EMPIRE WOOL SCHEME

Evening Post, Volume CXL, Issue 60, 8 September 1945, Page 9

EMPIRE WOOL SCHEME

FAVOURABLE RECEPTION

(Special P.A. Correspondent.)

LONDON, September 6,

The first favourable reactions to the Empire wool disposal scheme are fully endorsed by closer examination by the trade. The British and Dominion representatives to the conference are congratulated on a piece of scientific planning which, it is believed, may serve as a pattern in other trades which have a similar problem and which, in any event, establishes new high levels in Empire commercial and economic co-operation. The scheme is whole-heartedly welcomed by the wool trade on several grounds, not the least because it preserves a place for all who previously fulfilled useful functions in the marketing and distribution of wool, but virtually eliminates the few who rendered no useful service. It is stated that the mere speculator who bought and held wool ,for a rise in price will have no opportunities under the scheme, which maintains reasonably stable if not stable prices, but as this type of speculator did nothing to increase the value of the wool he held, it is felt that he can well be spared. At the same time, those who offered real service in the selling and buying of wool find their places preserved, and there is genuine gratification in Bradford that the industry is to maintain the auction method of wool marketing, which in the view of the wool trade in Bradford has proved its efficiency over many years. BENEFITS OF AUCTION SYSTEM. Trade interests in Bradford are convinced that auctions provide the only satisfactory method of arriving at the real value of wool, and that, even within the limits of minimum reserve prices and possible ceiling prices in future, there will be ample scope for auctions to point the way to the relative values of different types of wool. The operators in Bradford believe that, under the abnormal conditions of wartime needs and control, it is possible that prices for some types of wool may have moved a little out of their proper commercial relationship with other types. Auctions will be expected to correct any such maladjustments, while functioning within the general price level. The general verdict on the scheme is that it gives both wool producers and consumers ground -for sober confidence in the future by creating in effect a commodity pool for wool which will not only take care of the problem of the surplus, but will ensure the taking up of current future production and the progressive orderly liquidation of the whole. Some newspapers in Britain are inclined to criticise the report of the London conference on the ground that it pays inadequate attention to the question of stimulating increased wool consumption as a means of liquidating the surplus. The trade opinion is that the conference has admirably discharged its main function in devising machinery for a big task and traders believe that the world shortage of wool goods will, for some time to come, absorb all the output of which the available machinery is capable. Meanwhile, research: into extending the fields of usage for wool proceeds apace.