THE WOOL CLIP

Dominion, Volume 10, Issue 2928, 14 November 1916, Page 8

THE WOOL CLIP

BIG CONFERENCE TO-DAY i .

IMPERIAL -PURCHASE SCHEME

SOME FACTS AND FIGURES To-day a conference of wool producers of New Zealand will meet the Min- : ister of Commerce (the Hon. W. D. S. Mac Donald) to discuss with him mat- : ters of the very greatest import financially to tho Dominion. Mr. Mac Donald will submit to the conference cer- ' tain proposals on behalf of the Imperial Board of Trade for tbo purchase of New Zealand wool. No particulars havo yet been divulged as to the basis of prices to bo offered.' It may be stated as fact, however, that the basis will not be last year's values, which were phenomenal, but that the prices offered will bo well above pre-war rates, so much is certain. Last year was in many respects an abnormal year. Early in the season, at the November and December sales, the market was open to buyers from all save enemy couutries r and the effect Was felt of competition from both America and Japan. Half bred wool was sold as high as 21} d., and crossbred up to 193 d., and a few lots of Southdown wool were bought for Japan at the November sales in AVellingtori at the record prices of 23d. and 24£ d. per lb. in the grease. Even after the prohibition _ of export to America was enforced in January, the finer wools for which; the Americans had been active competitors, did not drop in value, and the prices for ordinary crossbred wool_ were considerably above the prices ruling at earlier sales. Then came the difficulties about get"ting bottoms to' take the wool to London, and in consequence of it the sales were delayed, and were in the end held under altered conditions. Buyers wore allowed to -withhold payment until sh\pping documents were available. One effect of the delays was that Now Zealand growers, who had not been lucky enough to catch the early sales had to take at the later sales from Id. to ljd. less for crossbred wools, and about Id. per lb. less for fine wool._ Following were the prices ruling in January for tho past three years:— 1914. 1915. 1916. d. d. d. d. d. d.Superior merino -, . combings 12-141* 12 -13, 15 -17i 1 Medium to good ! morino '92-111 91-101121-14} Inforior merino . r 81- 91 73- Si 11 -12 Superior half bred. 12 -14 134-143 181-21 Medium to good halfbred 93-12 111-13 161-18J Inferior half bred 9-10 9-101 131-151 Superior crossbred. 101 -.12 121-14, 18 -19ij Medium to good crossbred 9 -11 111-13 16 -17J Inferior crossbred 73-9 9-101 121-15J Lincoln and Leicester 81-101 .11 -123 15 -171 Before ,thb w - ar, 1912-13 was the best year, for values were from £d. to Id. per lb. better than, in 1913-14. In tho next year prices for crossbred wool rose about 2d. per lb., and last season these war prices were increased by as much as sd. per lb. This season, if the Imperial purchase scheme goes through, growers will have to take less than last year. • The importance of the issues to be decided at the conference may be gauged from the fact that wool is still our most valuable export, and one which has grown steadily in volume and rapidly, in value. Following'are values of the exports of wool during past seasons ending September 31:— ■- ■ & 1908: 5,716,373 1909 5,914,695 1910 7,954,527 1911 ~,..+...* 7,152,682 1912 7,011,541 1913 ;.. 8,349,882 1914 8,167,279 . 1915 10,425,172 The Government has practically no precedents to guide it in setting about the purchase of the New Zealand clip. The Government has never previously interfered with wool business. It has always run itself very well. The problem is a very much harder one than nrevsented by the meat purchase scheme. Under the latter scheme the Government deals only with the freezing companies, who 1 act either as principals or as agents for the farmers in selling to the Government. Wool has hitherto always been sold, and will still be sold, by the individual growers, and so' the task of the Government will be the Greater for having to deal with a very larne number of persons. It is stated that speculators have . been buying wool privately, before the sales from farmers. These dealers will have to sell their wool to the Government at the prescribed rates. . Perhaps the ontion will bo allowed them of holding the wool in store until after the war, but they will not be allowed to ship on their own account which the Imperial' Government is buying on its own account. SOUTHERN DELEGATES TO THE CONFERENCE. By Telegraph—Press Association. Christchurch, November 13. At a meeting of the overseas and local wool-buyers, ; held to-day to consider tho wool situation, it was decided that all wool-buyers leave for Wellington to-night, and hold a.meeting on arrival, so as to bo able to consult collectively upon the position and decide upon the views to be put before the conference. ,