WOOL SALE SEASON

Poverty Bay Herald, Volume LV, Issue 17146, 31 December 1929, Page 7

WOOL SALE SEASON

BRADFORD'S ATTITUDE OPPOSITION TO EXTENSION A FINANCIAL DIFFICULTY. (Elec. Tel. Copyright—United Press Assn.) (Received December 31, 11 a.m.) LONDON, Dec. 30. A Bradford message states that tho Wool Federation is opposing an extension of the New Zealand wool sale season because buyers are anxious to go to England at the end of March or tho beginning of April. Mr. George Whitaker, the president, contended that the value of the Now Zealand clip could not be enhanced by an extension of the season. Nevertheless, the New Zealand selling committee could extend it if it is desired. Mr. William Hunter, a past president, said importers had adopted a conservative policy of buying, and were not prepared, without the support of other branches of the industry, to relievo the "growers' burden by carrying clips for the use of Consumers until the arrival of the following clip, Mr. Hunter, who is a former president of the British Wool Federation, expressed the opinion that whatever wool is not sold in New Zealand can 'be' sold in London when growers decided to accept the market prices, Before the war, a very largo proportion of the Colonial clips was sold in London and the industry-drew its requirements from that reservoir. Since the war it has been the deliberate policy on the part of tho growers and the selling brokers in New Zealand and Australia to offer the major portion of their wool within four or five months. They are anxious to perpetuate this 'policy, but, owing to the changed financial conditions, importers are compelled to adopt a more conservative policy in buying. They are not prepared, without encouragement from other sections.of the industry, to relieve the. grower of tho burden of carrying the Colonial clips for the use of consumers pending the arrival of the forthcoming clip.

Mr. Hunter added that the statement that New Zealand will lose £5,000,000 because of the federation's attitude' .was ridiculous. Growers of wool, like producers of every other commodity, were obliged to accept the world market price. Moreover, the federation's attitude would not alter the selling value of the clip in any way. The law of supply and demand would determine its price.

NO SOLUTION OF PROBLEM WOOLBROKER'S COMMENT (Special to the Herald.) CHRISTCHURCH, this day. "I cannot agree that an extension of the wool selling season here would bo a solution of our troubles," said a prominent Christchurch woolbroker to a reporter to-day, when discussing the, cabled comment of officers of the British Wool Federation criticising the message published at Home that the refusal of Bradford to agree to an extension of the season would result in a loss of about £5,000,000 to New Zealand.

"Personally," continued the broker, "I can't see'any justification.for such a suggestion. Whoever made it certainly had no grounds for doing so. There is nothing to substantiate it. It is easv enough to put it forward, but the experience this year 1s that prices have been gradually slipping back. We are in for a period of lower prices, and we have got to accept it. Nothing we can do here will have any effect on the London market. It is purely a question of finance there." His advice to growers, he added, was to get their wool in and get it sold at once. It was no good their holding their wool. Another broker held a similar view. "I think the statement made here about the loss to the country is grossly exaggerated," he said. "The refusal of Bradford to agree to an extension of the season might, make a little difference, but not to that extent."