Page 16 Advertisements Column 1

Press, Volume LXI, Issue 18399, 4 June 1925, Page 16

AXrCXXOETS. H. MA.TSON AND 00. W.O OL OEISIS. TWO OUTSTANDING- FEATURES. PAST, PBBSEOT, AND FUTURE. H MATS ON and 00. taio the liberty • of reproducing the following from tho "Stock and Station" Journal, as, in our opinion, it is important to, the wool-pro-ducing industry. Mr A- H. Moore ' writes: — As one who hj»« been closely associated ■with iht> wool selling trade of Sydney for 60 years, I should like to put forward my views on the present crisis. In my criticism I wish to he as frank and open as possible, and in no way to assume that my remarks are in the direction of being the only solution in the present difficulty. To my mind, there hare been two outstanding features that have led up to the present crisis. Tho first one is that when our present season started prices were on a very high level, and as time went on these kept soaring, and instead of a loud note of warning being sounded that there was a likelihood of the maintenance of these prices not ho'.dic*, tho growers' ideas were bolstored up with the statistical position of merino wool being 60 sound that we wero practically in the position of being able to dictate the prices we could demand, and that there was no danger of there being a fall from the very high level that they had attained. Inoculation of {liese ideas into the mind of the grower was absolutely wrong and dangerous; had it been pointed out that there was a very great danger ■of the market receding, owners' ideas would have no doubt been modified and more confidence shown in the market. The. second matter is the one that is most serious, viz., attempts to stabilise the value of Australian wool. Tho value of the Australian clip can be estimated for this year at £70,000,000. Of tihis, it must be recognised that only £45,000,000 is represented in tnerigo wool, the balance being crossbred. STABILISATION. Dwelling on what would probably happen wore stabilisation an accomplished fact: To my mind, it would mean the abolition of v/001-selling in Australia. The buyers would naturally say; "We want the wool at the other end/of the world, and if a- fixed of stabilised price is to be tho conditions upon which we make our purchases, then ,we will buy in London and at sudh time and in such quantities as we think best." This would be a great blow to Australia. Apart from the 'fact that the selling of wool in tho colonial markets provides employment for thousands of men that would ■not be required were wool shipped direot, the uncertainty of when proceeds would ba available would be a great blow to the Commercial interests, generally* in addition to - whioh the grower, until ihe' had - actually received his proceeds, would never know his exact position. . It goes without saving that growers, fellmongers, etc.,' would require advances for thoir product, and when finaliaation of these advances could bo made it would bo extremely difficult to say. Beside, there is the question ,of finance. Are our hanking and financial institutions strong enough to hear the burden of advancing the value of tho clip of wool, not knowing wihat period that advance .would he repaid? To stabilise .a product cannot be' effectually done, unless absolute control is given by* -the owners of thai particular- oommodity. Could aueh a gigantiq Bchome as the'control of the whole of the world's wool product be effectually made? . bawba: Star the close of th« wool Bofcsme at the formation of B&wra there has each year been an attempt made, (as is being done at present) to stabilise wool prioea and put the oommodity under oontrol. .It would appear, reading' between the lines, that the wool. buyers of the world fully anticipated that when all tho Bawra wool had been disposed of it only remained for that company to distribute the assets and let the naiuo disappear. - It may bo only » OCinoidence,. but the fact- remains that generally' before the annual'meeting of) Bawra certain cables from Sir Arthur Goldfinch appear pointing out the strength of tie statistical, position, and indirectly efflj doavouring to work up the necessity of Australian Wool' being controlled. /In mv opin ; on, the world's buyeas have always held the opinion that ttVo funds of Bawta migjit be used as A nucleus of & fund to be used in stabilisation, .and it would appear as .if the fact of no distribution of the assets of Bawra being mentioned at the annual meeting, that there .may'have been some'foundation for this thought, and with this In their mind the world's buyers had determined by some means or another to displace this bogle, andreturn to our normal conditions of wool■sailing. THE BUYERS. The education of growers to look upon the buyers as | their .mortal enemies, has been very strongly m evidence since the inception of, Bawta.' Looking from a commonsense point of view, wherever there is- a seller and a buyer, tho one tlwaya looks to Secure the best prioe for his commodity. and the buyer to secure it in a legitimate) manner . at .the, lowest. ' Now,-I contend that the world's .buyers Lave done much for the advancement of the pastoral industry ill establishing their agencies throughout the Commonwealth, and in competing under the existing conditions of the market at: a time in a genuine and spirited manner. That there may have been a certain ; amount., of - combination, in the ■ dirisiona of wools I Mi quite willing to admit, but this hu only been to a very small extent.: DIFFICULTIES BUTE BEEN" GREATER J ham hid ihe.uniqueexperienoo of hav • injg faced-the present pcisition no leas tfoan five times. . Tho difficulties in the past have been 1 fax gieater than at the present, inasmuch as the prices then ruling foF wool were far and away below the very high values that even now are being obtained. Now, it may be easily asked of men who. hits shown all the difficulties: "What is yotur solution of the present one?" It is -this: Let the grower indicate to. the world that he is not in accord with. any wool control or attempt to etabilifle prioes. Once that is done, the return to normal conditions can be gradually brought about. The interests' of the wool:, seller and buyer arc closely interwoven, and one depends upon tho other for satisfactory and payable results, and" the soonor this is done the were likely ie this to. be accomplished. The' greater the delay the greater the menace. Sales have been postponed in the Common-, wealth to July Ist, and I am at onoe willing to admit that under the circumstances this, was the beet that could be done; but I do want to put forcibly before the grower the present 'accurate statistical position, of wool as it now stands. NEXT SEASON. : Wo are carrying the balance of this year's clip into the next year, viz.: 550,000 boles. It can be estimated that there will be avail, able by . the end of th'e year the new clip, 1,500,000 bales j add the carry-over, 560,000 'bales, and estimate the balance of clip to June 30th, 1925 (assuming that there is no increase), 500,000 bales. Qfetal, 2,560,000 bale* Taking the first two items, viz., the carryover, wool- and the wool available by December. 31st,' 2,050,0C0 bales is a large quantity of wool to be swallowed, and will need the'best brains of the wool trade to handle successfully with advantage. I emphasise the "best brains,'' because I feel - sure that if the sellers and buyers work harmoniously together, us has been done under *similar circumstances in the past, there heod. be no fear '.hat the grower will not receive a fair and profitable price for his oommodity, a position that I am sure will, as I previously expressed, be. of inestimable' value to the welfare of Commonwealth interests generally.. M 6643