Three Wool Problems Of Major Importance

Chronicle (Levin), 22 January 1949, Page 7

Three Wool Problems Of Major Importance

LONDON, Jan. 21. Three wool problems of major importance loom in the near future, says Mr. R. G. Bailey, newly elected president of the British Wool Federation.' They are, lirstly, the problem of the Development CouncAI which is still undgr discussionj secondly, -tlie futuye of British wool marketing; ancf, thirdly, the future of Dominion wool marketing when the Joint Organisation had completed its original task of liquidating the wartime wool surplus. Ararious opinions had been expressed on ne\V arrangements to succeed the Joint 'Organisation wlien that body had accomplished .its purpose, said Mr. Bailey. The British Wool* Federation would expect to be. consulted at tlie proper time but meanwliile was reserving judgment. The Joint Organisation was constituted for the orderly marketing of the large end of war stocks of wool and with the .complementary purpose of avoiding harmful eifects oi? price levels during that progress. It could fairiy safely be eomputed that by 1950 the job of liquidating stocks would 'have been done apart from a residue of probably u uiillioT>." bales, mostly of carbonising wools. Any new body, therefore, would have little or no stock to liquidate and its purpose could only be market stability to be acliieved through a ' ' reserve price" policy. On that point little experience had yet been gained which could be any guide to the future, There was need to guard against any glib suggestions that since the. J.oint Organisation had been sueeessful in its stock liquidatioh policy its 'reserve price functions and policy were fea- . tures to be retaiu,ed. In particular, any attempt to bolster 'tlie piice of wool and make cousuiners pay more on the average over a period of years would be doomcd tb f ajlure. * Mr. Walter Ward, retiring presideut, said United Kingijom useijs wisheil to see the spot market lhaintained as all users had at times 'need for spot wool. The problem of wool supplies geuerallv Itecailic more acute as Joint Organisa tion stocks and the American C.C.C. stockpile continued to dwindle. It appeared that for everv 291 lbs. of apparcl wool now produeed some 37^ llis. were being consuined. European countries had ambitious plans for inCreasing thei.r • production aud experts, and Japanese consumption was a factor wliich would grow iu importance. The Australiau clip was o,q the increase, but world 'supplies' as a whoie were fairiy static and'it" seemed' hardly likcly' that tlie world wool outf-' put would quickly increase by Ihe 27 • pcr cent. necessary to equate production with consumpuon. Ile hoped Doniiaioii growers would make grear efiforts tu increase«Merino wool production.