THE WOOL SITUATION.

New Zealand Journal of Agriculture, Volume XVIII, Issue 3, 20 March 1919, Page 192

THE WOOL SITUATION.

The following cablegram ' from the Secretary of State :for. the Colonies to the Governor-General '■ of -New’ Zealand, dated London, 8th February’ ’ 1919, has- been published through the Acting Minister in Charge of the Department of Imperial Government Supplies (Hon. D. H. Guthrie):— ) ■ :

The wool situation is changing rapidly in all parts of the world since the Armistice was signed. Contracts for military woollen equipment have been freely cancelled in the United States and United Kingdom, and such production is coming rapidly to an end. Demands for civilian woollen goods have not yet fully taken the place of military orders, and the wool-markets are somewhat depressed. The Government of the United States, who are the principal holders of wool stocks in that country, are holding fortnightly auctions. Prices, which in Boston were 30 per cent, above British level, have now fallen to British level, and at each auction many lots are withdrawn for want of buyers. The South American markets are stagnant. There are no buyers anywhere here at 1918 prices, and sellers are not yet ready to accept prices which buyers offer. Nevertheless, South African farmers almost unanimously declined the offer made by His Majesty's Government to purchase the present season's clip on the same terms as agreed with Australia and New Zealand. South African wool will be sold to Japan, the United States, and the United Kingdom in the open market. Transactions up to the present are limited. His Majesty's Government has decided not to buy the British clip for 1919, because farmers in general are dissatisfied with prices, and because the Government do not now require British wool for military purposes. Under the conditions, therefore, British, South African, East Indies, and South American wool will be sold freely in British markets without restrictions. Australian and New Zealand wool held by the Government under the purchase scheme will be auctioned in London, open to all British and Allied buyers. Reserved prices will be fixed somewhat below the present Bradford issue prices. At present it is intended that the first auction shall be held early in .April, owing to the greatly improved shipping prospects, which will render the supply sufficient by that date. It is not thought possible to handle by London auctions more than 100,000 to 160,000 bales monthly, which might not be sufficient to meet the demand. His Majesty’s Government, therefore, proposes to continue the issue of additional quantities of wool, concurrently with auction sales, to British and Allied buyers, at fixed issue prices, revised from time to time as occasion requires. Up to 30th April at least the present issue prices will be maintained.