WOOL IN BRITAIN

Waikato Times, Volume 93, Issue 14538, 9 December 1920, Page 5

WOOL IN BRITAIN

EFFECT OF RESERVES ON NEW ZEALAND HOLDINGS. SOUTH AMERICAN IMPORTATIONS. (Reuter’s Telegrams.) LONDON, December 6. In the House of Commons, Mr Alfred Short, Labour member for Wednesbury, suggested that British firms could have used Government-owned New Zealand greasy crossbred wool instead of South American, had th 6 Government been willing to sell the New Zealand vpol at the market prices. Mr J. F. Hope, Under-Secretary of the Ministry of Munitions, replied that in view of the fact that considerable quantities of South American wool were always imported into Britain and the imports for the first 10 months of 1913 were 50 per cent greater than for the corresponding period of 1920, he saw no reason to suppose that South American wools were displacing New Zealand to any material extent. SCHEME FOR DISPOSAL. OF THE CARRY-OVER STOCKS. (United Press Association.) MELBOURNE, Dec. 8. A conference of the woolgrowers of the Commonwealth discussed a scheme for the disposal of carry-over wools, amounting approximately to 2,000,000 bales, to be appraised through the Central Wool Committee. It was resolved that the British Government be asked to terminate its wo d contracts on, December 31, making a division of the cash, wool and other assets in a ratio of 50 to 50, and that the new realisation association then take control of its share. The conference requested Mr Hughes to petition the Imperial Government by cable. The British Government’s Special Executive Committee, which investigated the position, recommended the formation of a British Wool Realisation Association to obtain control and dispose of all Australian carry-over wool in conjunction with the present clip. 'J’he conference decided to agree lo the principle of the scheme. The conference will further consider the details of Hie scheme, DETAILS OF THE SCHEME. HELP FOR NEEDY GROWERS. (United Press Association.) Received December 8, 7.20 p.m. MELBOURNE, December 8. In the event of (he Imperial authorities favourably considering the BritishAustralian Wool Realisation Association scheme, it will he launched with a capital of 25,000,000 £1 shares, representing the present Australian interests, partly in cash, wool and other assets. Issues will he made to Australian growers interested, half in debenture stock and half in shares worth 20s in the pound, but the actual value of the shares will depend on the realisation of the wool. The directorate will consist o< nine members —live in Australia and four in London, with an advisory council for each State, one member of the directorate in Australia representing British interests, and one on the London directorate representing Australian interests. Both debentures and shares will be negotiable in order lo give early relief to small growers.

It is suggested that all the debenture shares under 1110 will be paid as soon as funds are available from the sale of wool. It is estimated thereby that the number of holders of the stock will he reduced by 20 to 30 per cent within a month or two of the formation of the organisation. It is claimed that the scheme will secure what is most essential at the present time —viz., the restoration of confidence by stabilising Hie wool market and preventing forced sales of carry-over wools in competition with Hie auctioning of the current clips which would spell disaster. It is stated the intention of the Association is not to go on to the market to purchase wool. The object is to arsist wool selling houses financially in order to enable them to make advances to needy growers. THE GOVERNMENT HOLDINGS. LENGTHY LIQUIDATION LIKELY. (Australian and N.Z. Cable Assn.) Received December 8, 9.50 p.m. LONDON, December 7. The report of tire Ministry of MuniPons says that the value of the Ministry’s Australian and New Zealand wool at cost price is approximately £60,000,000, comprising 2,800,000 bales, of which about half are in England or in transit In the present extremely difficult position of the wool trade forced realisation of this £00,000,000 worth would he impracticable, and would ruin jhc entire woollen trade in this country if attempted, quite apart from the fact that Australia and New Zealand are interested in the profits realised from the sale of Government wool. Thus a complete liquidation of the colonial wool cannot be effected for some time to come. PRICES AT LONDON SALES. BELOW NOVEMBER RATES. (Australian and N.Z. Cable Assn.) Received December 8, 9.50 p.m. LONDON, December 7. At the wool sales 9309 bales were offered, of which 2037 were New Zealand. There was a good attendance of Home, Continental and American buyers. About 2000 hales were sold at the Government reserves, which were not changed. What was sold is considered did lots bought for urgent requirements. Tlie prices offered for flic unsold lots were 10 to 20 per cent below the November sales. SALES IN AUSTRALIA. DEMAND FOR FINER SORTS. (United Press Association.) Received December 8, 10.25 p.m. SYDNEY, December 8. ’Though Hie lower classes of wool continue to drag, the finer sorts of greasy command keen competition and high prices, another record being established at 4001. PERTH, December 8. At the first West Australian wool sale, competition was keen fop fine merinos, about the appraisement prices. Medium to good were 15 to 30 per cent below appraisement prices. For wasting and crossbreds there was no demand, consequently there were heavy withdrawals.