LETTERSTO THE EDITOR

Dominion, Volume 12, Issue 56, 30 November 1918, Page 9

LETTERSTO THE EDITOR

THE WOOL COMMANDEER Sir,—The latest figure-? with reference to the purchase of New Zealand wool by the Home Government, placed in the Prime Minister's hands for publication, show _ very clearly that; his calculating machine is out of gear and giving results altogether visionary. It tells us., that the greasy wool man is receiving .£1,328,123 per annum more than- he is entitled to, as the 264,834 bales, or about half the 1013-14 clip, sold at auction in the Dominion netted only 5.57 d. per lb. to tho farmer, instead of 9.65 d., which is tho index price under the commandeer, arid which we have hitherto understood was the net uver age price of 'the whole clip. But the machine has forgotten about the other lmlf of the clip consigned to London for sale, and which netted 13.U1. mid over for fleeces.and pieces sold at the pre-war sales up to July, 1914, and higher prices if 60ld at a later series. If, therefore, we take the mean of tho two halves of the 1913-14 clip, viz., Sid. and 13.U1., w,e arrive at a net average figure" of lid., instead of 9.65 d., which jtots tho boot on the other foot.

I maintain, however, that the disparity in the net proceeds of the Dominion and London account sales; as shown above, prove the unreliability of .Dominion sales as a guide to true value, and that tho original offer made by the British Government when they commandeered our wool towards the end of 1016 was .13 per cent, on the price current in London, about July, 1914, which was in the neighbourhood of 15d. to lvd. for fleece wool of various grades and qualities, and lOd. to lid. for pieces and bellies. This would give the average named above, allowing ]jd. per l.b. for height and London charges.'. If we assume for the sake of the argument that the, Dominion average prewar price' for 1913-14 dip was intended and not London auction price at the sales immediately preceding the war io July, 1914, then the wool speculator's profit at these. Dominion , sales between November, 1913, and January, 1914, has been overlooked or forgotten by the imiehine, which should certainly have taken them into account when assessing .an index Value for succeeding year?, as the Dominion is entitled to credit for their full, value as , exports instead of the price paid , for them by the middleman. And further, the prices current within the Dominion between November, 1913, and January, 1914, can scarcely come under the. category of "pre-war" prices, being six to eight months previous to the declaration of war.

There has been a tendency to limit the value of our exports which' are the lifeblood of tho Dominion, but in times like these we need all the money .we. can honestly claim to meet engagements for imports, which will, now assume much larger proportions when tho embargo upon freight space has been removed, as it. shortly will be'. Mr. llassey should probe this matter, to the bottom himself, when he reaches London, and not rely upon, others,, as he has manifestly done on'this occasion., If a mistake has been made the British Government will not fail to rectify it.—l am, etc.. .' WOOL GROWER,