TAXES AND WOOL

Evening Post, Volume CXII, Issue 8, 9 July 1931, Page 12

TAXES AND WOOL

GOLDSBOROUGH, MORTS YEAR

Speaking at the annual meeting of Goldsbrough, Mort and Co., Ltd., held in Melbourne last week,-Air. J. M. Xiall referred to the assistance given by producers to the company in its tusk of financing primary industry. The manner in which clients hud co-operiiled with the company iv seeking by economies to meet the present .grave situation of the wool industry had been very gratifying. "Had all Government's a year ago tackled their problems," he contitiucd, "and the problems are really identical—a reduc-tion-of costs-to meet diminished incomemany millions of money would have been saved, and the community would be lacing a much lighter task than that which confronts it now."

"By the oper;itio;i of economic laws," Mr. Niall continued, "the problem of adjustment of rates 'of interest, salaries, and other services would have been in course of settlement voluntarily, not under threat of. compulsion, as in some quarters has been suggested to-day. If further unusual sacrifices' had then been proved to be necessary these would,' I feel sure, .have been borne willingly, unembittered by the reflection that time, money, and effort have, in the meantime, been thrown away."

Mr. Niall said that the company had paid in the last year £9711 more than would have been due had no increase in rates of income tax occurred. The Federal Land Tax Department in particular had been active in writing-up the values of both city and country properties, and it was. difficult to sec how this could be justified. It was a matter requiring the serious consideration of all Governments concerned.

Conditions for the season appeared to be more satisfactory than they had been for some years. In purely pastoral districts rains had ensured ample feed, and a large lambing was expected. The wet conditions had caused anxiety, especially as they.promoted foot-rot and blowfly trouble. Colder weather should abate the blowfly, losses. The last wool season has been one of low prices, and for the 11 months ended 31st May the average price of wool had been S.Bod a lb, compared with 10.49 din 1929-30, 16.71 d a lb in 1928-29, and 19.92 d a lb in 1927-28. ' "The decrease in value last season, Mr. Niall continued, "would have been greater but for the assistance afforded the market by London exchange, which since the commencement of the current year has risen from 9 per cent, to more than 30 per cent, to-day. Competition from Japan was one of the salient'features of the season, its purchases to date having been 450,000 bales, placing that country third on the list of buying nations. It is difficult to siy, however, whether, and to what extent, this great increase in her buying is due to the exploitation of fresh markets for'wool or merely a change in the centres of manufacture. For the future. I regret to say, there is nothing in view, so long as world conditions remain as they are, to warrant the expectation of any immediate improvement in wool values."