WOOL SUPPLIES

Evening Post, Volume CXXVIII, Issue 136, 6 December 1939, Page 14

WOOL SUPPLIES

AMERICA ANXIOUS

COMPLEX SITUATION

(By Telegraph—Press Association —Copyright.) NEW YORK, December 5. - |The announcement of December 1, wjfuch is described as insufficiently detailed to give American purchasers a complete picture, has confused the international wool trade. The Australian Associated Press learns that the Australian Wool Committee has been flooded with inquiries, many of which referred to the committee's American'representation. The character of the inquiries indicates that when sufficient time has elapsed to make possible the publication of an examination of the various aspects of the complete scheme there will be little or no occasion for the present confusion and misunderstanding. That American interests should be critical of the December -1 announcement is readily understood. Australian and British circles have pointed out, however:— Firstly, that everyone concerned in Australia is doing his utmost intelligently to perfect the details of a scheme of great magnitude, of which the American requirements are only a small integral part. The December 1 announcement gave only an inkling of this. Secondly, that a most detailed announcement is contemplated shortly showing that a scheme providing reasonable supplies to America based on sound lines may be expected from the trained Australian technicians dealing with the problem. Thirdly, that some quarters do not appreciate the vastness of the task of disposal of the clip. It should be remembered that at least 3,000,000 bales have already been classified in two months, and also it is not appreciated that a transfer from a peace to a war basis i s necessary and that what at present suits the American manufacturer is not necessarily in the interests of the' Australian grower, while the best-informed circles realise that it is too early to criticise till the scheme is revealed fully. Some quarters which normally' are not concerned in the slightest because the American market has not needed Australian wool are now very ready to criticise because the American need is great. Fourthly, . that American estimates !of requirements vary from 50.000 to 350.000 bales. It would not be surprising, therefore, if Australia decided it was wiser to try out what the market could absorb. Fifthly, that the situation is most complex. . Some Americans want low and others high prices. Australia can make the market by controlling the terms and the quantity available.

The Commerce Department of the United States, announced on December 1 tha| Great Britain was immediately supplying 10,000,0001b of Australian wool to the United States with an indeterminate quantity to follow. Payment for the wool would be in dollars, but the price had to be determined. More precise information as to quantities and prices was required by the chairman of the American Associated Wool Industry. As was pointed out in this column on Monday last, American and Canadian wool purchases in Australia and New Zealand for the past two years were 42,234 bales in 1937----38, mounting to 133,821" bales in 1938----39, or 3.7 per cent, of the Australian and New Zealand total offering, and the latter purchases included 50,168 bales bought in New Zealand. Exports of raw wool waste or noils from the United Kingdom to the United States in 1.937 accounted for 22,311,000 lb, of a value of £1,650,425, and in addition woollen tissues of the value of £1,592,519 were also exported from the United Kingdom to America. Australian wool is in strong demand in America, although purchases in New Zealand on American account have varied from 114,513 bales in 1936-37 to 22,972 bales for the following year. Winchcombe, Carson, and Co., Sydney, reported last week that (Australian weights) American stocks of apparel class wool at September 24 were reported to be the equivalent of 662,470 bales greasy, a reduction of 408,000 bales compared with twelve months previously. "Those figures indicate that America wants wool, but even if an open market prevailed in Australia purchases for the States would only account for a small proportion of the clip of the Commonwealth.". •.