THE WOOL SCHEME

Evening Star, Issue 17544, 27 December 1920, Page 4

THE WOOL SCHEME

YORKSHIRE PRESS CAMPAIGN, Press Asaselfttion—By Telegraph—Copyright, LONDON, December 24, . The Yorkshire newspapers consider that the Wool Federation’s endorsement of the’ Australian realisation scheme ensures Its ratification, but they continue their unfavorable comments. The ‘Observer’ says that half the wool which the growers sold to the Imperial authorities is still the property of the original owners. This is probably the most grotesque fact ever known in* commerce. It is the growers’ trump card, which they have played to their own advantage as far as they were able; but the great problem still remains—namely, how to get' the wool into consumption. Failing success in this direction, the transference of selling powers from the Ministry of Munitions to the syndicate will be valueless. The ‘Yorkshire Post’ says: “It appears that Lord Inrerforth and Sir Arthur Goldfinch, officials of the .Government Wool Department, obtained a great triumph, but the opposition displayed since the announcemenfc of the scheme has secured important concessions, which in some degree safeguard the interests of wool traders and users.” The ‘ Post ’ understands that the Government will retain its veto over the realisation of the association's policy, and also the right of vote over nominations to theBoard of Directors. The concessions make the schemo much more acceptable to .English wool traders generally, but* England ought to have five directors and Australia four.—A. and N.Z. Cable.

STATEMENT BY SIR A. GOLDFINCH'. LONDON, December 24. Replying to a telegram from the Bradford Chamber of Commerce expressing the opinion that it would be unwise to hand over the Government stocks of wool to any syndicate, and requesting that the whole of the woollen and worsted trades be consulted before the Government takes action regarding the Australian proposals, Sir Arthur Goldfinch points out that the Australian Government, in requesting that half the surplus wool and half tho cash surplus be handed over to a co-operative association representing the entire sheep farming community of Australia, is asking no more than it is entitled to receive. The British Government would not think it proper to offer any observation on the Australian Government’s proposed use of these assets. The Australian suggestion that tho British Government should hand over the British half of the surplus wool to the Australian association for realisation on behalf of Great Britain stands on a different footing; but there are strong reasons why it should be accepted. An enormous difficulty of delay and unnecessary expenditure would be involved in making a division of 1,800,000 hales of wool; also the British Government desires to disband the Wool Department as rapidly as possible. The Australian proposal is very welcome to this department. The terms under which tho wool was purchased entitle the Australian Government to be consulted in all the arrangements for the sale of all this wool. Australia would not agree to the British Government handing over any part of this wool for sale to any agency, except an association on which Australia was very largely represented. The Australia proposals contain nothing affecting the normal course of business in th& Australian, or the British wool markets. The new clip will not he subject to the association, so the flow of wool to England from Australia and other countries should continue to the full extent of the industries" requirements. Australia asks for no restriction and no.preference of any kind; therefore it is impossible to seo how British wool buyers can he placed at any disadvantage compared with their position in normal times. Tho appointment of thoroughly qualified responsible men of business as directors of the association, whose nomination is subject to the British Government’s approval, will be sufficient to guarantee that the association’s affairs will he conducted in a. moderate and reasonablespirit. Any attempt to hold lip wool for unnaturally high prices was outside the dosires of the asssociation, and would in. any case be defeated by the market conditions. ,-he Governments of several other woolproducing countries were finding themselves forced to take protective measures to safeguard the sheep industry. From this point of view the Australian proposal was so cautious and moderate that the Wool Department would find it difficult to offer any valid criticism, even if it was permissible to do so. New Zealand wool is not at present included m the Australian scheme. After an answer is given to the Australian proposals the problem of dealing with New' Zealand wool will bo considered.—A. and Z. Cable. BRITISH WOOL FEDERATION APPROVES. LONDON, December 23. A full meeting of the British Wool Fedelafcion at Bradford received the deputation’s report on the interview with Bord Inverforth and Sir Arthur G-oldfinch. After a full discussion the meeting passed a resolution, with only two dissentients, approving of tho Australian realisation scheme on an assurance, firstly, that the interests ot the textile trades will be represented on the directorate and on the proposed ayndicate.; secondly, that tho distribution of wool through the London sales sfcid tho usual trade channels will be continued; thirdly, that the reserves will he fixed as near as possible on the basis of the world values. The federation has telegraphed to Lord Inverforth accordingly.—A. and N.Z. Cable.