Page 16 Advertisements Column 1

Press, Volume LXI, Issue 18414, 22 June 1925, Page 16

AUCTIONS^ H. MATSON AND CO. H> HATSON and CO. tato the opportunity o£ reproducing the following further i * , S l i l sD^mS'TO I \iooCEßS|7 itfr B. C. Fletcher, o: Ularunda, Morven, Oupracland in a letter to "Country Liiflt dated May 30th, sounds a now of earning acafnst for *'Mlhii*tnff reserve " iind 'tho ''egregious mistakes. His letter •well -worth thb' cartful, pfirttsa.l of_ ' wool men before agreeing to allow* tho control of the wool trade to be taken out of.tho hapds •of • the met* who have built up the industry, who. ha\e had! long vears of experience, and who are in closer "touch with wool users' requirements than the inexperienced- theorists of Bawra call ever hope to be. _ Mr I letche* ■ stresses tho point that there is nothing in the present position to warrant such an interference, and- no thin- in, the propaganda so far put forward to indicate that Bawra could handle the position, but a very great fear that irreparable damage will be done if tho proposals are carried. He writes:— "The imperative necessity for tho immediate formation of' a compulsory pool managed by Sir John Higgina rests on the emphatic assertion that wool manufacturers have formed a complete and powerful bearing organisation and. can use it at any time tgainst defonceless woolgrcwers who have 110 organisation whatever to oppose it. All tho outward and visible signs go to prove the exact opposite. We have no definition of this organisation. Pool advocates must forgive me for thinking that if it were in their power to define it, an opportunity so tempting for a task so congenial wonld not be lightly put aside. All that we are told is, that, It is understood,' Henda go together," 'Nods' are exchanged. We nil know that whistles are heard. Can this be called a powerful, organisation? Are we not justified in asking for something " more definite before wo proceed to such revolutionary methods! But, leaving this out ol Iho question, and admitting for a case, that such an organisation has been formed, is it not plain that if the manufacturers forco prices below the natural balance of the market, they automatically cut down supply and thereby made a rod for their own backs. Bawra worked on two main principles — limitation of supplies, and minimum, reserves backed by Government proclamation. I havu from first to last been a consistent opponent of Bawra because of the utter Jack of altruism in the principles it employed and popularised. Tho mischief it has done far outweighs any gain from it. It does notfollow that because Bawra made large -profits for the. shareholders, under altogether abnormal conditions, and for a brief period tho principles it engaged can be permanently used with beneficial results in normal times. No ono has explained how a minimum reserve, publicly declared before tho auction, can counter bearing operations. It is beyond the power of human judgment to fix the price accurately. The declared mini' jniim 'must, in tho nature of things, be above or below the natural balance. _ The price fixed must bo more. or less fictitious; and it may be very'seriously out. When Bawra applied its minimum reserve, to the IC2I clip, the price proved to bo ridiculously below tho value of tho merino clip. Had thero beeu a bearing organisation that clip would have.sold at tha minimum. Free competition tetwaen buyers saved Bawra from tha consequences of a most egregious mistake. When the declarod minimum is below tho natural balance there Is no need for buyers tp bear the market; i*; has already been done for them by the selling agents. They have . simply to use their organisation and buy at tho minimum. It is difficult to see how this benefits .thft. wuolgrowors. On the ether hand, if tha declared minimum be above tho market range of values, the wool cannot lie sold. . When the prihciple . was applied by Bawra the declared minimum yroved above the value of crossbred wool and cut'.it' off the mark«t, thereby unfairly handing 4i still further advantage to merino owners. ■ A violent discrimination between owners of different grades of wobl was thus enacted by Government, at the suggestion of Bawa, Had merino wool been similarly over-.valued the entiro Australian clip would . havo been' carried over. Tho stimulating effect of such a. carry-over on the production of woof substitutes (already-' a dangerous competitor) and also on wool production in other'countries, need not be stressed; it is appallingly apparent. The manufacturers would be irreparably.damaged; and, with .. an enormously reduced buying power they would, the following year; have to finance the purchase of two clips. , Could we, in such' condition, maintain our minimum, or would we hav4 to abandon it, after inflicting terrible loss cri all, concerned i"

■ A FITTING PROPOSITION—You want WOOEPACKS. or CORN SACKS this year—why not giv»your order to Hv MATSON and CO.,'.who hfcve ample supplies, and who -will be. slid to book up your requirements at -■whateVer is,'tfce . lowest basis of prices as supplied by, any members of the Woolbrokers' or tho Grsinbroiers' Association, such -will be your rate. Therefore, why. not givb us ' this 'Small commission at tha present time? iTKese ,articles, on the wool position are put iit' by.'us- at considerable expense, as, although you may or may not be a client of . ourSi onr one idea is to forward the interests of thoWool and .Grain Producers of Canterbury.' ' . ■ "THE WOOL POSITION." . Mr J. T. Gavel, Gulio, Condobolin, writes: ' "Keen-interest' has been taken by growers in the position Of the wool'market, and considerable speculation as to the future trend of 'values'is~ being indulged in, tho various ideno ■ and schemes- for the stabilisation of wool prices are being energetically discussed, approved, orcondemned as the facts from the .•various -viewpoints would iseem to justify. ■ "The aspect from the growers' point is, the more important, for it is tho •point that most • concerns the great woolgrowing industry of Australia. ( "Naturally, growers are anxious to do what they can to a stable market, but ■ care be used that over-anxietytothat end 'may not lead to greater disappointment in. tha future, i ■ "The argument tfc*t markets may bestabil- • ised, -by Act' of Parliament ■ or Government ''snpervlsiott *nd control is most dangerously .\follaciouq. Experience has proved that, and .-.'We -know that it were as well to try to rule■iithe, elements as to control the laws of 'supply and demand.' . 1 JBAW&A. ' Jfßawra ■ has been pointed to as an Sample'of whatdaay bo done by. judicious ,«control, and by ably managing the realisation of.a large surplus of vool,; but thej?ppition ; to-day is quite different from conditions ob„taiqfcff theDi Aui a? h*» plWdy been polnt<;ed out- by youf.' Pfper, apd by mfiny writers to the Press, a system of starving the market • Jay withholding supplies may only help l woolgrowers in other countries, and at the samo tjuio give Bn tp tlie manufacture of - artificial- silk apd other substitutes, to 4ha •" ultimate disadvantage of the wool industry of ' Australia. - "It. would:appear 1 that too much reliance may not bo .placed upos set of statistics ■ that'may be, from time to time, compiled, be- . causo' twice already in the Wool Trade we .liavr seen other, canses than the statistical . position of. supplies, as given to tho public, .'totally up4es what appeared to have been tho settled and considered forecast by those who were supposed to k i& s position to , knew. '' : ' . 1 • ■ 1 ' 'The Mountain of Wool of a few years ago, the huge supply that was to. keep, all the , machinery iu tbo world running for a . years," .Jhe great accumulation pf wool stocks that had-smothered the market, and even so • fogged the- vision of some of the: best authorities, that tha suggestion 'to. sink shiploads ; of wool in the ocean was put forth as oiie ' ,way to get back to a stable market, that surplus all disappeared in'a short time, and we experienced a wouderful recovery—the afcsojbeA the. jnagntaiu of wnoU : ■ , • , - WOOP BISTORT. ■ . , -,-V "Then recently we were told that demand . had overtaken supply so completely that wonderful estimates-were made of what .prices'wpol would go to* tho buyers gener- ' ally seemed to subscribe, to those ideas, and consequently up went the price of wool, never.we Tvere told, to come down again. ' Now,' whore pre those gentlemen who, so full uf confidence in the statistical position. • and forecasts of high pricos, willingly backed ■ their opinions with good solid-cash? Hany • have', lost so much 'money that it will take • them a long-time to got back-t<> their former, positlWS. ebißa may not recover at all. ; ' ''WitWp a short periods—less than 10 years —the wopl market has made history, and the growers who will carefully study_ that history, with. its record.of estremo pessimism . existing a few year? ago. and then the optimistic opinions of a few months back, and ' now the uncertainty of tho present position, will, 'I feel sure, arrive at the conclusion " that his "business is to grow wool and not i to lose too. much sleep worrying about the etabilisntion oii the' market,, for the market is ati- animal full of kicks and tricks, and will he' found most difficult to control, ■v. "Tho views of growers like Mr B. Ohaffoy, • Mr B. A. Stnughton, and others, show tjiat 'growers are thinking upon, solid-lines, and the advice of such mon should be of value to, growers. COST OS" PRODUCTION. ; .i.. *'We know that if wool were stabilised at , 5s per pound, the cost , of production would naturally follow the -prico of tho product, land, sheep, and labour would in a short , period advance in sympathy with the return from the; industry,' and the percentage of 'profit would not in the end be any greater ' than if wool were at a lower figure. With wool at fik per pound there-would be such > au;. impetus given to the'manufacturing of .. substitutes that the use of wool would be •'greatlyrestricted, and the market- placed in I. a-pwearious position,, This was shown by the way the .manufacture of artificial silks, v etc., 4«ri»ff\' ; tha late hlgl* prices ,of wool. .* • : •. • - ! . "The.cost ot.production of wool has great" >]y increased during the last ten years, and if the price of .the product should fall much v below -present level the industry will suffer severe-reverses, whiih will at once be re- ■ fluted throughout , every branch of the in» -dustrial- life of Australia. So that it is ■ greatly :to be. desired that a stable market -ntay. be established, and on a basis which VwHl' give the desired 'stability to the indus« vtry which is .the stable. industry of Austra''l'"-" ■ . .v..-. .- • ' If you have LAND to' sell,.or if you even think you ; would sell your place, why not - let us'have particulars of it? No sale would '.be completed without'your confirmation. If you WANT GRASS SEEDS," MANURES, FENCING WIRE, STANDARDS, OILS, or y- a ny STATION REQUISITES, give us your —With the ivolume of business that.is ' . gplne dlvcct into the Pools we find we hive 'rttf Pttsli these Departments, rn other "'Vords —Cultivate fresh ground. Being a ' ''Erjvate*' fhte.' and having over 50 years of honourable-.service rendered in. the interests