TIMELY RELIEF.

Star (Christchurch), Issue 16892, 17 November 1922, Page 7

TIMELY RELIEF.

BETTER WOOL PRICES. EFFECT ON COMMUNITY. The good prices which were realised zt the wool sale in Christchurch yesterday are expected to give timely relief to many farmers and to “ boost ” trade generally. “It should have an exceedingly wholesome effect generally,” said the representative of a leading firm of brokers in discussing the sale. “It must help all round: what F good for the count rv must he good for everybody. Wo get back to the old position that the farmer is the backbone of the i ountrv.” The * reason for the high prices at ! the sale, it is stated, was the demand j from local factories. Mercantile firms | arc of opinion t,hat. when this demand | is satisfied prices may ease, because the j figures to-day are certainly above Ton- | do? parity. However they believe that | prices for fine wools may lx 1 expected to remain at quite a good level. A GHXERAL TONIC.” The result of the wool sale was described as a general tonic by Mr A. "V\ . Jamieson, manager of the New Zealand Farmers’ Co-op. Association. Mi ! Jamieson said that there was no doubt i that the prices in the main l were be- | vend the most sanguine expectations. When one analysed statistics dealing I with the world’s estimated prospective ! wool supplies which showed a tremendous depletion as compared with a ! few years ago. one could not but realise that the primary producers of New Zealand were justified in looking for better results. Of course it must be remembered that this, the first wool sale of the year, was a small one. although every type of wool was exhibited and gave a good criterion of present values. ff these prices were maintainj ed, producers would bo foolish not to j accept, and get the been fit of ihe ready | money without any contingent liability. ;As the season progressed and the j larger sales were held there was no j doubt that the distribution of a larger ; amount of money would tend to ease j the general .situation : but it must be j remembered that nicest farmers were j under financial obligations at a rate ! of interest which must necessarily influence them to discharge those liabilities before incurring any expense in the matter ol farm development. Nevertheless, with enhanced values ol wool and stock wnich wore 50 to 60 pci cent higher than this time last year, given anything like' reasonable climatic conditions, a record season lor Canterbury m the matter of production should be witnessed. ; At first glance, the increased prices i appeared very handsome. but one must ! not: lose sight, said Mr Jamieson, ol j the heavy overhead charges that still existed. Those had created a burden o-r* the producer that would I taL-e one or two good seasons jto eliminate to a satisfactory j extent. There were still a number ol adjustments to bo carried into operation before there would be anything i like a surplus for distribution, such | as obtained during the war period, j It was gratifying, however, to realise J from the reports received from every ! section of Canterbury and Marlborough j that farmers had been economising to a wonderful degree, and this would unj doubtedlv improve their position and | they would benefit to a very much | greater extent than if they had folj lowed their usual course of expendij lure. The markets for lamb, skins and j pelts and kindred linos, were very enj couragpng. and all vould tend to rehabilitate the primary producer’s position in a shorter time than the most j optimistic if few months ago anticiI patecl. Tt is just a question, said Mr. ; Jamieson, of all sections of the comi munit.v combining in an effort to pro- : duee as much as possible and reduce, | where possible, the cost of distribnj lion. This would immediately be re j fleeted in an easier money market and more stable conditions would prevail j throughout the primary and secondary I industries. The efleet of the better j rates being secured at the safe would : he a great one. and would again indi- | f ate that the confidence of the com- | munity was centred in the late of the | primary producer, because it was re- | cognised beyond a shadow of a doubt j that wo must look first to the land j for a return to better general contli- [ t:ons. The statement of the Prime i Minister that the interest rate would j be down a iiaii per cent, on January ibo history of the past three years was written the community would be more appreciative ol the great assistance that had been rendered by the banking and other financial institutions in a supreme effort to keep all activities, I ns far :is possible, in motion. I "‘ 11 is not wise, just because of this little success, for the community to think that all the problems associated with business have been solved, because there are . heavy liabilities in the Dominion which have got to bo discharged. This can only bo done by a ! J '>aintonaiß(' of the economic police ; that iias been preached in order that | vo might get relief from taxation j < re.." concluded Mr Jamieson. -v - = -