DISPOSAL OF WOOL.

Auckland Star, Volume LI, Issue 122, 22 May 1920, Page 12

DISPOSAL OF WOOL.

THE AUSTRALIAN PROPOSAL.

Addressing a meeting in-Sydney, -Mr. W. M. Hughes, Prime Minister; recently made certain proposals for the disposal of wool. Mr. Hughes suggested that prior to October 1 next there should be no export of the 1920-21 clip, and no auction sales in London of Australian wool from September 30 next to May 1, 1921, buyers to be informed that Australian wool would ibe procurable only in Australia between these dates. Australian brokers would auction the 1920----21 clip on growers' account until May 1 next, when normal conditions could prevail. The British Government would resume selling of its left-over wool. About 500,000 bales of low class wool held back in Australia would not be shipped until after May 1 next, unless the British Government could sell it to' the Central Powers at, say, three times the appraised price in English currency, payment to be made of one-third in gold and the rest in three years' bonds. Australia's share of the promts would be half of the bonds. The British Government would, be at once asked to pay £10,000,000 on account of accrued profits, this sum to be devoted to reduce the Commonwealth Government's debt to the British Government. The Commonwealth Government would issue five years' bonds to Australian owners, and temporarily make £3,000,000 available for tho assistance of the banks to lend to woolgrowers up to 50 per cent on the bonds. The balance of wool profits would he dealt with in a similar manner.

The proposals have been considered by representatives of the growers and brokers, who were favourably disposed towards the suggestions for sales, but reached no agreement respecting the financial side, and decided to refer the echeme to the various organisations concerned.