PRICES FOR WOOL

Dominion, Volume 28, Issue 284, 28 August 1935, Page 3

PRICES FOR WOOL

Prospects of Rise Thought Hopeful LONDON VALUES FIRMING “The London wool market indicates a firming of values and provided • exchange credits can be satisfactorily arranged for some of our principal European customers the prospects for a rise in wool values are hopeful,” said the president of the New Zealand Sheepdwners’ and Farmers’ Federation, Mr. 11. D. Acland, Christchurch, at the annual meeting of the federation in Wellington yesterday. The statistical position with respect to world wool production and holdings in store, he added, was particularly sound. Mr. Acland said the year had been an anxious one, particularly from the woolgrowers’ point of view. The average price for wool over the last five years was 6.8 d pet lb., or £9/15/- per bale, while the average for the previous five-year period was 13d. per lb.. or £lB/12/- per bale of wool sold, this latter being practically on a gold

basis. Willi Government expenditure, excluding unemployment, remaining practically constant over the 10 years, and other costs only slightly reduced, the need for either; a substantial increase in wool prices, or a heavy reduction in costs of production, would be obvious to all. The total of national taxation was now about three times that of pre-war. and equalled approximately 25 per cent, of the total value of our national production. Wool, however, was nearly 20 per cent, below average pre-war prices. Chilled Beef Shipments.

If was gratifying to note that our shipments of chilled beef were arriving In good condition, and if good quality

and steady supply could be maintained, the result should be a further swing over from frozen to chilled beef for export. He looked forward to expansion in that direction. The Meat Board’s policy with respect to limitation of control of freezing works by overseas interests had been called in question by a section of farmers recently, particularly in the Canterbury district, but he felt sure that the great majority of meat producers for export would endorse the policy of the board.

Australian woolgrowers were apparently determined to have the draft al-

lowance on wool dealt with by legislation. the annual federal conference of growers having resolved to inform wool buyers that unless they voluntarily agreed to the abolition of the draft, the State and Federal Governments would be asked to legislate. The New Zealand Government had given the federation its assurance on several occasions, that Federal legislation covering this question would. be supported by our Government on behalf of woolgrowers here. If this tax could be

abolished, the saving, or at least a portion of it, could be made available to subsidise research and propaganda for wool on behalf of Australia and New Zealand. The executive would keep in close touch with Australia, with a view to taking joint action when necessary.

Vegetable Substitutes.

Reference was made by Mr. Acland to vegetable substitutes for wool. He said the German vistra fibre produced from the woodpulp of pine, beech and other soft woods was fine and smooth in texture, but straight, weak and brittle, and not, as was the case with wool, in any way elastic. It would, he thought, prove to be a more serious competitor with cotton, which it more closely resembled, being a vegetable product, than with natural wool. He did not think, however, that, it would be wise to treat this matter of vegeable substitutes too lightly. “During the coming year,” said Mr. Acland, “sheepowners must present a united front in their own Interests, as many problems will have to be faced ! affecting them. I feel that ’never in i the history of our organisation has I there been a time when sheepowners required more urgently to stand firmly for tile right to manage their own business, and not be subject to any form of bureaucratic control, which | not only duplicates and increases the j costs of government, but also tends to 1

an undue interference with the liberties of the individual farmer by officials.

“If such control is further developed, there is danger of political influence being used to provide a bounty, or subsidy, for uneconomic production of various kinds, with possibly serious financial trouble resulting to the whole community. While admitting the need for the measures taken by the Government to cope with the extraordinary world conditions of the last five years, aud recognising that private initiative could not have adequately met the situation without legislation, I feel that the management of private businesses should not be allowed to become the permanent job of any government There would appear to be but a very short step from where we stand to-day in this respect to a condition of complete control of our affairs by a socialist system of control. We shall require to use every effort if we retain our right of independent action as producers.

"If we continue our efforly to improve our products, while at the same time endeavouring, as far as possible, still further to reduce costs of production, we should once mone be able to strike a balance on the right side, sufficient ab least to enable us to carry on production, with a margin to spare on which to live.”