WOOLGROWERS

Wanganui Chronicle, Volume 79, Issue 18, 22 January 1935, Page 9

WOOLGROWERS

DEBTS IN AUSTRALIA ‘ 1 THEMENDOUS BURDEN” Replying to the comments of manufacturers and distributors in Melbourne io a statement regarding the discrep ancy between the price of raw wool ami the price of knitting wool, Mr. C. L. A. Abbott, Federal member for Gwydir, said that he had taken the average price of raw wool and what he understood to be the averag'd price of knitting wool, and had shown that there was a difference of just on £1709 a ton. “I have no doubt,” said Air. Abbott, “that woollen manufacturers endeavour to keep their costs and prices down to the lowest possible level consistent with making a profit on their undertakings. This is very small consolation, however, to the woolgrowers, who, at present, under the most favourable seasonable conditions, are making a loss of about 2d a pound on wool. There are about 112,000,000 sheep in Australia to-day, and it is estimated that each sheep represents a capital debt to lhe woolgrowers of about 25s a head, the debt being made up in the following amounts: — Owing io the Crown .. .. £20,000,000 To trading banks 40,000,000 To wool firms 30,000,000 To trustee companies .. .. 12,000,006 To insurance companies . . 5,000,000 To storekeepers 2,000,000 To private mortgagees ... 30,000,000 Total debts £130,000,000 “No industry can continue to carry on production at a loss and at the same time stagger under such a tremendous burden of capital debt. The woolgrowers have never been assisted by any Governments, and wool is the only industry in the Commonwealth of which that, may be said. ’ 1