WOOL MARKET

Dominion, Volume 24, Issue 68, 13 December 1930, Page 23

WOOL MARKET

Correspondent’s Suggestion PRICES AND SUPPLIES Th# sheepfarmers at New Zealand are anxiously awaiting a statement nop l New Zealand Wool Committee with any proposals they can put forward to arrest the slaughter of the new season s wool clip at such disastrously low prices, writes a Palmerston • North correspondent. "The policy, if any, at present seems to be One of forcing the clip on to a congested market with the natural results. History is as usual repeating itself, and the position is, much as it was ten years ago, when, owing to bad trade and the accumulations of wool left over from war purchases, wool reached i°w levels; It is of the greatest interest at this moment to recall that thisjwas: the reason for the constitution of the New Zealand Wool Committee. “In 1921, as a result o£ a recommendation by. the then producers committee, it was decided that it was most. desirable that the woolgrowers of New Zealand should co-operate with the woolgrowers of Australia in regard to fixed reserves and limitation of wool offerings. For this purpose the wool industry regulations were gazetted on June 24 1921, to be administered by a committee appointed by the Government, and known ns the New Zealand Wool Committee. The'original committee which operated until the end of 1922 were Messrs. T. K. Lees (chairman), W. S. Bennett, O. Hawken, M.P., A. E. Makin, and L. A. Rutherford. , , . "This committee prepared a schedule of minimum reserve prices, and obtained from woolbroker’s, banks, and wool exporters, undertakings, enforcable by bond, not to dispose of wool at prices below the minimum fixed by the committee, issued permits for export, drastically limited the quantities of wool to be offered for sale, and handled all matters i nc *' dental to the well-being of the wool ininteresting to record the gradual rise of wool at the Wellington centre during the season 1921-22, owing to the limitation of offerings and minimum re-

*'ln addition:to the sales of the current Australian and New Zealand clips, liquidation of the Imperial carry-over stocks proceeded during that year, to the extent of 1,011,597 bales, and it is on record that the actual Australian and New Zealand wool sold during the twelve months ending June 30, 1922, all under strict limitation of offerings and minimum reserve prices, was 1,120,000 bales more than the year’s production. “At the end of the 1922 season the Wool Committee was able to advise the Government that there was no further need for. the. enforcement of the fixed reserves, and drastic limitation of offerings, and added to their final report:— 'After careful study of all the information at its disposal the committee holds a strong opinion that a continued rise in prices of New Zealand wools is to be anticipated, and that the dark cloud which has been overhanging the growers Of crossbred wool, particularly for the last eighteen months, will be soon removed.’ It is well known that the committee’s survey .bf the position proved to be correct. It is also an interesting rewrd that the operations of the committee during this strenuous time were carried out for a total expenditure of £155/12/6, the members acting in an entirely honorary Ca “No ty doubt the present New Zealand Wool Committee has been seriously considering the position, and, it is hoped, will take steps- before the season advances too far?’ concludes the correspondent. “While individual woolgrowers, bv fixing reserves and withholding wool from sale, are assisting to stabilise the market and tendering a service to the Country, the position is one to be taken in hand by the properly-constituted body on behalf of the whole Dominion.

serves' Avg. price Avg. price per bale per lb. 1921. £ s. d. d. October .... .. 7 2 5 4.55 December '. ..837 4.95 1922. .January .. ;. 9 3 5 5.65 February ■. .. 8 14 11 £.80 March ..... ..800 5.40 ■ April ... 8 14 .4 5.37 May ,.10 0 0 6.28