DISPOSAL OF WOOL.

Feilding Star, Volume XVI, Issue 4158, 1 December 1920, Page 2

DISPOSAL OF WOOL.

PROPOSED SALE TO GERMANY.

FARMERS'" UNION SCHEME

(Per Press Association.), Wellington, Nov.'3o. . At a meeting of- tne Dominion Executive of the _ armors' (J nion a to-day,

Mr W. J. Pojson.'(Wanganui) suggested tjjafc tlie Government should be asked to euqiiir.o whether some oi tne Dominion's coarse wool could be sold on credit in Germany.' He said that Britain ivas now trading with r.Germany, and it. would be in- New Zealand's interest to. let the German mills get some of the accumulated crossbred wool. The Germans had the mills, and' were in great, need of materials that could be , manufactured ' from coarse wools, but they wero unable to pay cash for the raw materials. -He moved: "That, the Government be asked to prosecute-'enquiries, as to whether it is possible for New Zealand to sell wool .to Germany through the Imperial Government, New Zealand growers assuming the responsibility, and accepting approved bonds in Avholo or in part payment."

*" Air TV Aloss, the Dominion - vice- , president, said that the Government ,liad advised the farmers to. hold their wool, but .many of them could not do that without assistance, and he thought the Government should be urged to produce a definite scheine_of . finance. Ho suggested that the Executive should ask the Government to guarantee an advance on the wool up to 60 per cent, of the commandeer value of ivooi.

Air Poison: "It would ,bo absurd to ask that." The Government, ho wa_ sure, Avould not make advances on any other basis than the London 1 parity, which was.4d or Sd'per pound for coarse wool. After discussion, AL' AY. B. Alatheson moved an amendment in. the following form: "That the Government bo asked to enquire whether Euro-, pean woollen mills are willing to tako , a proportion of our crossbred .wool at a prico equal to ,75 per cent, of tho commandeer prico, payment to bo made six months from date of sale, and guaranteed by banks of standing." It-was seconeled by AL - Poison, ivho 'withdrew,.his own proposal. This was carried.

The Executive discussed the question of the Government guarantee of advances on wool, and adopted the following motion: "That in view of tho necessity .for a definite scheme of finance to enable small producers and soldier settlers to hold their wool, as recommended hy the Government, this Executive recommends the Government to advance 95 per cent, of the London parity value of such woolsuch advances to be made by financial institutions on the Government's guarantee."