WOOL STABILISATION.

Press, Volume LXI, Issue 18407, 13 June 1925, Page 12

WOOL STABILISATION.

AUSTRALIAN PROPOSAL.

CHAIRMAN OF B.A.W.R.A. TO SUBMIT SCHEME.

(rsou l special coseesfosbest.)

WELLINGTON, June 12.

At the convention of the Graziers' Federal Council of Australia, held at Brisbane during the last week of May, the most important business dealt with related to proposals for stabilising the wool market. It was resolved, after deliberation: "That the convention of the Graziers' Federal Council of Australia realises and aflirms tho importance'of immediate steps being taken to provide for the stabilisation of wool values, and depires that Sir John Higgins should be urgently requested to submit a: scheme for the early consideration of the Council;'.' This resolution was conveyed to Sir John Higgins and the Prime Minister by telegram. Reply of Sir" John. Higgins. . Sir John Higgins replied.as follows: "The .compliment paid me by members of the Convention of the Graziers' Federal Council of Australia,, requesting the submission of a- scheme for the stabilisation of wool values, is highly appreciated. You will recognise the necessity ; for some degree: of certainty being established that a: majority of wool-growers in Australia will accept a scheme for systematic, proper realisation of wool clips, before negotiations earn definitely be initiated in respect to finance, which is all-important, : }ihe sum of money involved' represents a huge amduht; I cabled London friends on the progress of matters generally in th'c Commonwealth-regarding the stability' scheme, and I am advised that' there is every' prospect of satisfactory' financial arrangements being concluded, provided always ; ' that a majority of the wool-growers have' become supporters. The matter is in the growers' hands. I could be in readiness to discuss a scheme, a fortnight after the Sydney conference, say,'-June as I already - h:vv;e nri,uph. matter prepared." ' It is to this-meeting, to be hold on , June" 23rd| that' New; Zealand has been asked-"to send representatives. Opposition to Proposal. • There appears-to be considerable opposition to the proposal, which many consider to be a revival ' of- tlio vBjA.W.E.A. continuation scheme under 'another cloak. That somo working arrangement has always been necessary, and now is'more hecesfsary than ever, freely conceded, but it is claimed that success cannot attend -any arrangement, ■ ffOm-rwhich • the principal factor is 'excluded, and ..that -is certain to bo .the 'case- if the buyers are not - consulted. Tho atuiosph.ero of suspicion, with which i-ne Bide is encouraged to.view tho other, is,: fatal tp. tho re-cstablishpieijtv of. a soundeposition. It is contended that • only by a'reversion to the old confiden>.ial: relations, can inatters .be put bac.lt 'on a" sound basis,

" A.' Tutures'' Market.

•'•- Another _ ' authority ; suggests a ( 'futiires' '' market.-The'; only sa'tisfac•tory- method- of regulating the price', bf w001,..0r any other widely-j)ro'dttccd commeans: " A - ' market would enable the ( gr"o s wer to, instruct, his selling broker to 'seir.'thd "equivalent of-his: clip; at ' any ffiofbish't, and ehable the riianufactiiref at tho' other end to'buy at any moment " futures'" to cover his market risk as he takes orders foir-delivery ahead'of the resultant product of wool. In between the'; producer arid' the . consumer, it would permit soiling brokers, who havo made advances, to "hedge"- their market, risks'with, clients who prefer to "chance. ?A "futures" market exists in respect to - cotton. a'ro all .sorts-'of descriptions of cotton, as there are of wool, and any. 'manufacturer of;cotton goods can take an order fpr twelyo months ahead, and cover'himself against market risks, by buying the equivalent in "futures.'' An importer of cotton in Liverpool can ;buy-for shipraent "a. thousand bales of twenty different quaiities, and " hedge' '■ ; risk -by selling "futures." If ."|hc cotton .depreciates in value; by 7thci time it reaches 'the' consumer, so do the "futures, -' and vice versa. To es"tabllsh -a ''.'futures?'- market for wool would require one particular grade to be takenj. as 'basis: for trading in .''futures,'' and the actual Wool as it is sold", would be so many points on, if of •better quality, and so many points off, if lower in quality. Assume a manufacturer '; of woollen goods : is offered an -order •• for delivery over a period of •twelve months; a futures'' market will enable 'him to cover his market risk, • and' avoid having-to calculate in his cost 'an additional charge to cover the mar>ket risk-by not knowing'what-the. raw •wool jmay. cost* < A- '/.futures'' • market, -it is claimod, will not; in any way inter?ferc v with the present method of 'selling the -actual : wool by auction. Wool is ; about" the. onlyi-; important' commodity which* has', not the. facility 'of ' a f future#" market to enable buyers and sellers to operate daily;

• -STDNEV, Juno-12. •. - It- was. announced. at the:. Graziers' Conference that the Federal Government would not intervene, in tho wool stabilisation' proposals.... r

GOODS. JLMPIRE PUBLICITY CAMPAIGN SUGGESTED. • (BT CABLE—TRZSS 'ABSOCtAYIOS —COPTBIOHT.) • " (Ss»K« "Suit" Szevici.) • • • : LONDON, June 11. ' ■-To relieve unemployment and. assist trade the Federation of British ln- ; dustries suggests that the Government should initiate & central fund for. an publicity campaign spreading over-two or threo years, urging the public to buy British goods in preferonce to foreign, wherever. price and quality, aro comparable, the fund to bo"additional tp, the £f,000,000 which the' Government ,is allocating to assist Empire products. i ' It is suggested that private publicity schemes -could. be.-co-ordinated therewith, resulting in a- comprehensive effort; similarto Britain's war time pub•licity"schemes. .The-chief- media should be.jnewspa.pers.and .posters supplement, .ed. by,public meetingß, -broadcasting,' tilmjß, and s loeal shoppig weeks. The federation, is of opinion that the Government would receive voluntary co-operation from many trad©".and' social' thereby reducing "the costs, •• f/A federationroflScial said: "We have •not suggested the amount which the r Government should allocate!" The total . Government and private expenditure .should be'.many.-millions. : The chief enemies of: the British manufacturers Arerthe.: middlemen, , who •. are buying cheap foreijgp" goods arid! pushing them British goods." .