Sale Of Wool

Dominion, Volume 32, Issue 225, 21 June 1939, Page 11

Sale Of Wool

Sir, —The wool-growing industry is compelled to reconsider its attitude in the disposal of that product and there are four issues to face, namely: (1) Leave matters stand as they are. (.21 Establish guaranteed prices. (3) Raise the exchange. (4) In conjunction with other wool-growing colonies, establish a minimum price for wool. With regard to the first issue we find bankruptcy lies that way. In the second, many are in favour but many of us are not. It means loss of individual pride of effort and a sundering of cordial relations existing over decades with our stock companies. The third issue is a palliative but no cure, and the fourth, i.e., a minimum price for wool arranged in conjunction with our fellow wool-producing colonies, has been advocated by many shrewd men backed by concourses of growers. It provides, probably, a better field where exponents and opponents of various systems may compose their difficulties. All our sister wool-growing colonies have repeatedly expressed a desire to come to some arrangement that would give tiie wool-grower a living wage on a par with other wage-earners. It is an oft-told tale, sir, that diamonds have a protected value; gold has; drink, tobacco, sugar, etc., have. Why should wool be the “Cinderella” of commodities? Mr. R. S. M. Geotch remarks: “If the trade procured wool for nothing it would make little or iw difference in the cost of the finished article.”

Two questions immediately preseul themselves, viz.: (1) Will not fixing a minimum price antagonize the trade; Has any authorized body approached topmakers to • inquire whether they would not welcome stabilization as against fluctuations of from 3Jd. to 2/34 a lb.? (2) How can such an issue, be financed? In 1921, with a surplus' of 1,800.000 bales in the British Gov-1 ernment’s hands, and a new clip of, 4,000,000 bales due on the market, be-! sides vast stocks of. manufactured ma-. terial, the then Premier of New South Wales advocated dumping the surplus in the sea. Tbe B.A.'W.R.A. was founded, with its capital in shares subscribed in cash or kind. Disposing of 9,500,000 bales, the British Government received £30.000,000 for its share in that wool. To further quote Mr. R. S. M. Geotch re rationalization of wool marketing, at the Empire Wool Conference in 1931, he said: “I suggest that the first and chief concern of the conference should Ibe the establishment of an Empire wool-production unit. My conception of the manner in which Imperial economic unity, as relating to Empire wool production cau be achieved, is by the formation iu each Dominion of a wool association. These associations would be incorporated limited liability companies and the shareholders in these companies would be growers or their agents. Such associations would be allied and co-operate. Their function would be to control the. flow of wool to the world markets and regulate price fluctuations and there need be no interference with the vested interests of existing wool-broking firms.” —I am, etc., DAVID DONALD McLEAN.