WOOL TRADE PROBLEMS.

Press, Volume LVIII, Issue 17420, 3 April 1922, Page 8

WOOL TRADE PROBLEMS.

SIR ARTHUR GOLDFINCH ON BAW.RA MERINO STOCKS ALMOST CLEARED. (JKOM OTTB OWW OORRKBPONDHNT.) LONDON, February 14. Some interesting speeches regarding the present difficulties and the prospects of the wool trade were made at the annual dinner of the British Wool Federation, held at Bradford. Sir Arthur Goldfinch, chairman of the British Board of 8.A.W.1t.A., was one of the principal guests, and in replying to the toast of "The Visitors," foreshadowed the funeral of that organisation. Incidentally, he referred to Mr Massey's visit to Bradford and to a certain secret meeting "at which the Prime Minister of New Zealand had been almost sulphurious in condemnation of 8.A.W.1t.A." >■ . When the time came—and it would not be far distant —to invite many of those present to celebrate the funeral of 8.A.W.R.A., said Sir Arthur Goldfinch, very few tears would be 6hed. He appreciated that, to men who had brought their individual businesses to success, it would not be agreeable or sympathetic to have euch a vast institution as 8.A.W.1t.A. holding in one hand such a great quantity of wool, and exercising such a large influence upon the wool trlade. It might be aggravated by the feeling that B.A.W.R.A. was under amateur management. He did not in the least undervalue or resent the feeling of watchfulness and criticism towards that very - great institution. Those who shared in its origination and made themselves responsible for a certain time in conducting its affairs never expected any popularity, nor a good Press. They had' done their best. Three points had been put before B.A.W.R.A. by representatives of the wool trade: (1) to the greatest extent to preserve all existing channels of trade, and not attempt to interfere and deflect the channels which had grown up in the purchase and distribution of wool; (2) that no arrangement should be made which disturbed parity values between Australia and London: (3) that in no circumstances and under no pretext should the wool industry of this country be deprived of these necessary supplies of raw material. The first two conditions had been fulfilled to such an extent that he did not think there had been a bit of discussion since._ If there had been, it was entirely unjust. Methods of Sale. The method of conducting the sale of wool in this country had continued exactly as' it always had from time immemorial. In fact it had been a source of reproach against the Association that it had limited itself too much to those special channels or distribution, because there were experts in some quarters who thought that by some marvellous financial genius _ or some special power, B.A.W.R.A. might be able to get rid of a, great part of the surplus wool to distressed countries in a way that ordinary traders could not do. Sir John Higgins, chairman of the Australian Board, determined from the very first that if any such disposals were made they should not be made under such circumstances as to put the industries of this country at a disadvantage. The third point was a controversial matter. lie thought no one would be bold enough to say there had ever been a scarcity of raw material. The criticism levelled nt B.A.W.R.A. wa« that, by imposing reserve prices at times, wool had been withdrawn which might poasibly Ihnve been purchased by the trade if there had been no restrictions whatever To the members of the wool delegation in December, _ 1920, B.A.W.R.A. said, as plainly as it was possible to speak, that it would not be possible for the British Government wilfully to allow the surplus wool in this country to be disposed of in such a manner as to ruin the growers of wool at the other end of the world. (Hear, lliear.) Eumours of a Secret Meeting. B.A.W.R.A. had a curious experience in August and September last year, wlhen its two classes of critics met 'in some extraordinary coalition" in Bradford. When the Premiers of Australia and Now Zealand came to that city tliey appeared to be in agreement with, eome of the extreme sections in Bradford m condemning the Association. If they did so, they condemned 8.A.W.1t.A. from exactly opposite points of view. It further seemed that when the Prime Minister of New Zealand was in Bradford, hf> was at the eame time addressing communications to the Government, urging that the whole of the old wool should be withdrawn from sale for an indefinite period, in order that wool prices should be i-tarply advanced, because of the'shortage of supplies. He (Sir Arthur) heard rumours of. a certain secret meeting in Bradford behind olcsed doors, at which the Prime. Minister of New Zealand had been almost sulphurious in condemnation of B.A.W.R.A. (Laughter.) The Association realised that the wool textile trade 'had passed through a terribly bad period,, and he did not bear it any grudge. He thought these difficulties were disappointing. As far as concerned merino wool, they had practically disappeared altogether. He had liotioed with pleasure that during the last three or four weeks even his most bitter opponents in the Press had ceased to demand Parliamentary intervention in regulating B.A.W r .R.A.'s sales of wool. He did not tlhink that_ demand would be renewed, because, if 60, it would b© almost too ridiculous for words.

Merino Stocks almost Exhausted. B.A.W.R.A. stocks of wool were now in very small compass. The question of limits had altogether disappeared. 8.A.W.R.A.., was obtaining in the London wool market in some cases moro than 100 per cent, above reserve prices. As far as quantities were concerned, who, ho asked, who knew the trade, could think it would haye any material effect upon the pcaition in 1922 whether B.A.W.R.A. merino wool w«s offered in quantities which would completely clear it out by Juno or September? In any case, long before the next annual dinner of the British Wool Federation ) the last bale of B.A.W.R.A. merino wool would not only have been sold, but would have passed through the' .mar chines, and would have totally disappeared <is virgin wool. It was no very great matter of concern to B.A.W.R.A. whether merino wool went up 2d or 3d, or went down a penny or two, bocauso it jtvas already at a. price which, while hot extremely remunerative to the grower, probably gave him a living. Bising Crossbred Prices. Crossbred wool was going to be a subject for B.A.W.R.A/s consideration. The Association had great quantities left, and the question of price was one of living interest, and would continue so for a long time to come. London prices of medium and low grades were 5d to 7d now, as against 19d eighteen or twenty months ago. "I 1 affirm, 1 ' said Sir Arthur, "that it is abpolutely impossible for the most favourably placed grower of icrossbred wool in the" world to make both ends meet, even at present rates. If they are living at., all, they aro living on past "fat." You must not be surprised if the Association—in so far as it makes any public appearance at all, and in so far as it takes any action which influences the market —will take action in the direction of raising the price of crossbred wool. I maintain that we serve the interests of wool consumers and the wool trade, on a I long view, by doing that."

' Future of Australia. In responding to the toast of the "Houses of Parliament," proposed by Lord Barnby, Mr H. Norman Rae, M.P., dealt at length with the relations between this country and Australia, with particular reference to his recent visit to the Antipodes. He said the competition which they in the wool trade had to face from the users of wool in Australia had increased very materially in recent years. Unfortunately, the wool-growing, industry in Australia was passing through one of the worst times it had experienced. Costs of producticn had so increased and the price obtained for meat was so low that the average grower, if he was not supported by banks or by friends, was aiming very quickly for the bankruptcy court. On the question of tariffs, Mr Rae remarked, "I think they haive got protection tun clean mad," and added, "My honest conviction is that until Australia improves the conditions that exist for those who must live upon the land, they cannot expect —and will not get—the right class of emigrant into that country." The life of their wo-men-folk, the wives and daughters of the farmers, he said, was nothing more or less than slavery. As to the future of the country, there could be no doubt. A country so richly endowed by Nature must sooner or later overcome the unnatural difficulties created by man. Trade Prospects. "The British Wool Federation" was proposed by Colonel O. C: Armstrong, D.S.O , President of the Federation of British Industries. Speaking of the prospects for trade and industry, he said ho wished it were possible to Bhare the optimistic views of some of the leading newspapers. In a certain measure the general outlook was undoubtedly better than it was a year ago. Our financial position, was sounder and cleaner, losses on slocks had been faced, and where possible provided for; money was cheaper, and in some cases of overcapitalisation there was a tendency to face the necessity of possible reconstruction. On the part of Labour there was also an inclination to realise that their interests were more closely interwoven with those of capital than they had hitherto been willing to believe. Nevertheless, he feared we had a long way to go before we saw that gradual, persistent, all-round improvement on the up-grade of the curve. As to the efforts which capital and labour could make to revive trade, Colonel Armstrong said there waa scope on the part of the employers for improving their means and methods of production, for reducing their overhead charges, and generally bringing down works' costs. On the other hand. Labour must give of its best. Employers and operatives must have faith in each other if we were to pull through the dark days ahead. Colonel Armstrong concluded; "I am firmly convinced, in face of the experience we haive against us, if our nlen will throw in their lot loyally and wholeheartedly with the emplovers, we shall regain our vanishing export trade, and they will receive their fair share and more of the resulting prosperity." (Applause.) Plenty of Wool in the World.

The President, replying, referred to wool prices, and said that Sir Arthur Goldfinch-had made a statement that because there had been a displacement of 400,000 hales taken out of the hands of the 'free" wool holders or the B.A.W.RA., there had been an increase in consumption. He was rieht to a certain extent. From June, 1920, to June, 19i»l, everyone was trying to get rid of everything he had, and the blocks of the manufacturers, spinners, combers, and topmakers became nrpctically depleted. Since July, 1921, however thev had heen replenishing their stocks, and by the end of last year had increased them to 300,000 bales. . This was merely turnover. If the figures were divided by two, allowing ■ somethin" for replenishments, the second fighe nearly correct: There was in fact, plenty of wool in the world vet,' and there was no reason for the recent increase in prices HIDES MARKET. MELBOURNE, April 1. Tho hides market ihas greatly improved. AH weights, excepting heavy kips, are firm at id advance. A.M.P. SOCIETY. ANNUAL REPORT. The seventy-third annual report of the AMP. Society has just been issued. T&a new business (sums assured) amounts to £l2 845,515 made up of £9,655,217 ordinary, and £2,990,208 industrial. Net claims by death amounted to £1,291,557 ordinary, and £26 359 industrial. Subscriptions to war and repatriation loans now exceed £13,660,000. Tho surplus of £1,489,762 ordinary, and £4B 616 indusvial, in each case a lecord, will produce reversionary bonuses exceeding £2,629,000, over £300,000 more than last year. The rate of interest on the mean funds is £5 5s per cent. Tho total annual income exceeds £6,700,000. The retiring directors are Messrs Bicnord Teece and Walter Mullens Vindin, both of whom are eligible for re-election. They are the only candidates for the two vacant seats.

CUSTOMS DUTIES. OVER A MILLION DECREASE AT WELLINGTON. The gross Customs receipts collected at the Port of "Wellington during tho twolva months ended March 31st, 1922, show a total decrease of £1,132,203, as compared with the receipts for the preceding twelve months. The Customs duties collected for the respective quarters were as follows: — 1920-21 1921-23 £ £ Juno Quarter .• 685,682 888,099 September Quarter .. 744,307 894,987 December Quarter .. 614,350 341,635 March Quarter .. 518,102 328,697 Totals >. 2,662,4-11 1,453,463 On the other hand, the beer duty collected in Wellington during the twelve months ended on Friday showed! a substantial Increase, the amount being £42,963, as compared with £36,583 for the preceding year. Under the heading of "other receipts," ft big decrease is shown, the total for the past twelvo months being on.y £16,458, as compared with £46,073 for tho year ended March 31st, 1321.

TATTEBSALL'S HORSE SALE. Messrs H. Matson and Co. had an entry of 30 horses on - Saturday, comprising draughts, hacks, colts, and ponies in fact, every class was well represented. Farmers desirous of purchasing good, active farm : horses were not disappointed, as aeveral good : consignments came to hand, and met with > excellent competition. The quality was much ' improved. The following sales were effected: i —Draught horses: On behalf of Mr D. Wilson (Bromley), bay gelding, 7yrs,£4o, to Mr Geo. Trott (Broadfielda); bay ge'.ding, 6yrs, £46, to City Council, also chestnut gelding, £3l, to Mr Wiitta. -On account, of Mr "S7. Russell' (Soutlibridge), bay mare, 6yrs, £4B 10s, to Mr Trott; account of. Mr J. Rich, ards, bay mare. 6yrs, £l9, to Mr "W. Harwood (Aylesbury); account client, bay mars, Syrs, £lB, to Mr A. Mercer, (St. Albans); .account Mr J. R. Parish (Spencervilie), black gelding, unbroken, £23 10s, to Mr .J. Wayell; account Messrs J. Heyward and Co., 2 bay geldings, £l7l, bay gelding, £ls. Besides these good sales, a good number of horses were quitted at prices ranging from £2. to £9 10s. . Harness horses—'jftiree good sets of collar, haines and winkera were cold from £3 5a to £1 10s, covers 25s to £2 6e, and many lots of miscellaneous harness: