WOOL SURPLUS

Dominion, Volume 12, Issue 29, 29 October 1918, Page 6

WOOL SURPLUS

Sir,—l am reminded that, this unknown wool surplus which Sir James Allen is so keen to net wool-growers to n?sign is part nf their income, liable to tiixation.-nml the Commissioner of Taxes, who is guided by the Act of Parliament, will pee that income lax is collected from tho contributor on the sum so contributed. Many of the principal, wool people in the south prudently refrain from ossigning ""til they know the amount. (Everybody wonders why greasy wool is not paid 'for under the commnndeer on the same basis of average Tomlfl'i prices bohreen January 1 and December 31, MM/less ljd- for London charges, same as slipe wool, _ under the recently-gazetted regulation, instead of average Dominion price of fljd. in January-, 1914, and which at that particiilor date was quite 4d. per lb. under the parity of value in London. As a consequence mauy who habitually ship their

wool to London for sale are now actually receiving less per lb. under the commandeer than their 1913-14 pre-war clip realised, whiife few are receiving more than 10 per cent, over pre-war price; instead of 55 per cent., as promised by this British Government. Wool speculators who purchased wool at the .Dominion wool auction sales; November, 1913, to January, 1914, on which the commandeer price of OJd. for greasy wool is now, in my opinion, improperly based, actually mudo a. profit of something like fourpenco per lb. on their purchases, and any reflective person can see at n glance that by reason of this Dominion value being taken as a basis, instead of the price at auction in London, as was evidently intended by the Imperial Government, and is' now the. basic value of iilipo wool, the Dominion has lost, nnd is now 'losing, that foiirpeuce per lb., plus the 55 per cent., on oil ite greasy" wool. This, unfortunately, is not ail the loss, as anyone with capacity to prolie the matter to the bottom can readily see that the extra war. freight and shipping charges on greasy wool is being deducted from that unknown surplus, instead of being paid by. the purchaser, as is thb case with slipo wool. It has been asserted that the primary producer is re. cciving comparatively good prices for hie produce. I admit it; but unfortunately for him the cost of production and the prico of every commodity ho conpume.s have risen in value by leaps and bounds, while the price of his produce, his only wage, remains stationary. _. If I am not mistaken, the Finance Minister will find that the Dominion needs all the farmer can honestly claim for his produce,' as this is ihe only fund Jie can rely upon at present to meet the heavy engagements for Defence and the increase in wages' now being demanded by all and sundry. If, therefore, we were offered 45 per cent, on fourteenpence, which was, approximately, the net selling price in London in July, 1914, for greasy wool, I maintain ye are honestly entitled to receive it, and with this J would be content, although shippers of slipe wool are now receiving 55 per cent.. on the London net price. This shortage on greasy wool runs into millions of money, and if suppliers are treated in the same way as owners of slipe wool, as they ought to be, the.surplus will i> larger than most peonle 'contemplate.— 1 am, etc., AYOOL-GROWER,