Page 16 Advertisements Column 1

Press, Volume LXI, Issue 18415, 23 June 1925, Page 16

H. MATSON AND CO. HJIATSOK and CO. submit the nnder- • mentioned for the information ot WOOLGROWERS IX CANTERBURY, and A'endors, when realising this coming season, w hope will entrust their clips to us for tale: — POSITION" FAIRLY STATED. Much has been said and written regarding tin! position of the wool industry since tho collapse of the market. One of the best of these efforts to accurately set out the position appeared in tho daily Press on Saturday over tho signature of Jfr R. Vincent, Western Beach, ticelong. He -wrote: — ■What is the future of the Australian wool industry? This question has for some time I'ast been exercising- the i/iiuds of all v.oolprowors. It has also received earnesJ consideration from business and commercial men who appreciate how vitally the interests and welfare of the country as n whole are hound up in (he prosperity of the growers. Various schemes have been offered as a remedy for the ills with which the industry is at present afflicted. Tljey are:— 1. Control by Bawra or some similar organisation. 2. The formation of a pool under the con-. trol of or backed by tho Federal Ciovernnieni. .I. Control by an organisation representing the growors. Each of these proposals aims at the stabilisation of wool. It is but fair to enquire what stabilisation means. Indubitably it dignities Iho permanent arbitrary fixation of prices. irud not noceßS&rily with tho collaboration of the cousumer. In other words, the consumer is to be offered our wool at a pre-dctcrinined iiguro, tho growers holding the wool until thoso prices are obtained through some organisation created for the purpose which would also financo tho scheme until it becomes effective. This means Government control and interference in an industry that has hitherto been noted for its independence and j <Nclf-relißnce. With the advent of stabilisation the independence of the industry must surely vanish, and with it tho grower's con- I trol over his own clip, for no schema of such n comprehensive character could bo carried J into effect,-or even function initially, "without State aid or backing. j In considering the question of stabilisation, certain relevant and fundamental factors can- I not bo ignored. Does not tho price of wool necessarily, if not primarily, depend upon demand as veil as supply? Surely the capacity to buy is at least as important as the power to sell, but is it possible for any stabilisation scheme to guarantee the ability of consumers to pay the prices demanded by producers? The inherent 'weakness of any proposal to fix prices that must always be paid by consumers is npparent. There must first bo a demand for a commodity before it can be sold, and tho price asked for it must be within the capacity of the purchaser's purse. ..'- No combination, however powerful, can hope to prove moro powerful than the world's economic condition. Demand is the controlling factor of the situation. Of -what use or value of the fixation of reserve prices jf tho demand be absent? Can' any jsucb, scheme increase' tho purchasing power of consumers? If sellers combine, may not purchasers do likewise, particularly should elicit a" course be rendered necessary by a limited spending power? IHirthermore, the Australian grower cannot hope by fling the price for Australian" wool to fix "tho world's parity except and only "in the" case of fine merino •wool. A note of •warning may well be soundet} here. During the last few years several textile substitute industries have" come into being. Their products are "now firmly established, and powerful competitors against wool. Tho significance of this development cannot he overlooked. It. needs little power of discernment to show that if growers were to fix and maintain wool prices at levels against the interests of consumers, they would seriously prejudice " their"own'' industry and fostqr the increased use of substitutes. Anything that "would antagonise consumers or create the impression that wool" is a luxury Should be rigidly avoided. 1 The agitation proceeding lately seems to he the outcome of an unreasonable and uncalled for apprehension that a calamity of more than temporary character haß happened .'to the Australian wool industry. Some growers, forgetting the past, are so fearful .of the future that they have succumbed to panic. As a matter qf fact, .the slump is but the /"reaction,'front", the high prices recently realised. Such Slumps have occurred before, and. are a feature'of the world's trading flperptjons. Up. cpwmodity with a wide demand has escaped booms nud slumps, ; but, in the long run, inevitably hiasV found its level''• again. Australian wool has a naturally high level,' arid none hut the most pessimistic doubt for a moment that within n comparatively short period the buoyancy , of tho market will he reasserted, not to the level of the ' last NovßDiber-Recember sales, hut to such a one as' wilf be payable to the grower. Another idea that has fostered this resort to panicky expedients is a widespread belief; among growers regarding the benefits which" have accrued from the operations of Tfipy imagine, that this organisation saved Australia ana themselves from ruin. ..The idea is groundless. Tho fact is that Bawra came into existence at a time .when prices'hid" fallen very'low »s the -result ; of. just/such a 1 slump as "wo have lately experienced. Looking back, it can with justification he pqncluded that even had Bawra nevejfbeencreated, prices would have nevertheless obtained the high, levels of last Xoyembej -December. x Circumstances over •which Bawra had no control contributed in . Bap); $0 the success achieved, ■ and . although there-isno, thought in"the minds of rwoolgrowers of" Australia 'other 'than of the highest appreciation of the efforts of Sir .John 'l&igins,"*Sit""Arthur "■ Goldfinch, and their colleagues during the time of stress, in which Bawra w»B managed, it is not con- . tended that auy organisation could have prevented prices soaring just as nothing could liavp checked their downward "course when consumption abruptly" ans unexpectedly declined." ■ ' " . Attention roust I>o directed *° the 'set that. Sir John Higgins and Sir Arthur Qoldflicbi * iii ', ihelr forecast of . the wool position, did not foresee the slump that has occurred, and certainly did nqt anticipate s,nch" a, decided and, sustained reaction in prices; Araiflst the. welter of ink and words, directed towards the solution of the, problem now"'facing the wool industry, the advis'awqqJ disposal has been stra: That this method .may be ' susceptible"* of improvement is hot questioned. '■ A FITTING PBOTQSJTION—■Tpu want WOOIiPACKS or COrMfSACKS this yearr- . why'not give your order to H.'MATSON and . CO.. who 'have ample supplies, grid who will • be glad to hook up your, requirements at whatever is the lowest basis of prices as supplied'" "by ""any* members' of the""Woolbrokers' or the Orainbrokers' -Association, such will" he your, rate.' Therefore; why not givoi us this small, commission at the present f '-Thesa' fortieses?,oll' the wool■ position, are put in by jjs at considerable expense, as, although you may or may sot be a client of . ours, our one. idea is' to forward the, interests of the Wool and Grain Producers of Canterbury. ; - Thp fact rpmains, howeTer, that, ft is a system- ■ that' has, on the whole, - done a vast flsal for in the past, local WoolbrokeTs are the most constant and. powerful friends growers possess. They haVe financed growen not only in respect of wool in store, but for carrying on their business, and in periods of drought have Tendered material 'assistance without which many growers would ha vo fpund i|; impossible to carry on. They have provided exqejb»t storage and display facilities, and our wool cquld nowhere he offered under better cqnditipns. Australian brokers have built up, through years of careful study of everything connected with the selling of wool, a sound and highly efficient organisation. They have behind them a wealth qf valuable experience \vhich is Incessantly" applied to j further the interests of growers and of the country generally., They are, of course, not doing this for nothing, hut I want wool- j growers to realise that the interests of the woolgrawers and the brokers are so interwoven' that it is to their mutual advantage that wool should realise tho highest possible price. ' Hastily to scrap, as has hepn sug- ■ gested, this organisation and experience, and to jettison thu advantages for which they have been responsible, or to materially iri- • < erf are with such organisation, would be the jrildest folly. j ; The paramount need of the moment is ft careful stocktaking and deliberate, unhurried survey of tho whole position. We ought the enormous value and. expense of the interests involved. We must not bv precipitate action (which should be avoided at all costs) commit ourselves to what might eventually prove n retrograde and costlv step. A thorough understanding of the situation confronting the. industry, and particularly 'of all the- responsible factors, is tteedod. Nearly all the schemes so far proinnded assume that stabilisation is immcately possible. This is far from.the case. It would he tremendously difficult to bring •bout. To secure anything approaching cost in the preparation and elaboration of the plans involved. No practical argument has been advanced to/prove that any stabilisation woul<§ ever be a success. On the other hand,- the reasoned judgment of experience strongly suggests it is more likely to prove b failure. Therefore prudence enjoins that all concerned should hasten slowly. Before : scy. departure from the existing system of wool-selling is authorised growers should make sure that such a change is positively and indisputably necessary. They should also ascertain whether any one of the scheme proposed, if it had been in operation, could certainly have obviated or prevented the axlsting slump, and whether any such schMMv if adopted now* is incontestably j&aafilo of preventing such an. occurrence in