THE WOOL SITUATION.

Akaroa Mail and Banks Peninsula Advertiser, Volume LV, Issue 5651, 26 January 1932, Page 4

THE WOOL SITUATION.

THE EFFECTS OF NOT MEETING THE MARKETS. Although the need for selling wool 1 and other primary products at cur:y rent market priccs was impressed t-d upon producers in our issue of the in 10th January, 3 93:1, 'it is un Tor innate for growers in particular, and the Dominion in general, that the of such a policy does not seem to have been grasped by at least the producers of wool. The inevitable results of the action, of that section ' of woolgrowers who persist in gambling with their wool should be manifest to all connected with this imand those growers who continue in their attitude of waiting for bettor prices are either kS deliberately or unintentionally doing inestimable harm, from a financial point of view, to themselves and the I Dominion. The policy of holding : wool over from season to season is j worthy of the strongest public condemnation, not only in the interests j of growers, who fail to recognise the seriousness of the position, but in — I the interests of the common weal. j The lack of informed public opinion E on this vital Subject is astounding, land the apathy displayed by the Government towards woolgrowers is ominous. An examination of the j effects which this policy of indefinjitely holding wool has upon the I Dominion calls for a careful investigation, and although the interference iof Governments with the liberty of | the subject is obnoxious, it is conj sidered that when the good of the ; people as a whole is detrimentally j affected by the actions of one particular section of the community, >ir Government intervention is warrantjed and advisable. The Government should, for reasons hereinafter given, warn woolgrowers that 'if they will not face the'market and accept cur- , rent prices for their clips the Government will insist that they do so, and if after due warning growers concerned continue their policy of gambling with their wool to the detriment of the New Zealand people, the Government should adopt a firm stand and pass legislation that will have the desired effect. The . welfare of the majority of the population should be considered before that of the few and it is time that it was recognised that the farmers of this Dominion are a privileged class, i which is sheltered by legislation on j every possible occasion, and, more- ! over, receives many monetary benefits and are favoured with protective wheat tariffs at the expense of all other taxpayers. That the well being of the Dominion is in some measure dependent upon our primary industries is> not questioned, but capital and labour also contribute in at least a proportionate degree, and as woolgrowers indirectly accept the bounty of the taxpayers of this Dominion, they should not be permitted by the Government to gamible with their wool and hold it over from- season to season whilst they are in receipt of benefits that are' not enjoyed by all classes of the community. The concessions granted by the 'Government to the farmers generally should be well known and | do not call for recapitulation here, Ibut there is no doubt that the far- 1 mers do receive favoured nation' j treatment without in any way considering the interests of the general l body of taxpayers. At the conclusion of last wool season it was authoritatively stated that no less than 20-9,000 bales of wool had not been sold by growers, and this large proportion of the New Zealand clip would be worth approxi-

mately £1,000,000. The serious effects of the policj of the wool-growers in question wil' be briefly stated, in the hope thai pu:blic opinion will be aroused anc that producers will, in the proper spirit, recognise the inadvisabilitj of pursuing their present policy :— (!) Unemployment is aggravated. (2) New Zealand-London funds have been deprived of £1,000,000 with a corresponding strain on th« London exchange rates. (3) The Government pays its interest on external loans from proceeds of our exports and the actior of woolgrowers cannot be helpfu: when it is appreciated that for tht 10 months to October, 1931, New Zealand, not the Government, had ar adverse balance of £366,930 abroac (i.e., after taking into consideration trade exports' and imports and interest payments on Government loans domiciled abroad). (4) If wool is held in growers 1 sheds for excessive periods there is no doubt that it deteriorates in quality and does not command such a good price as new wool. (5) There is the possibility that the holding of large quantities of woll will deprive us of our market for this staple product, as buyers may explore other sources of supply for their requirements. (6) The demand for substitutes will be accelerated and if such substitutes prove satisfactory the prospects are that wool will be faced with serious competition .from that quarter. (7) Ultimately an oversupplied market is created with consequential

lower prices. (8) It costs growers at least 15 pei' cent, per annum to hold their clips from season to season.