THE PRICE OF WOOL.

Press, Volume LXVI, Issue 20102, 4 December 1930, Page 16

THE PRICE OF WOOL.

TO THE EDITOS OF THE PKBS^. Sir, —Your correspondent-, \\. AStrachan, who writes in last Saturday's Pnxss un wool values, has, in my humble opinion, nut his finger on the heart of our present economic troubles, which in one word is deflation. May I quote the concluding paragraph of a Tvriter on the subject of "Inflation and Deflation" in a recent number of a well-known Australian paper, v.-Inch rather backs up Mr Strachan's views: "Inflation is watering the stew to make it go further. This had to be don 9 to carry on the war; ours and the world's.money digestive organs ha<i almost got themselves adjusted to the altered strength when the cooks decided to deflate But deflation and reversion to the gold standard is surely the maddest of all mad things for a man or nation heavily in debt to advocate. It doubles and trebles the weight of debt. This reversion to the gold standard was a worse act on the part of Britain than Germany's in selling her marks to foreigners and then inflating. That was 'taking down the enemy,' a _ 'spoiling of the Egyptians' ; but Britain by her action has 'taken down' her own flesh and blood. We must hope that it was j done in ignorance."—Yours, etc., ONE OF THE TAKEN* DOWN. December Ist, 1930TO TH3 EDITOa Or THK FR3SS3 Sir,—l used to read "Six Per Tetfit.V articles in the "Weekly I»rt(ss" with great interest, and could only' find a safe investment in a child's! money box and the Post Oißce Saving Bank. If it is the same contributor who now advocates buying wool, ho must be nearly a millionaire if he has followed his own advice. In September a correspondent, "Woolgrower," stated: "With tho bank rate lower in England, recent lower costs for raw wool, lower wages at the mills, workers going back to the "woollen mills, and no surplus carry-over we should see a rise in the raw article in Australia and New Zealand; unless Bradford makes use of Australia's present financial difficulties." I did not see any comments on this letter, and it is very interesting to read "Six Per Cent.'s bold forecast. Sat would it not bo much b©tter, instead of asking-men to speculate in what has cost a farmer a year's hard work, and is his. due, to help him with a lower bank .rate and an inducement to banks and mercantile firms to 1 be easier on those who produce 94 per cent, of the exportable wealth of .New Zealand? If the- wool-buyers or speculators lost fortunes in wool, ««hat about the fortune of - twelve millions of pounds that did not come to tho New Zealand woolgrowers in : the last two seasons, and still another few millions this year if tho buyers have their way ? I eeera. also to remember an argumajrfc .for .insurance -for business firms against bad years. "Is the suggestion worth anything? . -"What , about insurance for farmers' bad years? - Also, why not a superannuation scheme for farmers on the lines of Civil servants, banks, and mercantile firms' servants, etc., subsidised by the "Government? As rt _is, tho fariner practically foots the bill for the whole of these and - gets no--benefit. Now we have to foot oar share of the unemployment .fund, i but can. you ■, imagine any farmer out of work?— Yours, etc., Oxford, X)ecember 2nd, 1030.