PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXI, Issue 22, 27 January 1931, Page 12

PRODUCE & MARKET REPORTS FROM DAY TO DAY

WOOL PRICES

SEEKING A REMEDY

APPRAISEMENT URGED

(Received 27th January, 9 a.m.) BRISBANE, This Day. Mr. James Clark, a prominent figure iti the wool industry, says that the only remedy for the stabilisation of wool prices is a method of appraisement on the lines of the Bawra system during the war period, the abolition of selling wool by auction, and pressure on the shipping companies for reduced freights on wool. The wool trade locally is not in general agreement with the views put forward by Mr. Clark, who is a Queensland pastoralist. The opinion was expressed in one quarter to-day that appraisement and the abolition of auctions are not the remedies for the present serious plight of the industry. Until the exchange'difficulty was overcome and until a satisfactory basis of values was arrived at, it was stated, little improvement could be expected. There was no doubt that growers of wool were feeling the pinch, for they were being forced, in many cases, to dispose of their , clips at less than the cost of production. The point was made by one gentleman connected with the industry that the only benefit that' was being ' derived from the present depression was that wool was receiving one of the best advertisements it had ever had, as the low prices—the lowest ■ for over thirty years—were bringing woollen products within the range of an increasing number of people. However, that was little comfort to the man who was growing wool, although he might benefit when prices began to soar again. The suggestion by Mr. Clark that the Bawra system should be followed is o£ interest. The system of control in operation during the war was instituted in 1016, and remained in practice until 1921, ivhen the British Australian Wool Realisation Association took over the functions of the Government. Under an arrangement with the colonial Governments, the British Government took control of the ■wool clips. In all 9,895,000 bales (approximately 3,250,000,0001b of wool) were purchased, for which approximately £300,000,----000 was paid and a net profit of £70,000,000 was divided equally between the British and colonial Governments. Government wool control' continued until 1921, when its functions were taken over _by Bawra. This rearrangement was made in order to avoid the restrictions and international complications which direct Government trading involved, and, incidentally, to minimise domestic political interference. "During the post-war period," states one authority, "ttie policy was followed of establishing price by the release of wool at auction at calculated quantities and at reserve prices based upon estimates prepared from centralised Government and other statistics, and this for a short time appeared very successful. The basing of potential consumption figures upon such estimates proved, however, within a short time unsuitable. In spite of having at its command the fullest possible information, and, in addition, being in the enormously strong position of the largest holder of wool stocks, the wool control was unable to make any estimate of a useful nature of future wool consumption, or to control the market, and as a result its t predictions on pried did not eventuate; and sudden and severe slumps overwhelmed the .world wool trade both in 1920 and 1924. Apart, however, from this post-war experiment, which endeavoured somewhat unsuccessfully to control prices, it is generally conceded that the wool control exercised during the war was justified in the circumstances and by its results." . / ■ ' A proposal has been advanced in Australia that an Empire wool conference should be hefd in Melbourne in June, with the object of bringing about a better understanding between the wool-producing countries of the Empire. It is hoped that delegates will be present from Canada, South Africa, Britain, Australia, and New Zealand. Inquiries made locally indicate that up to the present no steps have been taken: in the direction of arranging New Zealand's representation at the conference.