King Country Chronicle. Tuesday, March 22, 1932. THE WOOL SALES.

King Country Chronicle, Volume XXVI, Issue 3446, 22 March 1932, Page 4

King Country Chronicle. Tuesday, March 22, 1932. THE WOOL SALES.

The last of the wool sales for the Auckland Province held on Saturday practically marks the end of a disastrous season for the wool growers in this district. Wool has been sold throughout the season at less than the cost of production, and in many cases at less than half that cost. Wool has always been an uncertain commodity so far as prices are concerned, but not for a quarter of a century have prices dropped to so low a level as during the last two years. This slump in wool does not affect the grower alone, but the whole of the Dominion. During the violent fluctuations in prices for our exports of primary products over the last decade there have always been compensating factors. When wool was down in price, a fair and reasonable return was being received for dairy produce, and vice versa. Mutton and lamb up to the beginning of this season were on a payable basis, also hides, skins and tallow. At the present time, however, we are facing a disastrous slump in everything the farmer produces, and it requires little imagination to realise what this means for the whole of the Dominion unless drastic steps are taken to reduce the cost of primary production. Even if these costs were brought down to those prevailing prior to 1914 the wool grower would not pay his way, and the dairy farmer could only meet his obligations by working long hours and using the most modern methods of farming. The whole commercial structure of this Dominion is built on primary production, and if that structure is undermined, so must the finances, commerce, transport, and all State undertakings collapse like a pack of cards. This may seem an extreme view of the situation, but it is nothing but the truth if there is no improvement in prices for our exports. While hopeful that better conditions will prevail before next season, there is no guarantee that these will eventuate. In any case this Dominion has to become reconciled to the fact that the range of prices for all our exports will be on a lower average level than those prevailing prior to 1931. If these prices are stabilised on wool at somewhere about 9d. a lb, and butterfat at Is. to Is. 2d. a lb. we have to meet the situation by adjusting our whole economic and social outlook, and this cannot be done by any one section of the community. The people of the Dominion have to realise that until the position of the primary producer is set on a sound foundation, there can be no prosperity of any. This has been proved during the last twelve months, for the slump for the farmer was followed by a slump in all commercial activities. There are signs of the clouds of depression breaking in the Mother Country, and there may be better times ahead for the Dominion. At the same time it has to be realised that the days of living on borrowed money have passed, and from now on we have to live on our own resources; also that values are on a totally different basis to-day as compared with three years back. If we want an example of what to do in times of stress we can safely turn to the Mother Country. Twelve months ago her position seemed hopeless; to-day through her sacrifices of her people she has placed her finances on a sound foundation because her people were willing to face facts. Cannot we do the same in this Dominion so bountifully blessed by Nature.