The Wool Surplus

Rodney and Otamatea Times, Waitemata and Kaipara Gazette, 3 January 1940, Page 6

The Wool Surplus

While this Dominion has sold its whole wool clip to the British Government it retains a vital interest in the disposal of the balance above Allied requirements, since it is to share any profit that may be made by the sale of wool to neutral or other countries. The misgivings which are felt in London regarding the Government's lack of attention to wool export have therefore special significance to us. The price at which the Dominions clip was sold has given general satisfaction to growers, and the appraisal rates are, by general consent, fairly and soundly based. But no amount of calculation could ensure that the appraisal rates will at the end of the season exactly conform to the average price at which the Imperial Government bought, and 5 per cent, of the total account sales is being used to create a fund which will be used at the end of the season to balance valuation and realisation. If any profit be made by the British Government the-New Zealand seller will beassnred of the receipt of his 5 per cent., and he may possibly receive a. bonus payment in addition. Apparently, only 56 per cent, of the New Zealand and Australian productions are required by Britain and France, and the fate of the huge exportable surplus thus 'made available is causing concern, it being feared that unlessthe export demand is met at reasonable rates a* great carry-over may be the result. ; At the time America is a heavy buyer of the special wools milled there, the demand for textiles being unusually heavy. Continental countries will also require wool, and it is essential that they be kept in the market by offers at rates within their capacity to pay. Britain needs all theforeign credits she can raise, especially in America, to finance aeroplane and other munitions purchases, and the wool manufacturing trade in England lias done a great service by drawing prompt attention to the necessity for orderly and adequate marketing of surplus stocks, so that the overseas credits may be brought to the highest possible level.