IMPERIAL WOOL STOCKS.

New Zealand Herald, Volume LVII, Issue 17649, 9 December 1920, Page 7

IMPERIAL WOOL STOCKS.

DIFFICULTIES OF DISPOSAL.

MINISTRY URGES CAUTION.

Liquidation by degrees.

By Telegraph Press Association—Copyright.

'Received 9.30 p.m.)

A. and N.Z.

LONDON. Dec. 7.

A report of the Ministry of Munitions says that the value of the Ministry's Australian and New Zealand wool at cost price is approximately £60,000,000. The amount comprises 2,500,000 bales, of which about half is here or in transit. In the present extremely difficult position of the wool trade the forced realisation of this £60,000,000 worth of wool is impracticable, and would ruin the entire woollen trade of this country if attempted, quite apart from the fact that Australia and New Zealand are financially interested in the profits realised on the sale of Government wool. Thus, the complete liquidation 8f colonial wool held by the Government cannot be effected for some time to come. SOUTH AMERICAN IMPORTS. A PREFERENCE ARGUMENT. Beuter. LONDON. Dec, 7. In the House of Commons, Mr. Alfred Short, Labour member for Wednesbury, suggested that British firms could have used Government-owned New Zealand greasy crossbred wool, instead of South American, had the Government been willing to sell New Zealand wool at market prices. Mr. J. F. Hope, Parliamentary Secretary to the-Ministry of Munitions, replied that in view of the fact that considerable quantities of South American wool were always imported into Britain, and the imports in the first ten months of 1913 were 50 per cent, greater than in the corresponding period of 1920, there was no reason to suppose that South American wools were displacing New Zealand to any material extent.

AN AUSTRALIAN SCHEME.

GROWERS' POOL PROPOSED. A, and N.Z MELBOURNE. Deo. 8. A conference of woolgrowers of the Commonwealth is considering a scheme for the disposal of carry-over wools amounting approximately to 2,000,000 bales, appraised through the Central Wool Committee. It was resolved : " That the British Government be asked to terminate its wool contracts on, say, December 31, making a division of cash, wool and other assets in the ratio of 50 to 50, and that the newRealisation Association then take control of its share." The conference requested Mr. W. M. Hughes to petition the Imperial Government, by cable, asking that the British Government's special executive committee winch investigated trie position and recommended the formation of a British-Austra-lian Wool Realisation Association to obtain control and dispose of all Australian carry-over wool in conjunction with the present clip, to agree to the principle of the scheme. In the event of the Imperial authorities favourably .considering the scheme, a British-Australian Wool Realisation Asso£2fimnmrt * r a I hed - wi » capital of £25,000,000, m £1 shares, representing the present Australian interests in cash, wool and other assets. Issues will be made to Australian growers interested, half in debenture stock and half in shares worth 20s in the £, but the actual value of the shares will depend on the realisation of the wool The directorate will consist of nine members, five in Australia and four in London, with an advisory council for each State. One member of the directorate in Australia will represent British interests and one on the London directorate will represent Australian interests. -Both debentures and shares will be negotiable in order to give early relief to small growers. It is suggested that all debentures and shares under £10 be paid as soon as funds are available from the sale, of wool. It is estimated thereby. that the number of holders of stock will be reduced by 20 to 30 per cent, within a month or two of the formation of the organisation. It is claimed that the scheme will secure what is most essential at present, time for restoration of confidence by stabilising . the wool market, and will prevent forced sales of carry-over wools in competition with the auction sales of current clips, which would spell disaster. It is stated that the intention of the association is not to go on to the market to' purchase wool. The object is to assist wool-selling houses financially in order to enable them to make advances to needy growers.-

SALES IN AUSTRALIA. ANOTHER RECORD AT SYDNEY Australian and N.Z Cable Association. (Reed. 11.30 p.m.) SYDNEY, Dec. 8. Though lower classes of wool continue to drag, finer sorts of greasy command keen competition and high prices. Another record was established when 46£ d was realised. Australian and N.Z. Cable Association. (Reed. 11.30 p.m.) PERTH, Dec. 8. At tho first West Australian wool sale since the war competition was keen for fine merinos, which -were sold at about appraisement prices. Medium to good realised from 15 to 30 per cent, below appraisement prices. For wasting and crossbreds there was no demand, and consequently there vere heavy withdrawals.