WOOLGROWERS' PROBLEM.

New Zealand Herald, Volume LVIII, Issue 17755, 14 April 1921, Page 5

WOOLGROWERS' PROBLEM.

DISAPPEARING VALUES.

PLANS TO CHECK SLUMP.

DEFENCE OF THE B.A.W.R.A.

; By Telegraph—Press Association—Copyrijlit. ■

'Received 6.30 p.m.) [ United Service* LONDON, April 12. Interviewed regarding the wool position. Sir Arthur Goldfinch, chairman and i governing director of the British Board ->f j the British-Australian Wool Realisation Association, said that unless arrangements weTe made to hold wool, the value ! of wool in Australia and New Zealand j would disappear. It would have no I value, so greatly does the supply exceed ! the demand. I "In the present disturbed state of I Europe." said Sir Arthur, " every holder of stocks of wool or wool products sees j their value written down 15 per cent, or ' thereabouts every month, while prospective buyers all over the world are bold- | ing back orders because the senseless ! lowering of prices frightens them from i investing in woollen goods. If these conditions continue tens of thousands of sheepfarmers must be driven out of business. I am convinced that Australia and New • Zealand, and perhaps some other woolgrowing countries, will end the disastrous fall of prices by a unanimous agreement among growers to refuse to sell below a certain agreed limit." Meanwhile the ReaJisation Association ■ is pushing forward stabilisation proposals, notwithstanding the opposition of the tex- ' tile trades. Sir Arthur believes that the proposals will not conflict with, but, on the contrary, will improve the position of textile traders. The association is keeping its agreement with the owners of new i clip wool, and is permitting the liquidation of old clips within the reasonable period of two to three, or at the worst, ! four years. The growers very slowly and reluctantly, concluded Sir Arthur, will adopt artificial limitation. j I AUSTRALIAN OPTIMISM. BUYERS MUST SUBMIT. j A. and N.Z. MELBOURNE. April 13. j Sir John Higgins, chairman and govern- 1 ing director of the Australian Board of British-Australian Wool Realisation Association, stated that the failure of the I recent sales of B.A.W.R.A. wool in Lon- : don was a minor matter. It was a bit of ' a setback, but as the current price of ' wool was far below the cost of production the association must have a reserve, and must obtain a price to cover cost. , He is of opinion that the association will i succeed eventually, as buyers must oper- j ate. They cannot get-wool elsewhere. The woolbrokers' executive has decided tha.t there shall be no wool sales in Australia this month owing to negotiations by the B.A.W.R.A. with colonial wool merchants. It is understood that the banking section is a stumbling block. SALE OF FREE WOOL. RESERVES IRREGULAR. A. and N.Z. LONDON, April 12. At the free wool sales an average selection was offered, mostly of Continental sorts. The chief purchasers were Continental buyers, Yorkshire spinners being slightly more active. The reserves were irregular, some owners meeting the markets and others maintaining too high a level. LAST LONDON SALE. FURTHER DROP IN VALUES. [BT TELEGRAPH.— PRESS ASSOCIATION.] WELLINGTON, Wednesday. In a cablegram from London dated April 9, the High Commissioner says:— The wool sale commenced yesterday* with offerings of 9922. bales of free wool, of which 1372 bales were New Zealand. The balance was principally Australian. There was a large attendance and good competition from Continental buyers. The importers in many cases placed a reserve of February prices less 10 per cent, on their lots. These figures being generally above the current market valuation, a considerable proportion of the offerings were withdrawn in consequence. Judging by the bids for the unsold lots and the prices obtained for the lots sold, Merinos may be quoted at 10 to 20 per cent, below the closing rates of the last series. A few lots of crossbreds sold realised 5 to 10 per cent, below that level. The quantity disposed of, however, was so small that it does not give a reliable indication of value.''