HUGE WOOL LOSSES

Southland Times, Issue 19546, 9 May 1925, Page 7

HUGE WOOL LOSSES

BRADFORD HARD HIT. PURCHASING POWER CRIPPLED POSITION OF AUSTRALIAN GROWERS. (By Telegraph.—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, May 7. (Received May 8 at 11 p.m.) The Bradford correspondent of the Morning Post affirms that at the lowest estimate from £8,000,000 to £10,000,000 was lost on wool bought prior to December. The money has gone into the pockets of Australian growers. This has crippled the purchasing power of British importers, whose only chance of even partially recouping themselves is to buy the balance of the clips in Australia and the bulk of the new clips at rockbottom price. It will take two or three good years for Bradford to recover even a reasonable part of the money lost through misjudgment of the outlook last Autumn. POSITION OF AUSTRALIAN GROWERS. A YORKSHIRE VIEW. LOW WATER MARK NOT TOUCHED. LONDON, May 7. (Received May 8 at 8.10 p.m.) The Yorkshire Post, in the course of an article, entitled, “Australian Growers and Control,” said: “The prospect of a wool f«m;». eis at discount just now. The present problem is how to deal with large accumulations which are not likely to be wanted for some months, by which time the new clips will be marketed in Australia, calling for the re-establishment of Bawra, which is in marked contrast to the Australian attitude during the later Half of 1924, when making allocations of new wool to prevent over hasty liquidation. Instead of this policy increasing their profits, the Australian sellers let themselves in for a larger share of losses. The growers are now being made to realise, for the first time since the war, that wool is finding ite true economic basis. The boom after the Armistice was artificial. There is now a surplus, not a famine, and the surplus is being carried not by the Government but by private traders. Our importers are facing their losses with courage, without calling for outside assistance. The woolgrowers did exceedingly well for a long time and have small claim to special considerations now. Many who profited by the mad competition in wool at the end of 1924, call for the re-establshment of Bawra. This means that the Australian woolgrowers want a combine amongst themselves for carrying a large quantity of wool into next season and arranging ite liquidation with the new clip in 1925-26. That is their business. The slump has now gone so far that one cannot help concluding that the Australians are wise in not forcing the balance of the wool still held in Australia on the market at this moment. If they did so, they would possibly create a panic and play into the hands of speculators. Low water mark may not yet be touched but any attempt at forced liquidation would mean severe depression in values, with subsequent violent reaction when orders for tops, yarns and piece goods begin to be I placed again in a normal manner.” LONDON WOOL SALES. CONTINENTAL COMPETITION. LONDON, May 7. (Received May 8, 11 p.m.) i At the wool sales there was rather a i better tone for Merinos, due to improved | Continental competition. Other sorts are , unchanged. At the Bradford tops market crossbreds are quiet. There is a better enquiry for Merinos. 64’s at 51d, 60’s at 46d, 56’s at 34d, 50s at 29d, 46’s at 22 Ad and 40’s at 20d. “BAWRA” AND LIQUIDATION. MATTER POSTPONED. MELBOURNE, May 8. At the annual meeting of “Bawra” it was decided, on the recommendations of the directors, that the question of liquidation be left in their hands. AUSTRALIAN SALES TO CEASE. SUGGESTION TO RESUSCITATE BAWRA TO REGULATE SUPPLY. MELBOURNE, May 8. (Received May 8, 11 p.m.) At the conclusion of the conference between the woolgrowers and selling brokers to discuss the question of the slump in the market, it was officially announced that it had been decided that public auctions forthwith cease and be resumed on July 1 if circumstances warrant. Sir John Higgins, in the course of an interview, said that if Bawra had been given power, it would have regulated the supply and thus prevented the slump occurring. He strongly urged the need of stabilising the industry. Asked if Bawra would undertake this, Sir John said that if Bawra shareholders wished them to take up the task again and made such a recommendation, the Australian Board would have to consult the British Board. It would mean that he would probably have to make a hurried visit to London.