WOOL SUBSTITUTE

New Zealand Herald, Volume LXXI, Issue 21982, 13 December 1934, Page 13

WOOL SUBSTITUTE

DEGBEE OP SUCCESS GOOD GERMAN DEMAND EFFECT ON NATURAL PRODUCT By Telegraph—Press Association—Copyright (Received December 12, 10.20 p.m.) SYDNEY. Dec. 12 The German Consul-General, Dr. Asmis, addressing the Millions Club to-day, warned Australian wool growers that the manufacture of woolstra, j or artificial wool, in Germany was likely to become a very big thing. He anticipated that in the near future woolstra would be exported in competition with natural wool on such a scale as would prove disastrous to primary production. Woolstra was a mixture of vistra fibres, made from beech wood pulp, and wool, and although it had certain disadvantages compared with natural wool, the majority of German people would wear it and were actually wearing it. He had received a cablegram on Saturday from Berlin saying that the cost price of woolstra was now 30 to 40 per cent below the price of scoured wool in Germany. Dr. Asmis advocated the adjustment of the trade balance between Germany and .Australia as a means for regaining Germany's custom for Australian •wool, of which last year's purchases by Germany were in the vicinity of 600,000 bales. Germany would not accept credits, even if they were offered her. Mr. J. G. Coates, New Zealand Minister of Finance, was among the guests who heard the address. f NO GERMAN BUYING AUSTRALIAN WOOL MARKET DEPRESSING PRICE EFFECT (Received December 12. 8.20 p.m.) CANBERRA. Dec. 12 Sir Henry Gullett, Minister in charge of Trade Treaties, expresses the opinion that the failure of German and Italian buyers to operate on the Australian wool market is seriously depressing wool prices. The Ministry is now exploring the possibility of increasing German credit in Australia to enable Germany to take more Australian goods.