Disposal Of Wartime Wool Surplus Has Magnificent Result

Chronicle (Levin), 1 March 1949, Page 5

Disposal Of Wartime Wool Surplus Has Magnificent Result

Received Monday, 7 p.m. LOXDON, Feb. 28. Nearly £32,000,U00 profit for the Lmted Kingdom and Dominion f''(iveriiinents has resulted from tlie disposal oi' warlime surplus of Ihmiinion wool up to June 1947. This emerges from the tirst aceounts of United Kingdom and Ihmiinion Wool Disposals Limit'(1, set up by the ( Jovernments of Britain, Australia, South Afriea and New Zealand, to earry out the oi'derlv liquidation of large wartimo aeeumulations simultaneously with the marketing of eurrent production. The aceonts for the 23 months from August 1, 1945, to June 30, 1947, show that the initial stock taken over by the joint organisation, including 1945-46 elips, was 14.951.000 bales at an original cost oi £245,776,622. At June 1947 the organisation held stoek of 4.515,000 bales at an original cost oi' £64,169,258 and the net profit I'esulting from the first of the 23 months of its activities is £31,926.383. ^ Since that date stock liquidation has eontinued at a rapid rate anh if the eurrent season's selling

programme is carried out as scheduled, the organisation 's stock at June next year will be down to about 1,750,000 bales mostly in inferior sorts. No estimate can be made of the profits realised since June 1947 but as wool values have advanced, a further substantial profit is.to be assumed. This magnificent result reflects the great world demand for wool which followed the war. It has been achieved not by any restrictive policy of offering but by feeding an open market with the maximuiii quantities it eould absorb. A.n official comment on the result says: "The organisation is satisfied that the total amount of wool on offer has, up to the pr.esent, been sufficient to match the full capacity of the -mills and to allow for the maintenance of trade, stocks at a reasonable level. In a period of more stable general price levels, the adjustment of the supply to the demand whieh has been achieved would have kept wool prices more steady although it would not have prevented some increase for Merino wool owing to its relative scarcity."