MILLIONS LOST IN WOOL.

Timaru Herald, Volume XCVIII, 9 May 1925, Page 9

MILLIONS LOST IN WOOL.

Bradford’s Costly Gamble.

OUTLOOK MISJUDGED LAST

YEAR.

By Cable —Pres. Association —Copyright. Australian and N.Z. Cable Association

Received May 8, 5.5 p.m. LONDON, May 8

The Bradford correspondent of tho “Morning Post” affirms that on a low 1 ’ estimate from £8,000,000 to £10,000,000 have been lost on wool bought prior to December. The money has gone Into the pockets of Australian glowers. This ba3 crippled the purchasing power of our Importers, whose only chanco of even partially recouping is by buying the balance of the clip in Australia and the bulk of next clip at a rock bottom price. It will take two or three good years for Bradford and West Riding to recover even a reasonable part of the money lost through misjudgment of the outlook last autumn.

WOOL OUTLOOK EXAMINED. “NOW A SURPLUS; NOT A FAMINE.” STATEMENT BY YORKSHIRE JOURNAL. By Cable —Press Association —Copyright. Australian and N.Z. Cable Association. Received May 8, 8.10 p.m. LONDON, May 7. “The Yorkshire Post,” in an article, entitled: “Australian Growers and Control,” said: “The prophet of a wool famine Is at a discount just now. The present problem is how to deal with large accumulations which are „unlikely to be wanted for some months, by which time the new ojips will be marketed in Australia. The calling for the re-establishment of the British and Australian Wool Realisation Association, Is in marked contrast to the Australian attitude during the latter half of 1924, when Making allocations of ndiv wool to prevent over hasty liquidations. Instead of this policy increasing their profits, the Australian sellers let themselves in for a larger share of the losses. Growers are now being made to realise, for the first time since the war, that w.ool is flhdin'g its 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, hut 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-establish-ment of the B.A.W.R.A. This means that Australian woolgrowers want to combine amongst themselves for the .carrying, of a large quantity of wool into next season, and arranging its liquidation with tho 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, cn the inarlcet, at this moment. If they did so, they possibly would create a panic and play into the hands of speculators. The low water mark may not yet he touched, but any attempt at forced liquidation would mean severe depression in values, with subsequent violent reaction when orders for tops, yarns and price goods begin to be placed again in a nominal man-

AUSTRALIAN SALES CANCELLED. MAY RESUME IN JULY. by Cable—Press Association—Copyright, xiustraauii uni aN.jj. vjuut* Asaocmuou. (Received May 8, 19. d0 p.m.) iVLnnHU uiu\it, ruay 8. At the conclusion or the uouierence between the wool growers ami setting uiokers, to tltacuss tne question ui tno stump in tne market, it was omcmiiy announced tiiat it had been ueeided tiiat public auctions iorimflG. siiouid cease, and - be resumed on Ist duly, if circumstances tv arrant. bir John diiggms, in an interview, said that il' tne JJ.A.W.K.A bad been given power, it would have reguiatc-u tile supply, and * thus prevented tiie slump occurring. tie strongly urged the need of stabilising the industry.

Asked if tiie B.A.W.it.A. would undertake tins Sir John said if the B.A.W.K.A. shareholders wished them to take up the task again, and made such a recommendation, the Australian Board would have to consult Lite British Board, it would mean lie would probably have to make a hurried visit to London.

TALK OF'SHEARERS’ STRIKE. DENIAL BY SECRETARY OF A.'vV.U. liy CnMe —Pres 3 Association —Copyright, /.usu-mmn amt XCunii: Association (Received May S, 19.55 p.m.) SYDNEY, May S. In reference to tho threatened shearers’ strike unless higher rates are conceded, the secretary of the Australian Workers’ Union announces that tho published statements are unofficial. Tho only action taken by the Union is the lodgment of a claim with tho Arbitration Court for tho varying of tho pastoral award.