AUSTRALIAN WOOL

Dominion, Volume 13, Issue 198, 17 May 1920, Page 5

AUSTRALIAN WOOL

MR. HUGHES'S SCHEME OF DISPOSAL PROTECTION OF YORKSHIRE INTERESTS By Telegraph-Press Association-Copyright London, May 14. The British Wool.Federation is calling ft confeience of importers, wool buyers, and others concerned, to consider the scheme of Mr. W. M. Hughes (Federal Premier), with a view to protecting tho interest of Yorkshire. Tho "Observer" says the suspension 'of sales as proposed would disorganise the wool trade, and would merely involve it in a repetition of tho phase of artificial values which it has already experienced. Tho reasonable assumption is that an artificial scarcity would create another period of soaring values and feverish speculation and the trade would have to faco the reaction later. Mr. Hughes's suggestion is undoubtedly well meant, but Bradford traders are forced to conel udj that lie docs not realise how sensitive the wool trad© is, or how useless it is fjr any country or body of people to attempt to institute a' fictitious state of values in a branch of industry which is subject to world-wide influence.-Aus.-N.Z. Cable Assn. [Mr. Hughes proposes to sell half a million bales of low-grade wool now in Australia to the Central Powers at. three times the appraised value, one-third of tho payment to be in gold, and the balnnco in three-year bonds.! OBJECTIONS Ie~THE SCHEME fflec. Muy 16, 11 p.m.) London, May 15. Sir Arthur Goldfinch (Director of Raw Materials), interviewed bv the "Yorkshire Post," said:—"Tho'principal oblection to Mr. Hughes'6 wool schemo from the users' point of view would bo that supplies would be totally interrupted from October to December, when' it would be essential for tho trade that 200,000 bales should arrive monthly. Three blank months would bring to a standstill a number of mills, especially in France and Belgium, as they would have no stocks. It is necessary for the trade that Government wool should be sold right up to the end of December, and it will be highly inconvenient if there is no sale hero. I doubt if it would be practicable." He would no doubt be. nble to arrange a reasonable division of shipping between the owners of the new clip aud the Imperial wool. It was never tho intention to ignore tho interests of the growers in respect of tho new clip. ,' The' "Yorkshire Observer" states:—"lt is probable not much more will be heard of Mr. Hughes's wool scheme. Inquiries show that the authorities in London do not regard it seriously. They oughr. to have little difficulty in convincing Mr J, Hughes that there is nothing to be said in favour of the proposal. The opinion is growing here that the scheme is due to My. Hughes being oJSiged to show willingness to exert himself in the interests of tho Commonwealth growers. This is perfectly legitimate, but if,tho'inference is correct the, proposal need not be considered alarming." "The Time's" Trade Supplement says: "There is a suspicion that Mr. -Hughes's interference is prompted by a desire to nationalise-Australia's wool trade and wool and textile industries."—Aus.-N.Z. Cable Assii. '