WOOL CONTROL

Dominion, Volume 14, Issue 194, 12 May 1921, Page 5

WOOL CONTROL

CRITICISM OF AUSTRALIAN SCHEME

YORKSHIRE PRESS VIEW

By Telegraph—Press Association— Copyright

London, May 10.

The "Yorkshire Observer” publishes a barn cabled outline of the Australian wool scheme. The paper suggests that it is fairly harmless, but foreshadows extensive bureaucratic interference with the free play of commerce. The "Observer” also states: —"The scheme rests upon the fallacy that it is possible fol the Australian Government to dictate to the world prices for wool irrespective of values in competing markets. Apparently, Mr. Hughes’s fear of the consequences of a great accumulation of lowergrade wools has very largely influenced tho Government in deciding to resort to the legislative coercion of growers. The Government cannot compel a single user to buy a bale. Users will exercise preference ns before, and if prices are arbitrary, then consumers will naturally prefer to take the superior wools, making the lower qualities less saleable, especially as there is plenty of free wool of a low quality in other parts of the world, such iaa South America. There is a great probability, therefore, that the sediment of low wools, instead of diminishing, will tend to grow. Mr. Hughes’s mountain of wool, trembling on the edge of a precipice, would assume more fearsome dimensions than ever." She “Observer” considers that "the weak point about the control scheme is that it ends at the Australian coast. It is well intentioned, but it -will benefit some growers at others’ expense, and be Unfortunate in its disturbing influence exerted just at the moment when there are signs throughout the world of a reawakening of the wool trade, which, if allowed to develop, would probably show that, the Australian scheme is unneces-sary."—Aus.-N.Z. Cable Assn.

SYDNEY SALE TO-DAY

Sydney, May 11

An all-day wool sale has been fixed for Thursday, practically covering the offerings usual in three days.—Press Assn.