerative prices. For two years trade had been 
in this unsatisfactory position, and by December 1924, the 
breaking point was reached and all consuming centres 
found it impossible to continue. 
The fall in values continued steadily until May, in spite of several 
artificial attempts to prevent it. Australian auctions were suspended 
entirely from February 19th to March 9th, and finally the revised pro- 
gramme was suspended until July 1st. The Trade, however, was in 
the grip of the slump and artificial measures were powerless to prevent 
a complete re-adjustment of values. The wool end of the Trade was too 
hard hit to cope with the situation, while manufacturers for three years 
previous had been squeezed between ever-rising wool prices and low 
world purchasing power and, in all centres, were determined to avoid a 
repetition of the experience. Even after prices ceased to fall new business 
Was very slow to come forward, and a tedious period of adjustment set in.