THREAT TO WOOL

Poverty Bay Herald, Volume LXI, Issue 18579, 13 December 1934, Page 5

THREAT TO WOOL

GERMAN SUBSTITUTE AUSTRALIA WARNED • • v. *- v ■ v _ SYDNEY.'Dec. 12. The German Consul-General, Dr. Asmis, addressing the Millions Club, to-day warned Australian woolgroweys that the manufacture of “woolstra,” or artificial wool, in Germany* was likely to become a very big thing. Dr. Asmis anticipated that, in the near future, woolstra would' be exported in competition with natural w,ool on such a scale as. to prove disastrous to primary production. Woolstra was a mixture of vistra fibres, made from beech wood pulp, and wool, and. although it had certain disadvantages compared with natural wool, a majority of the German people would wear it, aud were actually wearing it. Ho bad received a cablegram on. Saturday from Berlin saying that the cos! price of woolstra now was 30 to 40 per eent. below the price of scoured wool in Germany. Dr. Asmis advocated- fin adjust-

ment ,of the trade balance between Germany and Australia as a means of regaining Germany’s custom for Australian wool, of which last year’s purchases by Germany were in the vicinity of 600,000 bales. Germany would not accept credits, even if they were offered her.

Mr. Coates was among the guests who heard 1 the address. Sir Henry Gullett, Minister lin charge of trade treaties, expresses the opinion that the failure of German and Italian buyers to .operate in the Australian wool market. is seriously depressing wool prices. The Ministry is now exploring the possibility of increasing German credit by Australia to enable Germany to take more Australian goods.

GERMANY’S NEEDS

STOCKS OP TOPS LOWER

“German millmien evidently need wool,’’ states the latest wool review of Winchcombe, Carson, Limited, .Sydney. “The substitute fabrics which they are producing may reduce their needs, but stocks Of tops in the country were 45 per cent, less at September 30 than a year before. {’ The review comments on the German barter agreement with South Africa and states that African- markets will benefit by increased German competition. The results of the arrangement should be fav.orablc in reducing the quantities available for other countries in Africa, and tending to make the general position of supplies more sound. Discussing the sales in Australia, the review states that the market has displayed a wider demand' than during preceding weeks. At the level of values ruling most offerings have been readily absorbed. Continental buyers have been equipped with a larger volume of orders, and Yorkshire and Japan have bought in bulky quantities.