WOOL CLOUDS IN NEW ZEALAND.

Otago Witness, Issue 3489, 25 January 1921, Page 10

WOOL CLOUDS IN NEW ZEALAND.

| Wool growers in Xew Zealand are for I the most part perplexed and at a loss j to know wliat is the best thing to do with j the season’s clip. The big “carry over ’ I of wool, whether controlled by the Imperial authorities or the proposed British Australian Realisation Association, is enough to rattle anyone interested in the wool industry. It seems apparent, however, that this big surplus has to be safely stowed away somewhere, if only for the wool growers sake —the consumers we can consider later, as they 7 in the ultimate play the tune. From the farmers point of view, there must always be elements of risk of the Imperial Government continue sole owners of the big surplus (2,000,000 bales), because of possible happenings resulting in a change of parties; that is to say, the present occupants of the Home political benches may not hold the reins of power for ever. Should there come a change of policy we could rest assured that the new born political party would dump all wool cargo, and endeavour to put the raw material straight away into use. It must not be forgotten that the public know quite well that there is a big lot of wool piling up in the world. They know also that the sovereign goes a very little way now, and assuredly will not witness with equanimity the slow feeding of the* market in order to bolster up wool places. It is unpalatable at any time to know that what costs you dearly, just placates the other man, and so we see restraint in buying, and must not forget that in the last analysis the public pays the bill, just as surely as the farmer “nurses the bales.” At the recent meeting in Wellington of the Board of Agriculture and the Producers’ Committee to discuss matters in connection with the stabilising of the wool market, it was made fairly plain that the demand to-day for New Zealand wools hinged a good deal, in the opinion of the Conference, upon the result of negotiations between the Home authorities and the Commonwealth of Australia regarding the “carry over.” After considerable discussion on market conditions generally 7 some resolutions thereon were passed. The gist of the resolution affecting wool may be given here:—“That by reason of the fact that arrangements are pending which if brought i to fruition will ensure that the market will Snot be demoralised by a sudden realisation of surplus stocks and result in current clips obtaining the first consideration, this conference of the Board of Agriculture and the Producers’ Committee is of opinion that as soon as these arrangements are completed, and their effect generally understood, the result will be that a feeling of confidence that does not now exist will be restored in the wool industry. This conference thinks, therefore, that there is no need for vendors to sacrifice their wools, as, however, satisfactory prices are forthcoming for the finer qualities, it would appear that growers of these qualities have nothing to gain by withholding them from the market.” Wool growers can interpret the foregoing resolutions as best they 7 may. It certainly cannot help them a great deal in deciding whether it is better to hold on to their wool, or meet the market. We cannot conceive that the wool markets of the world can be indefinitely stayed up anyhow 7 . Wool is always growing, and the consuming public are not buying freely 7 , while poverty is stalking throughout the war battered countries. What about the States of America? “The growing unemployment and lowered wages have (says Mr Roger N. Williams, Vice-President of i the National Bank of Commerce in New | York, on December 14) created a fear on ! the part of many that their buying power !is going to be drastically reduced. They I are struggling to get along with their old j belongings rather than to buy 7 new ones, j apprehensive that later on they will need I every cent they can save in order to make sure of obtaining life’s necessaries. Is it not just possible that the wool cloud will hurst, and what then?