GOOD PROSPECTS

New Zealand Times, Volume XLIX, Issue 11303, 31 August 1922, Page 10

GOOD PROSPECTS

AUSTRALASIAN WOOL CONFERENCE MEETS IN MELBOURNE. STABILISATION SCHEME. By Telegraph—Press As6n.—Copyright. Australian and N-Z. Cable Association. ! MELBOURNE, August 30. , The conference of wool interests to • consider the procedure to be adopted • regarding the allocation and disposal i of the carry-over wool and the current i clip of wool for the 1922-23 season, l and to consider, from a statistical l point of view, the position of the meri ino and crossbred wool, and the stabil--1 isation of the wool market, particularly ■ in regard to crossbreds, was opened by > Sir John Higgins, who, in the course 1 of a lengthy statement reviewing the ‘ position, drew particular attention to ; the fact that trie New Zealand Wool- ’ brokers’ Association endorses the policy ’ of control of allocations to prevent ex- ' cessive quantities, of wool being offered at individual auction sales. He declared that the market prospects for the current) Australian wool season were particularly encouraging. Regarding crossbred, the position, he said, was fundamentally sound from a statistical standpoint, but a substantial portion of the heavy purchases made during recent months remained undigested. This was sufficient reason I for not pressing more and more crossbred upon buyers in quantities in ex- • cess of tlieir immediate requirements. Improved prices would certainly* be obtainable if a stabilisation scheme were J adopted, and the Bawra was prepared ; to do its share in any equitable 1 scheme by a. system of reasonable offermgs in which, he believed, they would . have the whole-hearted support and cooperation of the New Zealand Wool Committee. He believed the position could be greatly improved. Bawra was prepared to discuss any co-operative scheme Which would meet tlio position. If the market was to be protected, and j crossbred wool growing retained and I developed as a profitable industry, provision must be made to finance the grower needing immediate assistance. Sir John read a cable from Sir Arthur Goldfinch in reply to his inquiries, which stated that the improvement in the textile manufacturing trade was becomng very marked and would assuredly continue unless the international position became worse to a degree, which was most unlikely. No surplus merino wool now existed, and an acute shortage within the next ten or twelve months was extremely probable. Regarding crossbred, Sir Arthur ■ Goldfinch stated that production had ' fallen below the present machinery consumption and the disproportion was increasing. He anticipated that the absorption of “Bawra’s” crossbred surplus would proceed more rapidly in 1923, because of the scarcity of fine wools. He reaffirmed the view that the orossbred situation would be completely rectified within eighteen to twenty months irrespective of any action taken by Australia or New Zealand, but the present Australasian clip would derive little or no benefit unless much more tenacity was shown by growers than was displayed last season. Sir John Higgins then submitted a series of suggestions under which “Bawra” should purchase the whole of the 1922-23 clip, of fifty counts and under, at the prices secured during the last three months of the 1921-22 season, and hold off the market until the opening of the 1923-24 selling season, or such time as was considered advisable, the purchases to be either for straightout cash, or on a basis of an 85 per cent, advance to growers. Another suggestion is that sales should be continued, “Bawra” buyers attending all sales and, if the bids exceed their reserves, the sales to proceed as Usual. The practical effect of the proposals would be to guarantee a minimum price to the grower free of responsibility, but with participation in the profits, if any. The conference opens discussion of the proposals to-day.