WOOL PRICES

Otago Daily Times, Issue 26471, 27 May 1947, Page 4

WOOL PRICES

AMERICAN PROPOSAL EFFECT ON DOMINION AUTHORITIES UNPERTURBED Wool authorities in Dunedin do not consider that the Wool Bill which was passed a few days ago by the United States Congress authorising the President to impose a 50 -per cent, ad valorem import fee on foreign wool, in addition to the present duty of 34 •cents per lb, will have any marked effect on prices in New Zealand, if it becomes law. The Bill has to go before the Senate, and there is a possibility that the presidential veto may be exercised. Wool men in the city interviewed by the Daily Times yesterday said it was' unlikely that President Truman would sanction the Bill unless he considered it to be absolutely in the interests of American economy The imposition of this extra duty would certainly have the effect of abolishing the American competition .for finer wools. If President Truman did consider that it was necessary to.impose the extra duty, the rate might be modified according to circumstances. Those interviewed expressed - the opinion that prices would not be greatly affected by the extra duty as, although American buyers operated freely at wool sales in New Zealand, during the past season it was to a large extent the competition provided by Continental buyers which kept the prices up to the payable basis realised at the sales. . “It must also be remembered that the New Zealand growers are protected by the operations of the Joint Organisation, which fixes values in accordance with the various types and grades, and thus ensures to growers a reasonable range of prices for their wool," one authority said. “What is most distressing, . however, is the thought that any country should consider increasing its tariffs and restricting trade when the whole world is looking for a freer exchange of goods.” f