WOOL BOOM OVER

Greymouth Evening Star, 9 May 1925, Page 5

WOOL BOOM OVER

lessons for growers. F . BRADFORD’S. HEAVY LOSSES. (Australian and N.Z. Cable Association.!

■■■ LONDON. May 7. The “Yorkshire Post,” in an article entitled “Australian Growers and Control,” said:—“The prophet of a- 1 wool famine is at discount jusl now? The present problem. is how to deal with the large accumulations, which are unlikely to 'be wanted foi\ some' months, by whicb time the new crops will fie marketed in Australia, calling for the re-establishment of 8.A.W.R.A., which is in marked contrast to the Australian attitude, during the latter half of 1924 ; when making allocations of new wool‘to prevent over hasty liquidation. Instead of this policy increasing their profits, the Australian sellers have let themselves in for a larger share ol losses. ;The growers are being made ;o realise for the .first time since the. war, that wool is finding its,true economic basis. , The boom .affei; the Armistice was'artificial.. .There, m now a surplus and not famine; and. this surplus is being carried not by the Governinent, ,but by - the private traders. Our importers are facing their losses with courage without calling f for outside assistance The wool growers did exceedingly Well in a long time, arid • they have small claim to special -consideration now. Many who have, profited by the mad competition in Wool ,at the end of 1924 ca,U for the re-establishment of B.AAV.R.A. This means that the Australian wool grower's want to comoine . amongst themselves for carrying a large quantity of wool into next season ail'd 'lor arranging for- its Liquidation with ; the new clip in 1925-26. That is thei r business, The slump has noW gone far that one cannot help concluding that’ the . Australians are wise, in not' forcing the balance of the wool still held ill Australia on to the market at this iiiof ment. :If they did so, they possibly would create a panic, and play into the hands of 'speculators. The low water mark may not yet be touched, but any attempt M a forced liquidation would mean a severe depression in values, with a subsequent violent re-action when orders for tops, yarns and piece goods. begin to be placed again in a normal manner.” The “Morning Post’s” Bradford •orrespondent affirms -that, on a. low estimate, from eight to ten millions sterling has been lost on the ’ wool bought prior to December. This money has gone into the pockets-of the Australian growers. This has crippled the purchasing power-of the British impilers, whose only chance even -of partially recouping themselves is by buying the balance of the clip in Australia, and. also the bulk of'the next clip at a rock-bottom price. It will take two .. or three good years, he says, for Bradford West Riding to recover even a.reasonable part of the money lost, through the misjudgment of'the outlook last autumn.

AUSTRALIAN SALES POSTPONED. MELBOURNE, May 8. At the conclusion of the conference between the wool growers and the selling brokers,, to discuss the question of the slump in the market, it was officially announced that it has been decided that public auctioning of wool shall forthwith cease, and it will be resumed on July 1, if the circumstances warrant.

SiJ John (Higgins. , head of 8.A.W.R.A., in an interview, said that if B.A.W.R.A. had been given the power it would have regulated the supply, an’d thus would have prevented the slump occurring- He strongly urged the need of stabilising the industry. • ■ , ■ Asked if B.A.W.R.A. would undertake this, he said that if B.A.W.R.A. shareholders wished »them to take up the task again, and made .such a recommendation, the Australian Board would have to, consult the British Board. It would mean that he would probably, have ,to make a hurried visit to .London. . /

SHIPOWNERS’ PROTEST. , . ' SYDNEY, May 9. The decision to abandon all wool sales till July 1, 'was received with consternation by the oversea shipping trade. It will have a serious effect on the export trade for the next few months. The chairman of the. . Overseas Shipping Representatives’ Association said that the abandonment of the sales would inflict hardships on shipowners, who had already dispatched ships from the other Side of the world to take places in loading berths for various sales. The vessels could not find employment elsewhere, as apart from wool, there was no other profitable avenue of employment for shipping front Australia to the United Kingdom. The only other cargo is wheat, which has been reduced to a bedrock figure.