ENCOURAGING WOOL PRODUCTION

Press, Volume LXXIII, Issue 22194, 10 September 1937, Page 15

ENCOURAGING WOOL PRODUCTION

SURVEY OF NATIONAL METHODS ECONOMIC COMMITTEE’S SUMMARY (non oua own corbespokdekt.) LONDON, August 18. An interesting survey of the various measures taken for the encouragement of wool production in both exporting and importing countries is given in the Wool Intelligence Notes, provided by the Imperial Economic | Committee. ’ Certain measures, it is noted, have i been taken in the producing countries in recent years to increase sheep numbers and wool production, and generally Improving the quality of the fUcks. In some cases, these measures have been mainly initiated by the producers themselves, but in the majority of cases the Government has taken the initiative and is providing most of the finance. . Exporting countries, of which the southern Dominions, Argentina, and Uruguay are the most important, are mainly concerned with the maintenance and improvement of an established industry, and with ensuring a profitable market for their export products. In consuming countries, dependent on outside sources for some part _ of their raw material supplies, the policy of economic nationalism is leading to vigorous encouragement of domestic wool production by subsidies, long term credits and guaranteed prices for home-grown wool well above world parity rates. In many cases, particularly in European countries, possibilities of expansion are strictly limited by pastoral, economic, and geographic conditions. Many countries so situated are concentrating on an improvement of quality and per caput yields. In general, however, it would appear that the measures taken in such countries can only affect the world wool supply position to a minor extent, the possibly quantitative increases being relatively small as compared with aggregate world production Exporting Countries Summarising briefly the more important measures taken in certain producing and consuming countries with a view to assisting and expanding the wool growing industry, the notes continue 1 — The southern Dominions (Australia. Nqw Zealand, and the Union of South Africa).—Early in 1937 wool producing interests in these three countries agreed to finance a joint scheme for wool publicity and research, with the object of promoting wool utilisation and improving wool production. This scheme is financed by a levy on each bale of wool exported. A similar scheme was introduced in the Union of South Africa some years ago, and after being abandoned in the lowprice years of the depression was readopted in 1935-36. In addition. South African growers were assisted during difficult years by an export premium, which was gradually abandoned as the market improved and prices became more remunerative. It finally ceased in 1937. Argentina—The Institute de Investigacion de Lanas was established by the Government in 1936. owing to concern al the fall in sheep numbers between 1930 and 1935. The duties of this institute include the classification and preparation of standard samples of wool: the sampling of wool and the establishing of the probable yield of various grades; the advising of producers regarding the best procedure for the shearing, classification, baling, transport and marketing of their wool; the recording and control of price; the calculation of the wool clip and possible surplus; and the supply to wool producers of information regarding international market conditions. In addition, Argentine exporters of wool receive an indirect export subsidy through the special exchange regulations, which operate in their favour. Uruguay—Measures for the improvement of sheep breeding in Uruguay in- ! elude the establishment of a special commission in April, 1936, with the object of improving the existing breeds. Special premiums are paid to growers for the breeding and purchase of pedigree sheep, and the sale and utilisation of sheep of inferior quality are forbidden. In addition, rebates are allowed on the • transport of wools by rail, and all material and machinery intended for the wool industry are exempt from fiscal dues and customs charges. Brazil—The greater part of the Brazilian sheep population is concentrated in the State of Rio Grande do Sul, where climatic and pastoral conditions are most suitable for the industry. The Government is encouraging attempts to improve breeds and yields. An export tax on wool has increased its utilisation in an expanding home industry. Importing Countries United States—ln addition to various Government aids to sheep raisers in the shape of technical and advisory institutions, the wool-producing industry in the United States is further protected by an import duty of 34 cents per lb on the clean content of greasy wools imported for other than carpet use, with a slightly higher tariff on imports of scoured wool. During the years of low prices (1933-35) the Farm Credit Administration Wool Plan provided for the orderly marketing of wool pledged as collateral security by growers who had borrowed from regional agricultural credit corporations or co-operative credit associations. Prices for a large proportion of the domestic wools coming on the market were thus controlled, and major fluctuations were prevented. With the return to more prosperous conditions in the wool-using industry at the end of 1935, Government supervision of wool marketing was finally abandoned. Soviet Union (Russia) —Under the Second Five-Year Plan, provision is made for a steady increase in sheep numbers, with the object of making the Soviet wool-using industry relatively independent of outside sodrees for its raw material supplies. With a view to improving the quality of these raw material supplies, considerable attention is being paid to the crossing of fine and coarse-woolled sheep. Large numbers of sheep are being transferred to collective farms, and to the private flocks of individual members of the

farms, for breeding purposes, and special grants and credits have been made available to sheep raisers for this purpose. Compulsory collections of wool for use in the textile industry were also reduced in 1935 and 1936, and larger direct purchases were made at prices considerably higher than those paid for the compulsory collections. Th : s provided an added inducement to 'ndividual and collective sheep owners to increase their output, while further subsidies were granted to those who sold fine and semi-coarse wools. France and French Possessions —A mnall, ad valorem duty of 0.1 per cent, is levied in France on imported wool and sheepskins. The amount collected is devoted by a Government Commission to the encouragement of domestic wool production and sheep breeding. In addition, wools from countries other than Australia, the Union of South Africa and India, entering France through other European countries, pay a special tax of 1.60 francs per 100 kilos. L’Union • Ovine, with branches in Algeria, Morocco, Tunis, and the various colonies, was established with a view to stimulating sheep raising and improving by scientific research the quality of the wool produced and to afford technical advice to breeders and manufacturers. L’Union Ovine is the national association of sheep breeders, and organises competitions among’ breeders, the exchange of rams among breeders, the supervision of wool and sheepskin auctions, etc. Italy—Efforts to check the fall in Italian wool production, which has m evidence in recent years, led to the requisition by the Government of the whole of the 1937 wool clip at prices well above world parity. It is expected that the high'prices offered v has been spared morle distress and and the premium for fine wools will stimulate producers to improve both the quantity and the quality of the output. Germany—ln March, 1935. the GcrGovernment* began a campaign for the increase of domestic sheep numbers and wool production. Credits were made available to sheep raisers for the purchase of stock, and prices lor home-grown wool were fixed at levels well above the world standard bemg made by the Government to the purchasers. Manufacturers working on Government contracts were required to include a specified proportion of German wool Facilities are also granted to sheep owners for transport on the railways, and a National Pasturage Law is included in the four-year plan to regulate the ut i, tlon of comrr *on pastures. Manchukuo— Until recently sheen raising in Manchukuo was earned on m j m J^, for 1116 Production of mutton and hides, wool being regarded merely by-product. A 35-year programme. with tqe object of increasing sheen numbers, improving yields and quality, and providing a substantial output of wool for use in the Japanese wool textile industry, has recently been adopted. A Japan-Manchurian sheep association has been formed, financed , t P anese Government, the ” 0(d I ” dus^, 'y Association, and the South Manchurian Railway; and expenmental farms, have been established Climatic and pastoral conditions, however, are likely to prove a limiting factor to this development.

FOREIGN EXCHANGES

AUSTRALIAN PRODUCE

MARKET (UNITED PEESS ASSOCIATION—COPTRIGHT.) SYDNEY, September 9Wheat was quoted to-day at 5s 4d, with new season’s grain offering at 4s lOd to 5s Bd. Only small parcels are available* Potatoes —Tasmanian £5 10s, others £4 10s. Flour— £l2 ss. Bran and Pollard—£7. Onions—Brown £l3 10s. Maize—Yellow ss, white os 6d. LONDON SHORT TERM MONEY MARKET LONDON. September 8. . London discount and short loan interest rates are:— Day to day loans, £ per cent; fine trade bills, three months, 2 to 2J per cent.; bank bills, three months, 9-16 per cent.; bank bills, six months, | per cent.; Treasury bills, two months, 1$ per cent.; Treasury bills, three months, 9-16 per cent DOLLAR MARKET RATES The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates yesterday on a New Zealand currency basis. They are subject to alteration without notice:— U.S.A. Canada. (Per £1 N.Z.) Dot Dot Selling— T.T. .. 3.96 13-16 3JMSS O.D 3.971 3SI 5-16 Buying— T.T 4.00 7-16 4.005-16 O.D 4.017-16 4J019-16

(BBmsn OFFICIAL WIBELESS.) RUGBY September 8. Paris, fr. to £1 New York, Par. 124.21 Sept. 7. Sept 8. 132 63-64 132 61-64 dol. to £1 Montreal, 4.866 4.95 7-16 4.95 5-16 dol. to £1 Brussels, 4.866 4.951 4.953 belgas to £1 Geneva, 35 29.341 29.37 fr. to £1 Amsterdam 25.2215 21571 21,561 fl. to £1 12.107 8.981 8.983 Milan, lire to £X 92.43 941 94a Berlin, reichmarken to £1 20.43 12.342 12.341 Copenhagen, kr. to £1 18.159 22.40 22.40 Stockholm, kr. to £1 18.159 19.39J 19.39J 19.90 Oslo. kr. to £1 18.159 19.90 Vienna, schgs. to £1 34.585 261 261 Prague. kr. to ,£1 164.25 142J 141J Helsingfors, marks to £1 Madrid pese193.23 2261 2261 tas to £1 25.2215 _ Lisbon, escudos to £1 no . 110 3-16 110 3-16 Athens, drach to £J 375 5471 5471 Bucharest, lei to £1 813.60 670 670 Belgrade, dinars 276.3 216 216 Rio de Janeiro, pence, to milreis 5.90 41 41 Buenos Aires, pence to dol. 51 . Montevideo, pence to peso • 39 13-16 39 13-16 Bombay, pence to rupee 18 181 181 Shanghai, pence to yen • 14g 143 Hong Kong, pence to yen • 13 15 Yokohama, pence to yen 24.58 14 14 Batavia. guilders 12.107 8.97 8.97 Warsaw, par zlotys to £1 43.38 _ _ •Determined by price of silver.