THE WOOL SALES

New Zealand Times, Volume XLVII, Issue 10963, 27 July 1921, Page 5

THE WOOL SALES

DIFFICULTY SURMOUNTED NEGOTIATIONS FOR COMING SALES NOT COMPLETED.' BUYERS’ REPLY AWAITED. The difficulty that arose between, the buyers of wool for shipment and the banks lias been satisfactorily adjusted. It has been tlio custom of the buyers to draw through the banks on their letters of credit on bills of lading. The practice of buyers has been to deliver wool to the shipping companies w ithin forty days of sale and obtain bills of lading which were negotiated through the banks. If a ship was in port ready to receive wool shipments, the banks apparently placed no obstacle in the way of bills of lading being negotiated, but often wool, had to be held for a considerable period awaiting a ship to lift it. In 1915 the banks notified the huyers that the banks would not accept bills of lading until tlie vessel on which the wool was to be loaded had reached port, but an understanding wae then come to by the banks with the wool-buyers, and an alteration to the bills of lading were made to meet the position. During the commandeer period the matter was left in abeyance, and when an open market was again reverted to, and this season’s sales were opened wool-buyers continued to obtain bills of lading as in the past, and negotiate them through the banks under them letters of credit. The banks were not satisfied with this mehhod of doing business, and, not feeling absolutely safe as to its legality, notified the wool-buyers that bills of lading would not be accepted in future unless the vessel whioh was to carry the wool was in port when the hills of lading were presented for negotiation. * The outcome of the hanks’ decision was that wool-buyers declined 'to attend any further sales in the Dominion until the position was adjusted. The matter was placed before the woolbrokers and shipping companies, and steps were at once taken with the object of bringing about a settlement, and, in the meantime, the Dunedin wool sale, which was to have been held yesterday, was postponed. Representations were made from the parties concerned to the ActingPrime Minister (Sir Francis Bell) yesterday, and subsequently it was announced that a settlement of the difficulty had been arrived at. AVhen the woolbrokers were made acquainted with the settlement that had been made between the banks, shipping companies, and Cabinet, a communication was sent to the Woolbuyers’ Association, whose office is at Christchurch, suggesting that the wool sale at Dunedin be held on August Bth and the Invercargill sale on August 11th. A reply had not been received late yesterday, but one is expected early this morning. In the meantime the holding of the sales is in an indefinite position.