Page 16 Advertisements Column 1

Press, Volume LXI, Issue 18406, 12 June 1925, Page 16

AUCTIONS. H. MATSON AND CO. -*-• re-publishing this Article, which ia taken from the "Stock and Station Journal" d£ May 22nd. The whole article bristles with sound common sense, and in tiew of the imputation at present hieing to Australia, * - o feel the article ia a fitting one:— THE WOOI/ POSITION. THE GROWERS' STANDPOINT. A <COMMOJ?SENBE STATEXENT. By Ben Chaffer. Sir,—As a grower of wool on an extensivo icaJo I am naturally vitally concerned, and h.»vo followed with interest the various con-! iributions in your column* bearing on the ' subject. The recent great fall in prices has apparently canned a good deal of hysteria, which has given rise to many unpractical suggestions, confusing the issue. A calm review appears to me to bo necessary. In the first place, several of the writers o£ the letters are neither woolgroweza nor business men, and it would have been better had they refrained from opinions on a subject of which they have no practical knowledge. Bawra came into existence in January, 1921, and was formed expressly for the purpose of realising the wool remaining in the hands of the Central Wool Committee—the property of the British Government—and in | which the Australian growers tad a share interest in the ultimate profit realised. In 1920 prices for wool, as well as for other commodities, soared to a. yen high range —the trade, rich from the war profits, embracing manufacturers and retailers, assuming a general world-wide shortage of wool and, woollen goods, bought of both heavuy at enormous cost. The shortage was there, but a miscalculation had boon .made as to to be quitted at a loss, and prices for wool receded to a low leveL Tho establishment of Bawra was coincident, approximately, in time with f™ lowest point in prices. These were so low all interested. At this junction Sir John Hig"ins was instrumental in bringing about a Government statute fixing a minimum pric» for all wool grown in Australia. The auction sales were proceeded with, and immediately a better demand was experienced, with rising prices, and but little wool was sold at the minimum price. Prom then on until November-Cecombex, 1924, prices continued to improre. The good effect of fixation of a minimum prios was loudly proclaimed at the time, but, in my opinion, entirely without warrant. What really occurred was that the fixation of a minimum price and the turn of the tide from the low range of values were Buaultaneous happenings. Tho fixing of a minimum price in itm» could have had no effect other than tho making of euoh minimum price the real price. To nark back to «ib tormaHoa of ihe Central Wool Committee In 1916, and its operation until Bawra was formed, I would bo the last to begrudge credit to its chairman, but it must be admitted that without the highly skilled organisations of the wool brokers and buyers, played without stint at the service of Sir John Higgins, the operations and successful issue of the Central Wool Committee would not ' nave teen possible. It must not bo assumed that Sir John did not make mistakes. Much wool was passed in or - withdrawn after "peak" prices were realised in 1920 which would have been better sold,'and was aow at much lower prices subsequently. Bawra wool was all Bold in Englsmd and .on tno Continent, whereas, oven if a portion of it of money would have been expended in wages in Australia, and heavy storage charges in "England would? hav* been avoid* cd, high rates «f exchange coats in bringing money from England would have been saved; and more remunerative rates of interest Would hive been received if the funds tad been locally invested. Sir John might retort that the. prices paid in England were higher and compensated' for exchange, etc., but it is now generally, accepted as a fact that the Australian markets are the best for Australian wool, and the buyers can ' give relatively' 1 -more for. wool for shipment direct from" the place of production than in a' market to reach which, and to its ultimate destination, the wool has had to be handled at least twice. The buyers are forced to come to Australia in increasing numbers, as otherwise they would be denied tho opportunity; of. procuring at first-hand the wools suited to their several requirements.

I/ike tie rest of lis, Sir John is human, and in making- the above criticism I am not •oolong to detract from the credit due to hipi-for the work he has done. The prei«ni comparatively low range of values is therinoseapable »nd logioally eoonomio outr come of ; tiie boom prices' of last year. Every such bpom in the world'* history has bad a like result ;Ir »m »ir»id ib** ihe high pricea»niftd!9 the opportunity for the substitute known as artificial silk to get a footing, and it is a competitor we cannot disregard. Wade from wood palp, there 13 no shortage,'not Can there be any in its supply- of raw material, and the huge profits made reoently by those engaged in its rrfaisufactuio 1 should warn us that its production has reached enormous' dimensions. Tto world's pppulation is on the increase. Tho ■use/'of woof is extending, with new custom-* cm always coming along; but' do not let us estrange them by indulging in foolish measures . such''*a attempting to make ■;'»'; oorner in wool. Such expedients have been tried before, time after' time, but never with ultimate success, and have always ended in disaster.. •./?.. : .V.,v '.'" '•',■".'.

,-IV must be borne in mind, too, that the" present range of prioes is father than anything experienced prior to tho war. Our vision has been distorted by the abnormal war and subsequent happenings, and)' some of ns are still apt to lose our sense of proportion, ead to be carried away by the ideas 'of visionaries in relation to the stabilisation and fixation of prices. The raillenninm is not yet. I have been engaged all my life in the breeding of sheep and production of wool, and would resent the dictation of anyone not so. trained in the conduct of my business as a woolgrower. 'When by wool isi ready for market. I look to my broker to protect my, interests. The; woolbfoking business of Australia is in the hands of highly skilled men of ''■■ great experience, and ii deservedly regardeel as being conduoted under conditions generally ■' admitted as above; reproach. '■ Many of the brokers are interested also as woblgrowerß, and practically all of them «ot as bankers for growers, and are equally interested with the growers in obtaining as high;a prioo as possible for tfyrt wool. ,•/ No sans man oould or would attach any blame to the brokers for the recent debacle in prices, and I would influenced. by hysterical agitation, bringing in' any futile legislation with tho # object of forcing me to entrust the realisation of my wool to a body of more or lesa inexperienced men. It should not be lost sight of .that to give effect to the chimerical ideas of Stabilisation or price-fixing Government intrusion cannot be avoided; and if woolgrowers aTe eo foolish as to take away the conduct of their business from experienced brokers and hand it over to a body under politioal control, then God help the industry, and I for'one shall.go out of it as soon as I possibly can. "We are told that the liquidation of Bawra cannot be prooeeded with until litigation activities are at an end. Why osnnot a liquidator be appointed at once, who would declare a substantial dividend) and etilll retain funds: enough to cover any adverso verdict which may be delivered. We would all be glad' if Sir John would undertake the position as liquidator, and I can assure him We can dd with the" «to., BEN OHAFFEY. Manfred Station, Balranald, ; ■ (K.8.W0, Maylßth. ' MESSRS H. MATSON and CO. are at present booking orders for woolpacks for the coming season, and make direct application 'to you, if you are a woolgrower for she handling of your wool for the coming season.- Our'businees is a direct and personal one, and we keep closely in touch with all the Centres, and are more than efficiently posted as regards the various markets throughout the World. In fact, wo 'honestly: believe that there is no, Firm in it than wo do. As heretofore, we want all . producers to look tous as of old as .their adviser, their counsellor,, and their friend. We want their business, but first and forevery best service it is possible, and the ; best advice as to Jibw,'. when, and! where to realise their products. &L.XKEBO&-40B&XXX,