THE WOOL REQUISITION.

New Zealand Herald, Volume LVII, Issue 17360, 6 January 1920, Page 4

THE WOOL REQUISITION.

A confident prediction of high prices for the Dominion's produce has been made by the chairman of the Bank of New Zealand as a result of personal observations of the conditions in Britain. The prospect is, however, somewhat obscured by uncertainty regarding the effect upon marketing conditions of the termination of the Imperial requisition of wool, meat, cheese, butter and minor commodities. There will be considerable accumulations at the end of the contract of wool and frozen meat in both British and overseas storage, to which will immediately be added the produce of the 1920-21 season. The change from Government control to the normal system of sale and distribution may therefore involve important difficulties in respect of shipping facilities and in competition upon the open market between stocks released from the Imperial supplies and new deliveries offered on behalf of the Dominion's producers. The position in regard to wool is illustrative of the problem that awaits solution in regard to the Imperial requisitions generally. A statistical forecast was issued recently by Sir Arthur Goldfinch, the Director of Raw Materials, Ministry of Munitions, in which he set down the stocks in or afloat for Britain on September 1 at 1,073,000 bales with 980,000 bales in Australia and 380,000 bales in New Zealand. The requisition covers the exportable surplus of the 1919-20 clips, estimated at 2,000,000 bales in Australia and 575,000 bales in New Zealand. This makes a total of 5,008,000 bales to be absorbed into consumption before the market will be literally free for the reception cf the 1920-21 clips. Sir Arthur Goldfinch's figures suggest that the shipment of Government stocks will be practically completed from Australia by September 30, and from New Zealand by December 31; he sets down the rate of shipment for the last four months of 1919 at 175,000 bales a month, then at 225,000 bales a month from January to September, with shipments of 40,000 bales a month in the last three months of the year from New Zealand only; in addition there are provided in the whole period of 16 months shipments totalling 300,000 bales direct to Antwerp, Genoa, Boston, Dunkirk, and Japan. These figures leave a balance in Australia and New Zealand of 290,000 bales, of which the statement disposes rather vaguely as "available for extra shipments." Including the stocks on hand last September and the shipments from Australia and New Zealand, there will be 3,918,000 bales for disposal in Briti in, and it is estimated that this quantity will be absorbed at the rate of 225,000 bales a month, leaving at December 31 a balance of 318,000 bales in store in or afloat for Britain. This statement presumes an increase in the tonnage available for the carriage of wool, and the consumption of the raw material as fast as it reaches England. Neither assumption has been accepted without question, but in any event, the Imperial Ministry's estimate admits that at the end of the year, with

the new clips' already in the market, there will be 608,000 bales iof ■ "requisition" wool for which the Imperial Government will be seeking buyers. '% The prospective situation in regard to frozen meat may be described in very similar terms. In neither case has the Imperial Government announced its intentions, but if the difficulties of this transition period are to be avoided, it is imperative that a'clear understanding should be reached for. a reasonable co-operation between the Imperial Departments and the Australian and New Zealand producers in the use of shipping and in the delivery of their respective stocks for consumption. '