WOOL FOR AMERICA.

Lyttelton Times, Volume CXV, Issue 16744, 28 December 1914, Page 8

WOOL FOR AMERICA.

December 8.) There is good news for our sheep men in this cable : " London, Friday Evening.—The Imperial Government has decided to permit the exportation of merino wools to tho United States, conditionally upon satisfactory guarantees being siren by the exporters." It is what the Australian'wool industry has been waitiug and hoping for. Of course, it was recognised that military considerations were of the first importance. There were reasons of the strongest that our wool should not go to the United States. Our wool men accepted tlie situation philosophically although it meant hardship for

It is what the Australian'wool industry has been waitiug and hoping for. Of course, it was recognised that military considerations were of the first importance. There were reasons of the strongest that our wool should not go to the United States. Our wool men accepted tlie situation philosophically although it meant hardship for them. Now that, the embargo is lifted, they will rejoice. We want the American competition; wo' want all that we can get, with safety to the Empire. But "dollar idolatry," as one man in the trade aptly expressed it. has to he taken into account. Wool must not reach the enemy from Australia, no matter by what devious routes.

Evidently the Imperial authorities are satisfied with the situation, and are willing for the Americans to have our merino wool—''upon satisfactory guarantees." Tho cables of tho last ;o'veral weeks have shown us ho\v 3ager tho Americans are for our wool. Now they are free to get itj and we welcome them. FINE MERINO.

It will be noted that the embargo is lifted only on merino wools. Crossbreds are still debarred. Still, it is merino wool that we want to sell. Probably tho British demands will be found ccjual to our supply of crossbred*. Iu any case, merino wools make up nearly 90 per cent of our total clip. The American buyers will want our fine merinoes for their fine wool trade. No other country in tho world can supply the quality or the quantity of fine merino that we can. That is' the great reason why America is so ready to buy.

How much America will take is. of course, a matter for conjecture. In past years she has not taken a great deal. But now the duty on raw wool is off, the case is different. America never was in such a favourablo position to buy our wool., and it is pretty certain that- there will be a big increase in the purchases. Japan, too, is wanting fine merino wools. The week before last a prohibition against the export of wool to Japan was suddenly enforced, with the result thav the Sydney market was considerably aifected. The prohibition, however, has since been removed, and Japan will buy again this week as usual.

£>o that altogether the outlook for fine merino wools has greatly improved. There was great satisfaction m the trade when the news camo through. The outlook before it came was very serious, indeed. Consequently, there was a lot of relief felt when it was known that America would be in the market. If w e can sell our wool at anything like a reasonable price, Australia will gain greatly. At. the Adelaide sales last week some 19,000 bales were sold out of about 23.000 bales offered at auction. The opinion in Sydney is that the Americans must have bought there in anticipation of a renewal of the embargo. It need hardly bo said that last year's prices are not likely to be reached in general. But there should be a solid and substantial improvement for the better class of wools,.and that is a great deal. One man in the trade told a "Journal" representative recently, that some owners had been, or were thinking of, selling half their clip and holding the other half in the bopo of an improvement and a rise. One big owner had sold 2000 bales, and was holding back the other 2000. " It seems to me," said one broker, "that it is well to sell and get the money, which can go towards .buying what is wanted. When the wool 'is not sold', the money is not in circulation, and the owner is handicapped in that he is restricted in doing fresh business." VERY BENEFICIAL TO THE COUNTRY. Interviewed, Mr Winchcombe, president of the Chamber of Commerce, said that the removal of the embargo would have a very beneficial effect in this country. " Without some expansion in the buying power as it stands at present." be said, " it would soou become necessary to cousider some big schemes for financing growers, whilst their wool is lying in store unsaleable. Now there is not the least cause for alarm as to the financial position, because local banking institutions have enormous reserves, but you will readilv understand what it means to have £20,000,000 ready to enter the country at a moment's notice, so to speak. " The continued restriction placed upon all wools but merino will not seriously a.ffect the disposition of the Australian output, because practically 90 per cent of the wool grown in the Commonwealth is of the merino variety."