A FALLACY

New Zealand Times, Volume XLVII, Issue 10898, 12 May 1921, Page 6

A FALLACY

.AUSTRALIANWOOL SCHEME POINTED CRITICISM BY YORKSHIRE “OBSERVER.” DICTATION IMPOSSIBLE. By Telegraph—Press Assn. —Copvrisrht. Australian and N.Z. Cable Association. LONDON, May 10. Tho Yorkshire “Observer/* Branford, publishes a bare cabled outline of tho Australian wool scheme. It suggests that it is fairly harmless, but foreshadows extensive .bureaucratic interference with the free play of comic-, i‘cc. The "Observer” states .that the scheme rests upon the fallacy that it is possible for the Australian .Government to dictate to the world prices for wool irrespective of values m competing markets. Apparently Mr Hughes’s tear of the consequences of a great accumulation of lower-grade wools has very largely influenced the Government in deciding to resort to the legislative coercion of growers. The Government cannot compel a single user to buy a bale. Users will exercise preference as before, and if prices are arbitrary, then consumers will naturally prefer to take the superior wools, making the lower qualities less saleable, especially as there is plenty of free wool of a low quality in other parts of the world, such as South America. There is a great probability, therefore, that the sediment of low wools, instead of diminishing, will tend to grow. Mr Jtlughes’s mountain of wool, trembling on the edge of a precipice, would- assume more fearsome dimensions than ever. , The “Observer’’ considers that the weak ooint about the control scheme is that it ends at the Australian coast. It is well intentioned, but it will benefit some growers at others’ expense mid ho unfortunate in its disturbing influence exerted just at the moment when there are signs throughout the world of a reawakening of the wool trade, which, if allowed to develop, would probakv show that the Australian scheme is unnecessary. SYDNEY SALE FIXED Bv Telegraph—P’-f-so SYDNEY, May 11. An all-day wool sale has been fixed far Thursday, practically covering the offerings usual in three days.