THE WOOL POSITION.

Otago Witness, Issue 3429, 2 December 1919, Page 45

THE WOOL POSITION.

(By Cable.) DISTRIBUTION OF'WOOL. LONDON, November 23. The Director of Raw Material announces that .he is disposing of 4,000,000 bales of wool during the coming year, of whlc|t 840,000 bales will be sent to Belgium, France, the United States, Italy, and Japan. Shipments from Australia will .consist of 240,000 bales a month, and from New Zealand 60,000 bales a month. The Daily Mail, explaining the abounding prosperity of the textile counties and the purchase of mills at fabulous prices, says that the world wants dressing again. Even China is crying out for British piece goods. In some cases shareholders have been bought out at £lB for £2 shares. Labour is uneasy about the aggregation of mills into the hands of a few London syndicates. ALLEGED PROFITEERING. LONDON, November 24. The Manchester Guardian says that the Board of Trade is appointing a committee to investigate the charges that the Government is profiteering. in connection with the sale of wool. . ' ■» The Textile World points out thafc roughly, £500,000 worth is sold at each sale, £125,000 representing the difference between the purchase price overseas and the selling price. It is understood thafc the Ministry refuses to disgorge it's profits to the Treasury until air'accounts are settled. Ten months' wool."imports represent £91,000,000, and the profits are therefore enormous. * The Manchester Guardian adds: "The Government is alleged to be guilty of the rankest profiteering in selling' wool and similar supplies. It-is stated that-a tremendous profit was made from the. sales of surplus cloth." - .... SIR ARTHUR GOLDFINCH'S EXPLANATION. V LONDON, November' 24. \ The Deputy Controller of Raw Material, on behalf of/Sir Arthur Goldfinch (Director of Raw Materials) assured'-the Australian Press Association that he liad.no knowledge of the proposed investigation of profiteering in wool. He admitted that the high, current prices resulted in considerable profits out of Government wool, but it was subject to open competition ai # auction, which appeared the fairest and most equitable way of disposing of stocks. High prices could ba corrected by reestablishing the system of fixed issues, but such artificial steps would interfere with th'e restoration of normal trade. This was undesirable, and would alsobe unfair to Australian and New : Zealand growers, who were entitled to the highest market price, and to share the profits with the British Government. The other way • of reducing the price was to prohibit the export of wool, and thus eliminate foreign buying. Approximately half the imported wool was re-exported, and if foreign buying were, eliminated, as had been done during the early part of the year, the quantity available would be 'greatly increased. But, in view of the adverse foreign rate of exchange, the Government was anxious to encourage exports It was satisfactory to note that the export of manufactured woollens had already considerably revived. We were trying to-market-an increased quantity, but the lessened capacity of the workers to handle a bigger amount, owing to a xeduction of the hours of the deckers, warehousemen, and railwaymen, limits those efforts, while the difficulties of transport and the congestion existing in the docks increases 1 the -task of satisfactory distribution to the. manufacturers. ■ ■.',. . Meanwhile the world demand for woollens is enormous*, particularly'in view of the'war's destruction in Europe. problematical whether an' artificial reduction in the prices of raw -wool here would be effective in seriouslv reducing the prices of the manufactured goods. IMPERIAL GOVERNMENT'S ' WOOL PURCHASE. MELBOURNE, November 24. Of the Imperial Government's wool purchases £35,000,000 worth is still in Australia awaiting- shipping. «, SYDNEY, Mr Hughes, referring to the cable' message concerning the alleged Government profiteering in wool, states that he is taking steps to protect the interests of the commonwealth. He says: "We are entitled to half the profits, and ought to be consulted as to the price and the method by which the fixed —exactly similar to what is ■ done in the" case of the wheat contracts.