WOOL AND ITS POSITION

Feilding Star, Volume 7, Issue 2243, 26 June 1929, Page 5

WOOL AND ITS POSITION

AN EXPERT’S REVIEW HIGHER PRICE THAN ECONOMIC VALUE (Aust. and N.Z. Cable) (Received June 2.6, 11 a.m.) London, June 26. Discussing the Australian proposal for j&g Use More Wool publicity cam paign and the forthcoming conference tile Yorkshire Rost says that wool, growers throughout the- world must reduce their costs of production by writing down their estates from the in flated prices which some paid Idr them and on which- others have been calculating, what they regard as profitable prices for their wool. That must be the. first step. Then will comg the problem of distribution ami

finance. ' r Jt has been Hie ambition of Australian brokers to have- the wityole of the w<sql produced in the ACom.moi.wealth brought under the hammer at ; tho sol ling centres in Australia before it is exported, and to a great extent they succeeded -in thisi. at thd expense.' of London,:and are'now paying tip penalty. ’ , They can gain relief by sending more. *>f their wool to London for sale If they are. not prepared to do this ahd would rather spread the selling season oyer a longer period, then they must he prepared to finance the selling ion a more liberal basi t s than hitherto. 1

Tl py- cannot hope to be maintained in the. preferential• position they have occupied during the last four or five seasons, largely, at the expense of the importers and consumers in this country. Bradford still counts for lucre in. relation to merino wool’ va lues than some Australian wdol authorities have eared to give it Credit for recently and in view of theheavy losses sustained ih tip's district since 1923: importers not prepared to go oh financing the clip as they have been doing this season.

Although prices according to Mr Tout, President of the Australian Graziers’ Association, atci 25 per cent lower, pur importers to-day are holding Australian wool whidij they-ca,n-not liquidate ati. a profit. Once again therefore wool growers have received more for their \yool than its present economic value.