WOOL PRICES

Dominion, Volume 12, Issue 95, 16 January 1919, Page 5

WOOL PRICES

THE COMMANDEER AND THE : FARMERS.

(To >the Editor.)

Sir,—The figures just published by the, Imperial Supplies Department tell us that the sum paid for. slipe wool up to December 31, 1918, was £3,292,875, and according Sir Joseph Ward, •in his Budget. Statement, the payments :up to March 31, 1918, were £1,594,875.' It therefore-.. follows that the Department has disbursed £1,697,980 between April and December 31. This will no doubt/include the 25 per cent, on the total shipments, which for reasons unknown to outsiders, was being withheld by the Imperial. Government, and now conceded, under the fresh contract, recorded :'n the Gazette of June, 1918. The prjco per lb. has not, so far as I am aware, been divulged, although I seo.no more reason for secrecy than- in the ose of greasy wool, 1 which, it is well known, averages Is., 23<J. for 1917-18 clip.: As no information has been forthcoming I have gleaned the following from tho London cataloguos for 1914, and it may be fouud that my averages for the 'various descriptions enumerated,. with the stipulated ljd. per lb. deducted for London charges and freight, and 55' per cent, added; as provided by the Gazette of Juiie, 1918, very nearly approximate the net prices now being paid to the freezing . companies for their slipe wool. These are as under:— Pino Pino Lelcee- .'..'. . J-brcd. jj-bred. ter. a. d. s. d. b. d. Lambe' wool, per lb., net 3 4' 3 1J !Z 9J Bheep's;wool, perlb. net 2Hi 2 11 J 2 9

These net prices are computed from Metoalf's Circular, for 1914, from December, 1913, to December, 1914, and receive the benefit of the enormous advances which took, place between August and December, 1914, after war was declared, while greasy wool owners are denied that benefit, as their average of 9,65 d. per lb. is fixed on .Dominion auction prices between November or December,, 1913, and January, 1914, over -six months before war 'was declared, and' place greasy wool prices at a disadvantage of quite 6d. per lb., or' six ; million; pounds'sterling per annum, not including post-war prices. As an illustration, greasy half bred fleeces were selling in London in July, 1914, shortly before tho declaration of war; at' Is. 6d. per lb., and in Deoember, 1914, five months afterwards, at 2s. 6d., scoured halfbred at 45., while slipes bad risen in sympathy to 3s. per lb. It is manifestly unfair and positively stupid that ■ slips a'ool, jn the computation of its average and price, should receive the benefit of these afterwar advances, which are denied to owners of greasy wool. Sir James Allen's basic price for greasy of 9.65 d. .per lb.', as I havo before stated, was actually 4d. per lb. under pre-war parity of value in London, to say nothing of the advance of Is. per lb. between August and December, 1914. The re-' suit is-that many farmers faro, very badly under the commandeer, and instead of a'ss per cbnt. advance in. price are receiving less per fleece than in 1913-14. ■'■.■,.'. . Notwithstanding the enormous after-,war-increase-in the price of,all wools, which growers elsewhere are receiving,' no New Zealand farmer regrets the commandeer to-, benefit and clothe the fighting man, but. it is galling, to the primary producer to find that his sacrifices, are being inopped up by the •middlemen: are waxing fat at his expense. ,-:•■•; ■■ .The freezing, companies, who have been notifying their_ intention of'reducing the carcass price an eighth of a penny per lb., have for the past two years' been buying, the wool on the sheep's back at Sir James's price of 9Jd.. per lb., and. selling their slipes to; the Imporial Government, under the amended commandeer contract, up to 3s. 4di per lb.,- and instead of a reduction, in price one might have expected them to declare a bonus to the farmers from whom they have purchased live stock. The Imperial Government has been more liberal in regard to wool, as they are giving us a bonus over the original commandeer, although Sir'Janies does not want us to get it, and I suppose are really ashamed to accept it from us at the prices fixed here. It.is evident ,our freezing companies are not so liberally inclined.

There is need for investigation, as you remark, atvd one wonders why the Board of Trade has not extended its inquiries beyond the farming interests. -The poor farmer is not o'nly slated, but blackguarded all round, and. still perseveres.—l am, etc., WOOL GROWER.

[The .Department of Imperial Government Supplies, to whom' we submitted "Wqolgrower's" statements, informs us that they are entirely misleading. Freezing works' slipe wool, the Department states,' is purchased on a schedule based on the prices realised from July 1, 1913, to June 30, 1914, in London, less cost of carriage to and sale in London, plus 55 per cent. This schedule is attached • to the Gazette notice of May 17, 1918, and shows tho range 'of prices, f.o.b. New Zealand, for the qualities mentioned by "Woolgrower" to be as follow: — Pine Fine Lei-1-bred. 4-bred. cestcr. SWs-M'e. 46/48-50's. (4'!/«'i. d>. d. d. d. d. d. Bo™w>ol. per II). 20-24J 17-22 153-191 Pieces and eeconds, .per lb 133 Hi 114-15 Bpdy C .wool, per lh. 16-25J 14-21 ' 123-19 Pieces and seconds, per lb ' 12 17 tii-Ui Reduced to clean scoured basis those figures are, states the Department, on a parity with the prices paid for greasy wool, any slight being in favour of greasy wool. Detailed average prices paid for all slipe wool will bo published *in the same way as for greasy wool when all the figures are available.]