BURDEN OF COSTS

Wanganui Chronicle, Volume 75, Issue 142, 18 June 1932, Page 8 (Supplement)

BURDEN OF COSTS

WOOL GROWERS’ PROBLEM EXPERIENCE IN AUSTRALIA. “The statistics issued by the National Council of Woolselling Brokers appear to indicate that the period of abnormally high prices of the war and the post-war period definitely terminated with the 1928-29 sea on, when the average price throughout the Commonwealth was 16.44 d per lb., and in the Sydney market 16|d per lb.” This statement was made by the general secretary of the Graziers’ Association (Mr. J. W. Allen) in his annual report submitted to the annual meeting of the members. It was pointed out that tho average price in the Commonwealth for the 1929-30 season was 10.29 d, while in tho following year the Commonwealth average was 8.36 d, with the Sydney average in each case fractionally higher. For the first six months of the current season, the Commonwealth average has been and Sydney 8.2 d. After quoting the statement of Chief Justice Detbridge in his variation judgment in July, 1930, that taking Australia as a whole he felt safe in assuming that “the average co; of production of wool is lid a lb., without bringing into account any interest on capital or borrowed money or any profit or return to owners for their services,” the annual report continues: “This statement represents tho general experience of woolgrowers, and, although the utmost economies have been effected by graziers in all controllable expenses within the boundaries of their properties, it may definitely be asserted that very few have been able to show any profit whatsoever during the ;ast two years, or have, in fact, been able to make ends meet. “Wool values appear definitely to have receded to a pre-war level, and would even now be very considerably lower but for tho high rate of exchange, and this cannot safely be relied upon for the maintenance of future values. Some reductions in the important items of wages and interest have been made, blit no alleviation has yet been obtained in respect of taxation, transport charges, or agents’ charges.” Referring to the Empire Wool Conference which was held in Melbourne last June, the report states: “It is believed that while no sensational re-

sults were achieved, a great deal of good was done, especially by bringing together the representatives of the Commonwealth, New Zealand, and South Africa, so that they may in the future more closely work together in tho common interests of the woolgrowers of tho British Empire. The recommendations of the conference have since been unanimously approved by the South African Wool Council, with the exception of the resolution which affirmed that the best method of selling wool is by means of public auction. In this respect the South African Council expressed the view that in some circumstances the sale of wool by private contract was advantageous.”