A BIG CHEQUE

Grey River Argus, 31 July 1940, Page 10

A BIG CHEQUE

Australian Wool The total cheque payable to Australian wool growers for last season’s clip is £64,722,636. In all, 3,604,316 bales were appraised, this being the largest total ever handled in one season in Australia. In a statement reviewing the position, Mr A. F. Bell,, chairman of the Central Wool Committee, said: “The total number of bales appraised for the season was 3,604,316, with a total weight of 1,111,912,4161 b and an appraised value of £59,841,898. The average price per lb greasy for the season is 12.4052 d, which is 1.0323 d per lb less than the flat rate purchase price of 13.4375 d per lb. The difference between the appraised value and flat rate value is equivalent to 8.321 per cent, of the appraised value of £59,841,898. As the average appraised price per lb greasy is less than the flat rate purchase price of 13.4375 d per lb greasy, the retention money, namely, 10 per cent, of the appraised value which was deducted throughout the year from appraised values in respect of participating wools, now becomes due and payable. The amount involved is £5,742,044, and this sum will be distributed to suppliers of participating wools through the woolselling brokers on Friday, July 26. “The Central Wool Committee has decided, also, to distribute the flat rate adjustment payment to suppliers of participating wools on the same date. The amount involved, at 8.321 per cent, of the appraised value, is £4,777,996. To this amount will be added the sum of £102,742 which has been appropriated by the Central Wool Committee from interest earnings and other moneys, “The total flat rate adjustment payment, therefore, will be £4),880,738, equivalent to 81 per cent, of the appraised value of participating wools. The amounts payable to suppliers of participating wools, therefore, are 10 per cent, retention money, £5,742,044, 8- per cent, flat rate, adjustment payment, £4,880,738, total, £10,622,782.” The last Sydney wool catalogues of this season were finally appraised inSydney on June 28. The quantity handled for the year was 1,395,803 bales, a record. At the contract price the wool appraised is worth £23,728,000. The wool sold in Sydney for the previous season totalled 1,143,856 bales, and realised £15,077,537. The appraisements, and private sales made in Sydney before the war, include 115,245 bales carried over at June 30, 1939.

The volume of turnover effected has been made possible only by the contact with the British Government. The chaotic world conditions, particularly during recent months, probably would have prevented a sustained demand for auction selling. South Africa and South America have found buyers for their clips, but the withdrawal of the Australian and New Zealand clips from the open market centred demand from other consumers on the former two countries, enabling them to market their product.

OUTLOOK FOR NEXT SEASON’S CLIPS

In normal times, the principal wool consuming countries of the British Empire—Great Britain, Australia, India, Canada and New Zealand —consume approximately 930,000,0001 b annually. That is the equivalent of 3,100,000 bales. The total does not include the Union of South Africa. That country is a large consumer of woollen goods, but manufactures only very small quantities of them. Her direct consumption of wool is, therefore, limited, say Winchcombe, Carson, Ltd. the Sydney brokers, in their latest report. Since the war started, the use of wool in the mills of the British Empire has considerably increased. The United Kingdom is consuming a greater quantity than ever before, and so, also, is Australia, India, Canada, and New Zealand.

A fair proportion of the woollen fabrics imported by South Africa were purchased in Italy, Germany, and other Continental countries. They will probably now be bought from Great Britain, though J’apan also sells woollen goods to Africa. Australia, unless the cost of her textiles is too great, may also be able to send supplies to African merchants. South America has also to be supplied with fabrics by Great Britain, the United States or Japan. The importing of wool from the United Kingdom, the dominions and, perhaps, South America by the Continent has now ceased; but the use of goods has not stopped in other countries which the Continental mills previously supplied. Coming Season’s Clips It will be difficult to put the whole of the coming Australian, South African, New Zealand and South American clips into quick use and avoid some accumulation of stocks but at least a good proportion of them will probably pass readily into consumption. Australia is likely to have less wool for appraisement in 1940-41 than during the last season. Production maybe slightly less for the whole of the Commonwealth. In addition, the fact must be borne in mind that carryover stocks at June 30, 1939, of 115,245 bales were appraised during the year. Except for the small quantities which arrived too late for inclusion in June catalogues, no wool was carried over at June 30, 1940. As a result of requirements for military equipment, crossbred wools should continue to be most urgently wanted. The United States with her large rearmament programme ahead will probably seek them with special keenness in South America and the United Kingdom will find use for all the New Zealand and Australian crossbreds.