COST OF PRODUCTION TOO HIGH FOR MARKET

Manawatu Times, Volume LIV, Issue 6946, 27 June 1929, Page 7

COST OF PRODUCTION TOO HIGH FOR MARKET

World Wool Outlook

GROWEBS PAID MORE THAN ECONOMIC VALUE

YORKSHIRE OPINION. United Press Association —By Electri* Telegraph —Copyright. LONDON, June 25. In discussing the Australian proposal for a “Uso More Wool” publicity campaign and the forthcoming conference, the Yorkshire Post says that k the proposed conference is to ho pioductive of real good, wool growers a.: over the world must reduce the costs of production by writing down their estates from the inflated prices which some paid for them and on whicn others have been calculating what they regard as profitable prices for wool. That must be the first step. Then come the problems distribution and finance. It has been the ambition of Australian brokers to have the whole of the wool produced in tlio Coiumoiiwctiltli bought under the hammer at selling centres in Australia before it is exported. To a great extent they have succeeded in this at the expense of London, and are now paving the penalty. They can gain relief by sending more of their wool to London for sale. If They arc not prepared to do this and would rather spread the selling season over a longer period, they must be prepared to finance the selling on a moro liberal basis than hitherto. They car<iot hope to ho maintained in the preferential position which they have occupied for the last four or five seasons, largely at the expense of the importers and consumers in this country.

Bradford still counts for moro in relation to Merinos and wool values than some Australian wool authorities have cared to give her credit for recently, and in view of the heavy losses sustained in this district since 1023, importers are not prepared to go on financing flic clip as they hove been doing. Even this season, although prices, according to Mr. Tout, president of the Australian Graziers’ association, aic 25 per cent lower, our importers to-day are holding Australian wool which they cannot liquidate at a profit. Once again, therefore, woolgrowers have received moro for their wool than its present economic value. Woollen Industry Opposed to Tariff ‘‘HARD ENOUGH TO MAKE PROFIT.” Received Wednesday, 9.15 p.m. WASHINGTON, Juno 25. A Clothing Manufacturer’s Research board representative, appearing before the Senate committee, opposed increases in the tariff on wool. Ho said: “There has been a substantial decline in tho price of raw wool of from live to seven per cent, from tho peak prices prevailing last year. No groater blow could be aimed at tho woollen industry than to disturb tho existing relationship, insofar as price is concerned. It is hard enough for tho woollen manufacturers to get a profit out of their business now, without injecting serious complication into the situation.”