WOOL RESERVES.

Auckland Star, Volume LI, Issue 290, 4 December 1920, Page 7

WOOL RESERVES.

A SLOW REDUCTION.

IN AUSTRAIASIAN _TC_R_STS,

(By Cab...—Press Association.—Copyright.)

LONDON, December 3.

Replying in the House of Commons to a question regarding the wool sales reserves, Mr. J. F. Hope, Lord Commissioner of the Treasury, said that probably a certuin amount might be sold if the prices offering were accepted more freely. The highest estimate of possible sales was 100,000 bales. The bids actually refused totalled under 25,000 bales. The department had two objects in reducing reserve prices slowly instead of sharply, first to prevent a sudden fall which might have had disastrous results; secondly to prevent the market being forced down by the actions of this country, which might be regarded by the dominions as precipitate and inimical to their interests. Wool-growing was vital to Australia and New Zealand. Prices were artificially kept low from 1916 to 1919. Wool prices were now 10 per cent below pre-war rates, estimated in gold currency. On the contrary, almost all other agricultural produce was from 50 to 100 per cent above pre-war rates. Thus the course of wool prices had been bitterly disappointing to Australian nnd New Zealand growers. The department felt fully justified in avoiding the suspicion that it was aggravating their difficulties.

At the Antwerp wool sales 11,500 bales of Australian were offered and 2550 sold. Combing Merinos were rather firm, prices being unchanged. Other sorts were neglected.—(A. and N.Z.)