FUTURE OF WOOL

Otago Daily Times, Issue 27567, 8 December 1950, Page 6

FUTURE OF WOOL

Strong Demand Likely To Continue VISIT BY MR ARTHUR “A strong demand for wool is likely to continue, though at what level of prices in the future I could not hazard a guess.” This statement was made to the Daily Times in an interview last night, by a former Dunedin resident, Mr E. S. Arthur, who is now general manager of United Kingdom Wool Disposals, Ltd., with headquarters in London and Bradford. Prior to leaving New Zealand some 12 years ago, Mr Arthur was manager of the Wool Department of Dalgety and Company in Dunedin. Mr Arthur left the Dominion as the New Zealand representative on the International Wool Secretariat and during the war was a director of Wool Control at Bradford, a branch of the British Ministry of Supply. At the end of the war he was appointed general manager of United Kindgom Wool Disposals, Ltd., which was set up as a partnership between the United Kingdom, Australia, South Africa and New Zealand to take over and dispose of the surplus stocks of wool which had accumulated in the hands of the British Government, as a result of the wartime purchase of the three Dominions’ wool clips. Joint Organisation Mr Arthur said that this partnership, which has come to be known as the Joint Organisation, took over 10,500,000 bales of wool which had cost £175,000,000 sterling. As a means of protecting the market against the effects of the disposal of such a large volume of wool, the organisation also operated a system of reserve prices at which it was prepared to buy in

wool in the three Dominions. If market prices did not come up to the organisation’s reserve prices at that time, it was estimated that it would take the best part of 10 to 12 years to dispose of the surplus. “At the end of June, 1951, however,” said Mr Arthur, “I estimate that‘the whole of the stock will have been disposed of. The operation has been a great success. Not only has the British Government been paid back the whole of its initial capital, but at the end of June, 1949, the organisation had made a profit of £113,000,000 sterling. This will be shared equally between the British Government and the Governments of the three dominions. With prices rising since June, 1949, the organisation will have made a further very substantial profit by the end of next June.” Mr Arthur said that he had been attending a conference in Melbourne held between the United States, the United Kingdom and Commonwealth Governments to discuss proposals put forward by the United States Government for ensuring supplies of wool from the three dominions to the United States for purposes of a military reserve. ...... Pre-emptive Buying “ Various proposals were discussed, including one which has come to be known as ‘ pre-emption ’,” said Mr Arthur, “ but after full discussions it was considered that no special steps were necessary and the United States will now obtain the supply of wool for military reserve purposes through auction in the usual manner,” he said. Mr Arthur said that He attended the conference in Melbourne in a technical advisory capacity. At the end of the conference he came to New Zealand for discussions with the New Zealand Wool Disposal Commission in Wellington and the Wool Board. “ I am not prepared to prophesy the future of wool prices, but the world has been consuming more wool than is being produced.” Mr Arthur said. "The statistical position of wool, therefore, is very strong and is very sound.” He said that a strong demand was likely to continue. Future of Synthetics Asked about the future of synthetic fibres, Mr Arthur said that the high prices for wool and the shortage of supplies were undoubtedly supplying an incentive in wool-producing countries all over the world for the use of large quantities of synthetic fibres. “ When in Boston recently on my way from England to Australia, I had the opportunity of inspecting a number of new fibres being produced there and fabrics made from them. I think that with rising standards of living throughout the world, there is today a demand for all textile fibres, whether natural or synthetic. "If the peoples of the world—in both the cold and the hot climates—are to be clothed, I do not think, however, that the use of synthetic fibres at the moment holds any immediate threat to the consumption of wool. The production of synthetics can be increased much more rapidly than wool production and I think it is essential that the natural properties of wool should continue to be publicised. This is the work of the International Wool Secretariat in London and the United States. I am a member of the Advisory Committee of that organisation in London.” Mr Arthur concluded.