WOOL CONTROL

New Zealand Herald, Volume LXXVI, Issue 23486, 25 October 1939, Page 5

WOOL CONTROL

BRITISH PLAN OPERATES NEW MAXIMUM PRICES ECONOMIES IN CIVIL USE LONDON, Oct. 23 The new maximum wool prioos are operating to-clay. Tho Control Council has fixed for 6-t's a buying price of 29d per lb. The issue price for the home trade is 313 d. It will bo a serious position for merchants and topmakers, whose position is oversold. Sir Harry Shackleton, chairman of the council, states that while it is necessary to take over all stocks, whether sold or not, it is the intention as far- as possible to enable merchants to fulfil existing contracts. The Control Council hoped to maintain the new schedule prices until February 29. The Government is not short of wool, but has no surplus, and is just as desirous as the trade that the normal channels of business should bo disturbed as little as possible. Sir Harry Shackleton urged the view that the record national consumption in the civil trade should be ecnomised to the extent of 10 per cent. The Control Council did not desire to restrict export business, but on the contrary would do its utmost to facilitate it. As a result of the decision of the "Wool Control Council rationing will operate from November 1. Under the system users of wool for civilian needs will cut their consumption by 10 per cent. The saving will bo effected by making lighter material for suits and frocks.

Tho count of 64 is a finer typo of wool, Merino quality, tho highest price for which on the Bradford tops market last season was 2(id Sterling per lb. (average grade) and the lowest !24id. Last season the Bradford tops market was notable for its freedom from fluctuation. Levels last season, however, were regarded as extremely low, as during the previous season the decline in values had been continuous over tho 12 months, commencing at about 6d below tho close of 1936-37. Pre-war and post-war fluctuations in prices of 64's average, are shown in the following table, the prices being in pence sterling per lb.:— d • d 1007 (June) . 2S'/ a 1933 (June) . 25% 1920 (Apr.) .. 100 1934 (Jan.) .. 42'/ a 1921 Aug.) .. 30 1935 (Jan.) .. 25 1921 (Dec.) .. 79 1930 (Jan.) .. 3'2% 1925 (May) .. 48% 1937 (Jan.) .. 3S l / 2 3928 (Mar.) .. 55% 3938 (Jan.) .. 2S'/ a 1930 (Jan.) .. 2S 1939 (Jan.) .. 25 Generally 1938 was a lean year for the English textile industry, one of the drawbacks having been the lowprice of wool, which reduced the purchasing power of Australia, South Africa. New Zealand, Canada and the Argentine, while considerable overproduction in the previous year affected the home trade. SOUTH AFRICAN CLIP BR IT A IN'S NEG OTIATIONS Whether South Africa- will agree to sell her wool clip to the British Government has not yet been decided and negotiations are still in progress. Authorities in the trade state that, even if South Africa refuses to fall into lino with Australia and New Zealand, she is unlikely to benefit at the expense of those countries. It was pointed out that, while higher prices might be obtained for the well-grown types of wool, other portions of the clip would probably be neglected. These would includo the inferior short types, of which there is a fair proportion in South Africa. It is understood that the delay in the announcement of the price to be paid for the Australian clip' was due to the British Government's negotiations with New Zealand and South Africa. When New Zealand decided to sell, prices were fixed for the Australian and New Zealand clips, but South Africa's position is still not clear.

FIJI GOLD MINES DIVIDENDS DECLARED LOLOMA PAYS A BONUS The directors of Loloma (Fiji) Gold Mines, No Liability, have declared a seventh dividend, amounting to Is a share, and also a bonus of Od a share, payable on December 8, With this distribution, the company, which began operations at Tavua, Fiji, in September, 1937, will' have paid a total of £309,375. Emperor Mines, Limited, Fiji, has declared its fifth dividend amounting to Od a share, payable on November 30, according to cabled advico received by the Stock Exchange yesterday. Tho company's initial dividend of Is a share was paid in November. 1938. Subsequent payments were at tho rate of Od a share, the forthcoming distribution bringing the total amount to 3s a 10s share. AUSTRALIAN PRICE CONTROL NORMAL PROFIT ALLOWED In view of the difficulties associated with the price-fixing regulations in New Zealand, interest attaches to the methods employed in Australia. Following reports of confusion among Australian retail grocers regarding the application of price-fixing regulations, it was officially pointed out from Canberra that there was nothing to prevent grocers adding their normal percentage of profit to actual cost of goods to them without obtaining special permission or permits from tho Prices Commissioner. Regulation 10 of Price Fixing Order No. 2 lays down that retail commodities may be sold at cost to the retailer, plus gross profit calculated on the same basis as before the outbreak of war. Australian retailers may thus act, nr. their own initiative in this way. "Hut prices they fix are subject to general supervision and gross profit may be reviewed at anv time by the Commonwealth authorities. If it is found to be excessive, it may bo reduced.

TRADE WITH THE EAST

AUSTRALIAN OPPORTUNITY Hoc a 11.so ; nf the war. the Dutch Hast Indies and other countries in the East which are sull'eflng a shortage of manufactured supplies from Europe, are seeking supplies from Australia. Information received in Canberra recently shows that a large and increasing market, is available in these countries for Australian goods. It is uncertain how for fclio supply of raw materials, labour, and shipping will enable Australia to moot this demand,

QUOTATIONS FOR METALS LONDON, Oct. 28 Tin is quoted at, £2.'i() a ton, both for spot and forward delivery. Prices for copper, lead and spelter are un"liaiiged. GOLD AND SILVER LONDON. Oct 2n The. price of gold is quoted at £8 8s a fine ounce unchanged. Silver is quoted at an oupcc for standard, and 21 15-lGd for fine.