NEW ZEALAND’S WOOL PROBLEM

Dominion, Volume 14, Issue 169, 13 April 1921, Page 7

NEW ZEALAND’S WOOL PROBLEM

(To the Editor.)

Sir,—The New Zealand Government should think out a policy of its own for the sale and manufacture of its wool instead of expectiiH the manufacturers in Great Britain to relieve them of theii wool. The prospects, even if trade with Russia were revived shortly, of selling New Zealand wool to them in a manufactured form to any extent is very small. It must be remembered that the present Bolshevik Government has been carrying on with the enormous gold resources deposited with the Russian banks prior to the revolution. As regards Germany, owing to the insistence of the Allies upon the reconstruction and reparation conditions being fulfilled, Germany will doubtless buy South American wool in preference to colonial, more •especially as «o many of her nationals are established in South America, and because she expects to find in South America an outlet for the sale of her manufactured products. I suggest that the New Zealand Goveminent purchase land and erect mills in Shanghai, China, and manufacture her own woollen products there for ultimate sale amongst the Chinese, from whom the demand wmild be simply enormous. So far the Germans have been the only nation a'ble to work profitably on a commercial basis our coarse New Zealand wools, and it would be quite easy to place the mill management m the hands of Germans experienced in woollen manufacture in Germany. There is no prejudice amongst the Chinese against the use of wool, and it would be a considerable saving to them in the winter to use a couple of woollen coats, instead of, as at present, eight or nine garments made of cotton. There would only then be one freight on the raw wool, instead ot, as at present, freight to England on the raw material and then freight on manufactured article from China The cost of producing woollen goods in Shanghai would be about onethird of the cost in England considering that wages are very low and coal much Ch Vhrioiis farmers’ unions or allied concerns have suggested the shipping company, financed by Die Government, for carrying wool Home at a cheaper rate, but the makers of t. ese suggestions have overlooked the fact that the Now Zealand worse wool is able at any price owing to their being no market for it in a manufact red state, so even if it could lower cost, the position would not lie materially .affected. What is wanted is a market for the manufactured product of this coaise New Zealand wool, and the scheme outlined above promises ..renter success than the expenditure of four or five millions of Government monev’ upon a shipping scheme which may land wool at Home at a higher cost than the present shipping companies are charging, unless it is heavily subsidised by the Government. 'Tiic foregoing proposal is worth consideration by the farmers' unions before agitating for a Government shipping line. — I am, etc., --tv OLD CHINA HAND. Wellington, April 12, 1921.

German competition in Latin America, is already beginning to be fell, according to a rcjx’rt to Ihe United States Department of Commerce. In Argentina German hardware is being sold from 15 to 30 per cent. lower than similar American goods, but deliveries are slow and uncertain. In Chile German salesmen are increasing, and are offering Bilveiplatod and nickel goods, pottery and enamel ware below American prices. In Mexico German* art* making alrong etforte to recover the market they enjoyed before the war.