WISE DECISION.

Auckland Star, Volume LXIV, Issue 178, 31 July 1933, Page 7

WISE DECISION.

AGAINST FIXATION. Withholding Wool to Try to Raise Prices. AUSTRALIA PRAISED. (United P.A.-Elcctric Telegraph—Copyright) LONDON, July 30. Mr. Andrew Williamson, at a meeting of the Australian Estates and Mortgage Company, quoted extensively the results of wool inquiries and an .investigation of the costs of wool production. He welcomed the wise decisions against the suggested attempt to fix wool prices. Mr. Williamson said that any artificial measures aimed at raising prices by withholding offerings would he extremely dangerous. The idea of arbitrarily fixing selling prices was economically unsound. There should be three objectives in the efforts to restore Australia's key industry, namely: (1) To cut all controllable costs to a minimum consistent with efficiency while pressing the Governments in their own interests to reduce their expenditure; (2) the encouragement of research relating to pastures and standards of flocks; (3) to continue to accept market prices.

The sacrifices Australia had made to adjust her internal conditions to the catastrophic fall in prices deserved the highest praise.

Referring to Hie high interest rates on the Australian loans awaiting conversion in London Mr. Williamson said this might have been done profitably in 1930 if it had not been for Mr. Lang's attitude of repudiation. In this way alono Australia had had to pay an additional sum of £4,000,000 to £5,000,000 a year for the past three years.