N.Z. WOOL PROBLEM

Dominion, Volume 14, Issue 220, 11 June 1921, Page 9

N.Z. WOOL PROBLEM

CASE AGAINST THE B.A.W.R.A. Sir,—Air. Mabin’s very valuable report shows quite clearly that the fight for the marketing of crossbred wools will be between New Zealand and South America. Sir John Higgins maintains that if wo fall in with the B.A.W.R.A. and build up a strong corporation wo need not fear the Argentine competition, but his supporting arguments fail to deliver the goods. . No. I—He says he could bring the British companies interested in South America into line. He could probably federate their interests, but he cannot stop them growing wool, and he cannot stop them trying to find a market for that wool. South America produces far more coarse wool than Australia and New Zealand combined. .By what mysterious alchemy he is going to market New Zealand and Australian coarse wool and shut out South American he fails to disclose. In other words, the assumption is made that the little fellow is going to fight the big fellow and beat him. It sounds neither plausible nor reasonable. . No. 2 statement of Sir John Higgins is obvious, and need not have been inserted. , , No. 3—New Zealand crossbreds are superior to South American, yet they have been selling at Home at lower prices than South American. How is that? ... . No. 4— If quantities were limited in London, etc., etc. Let Sir John Hit? - gins first sho’v that he has got the Imperial Government to consent to his scheme of limited offerings, and even if South American wools /were excluded from sale in London or for sale only after the marketing of the one Bullion two hundred thousand bales, South American wools can bo offered in Antwerp and elsewhere on the Continent. Mr Hughes stated very distinctly in his speech that he thought the B A W.R.A. could hold np tho market for a time, but could not prevent a collapse later on. An enormous quantity of British capital is sunk in wool growing, railways, tramways, corporation debentures, etc. etc., in South America. Is it likely that the vested interests connected with thene concerns are going to hinder the fiee 'competition of South American wools with colonial wools in Lonoon? Such a. statement is simply amazing, and should be supported by facts before it could even be considered. South America was odo of tho best markets for British exports before the war. Germany has an enormous number ot her nationals engaged in business in South America, and also n.as a lot ot capital sunk there. Tn order to pay her indemnities in gold she will have to export enormously, and. the market she intends to exploit, and is exploiting, in dumping her goods, is South America. When Germany has to consider in buying her coarse wools whether she will, buy South American or New Zealand, is it not reasonable to suppose that the will choose South America, inasmuch as she will be allowed to dump there, rather than of New Zealand, where she will not he allowed to dump 1:1 other words, Germany will choose to trade with the country which is already trading with her. rather than with one which wi.l not buy her exports. If anybody wants to understand the wool situation, let them read very carefully the excellent letters which have appeared in The Dominion from time to time from their wool correspondent at Home. No one can read these letters impartially without realising tho competition New Zealand wool will meet with from South American interests. ' • ~ If any scheme is fixed up with t,ie B.A.W.R.A. it should' be for fixing reserve prices only, and there should be no need why wool glowers here elwuld bo saddled with a. costly scheme with all sorts of restraints to selling, and for which they will eventually have to pay. Tho wool grower is entitled to receive a fair profit over and above his working expenses, and tho Government should make every effort to obtain that for liiniinstead of' letting him incur heavy expenses in financing a scheme which has met with heated opposition both here ami nt Home. Tho- fallacy and impossibility of the B.A.W.R.A. controlling wool has been opposed in the letters o various wool correspondents over and over again. The B.A.W.R.A. scheme has net been worked sufficiently long to show ;is demerits. These will outstand, and show very clearly about January 1 npxt vearz —I nm, etc., - 3 G. W. COOPER.