HIGH PRICE OF WOOL.

Auckland Star, Volume L, Issue 283, 28 November 1919, Page 5

HIGH PRICE OF WOOL.

INVESTIGATION NOT INTENDED / ENCOURAGING EXPORT. A' (By Cable.—Press Association.—Copyright.) (Received 10.15 a.m.) > LONDON, November 27. <P ' The Deputy Controller of Raw Materials has assured the Australian Press that he has no knowledge of the proposed investigation of profiteering in wool. He admitted that high current 1 prices had resulted in considerable re p profits, but Government wool was sub- ,„;[ ject to open competition at auctions, which appeared the fairest and most ' p Te equitable way of disposing of stocks. I <] High prices could be corrected by re- I r( .j establishing a system of fixed issue; g^( prices, but such an artificial interference I p,, ; with the restoration of normal trade j prf was undesirable and was also I £),, unfair to Australian and New Zea- j or land growers, who were entitled to the no] highest market price and to share the | j^ r profits with the British Government. Ca The only other way of reducing the price was to prohibit export and to eliminate foreign buying. Approximately half the imported wool had been re-exported. If foreign buying were eliminated, as during the early part of the year, the quantity available would be greatly increased, but in view of adverse exchange the Government was , anxious to encourage exports. It was satisfactory to note that the export of manufactured woollens had already considerably revived. We were trying to market an increased quantity, but the Co capacity of the workers to handle, I fin owing to the reduction of hours of dock- I an ers, warehousemen, and railwayman, Be limited the efforts, while the difficulties I in of transport and congestion of docks in- | f 1 creased the task of satisfactory distribu- , M: tion to the manufacturers. Meanwhile jhe the world demand for woollens wus enor- g0 mous. particularly in view of the wars destruction in Europe. It was improbable that the artificial reduction of the prices of raw wool here would be effective in seriously reducing the prices of manufactured goods—(A. and N.Z.) sp PROFITS OP THE MINISTRY. Ri th REFUSAL TO DISGORGE. nd 0) LONDOX, November 27. The "Manchester Guardian" states H that the Board of Trade is appointing a committee to investigate charges that the Government is profiteering in connection with the sale of wool and surplus lin cloth. I> | The "Textile World" po:nts out that i(. roughly £500,000 worth of wool has been | ': sold at each sale, f 125,000 representing p | the difference between the purchase | ! price overseas and the selling price. It •is understood that the Ministry refuses Ito disgorge its profits to the Treasury | j until all accounts are settled. During tl 10 months British wool imports totalled . N £91,000.000. The profits, therefore, must be enormous. — (A. and N.Z. Cable.)