WOOL PROBLEM.

Taranaki Daily News, 9 June 1921, Page 5

WOOL PROBLEM.

ATTITUDE OF AUSTRALIA. THE OPERATIONS OF “BAWRA.” “ABSURD IDEAS.” By Telegraph.—Press Aun-Copyright, London, June 7. The Yorkshire Observer says that Mr. W. XL Hughes should be specially invited to visit Bradford, where he will gain a clearer insight into the woo! position than he is likely to obtain in London. Mr. Hughes’ visit to England will be largely wasted unless he returns to Australia able to use his authoritative voice in clearing away the absurd ideas prevailing in Australia, which he will be unable to do unless he consults Bradford traders on the spot. Some Australian visitors declare that there is a strong conviction in Australia that the reported trade depression in Britain is merely a myth created in erder to force down the price of raw materials. An Australian newspaper even alleges that the consuming trade is using the present condition in order to hammer prices down. Bradford’s demand has been handicapped by reason of the large unliquidated stocks of cloth. The theory that Bradford has unlimited power to dominate raw material values is flattering, but untrue. ‘•BAWRA” POLICY. If Mr. Hughes comes he would confer an inestimable benefit both on Australia and Bradford by strengthening the link between the wool trade at the producing and consuming ends, and by extinguishing the idea that Bradford can be compelled to pay arbitrary prices despite the reduced home and foreign demand. At the meeting of the Melbourne City Properties Trust, Mr. Caird (chairman), strongly criticised Bawra’s proposals, particularly the latest suggestion that Bawra be entrusted with the whole of the Australian clip for five years, with a reserve of ninepenee. He said he could not imagine a worse thing for Australia than that the control of her greatest industry should fall into the hands of the very people who were responsible to a large extent for the great accumulation of wool hanging over the market. With regard to the reserve price, crossbreds of the lower qualities must be in competition with the rest of the world. It must be remembered that the whole of the Australian and New Zealand flocks do not form one-fifth of the sheep in the world, so it is futile for anyone to try to dictate prices. The huge accumulation of wool was probably not so grave a danger as Mr. Hughes describes; a much greater danger was the reimposing of the shackles of the Government control on a great industry just emerging from trouble. SUPPLY DIFFICULTIES. The sale of each year’s clip without delay was a prime necssity for the welfare of Australia and her trade with this country. Delay upsets exchange and seriously hampers trade, therefore the realisation of the Bawra wool ought to be subordinated to the sale of the current clip. If Bawra was content to offer the 300,000 bales held over in 1921 the market will probably take it in addition to the new clip, and next year possibly more. The difficulties between the woollen and worsted manufacturers and the merchants in regard to taking up goods contracted before the slump in prices, led to an agreement giving the merchants further extension of accommodation. by which they take 50 per cent, of the orders by June 30 and the remainder by the end of the year. This means that goods which should have been taken by February for the 1921 spring trade will be sold next spring. The free wool sales opened strong at par to 5 per cent, advance.