WOOL REALISATION SCHEME

Otago Daily Times, Issue 18157, 31 January 1921, Page 7

WOOL REALISATION SCHEME

DOMINION’S PARTICIPATION.

STABILISING THE MARKET.

iFHOM On* Own Cobbesjpondent.) FEILDING, January 28. The proposal that New Zealand should join up in the realisation scheme for the disposal of the old wool clip is being largely discussed by flockmasters in the Rangitikei, Oroua. and Main Trunk districts. Mr W._ J. Poison, of Wellington (provincial president of the Farmers’ Union), in the course of a statement points out that the idea of the New Zealand clip being dealt with by the Realisation Association is already in the air, and has been strongly urged by New Zealand farmers upon the Prime Minister. He contends that it would not, of course, create anything like a complete comer in wool, but would stabilise prices, and would enable the English manufacturers to purchase the wool with confidence. Mr Poison explains that the sole object of the association is to hold and ultimately to realise on the surplus of Australasian wool. When that is done it will wind up. It will not handle the new clip at all. As shareholders and debenture holders, whose interests in the company are in proportion to the value of the wool they have for disposal, they will, of course, endeavour not to compete unduly ..with the new clip or to injure the market for it, and these chances, will be lessened by the fact that the holders of the old clip are the growers of the new. To afford every protection to the current clip will he their chief interest. In referring’ to a recent cable message, Mr Poison says:—“l observe that the South. African people have joined with the Australians in the disposal of their clip> Thu cable message is not clear, but recently a representative of the Australian Association visited South Africa, and the fact that their wool is to be handed over to the association for realisation speaks for itself. The contention of the Union is that if Now Zealand, wool is similarly handed over the manufacturers who are at present holding off purchasing wool except at low values, will know that the wool is firmly held, and will have confidence in stocking up at reasonable prices. At present we know that tho British manufacturers are without stocks, and are afraid to buy on account! of the uncertainty of the future. If the market is stabilised it will give the woolgrower a better chance to get a reasonable price for his product, and this will be of vast benefit to Now Zealand, where tho financial position at present is undoubtedly serious. If there were a rise of 2d or 3d a pound for our wool, due to some such stabilisation scheme as the Australian, it would act very favourably upon the financial situation in this country, and would greatly relieve the pressure upon the producing community which exists at present., This matter has been put before the Prime Minister very strongly by the Dominion Executive of the Farmers’ Union, and in view of the fact that wool sales have taken place regularly, and that an increasing quantity of wool has been offered for sale at nearly every one of them, it is to be hoped that the Prime Minister will act at once in the direction desired by the farming community.”

Mr Poison said he was informed that the Australian Realisation Association would welcome New Zealand joining up, and that the dominion would be assured of renrosontation both on the Australian and English directorates, and that the interests of the dominion would be adeouately safeguarded. As a matter of fact, New Zealand would hold a balance of power which would be a sufficient guarantee of that.