THE WOOL CLIP.

Press, Volume LII, Issue 15746, 13 November 1916, Page 10

THE WOOL CLIP.

BRITISH GOVERNMENTS PROPOSAL. DOMINION CONFERENCE TOMORROW. A conference called by the Minister oF Agriculture, the Hon. W. D. S. MacDonaltJ, of the woolgrowers of the Dominion, will bo held in the Parliamantary Wellington, tomorrow, to discuss "the proposal reccn od from the Imperial Government to requisition all the New Zealand wool. As president of the Canterbury A. and P. Association, Mr C. H. Emwr will leavo for Wellington to-night to attend the confcrence. Speaking to a ''Press representative, Mr Ensor remarked that care must be taken to ensure that there v.as no exploitation on the London market as there had been in the ease of meat. "It is the consumer, not the producer, who has to be protected," he bald, and suggested that were the prices of the manufactured article fixed by the Imperial Government tho difficulty woujd bo overcome, and the- Imperial Government, and all concerned, would be given a much fairer deal. Ifc is estimated that there arc at present _in the city some twelve English buyers' representatives and buyers from other countries, who came here for the sale which was to have been held last Thursday. They hav-o had to content themselves with an enforced holiday. wliich_ will now extend till after the decision of the conference is made public. It is understood that a conference of woolbuyers is to be held in Cliristchureh to-day to discuss the state of affairs. There is considerable speculation as to the means which will bo adopted to purchase and value the wool if the Government decidc to buy the whole clip. It is pointed out that the matter is rather more complicated and difficult than was the case in arranging for tho commandeering of the Dominion's output of frozen meat. Titer© are, practically, only two clashes of meat —prime Canterbury and other meat—but the value of wool of equivalent quality differs considerably according to the part of the Dominion in which it is grown. For instance, Auckland, wool is ranked as about one penny per lb less in value than wool of the same type grown in Canterbury or Southland. To some it seems that it will be necessary to set I up boards in the different districts to j fix values. RUMINATIONS ON THE PRESENT WOOL CRISIS. TO THE EDITOR OF "THE ntESS." Sir, —Permit us to make the following observations with roferenco to the present position. Despite the satisfactory market rates ruling at present, there is a feeling of insecurity as to tho future. Tho apprehension and uncertainty as to possible Government action are such as to prevent any. business being transacted. The extension of, Government control into various new branches of trade adds to the general discomfiture of business circles, consequently the position in the wool industry has not assumed those wholesome and satisfactory features which are necessary to inspire confidence for future operations. Now, what wo would like to ascertain is what docs tho Imperial Government desire?. Is it to control the entire clip, to suppress undue inflation, or to regulate prices':' Wo are of the opinion that no end of I worry would have been saved the Empire if the authorities started in right now and

(1) Regulate the- prices of manufactured article in England. (2) Failing the abovo, w.t a standard price for scoured wools oil the retaining tbo right, to claim any or all purchases that they require on a ten per cent, basis over cost price.. (3) Buyers advised that, their profits Will bo restricted, and rash and specula" t-ivo competition keenly observed and guarded against. Now, if the Government takes oyer the clip, look at a few of the great diffi-1 culties that surround the position: — (1) Adjustment of values. All values arc not alike, else why does one buyer bccomo the ultimate purchase.r ill a room of forty trained and experienced operators? (2) Are the producers going to allow their wool to bo taken at any price tho Government may assess without opposition? Any such assessment of prices is bound to* be subjected to all sorts of vagaries. (3) Compensation will havo to bo meted out to selling brokers, buyers, bankers, local mills, and a thousand and one associated interests.

(4) The detail work,, the action of commandeering will entail and-tEe cost, which will run into thousands 01 pounds. (o) It is next to impossible for tho Government to handle tho commodity as successfully as the buyers, whose years of close association with the business enables them to handle it at a minimum, especially as regards shipping, cablegrams, interest, insurances, etc., etc. (6) Sight must not be lost of tho question of an amicable and equivalent basis of shipment and payment. Tho abovo are a few questions that face tho position. We understand that neither Australian nor Cape wools ajo being commandeered. It cannot be because of tho class of our wool, as the price of our grades or tops have shown very little appreciable advance as oompared with tho higher grades of wool in the London markets, showing that the finer and more dense wools are now being more freely used as they make a better article for military purposes. The embargo is now an established fact, therefore no wool can be exported to other' than a Bfvtish colony or to Great Britain. We note that the English Government is conccrnod as to what Italy is going to do with all her purchases, especially when the war finishes- The War Office wants to know if Italian spinners and manufacturers can deal with all their colonialbought wools, a.nd whether stocks are being piled up in readiness to do trade with Germany when hostilities have ceased. On" September "th. there was available in England 110,500 bales of colonial wool, without including what, was in transit, or what the. mills have in hand, and in course of manufacture.

In conclusion, we desire to fay them is n. meeting in Wellington on Tuesday, and little or no time is permitted to discuss the position with th«> producers. Wo would recommend any of those who have decided views or recommendations regarding the position. t*» telegraph to the chairman of the nicctinc in ours, etc., "H. MATSON AND CO.