GLUT IN WOOL.

Auckland Star, Volume LI, Issue 308, 27 December 1920, Page 5

GLUT IN WOOL.

PROTECTING THE GROWER. . THE ATTSTHAUAN PROPOSAL ) PROBABLY APPROVED. (By Cable.—Press Association.— Copyricht.) 1 LONDON, December 24. Tho director of Raw Materials, Sir 1 Arthur Goldfinch, replying to a telegram > from the Bradford Chamber of Commerce expressing , the opinion that it would be • unwise to hand over Government stocks : of wool to any syndicate, and requesting 1 that the whole of the woollen and wor- • sted trades he consulted before, the 3 Government takes action regarding the ' Australian proposals, points out that the Australian Government, in requesting that hali the surplus wool and half the cash surplus be handed over to a cooperative association representing the entire sheep-farming community of Australia, is asking for no more than it is entitled to receive. The British Governj ment would not think it proper to offer any observation on the Australian Government's proposed use of these ' assets. The Australian suggestion that the ' British Government hand over the j British half of the surplus wool to the . Australian Association for realisation on i behalf of Britain stands on a different footing, hut there are strong reasons why it should be accepted. Enormous difficulty, delay, and unnecessary expense would be involved in making a physical division of 1,500,000 bales of wool; also, the British Government deto disband the Wool Department as rapidly as possible. The Australian proposal is very welcome to this department. The Australian proposals contain absolutely nothing affecting the normal ' course of business of the Australian or I British wool markets. The new clip will not be subject to tho association, so ." that the flow of wool to England from Australia and other countries should J continue to the full extent of the industry's requirements. Australia aska - for no restriction, and no preference of any kind. Therefore, it is impossible to see how British wool-buyers can be placed at any disadvantage compared with their position in normal times. Any • attempt to hold up wool for unnaturally high prices is outside the desires of the association, and, in any case, would be defeated by market conditions. The Governments of several other wool-pro- • ducing eo-untries are finding themselves forced to take protective measures to safeguard the sheep industry. Sir Arthur added that New Zealand wool is not at present included in the . Australian scheme. After an answer has been given to the Australian proposals, . the problem of dealing with New Zealand wool will be considered. . A full meeting of the British Wool . Federation in Bradford passed a resolu- • tion, with only two dissentients, approv--1 ing the Australian scheme on the assur- , ance, firstly, that the interests of the , textile trades will bo represented on the directorate and on the proposed sjmdi- ■ cate; secondly, that the distribution of wool through the London sales and usual trade channels will be continued; thirdly, . the reserves will be fixed as near as possible on the >basiß of world values. Yorkshire newspapers consider that the Wool Federation's endorsement of ; the Australian scheme ensures its ratifi- ; cation, but they continue to make unfavouraible comments.—(A. and N.Z.| '. CaWe.) A SALE TO POLAND. LONDON, December 24. The British Government .has contracted with Poland to sell 35,000 bales , of Australian and New Zealand wool for £1,150,000. The transaction is to be carried out in connection with British relief credits, Britain receiving as , security certain Polish bonds. The delivery of wool will commence immediately.—(A. and N.Z. Cable.)