WOOL COMMANDEER PRICES

Dominion, Volume 14, Issue 220, 11 June 1921, Page 9

WOOL COMMANDEER PRICES

Sir.—Tt may interest some who hare followed correspondence in your widely lead paper on the subject, to learn that the Imperial Wool Commissioner, in reply to my inquiry, courteously submitted to him through Mr. Massey, has »tatod that his basis value under the commandeer was arrived at on the average out-turn of the various detjeffiptions <if wool at our Dominion sales oi the 1913-14 clip, and that these were the prices he offered in November, 1916, under his commandeer with the added 55 per cent, which percentage was no doubt intended to compensate for the increased price between 1914 and 1916. It so happens that the original cablegrams which passed between him and our Acting-Prime Minister show , very clearly that the contract between the

Home and Dominion Government was closed, not at figures arrived at by the Imperial Commissioner, but upon a schedule of prices propounded by Sir .Himes “Allen, or someone, acting on his behalf and based upon Dominion averages of the weaker and less valuable halfoF Dio 1913-14 clip. Everyone knows that wools submitted for sale within the Dominion are chiefly the "star" or smaller lots which usually realise when of-

fored together a. penny or twopence per lb. lose than~ the larger clips, habitually sent to London for sale, and as a penny per lb. on a year’s clip irieans ft. million of money, even a fractional part lost, runs into a large sum. The parity of valuo between London nnd Dominion prices for the 1913-11 clip, which formed the basis of the commandeer, was~in the region of 4d. per lb., in favour of London, which with the 55 per cent, added, represents an approximate gain, to the buyer and consequent loss to the seller, of about 7d. per 1b.,, or, snv, thirty million pounds sterling for the four clips commandeered. One cannot help thinking that the Imperial Commissioner know at the time he had been offered a bargain, ns the cablegrams to and from show that he closed the deal on the counter offer submitted by Sir James Allen, without hesitation, and reported to his Government, not long after, that ho had obtained the New Zealand wool at "much under its value.” To comprehend these cabto- ' I grams and place a correct construction I upon them, one must construe them from ithe viewpoint of the sender, and to arrive at the above conclusion the Commissioner must have compared Sir James 'Allen’s figures with data before him, which presumably were the London averages, as these were easily accessible. If, therefore, lie relied upon Dominion. prices for data to work upon befoie dispatching his cablegrams, as he’ now rays he did, he apparently knew Im was offering less than the true value of the article, which as most people know, is its value in the principal consuming market, loss transportation and sale charges. Freezing companies have been paid London average prices for their slipo wool, less one penny farthing for Tondon chargee, and the only conclusion to be arrived at is that they have been more astute than the greasy wool selling agent. I have been told by sympathetic friends that it is useless to try to get Government officials either here or at Home to admit a mistake, and,l quite admit that it would be inconvenient for the Commissioner in London or those in authority here to do other than they have done, but I chanced to foresee the far-reaching nature of this mistake, which has brought this fait Dominion, temporarily only, I hope, to its knees, and I am glad to see that the Prime Minister, with the able assistance of Sir Thomas Mackenzie, has made up his mind to bottom what I cannot regard as anything other than a huge blunder, which ought to be corrected. The sum I have named would greatly assist Mr. Massey at the moment in rectifying his finance, end as the Imperial Commissioner long ago admitted a profit of between sixty and seventy millions sterling upon Now Zealand wool, and a. high legal authority whom, I have consulted has given his opinion that the Home Government hae committed breaches in the commandeer contract, Mr. Massey is both legally and equitably justified in asking or even demanding half profits promised at the outset, but which have proved impossible to arrive at or distribute fairly. Primary producers in Great Britain and Ireland and elsewhere who, like ourselves, are under the sway of the British Government.’ refused to submit to the same conditions as the Australasian colonies, ana have been receiving during tho war, and still obtaining, economic value for all their productions without let or hindrance from the Wool or Food Commissioners, and a s a, consequence are rolling in wealth, while farmors hero nnd. in Australia- who loyally submitted to every demand, and accepted less than half price for all their produce aro in dire straits, temporarily only, I hope and believe. feto not regret the commandeer, and all 1 ask from tho Home Government is a fair deal, which appears to me the only way open to the Colonial Treasurer, Mr. Massey, to adjust the huge overdraft in the Dominion export and import account, brought about solely by the slipshod and bastard finance of his immediate predecessor. Wo here aro not suffering from the reduced value of the sovereign ae some may think, but from the depreciated value of our exportable products.—l am, etc., v i W. MILNE. Oamaru, Juno 9, 1921.