WOOL OUTLOOK.

Waipawa Mail, Volume XXXVII, Issue 8417, 10 December 1920, Page 4

WOOL OUTLOOK.

THE ONLY RAY OF HOPE. WELLINGTON, This day. Addressing the half-yearly meeting of shareholders of the Bank of New Zealand to-day the chairman of directors Mr Beauchamp, made reference to the wool outlook. After dealing in detail with prices and clips, he said:—The demand as it exists to-day is not equal to absorbing the available supplies in a reasonable time, consequently efforts must be made to stimulate the consumptive demand; but this demand if it is to increase must be tempted into expansion by low prices. So long as the statistical position of wool remains as menacing as it is, low prices will rule for this staple. What is best to be done to get the large volume of wool into consumption 1 It was thought at one time that the United States, with its wonderful accumulation of war wealth, would be able to consume a fair quantity of wool, but the position in that country is unsatisfactory'. A cablemessage, dated New York, October 16th, and published in the local papers, stated that at Salt Lake City. Mr Marshall, Secretary of the National Woolgrowers ’ Association, announced that the woolgrowers of the United States would make a determined effort to secure legislation placing an ■ embargo on foreign wool. As the new President is a Republican, we may be sure that the woolgrowers of America will secure all the protection they want—in fact, protection of farmers was one of the cliiet planks of Mr Harding’s political platform. We cannot, therefore, look with any degree of confidence to America as a buyer, to any extent, of Australasian wool.

The only ray of hope visible at present is in poverty-stricken Europe chief among the countries being Germany. But Europe, unfortunately has not the cash or the credit to pay for wool, and it would appear desir able that New Zealand should adop some scheme of extending to Contin ental buyers of wool long credits Tile Argentine scheme is designed t: give foreign buyers two years ii which to pay for their purchases o: wool, and New Zealand might find i advantageous to arrange simila terms. In any case it must be evi dent that nothing like the prices ob tained under the British commandee can be expected for this country' free wool. In the twelve month ended September 30th last 165,821, 5081bs. of wool, valued at £12,351,39 were exported from New Zealanc For a similar weight of wool now w should get probably about £7,000,00( and a good deal of that money will b owing to the country for some time especially if sales are made to foreign ers on long term credits. To assis growers who desire to hold thei wool, the Government has obtains authority to guarantee advances, an it is probable that many will take at vantage of this privilege. If so, tbs will mean the creation of a conside: able additional amount of bankin credit, which will be locked up i comparatively long-term investmen Such advances would naturally ten to curtail credit in other directions