WOOL PRICES WILL NOT GREATLY AFFECT PRICE OF GOODS

Wanganui Chronicle, 21 September 1950, Page 7

WOOL PRICES WILL NOT GREATLY AFFECT PRICE OF GOODS

HAMILTON, Yesterday (PA)—lf the price of wool doubled its present level the cost of wool used in the manufacture of a suit of clothes would appreciate the value of the suit to the extent of only fl ss, said Mr. G. R. Walsh, of Monavale, chairman of the Meat, and Wool section of the Waikato Province of Federated Farmers, and a member of the Dominion Council.

Mr. Walsh said there had bom a great, deal of destructive criticism emanating from ill-informed circles respecting wool prices and some of these statements came from members of Parliament. Due regard had not been paid by critics to the commercial and industrial aspects of the industry. The major commercial fact was that New Zealand export of wool alone commanded the same purchasing power in the world markets today as it. possessed in pre-war days. Commodities like merft. and dairy produce on the other hand, had lost ground heavily in their price ratio to that of imported goods. For instance, it. required twice as many fat lambs to pay for British machinery and textiles as it did before the war, but the same quantity of wool was required to buy the same quantity of imports as was required in 1938. Mr. Walsh said that responsible people were prophesying all sorts of things with regard to future wool prices and their effects on the prices of woollen manufactured goods. Illustrating the falsity of these assertions, he quoted the percentage of the value of wool required to produce a suit of good quality men’s clothes valued at £2l 10s. The figures were: Greasy wool. 5.87 per cent; manufacturing and distributing costs of cloth, 21.29 per cent; tailoring and retailing, 72.84 per cent. He suggests that there should be a campaign designed to educate the public with regard to the true position relating to wool prices.