AUSTRALIAN WOOL

Poverty Bay Herald, Volume LV, Issue 17175, 4 February 1930, Page 8

AUSTRALIAN WOOL

PROVISION OF FINANCE CLIPS MAY BE WITHHELD (Received February 4. 1 p.m.) MELBOURNE. Feb. 4. A conference of woolgrowers and brokers is being held to-day to devise, plans to finance v.ool, which, it is contended, must few withheld from tho market until the consumers are ready for fresh stocks. The.industry is courting disaster, its representatives assert, by continuing lo force more, wool on the market, than (he world's buyers require, with the result that the surplus must be sacrificed at speculators' own prices. Growers hitherto have been self-reliant and have eschewed Government aid in the. marketing organisation, but it is believed that an appeal for financial assistance to tide them over the present difficulty may "bo decided upon by the conference. '"They recognise that, Mr. Scullin and his Ministry have shown a desire to help the industry. GOVERNMENT ACTION URGED POOL WANTED LONDON, Jan. 24. Immediate Government action for the stabilisation of wool prices is urged by Mr. A. H. Benjamin, a leading agent, for Australian wool and meat, who claims that no difficulty would be experienced in floating a £25,000,000 loan for that purpose. Large American interests would support tho loan in order to restore the Australian buying power, is the contention of Mr. Benjamin. Immediate Government action for the stabilisation and sponsorship of the balance of the 1929 Australian wool clip, and for the next five years is the most urgent protection needed for Australian welfare, according to Mr. Benjamin.

Following the collapse of tho London wool market, ho told a press representative that it would be possible to secure a £25,000,000 loan oft 'fair fermß here quickly for stabilisatibn, because of the large United States interests, such as General Motors •Corporation, realising that wool was Australia's life blood. They would bo willing to advance money for the ptirpose of insuring Australian buying power, pending a recovery on the world's wool market.

Mr. Benjamin's view has been mailed and cabled to the Commonwealth Treasurer, Mr. Theodore, recommending the establishment of a Wool Board on similar lines to that adopted on behalf of New Zealand meat producers. Sir John Higgins' BaAwa schemo, the United States Farm Board, and the Brazilian Coffee Control.

"The London decline in prices will no,t end unless the Australian clips are taken Over for five years pending a recovery in the market. Worse fi inevitable unless Australia's merino monopoly is assisted by Government sponsorship. If the decline is not checked, the most serious effect on Australian finances' and securities seems inevitable."