THE WOOL CLIP

Dominion, Volume 10, Issue 2930, 16 November 1916, Page 6

THE WOOL CLIP

PRICES OFFERED NOT ACCEPTED

ALTERNATIVE PROPOSALS THE HANDLING OF THE WOOL. The conference of woolgrowcrs convened by the Minister of Commerce (the Hon. W. D. S. Mac Donald) to consider proposals for the purchase of the Now Zealand wool clip for tlie present season by the Imperial Government concluded its deliberations yesterday. The result of these deliberations and is still inconclusive, and iU is possible that the conference may yet have to bo reassembled. 'Ibis will depend on contingencies. The offer that the woolgrowers bad to consider was an increase of 45 per cent, on the 1913-14 prices. As it happens, an increase of 45 por cent, on the 1913-14 prices for certain classes of wool, which aro the best classes of wool, would bring the rates very near to those ruling last season, hut for certain classes, sucli as inferior cross-, bred, which sold, according to Government statistics, at from 7Jd. to 9d. in 1913-14, the Tates last season were 12} d. to 15Jd. This difference represents a s rise of much moro than 45 per cent., and d big fight was waged in the conference on behalf of the email bush farmer, who cannot produce wool entitled to be graded higher than inferior crossbred. One section wanted to accept tlio Imperial Government's offer, and another section held out for the 1915-16 prices —these latter being the men who urged that the Imperial Government's offer was inequitable. A division was taken on the question, and the decision in favour of last season's values was carried by one vote. In the end a compromise was effected, and it was agreed that the. prices for the different sorts of wool should be considered separately. The result of this procedure, was I that the conference agreed to accept the increase of 45 per cent, for certain classes of wool, and to ask 'for • last year's values for other classes in which the rise in price in the meantime has been rather more than 45. per cent. This alternative offer is now being cabled Home, and if the offer is ac-. cepted the transaction is ended. If it is not, the conference may have to be reassembled. The meeting appointed a committee to deal with detail matters that may arise, and to represent the growers in consultation with the Govsuch should be necessary on these details. Wool Prices. It is stated that the prices asked for by the growers are considerably below the actual' value of the wool at current' rates to-day. Following were the priees ruling in January for the past three years:.— 1914. 1915.' 1916. d. d. d. d. d. d. Superior merino , - combings 12 -141 12 -13 15 -171 Medium to good merino 93 - lli 91 - 10J 12J-14J Inferior merino 8i -91 Ti - 8j 11 -12 Superior halfbred .<l2 -14 135 -143 18J - 21 Medium to good halfbred 93-12 lli •13 161-181 Inferior halfbred 9 10 9 - 10i 131 - 15J Superior crossbred 101 -12 121 -14 18 -193 Medium to good crossbred ... 9 -'11 ' 111 -13 16 - 17J Inferior crossbred 73-9 9 101 12J -151 Lincoln and Leicester 83 - 101 11 - 123 15 -171 Before tlio war, 1912-13 was the best I year, for values were from -Jd 1 . to Id. | par lb. better than in 1913-14. In ■the next year prices for crossbred wool rose about 2d., per lb., end last season these war prices were increased by as niuch as sa. per lb. Complex Questions. . But the 'fixing of prices is only ono f tho problems' in this nugo undcraking. Tho wool business is tlio iggest, the best organised, _ai.d the lost highly specialised business in his country, and tho keen compctiion, which is a'feature of it, has lways sufficed to keep tho business raining smoothly and efficiently. This msiness has to be distributed, and in ome measure direoted, into unaccusomed channols, and the difficulties to e encountered are many, if they aro iot all great. It is i generally conned that the organisation provided ly tho wool-broking firms throughout s f ow Zealand for handling the wool rill have to bo used. They are tho inly people who have suitable stores :or classifying and displaying tho vool, and the only people with staffs ivho understand the routine of the irade. The first question that ariseß is as to the terms on which their services shall be utilised. Tho Government ' could commandeer everything, ind make'the brokers and their staffs' aovc'rnment servants, but this is considered very unlikely. The Government mil prefer to allow business to take its'ordinary course as nearly as possible, and so will allow the brokers to handlo the wool iff the same way as before. Formerly brokers used to charge a percentage -rate . for selling wool, but as the brokers will not now be concerned with values received, 1 _it would, it is pointed out, be absurd for them to charge a percentage rate to the Government. It is now proposed that they shall charge a fiat rate per pound on all wool, good or bad, and this is quite fair, seeing that the service render,ed in respect of inferior wool is identical with that given for the finest wool. It is stated that the charge the Now Zealand brokers propose to molte is less than the charges being paid for like services in respect of the_ requisitioned British wool. Everything that the brokers did previously, with the exception ofrtlie selling of the wool at auction, they will still do. Tho only difference will lie that they will not have the same frenzied rushes to prepare cataloeues for tho periodical sales. Under the Government purchase scheme tho work will be spread fairly evenly l over a period of from six to nine months, according to the season and | the shipping space available.

Valuing the Wool. The task which seems_ the-heaviest . and most complex of all is that oi devising some scheme for the valuing or wool. It is a task for whicli the highest expert knowledge, is required, a task which the average farmer will not understand. Hitherto classification and values have been .determined by the arbitrament of competition under the hammer, and that decision the farmer has had to accept as final. If wool is requisitioned, there will be no competition to assure the farmer that he is cetinjr his due. No decisions seem to have heen reached as to how the wool is to bo valued or by whom. Those who know most about the wool trade, however, say that wool can be classified satisfactorily, but that the only people fit to do the work are the buyers who arc out here to attend the sales and buy for Yorkshire. These buyers instructions ordinarily consist or quite a small number of cabled quotations for scoured wool, say from 30 s to 70 s, and vn these rates tliey value the wool ]';■;• which th'ey are competing ns buyers. There , are no fixed standards to regulato the difference between the prices of scoured and frreasy wools. Hie differences vary in .seasons. Some years the wool is heavy in grease, and some years it is not; some wool is comparativelv clean, and sonin is dirty or seedv; The buyer can toll at a touch that a certain halo of (lecce wool is, say, 42's of average quality, and _he knows that the value of wool

scoured will bo so much per pound. He has to determine how much the wool will reduce in scouring, or, in other words, how much greaso and dirt he will be buying in the wool, and note down his bidding prices accordingly. This demands expert knowledge gained only by long training. The task will be perhaps less complex under the Government purchase scheme, because, it is pointed out, there will not bo. any chance of the standard of values changing. It' it is agreed that lod. is the value of Romuey or Lincoln fleece wool of average quality, that' value .will remain constant throughout the season, but the expert will still be required to determine how much any lot is above or below average.

There aro questions relating to tlio storage and valuation which havo not yet been fully decided. It appears that the Government will pay for the services rendered by the brokers. The cost of these services, plus insurance and other costs, varies according to the time wool has to bo hold, but the average amount the farmer has ordinarily to pay in Wellington is about id. per lb. his wool. Of these chargcs ho will be relieved. It is not yet decided who is to pay for the valuing of the wool, or indeed how this service is to be paid for. Terms have not been discussed; It is not improbable, it is thought, that farmers will have to pay for the valuing of their wool.