OUR WOOL CLIP

Dominion, Volume 12, Issue 95, 16 January 1919, Page 6

OUR WOOL CLIP

A SCOTCH OPINION. According to a correspondent in the "Scotsman" the predominating factor governing the prices of British wool is the price fetched by corresponding grades of Australian and New Zealand crossbred wool. At'the present time (before the armistice), owing to' the patriotism of the Australian and New Zealand farmers, the British Government are able to purchase the entire output of these two countries at 55 per cent, above tho price of the 1913-14 clip. In issuing this colonial wool to the manufacturers there'have to be taken into account not only the price paid to the fanner, but the freight and'marine insurance charges. To these charges, which are considerable, is attributable the price upon which the War Office would appear to be reaping a profit. Another consideration to be remem- . bered (continues the correspondent) is that British wool is of a crossbred character, and is suitable for the manufacture of goods for military purposes. At the present time from 75 to 80 , per cent, of the entire British clip is taken up -by the British. aiid Allied forces.. Manufacturers eiighged on such contracts work upon a costings basis—that is to siy, for producing a certain quantity of material they are given raw wool at a fixed price, to which is added a percentage for each process of manufacture and a- small profit, i■ As •the War Office tells the V raw wool arid biiys back the finished, article on that basis, the price :at which the wool is issued is immaterial from the point of view of profits.