THE WORLD’S WOOL.

Taranaki Herald, Volume LXVIII, Issue 16721, 23 April 1920, Page 7

THE WORLD’S WOOL.

MARKETS IN .MELTING POT. DIPOSSIBLE TO PROPHESY. The wool market is more or less in the melting pot, and it is impossible to foresee rriiat the luliiro holds, so iar as prices are concerned. Some remarks on the buujects wero wade on Friday morning by lion. E, Parker,_ chairman of directors of Dalgety and C'o., Ltd., who, with Mr. E. 5 . Reid, general manager of the company, has been spending several months in Now Zealand visiting tho company’s branches. It would be foolish, ho said, to attempt to prophesy. No one could tell wnli any certainty what might happen, in view of the many factors that had to bo taken into consideration. Tho Imperial Govei ument Intel still about a million bales in store. Much depended on how these were placed on tho market. Assuming that they were thrown on the market suddenly, they would inevitably create a glut, the effect of which might bo a fall in prices. An assurance had been given that this would not be done, but notwithstanding it was a situation which needed very careful handling. Could tho wool be placed on the market in small quantities its influence on the market should not bs seriously felt, particularly if some control were exercised over the quantity of wool allowed to go on the market here and in Australia. Granted there was a world-wide demand for wool, but against this the rates of exchange had to be considered. Some of the European countries which wanted wool were not in a position to buy. Germany’s mark, for instance, had fallen so low that she could not afford to enter the market. Other countries wore similarly situated, though, perhaps, to a lesser degree. ■ These countries wanted wool, but they were not in a nostiiou to buy. The demand was for the finer grades, and while the wool hold in store by the Imperial Government had included a considerable quantity of this, tbo “eyes” had to a groat extent been picked out of it. The natural inference was that if all this wool were thrown suddenly on the market it would be the poorer grades that would be most affected by any fluctuations. It appeared to him essential that sonic control shold be placed on the marketing of the wool in order to obviate such a possible glut. Something in this direction was being done in Australia, where it was proposed to set up a Committee of Control. Every woolgrower, even if he only bad throe bales, would have a vote on the question of whether or not the committee should bo set up. The votes should bo in by the middle of May, and if about 75 per cent, were in favour of setting up the committee, the idea was that they might ask the Government to take control over the remaining 25 per cent. In view of the extent to which New Zealand was interested in woolgrowing it might, perhans, he desirable to do something on the same linos here in order to prevent sales being forced.