WOOL REALISATION.

Sun (Christchurch), Volume VII, Issue 2142, 27 December 1920, Page 5

WOOL REALISATION.

THE AUSTRALIAN SCHEME. CONDITIONAL APPROVAL. By Cable. — Prtn Asiociatlon. — Copyright. (A. * N.Z.) LONDON, Dec. 23. A full meeting of the British Wool Federation at Bradford received the deputation's report on the interview with Lord Inverforth and Sir Arthur Goldfinch. After full discussion, the meeting passed a resolution, with only two fiissentients, approving of the Australian realisation scheme on an assurance. (1) That the interests of the textile trades will be represented on the directorate, and on the proposed Syndicate; (2) That the distribution of wool through the London sales and usual trade channels will be continued; (3) That the reserves will be fixed as near as,possible on the basis of world values. The federation telegraphed to Lord Inverforth accordingly. Yorkshire newspapers consider that the Wool Federation's endorsement of the scheme ensures its ratification, but continue their unfavourable comments. The Observer" says that half the wool which the growers sold to the Imperial authorities is Still the property of the original owners. It is probably the most grotesque fact ever known in commerce. It is the growers' trump card, which the growers played to their own advantage as far as they were able, but the great problem still remains, namely, how to get the wool into consumption. Failing success in this direction, the transference of the selling powers'from the Ministry of Munitions to the syndicate, will be valueless. The "Yorkshire Post" says it appears that Lord Inverforth and Sir Arthur Goldfinch, officials of the Government Wool Department, obtained a great triumph, but the opposition displayed since the announcement of the scheme has secured important concessions which, in some degree, .safeguard the interests of wool traders and users. "The "Post" understands that the Government will retain its veto over the Realisation Association's policy, also the right of veto over nominations to the Board of Directors. These concessions make the scheme much more acceptable to English wool traders generally, but England ought to have five directors, and Australia four.

NOT ASKING TOO MUCH. THE PROPOSAL DISCUSSED. <A. & N.Z.) LONDON, Dec. 24. Replying to-a telegranr f rom the Bradford Chamber of Commerce exSressing the opinion that it would e unwise to hand over the Go-

vernment stocks of wool to any syndicate, and requesting that the whole of the woollen and worsted trades should be consulted before the Government takes action the Australian proposals, Sir Arthur Goldfinch said that the Australian Government, in requesting that half -the surplus wool and half the cash surplus should be handed over to the Co-operative Association, representing the entire sheep-farming community of Australia, was asking mo more than it was entitled to receive. The British Government would not think it proper to offer any observation on the Australian Government’s proposed use of these assets. The Australian suggestion that the British Government should liand over the British half of the Surplus wool to the Australian Association for realisation on behalf of Great Britain stood on a different footing, but there were strong reasons why it should be accepted. Enormous difficulty, delay, and unnecessary expense •Would be involved in making a physical division Of the 1,800,000 bales of wool, and the British Government desired to disband the Wool Department as rapidly as possible. The Australian proposal was very welcome to this department. The terms under which the wool was purchased entitled the Australian Government to be consulted in all the arrangements for the sale of all this wool. Australia would not agree to the British Government handing over any part of this w'ool for sale to any agency fxcept an association on which Australia was very largely represented. The Australian proposals contained nothing affecting the normal course of business in the Australian or British wool markets.* The new clip would not be subject to the Association, so the flow' of w'ool to England from Australia and other countries should continue to the full extent of the industry’s requirements. Australia asked for no restriction and no preference of any kind, therefore it was impossible to see how 7 British wool-buyers would be placed at any disadvantage as compared with their position in normal times. The appointment of thoroughly qualified responsible men .of business as

directors of the association, whose nomination was subject to the T . itish Government's approval, would be a sufficient guarantee that the association's affairs would be conducted in a moderate and reasonable spirit. Any attempt to hold up wool for unnaturally high prices was outside the desires \pr the asso-i elation, and would, in any case, be; defeated by market conditions. The I Governments of several other wool-' producing countries were finding, themselves forced to take protective measures to safeguard the sheep in-' dusiry. From this point of view the Australian proposal was so cautious and moderate that the Wool Department would find it difficult to offer any valid criticism, even if it were permissible to do so. New Zealand wool was not at present included in the Australian scheme. After the answer Riven to the Australian proposals the problem of dealing with New Zealand wool would be considered.

WOOL FOR POLAND. A BRITISH CONTRACT. (A. & N.Z.) LONDON, Dec. 24. The British Government has contracted with Poland to sell 35,000 bales of Australian and New Zealand wool for £1,150,000. The transaction is to be carried out in connection with a British scheme of relief credits. Britain receiving as security certain Polish bonds. The deliveries of wool are to commence immediately. i