DANGERS FORESEEN

Otago Daily Times, Issue 27568, 9 December 1950, Page 10

DANGERS FORESEEN

Freezing Of Portion Of Wool

Returns PA HASTINGS, Dec. 8. Though delegates, attending a meeting of the Hawke’s Bay Meat and Wool Produce Section of Federated Farmers in Hastings today mostly agreed with the scheme for a compulsory freezing of 33 1-3 per cent, of this season’s wool proceeds, there were some who foresaw dangers. It was considered by some that it the present high prices for wool continued for a year or two and the Government continued to retain a portion of the proceeds, the amount taken out of circulation would become dangerously high and would present serious difficulties in arranging for its ultimate release. . , , , Other criticism was mainly based on a belief that a compulsory “ freeze ’ was contrary to the principles of the Atlantic Charter and that as New Zealand is not a member of the International Bask and has not ratified the Bretton Woods Agreement such a scheme may place the Dominion in an unenviable position in international The meeting agreed to seek an immediate answer to the following questions: Can growers deposit voluntarily an amount above the 33 1-3 per cent, compulsory retention up to the allowable maximum of 50 per cent, at some date subsequent to “prompt” date? If the money becomes unfrozen in the event of death will it all come in for probate? Will the frozen money have to be uplifted in a lump sum or will it be possible, when the retention ends, for farmers to withdraw money as they require it?