THE WOOL MARKET

Hawera & Normanby Star, Volume XLI, Issue XLI, 16 December 1920, Page 5

THE WOOL MARKET

BBVIEWED BY MINISTER FUR, MUNITIONS.

BY CABL3--PRESS ASSOCIATION— COPYRIGHT . LONDON, Dec. 14. -Che Minister of Munitions, in i statement, reviews the exchange o communications between the Hom< and Commonwealth Governments r< ( wool. .The subject, in all its.,aspects aas. he says, been continuaflv undei discussion between the Central Woo. Committee in Melbourne ami the itoector-General of Raw Materials Inere have also been a series of conferences in London between Sir Arthur goldfinch and the Australian wool growers' representatives, a t which a somewhat similar scheme was discussed, but was left over for further consideration on the return of Messrs °^u g and Devereux to Australia Ihe profits on Australian wool sold f f er M^ eh 31 > 1919 > hay« been very large. The present! position is that all the Ireasury advances for the purchase oi about seven million bales of Australian wool have been repaid, with full interest, and -a substantial surplus or assets stands in the books free of cost, consisting of about 1,800,000 bales, and a large sum in cash over and above all liabilities. The accounts made up to March 31, 1920, are subject to audit, but the result is known .with sufficient, accuracy. Taking wool a* the purchase price, plus transport charges, when incurred, the surplus of assets on the Australian section of ~o B"rch' ase account is estimated at 06 millions sterling, and Australia's share is 28 millions. The statement then gives details of the scheme, and concludes with the Minister's remarks as already cabled. ' The Australian Press Association learns that a considerable volume of commercial opinion in the city supports the Government wool departments policy in attempting to arrest the downward course of-wool prices., Australia's proposals are likely to be • sympathetically received as it' is now ; Known it does not involve a re-sale to ! Australia of any of the Government '. wool, either at 250s a bale or at any i other price. " " .! Experts consider the prices have i been pushed down quite far enough, j and that any further substantial dV crease would cripple the sheep. Indus- ! Another important inspired statement draws attention to the difficulties ' confronting the wool growers in the Dominion threatening the prosperity1 of one of their greatest industries ' lhe Dominion Governments are beine: perpetually urged to save the wool industry from ruin, whereas a section ' of the Bradford trade is agitating in the Pi-ess and Parliament in favour off keen competition between the old and the new clips. . i The statement draws "~ attention to ' the large proportion of wool unsold ■ at the recent and current London auctions. . , | The Australian Press Association' learns that the British Government ! has not yet decided whether to accept j the Australian proposals or not, but, j if accepted, it may be assumed the , British. Treasury will impose conditions i ensuring that the British sfiare of the ' assets shall be properly handled and : sold at full value. ; The statement continues : Critics on- ' posing the Australian proposals seem ' much concerned with the fear that an attempt maybe made to sell wool too dear. Great play is being made with Mr Justice Higgins' statement in February last that Australian woolgrowers, if united, could dictate- the world s merino prices. They fear that the proposed Australian association , will endeavour to extort unduly high prices. Official circles in London do not believe the association will attempt to ! impose high prices, , s uch an attempt" being impossible, owing, to the present i condition of the markets and finance. It can be assumed that the object of the Australian growers is to secure a! market for inferior wools, which are otherwise unlikely to be saleable. ' Contrarywise, they know they must sell as cheaply as the other Dominions. South Africa is extremely' anxious to sell. There is every reason to believe that' the new association will be conducted on moderate businesslike lines, seeking reasonable prices. .It is understood that Government! circles consider this as a matter of such vital importance to Australia that considerable, weight must be attached to the views so strongly expressed by the Australian Government. Notwithstanding the Ministerial remarks (cabled earlier) the Australian Pi-ess learns on good authority that the British authorities regard the Australian wool scheme favourably, with certain reservations. It is felt that due weight must be given to the Commonwealth Government's views. No better successor to the wool department of the Ministry of Munitions could be found than the proposed Australian Association, provided the British Government approves of the directors. Official circles do not bejieve that Australia is attempting to enforce unnatural-, prices, as su,ch an achievement is impossible in''any case.