WOOL PRICES

Dominion, Volume 14, Issue 62, 7 December 1920, Page 8

WOOL PRICES

SALES IN CHRISTCHURCH TO-DAY STATEMENT BY THE PRIME MINISTER f WARNING AGAINST LOW VALUES a wool sale is to take plow in Christchurch to-day, and will be watched uith keen interest V producers, brokers, and others throughout New Zealand. It will bo remembered that at the opening salo in Christchuroh early last month prices fell heavily for all coavsQ wools. \ ei y little wool changed hands at the time, and it was reported a day or two.later that sales had' taken place pnvatclj at ndvnncea of 2d. to 3d. per pound. The first North Island sales wero b"«cbUml in consequence of what happened a Christciiurch', buyers evidently being uncertain as to values., ■ The situation has been changed t° SOI P° extent within tho last few days, by•the receipt of cablegrams making it clear that the British Government, an enormous accumulation of New /eafand and Australian wool, is not going to sell at sacrifice prices. Unceitainty ns to the disposal of the accumulated wool was probaby the most important factor in causing the break in P rl «*.£. Christchurch last month. It is nntici Tiated thilt buyers will display increased confidence now that the. in ton tioiis ox tho British Government Im\e teen revealed. A Timaru sale has been nnnoiiTicfoT. December 10. and <v Dutiediu sale for December 14. The first We liiigton sale is to 'take -place on December. 20, and the first Auckland sale on February

Prime Minister (the Eight Hon. , W ' F Alassey) made a statement yesterday to » Dominion reporter regarding the wool position. He eaul that in view of the sales about to be hold it , would he of interest to won grower, to be acquainted with the available facts. , Valuable information was contained in ( the cablegram from the Imperial antliori- , ties published' hy The Dominion yester- , day.' In this message the Director-Gen-eral of B-avr Materials said that the de- i niand for crossbred at tho Isovembe.r , London wool sales was very limited, par- , ticularly for the coarser qualities. He . advised that Ihis reserves were hased on , approximately ' the following prices for s[ nn< i b grade average combing greasy woo!s:— A d Ko's-64's Marino '• 2*' J® W sfi's-sS's Falfbred' ; 20" to 2M 4S'a-50's Pino crossbred yi to , 44's-46's Medium crossbred U Jo i 86's-40's CoaTSe crossbred 13} to 11J , The Director-General of Raw Materials < added that it was his intention to fix his < limits for greasy fleece wool, Us to « s i and below, at the December sales at the I net New Zealand' appraisement prices ; without any addition for charges. These i were approximately:—. «'s46's i ! S6's-4fl s '..Ml .to IS| I . The following w.cre the prices (in the United Kingdom) at which the DirectorGeneral of Raw Materials estimated wool *ould sell freely:— . d. d. 60's-Bi'« Morino ; 24 to 26 66's-sS's Halfbi'ed 19} to 25} 4S's-50'a Fine crossbred 153 to 183 (•i'e-ifl's Jfedium crossbred 121 to li' 86's40's Coaise crossbred 103 to 111 "As. the Imperial Government intimated that it was keeping its reserves for the next sales on a higher basis than at the last sales, it will be realised that every support 'will be given to ithe Nenr Zealand market," said Mr. Massey. , "It may be also stated that in response , to a cablegram sent a' little time hack , the Imperial authorities replied as fol- , lows :— 'Ministry has up to tho present held stocks of New Zealand .wool Tery firmly, reeognifdng that current prices, ■ especially of' close crossbred wool, must bo very near cost of pro...duction and very grave consequences •might result if any further serious i decline took place. It is ' the intention of tho Minislei; of Munitions' as 1 -far as possible to handle Govern- . r ment stocks of wool in such a manner as not to cause, injury to legitimate interests of wool-growers. The ' ■ possibility of the selling price of stocks of wool held by His Majesty's Government being permanently maintained at about, present level, ihirst depend to some . extont upon •the action of; New Zealand woolgrowers. , ' Hence there is good reason for New Zealand growers to itake up a stand against sacrificing their wool at too low values for the Bake of getting it off their hands quickly, especially as to do .60. ■will be simply playing into the hands of buyers, who, unlike- those who buy for the legitimate manufacturing purposes .of their principals in Great Britain,'are simply making speculative purchases. ' "In order to enable those growers who need immediate financial relief to obtain it, the Government, after conferring with the. financial houses, has made arrangements with the banks under which growers will he able to obtain advances from their brokers or direct from their hanks up to whatever is a reasonable' limit in each case. "What constitutes a reasonable limit cannot be arbitrarily expressed in explicit figures, seeing that the njlamce which can be made to each individual depends not only upbn tho quality and condition of his clip, but also upon his general financial standing. "The _ action of the Gbvernment in supporting tho banks will enable advances to be made with a degree of confidence which otherwise would not ' exist, and will* place growers in a better position to face the market. Tho special conditions under which returned soldiers settled on the land by the Government are financed may call for special arrangements being made in connection with advances on their olin», and a report in connection therewith is now being prepared by the Minister and officers of the Lands Department."