WOOL PROSPECTS

Dominion, Volume 15, Issue 23, 21 October 1921, Page 6

WOOL PROSPECTS

MR. MASSEY’S COMMENTS THE POSITION IN EUROPE WHAT BRADFORD IS THINKING THE AMERICAN MARKET AVool was one of the topics dealt with bv the Prime Minister during his speech on the Imprest Bill yesterday. He knew, he said, that it was very discouraging for tin sheep farmers to have no pront to show for their year’s work Il_‘ hail not dealt with this subject m the House before, but ho wished to express an opinion similar to one fo which he had niven utterance on the platform since his leturn. It was perfectly tine as had been stated, that there were at least 100 million fewer sheep in the if olid at the present time than there were in IJ Mr G. AVittv (Ricearton): There had been a drop of •«' niilliou previous to th Mr Massey said that he had gone to considerable' trouble over this matter, and had put a particularly good n an to the task of hunting up the statistics During the war pencil theie neio no Statistics kept in the enemy countries, but to-day there were very man) fewo- sheep and cattle in those emmtries than there were before the van There'was another point, the falling off in the purchasing capacity of our verv best customers, the people of Britain. T’hev had had very serious industrial trouble, including the mining dispute There had been no coal produced for three months or more, and the great manufacturing industries were closed down. That had very seriously affected the earnings of a great number of people, and Jn consequence their purchasing power. Some of them had not yet quite recovered.

INFLUENCE OF AMERICAN TARIFF. There was another factor governing the price of wool. Members would have noticed what had been done in the United States in regard io the tariff. had passed what could only be described ns a temporary tariff. It.was in operation at present, but at the end ot term it. would be revised. Its time was very nearly up. He had met a number of different buyers representing Amen can manufacturers. 'There was no difference of opinion among them as to the effect of this tariff 'lt was not a matter of the duty. AMiat did affect them was that they did not know what was going to happen. as they knew what the duty on woo] was to bo they would be able to buy. They woulA be able to make their arrangement* and could pass on the amount of the duty to their consumers. The present state of affairs was no use to anyone. Americans wore not buying more than enough to keep the industries going until they knew what the tariff was going to be. That was a very serious factor. It would be found that as soon as the American people knew what the tariff on wool was. going to be it would produce considerable effect on the wool-pro-ducing countries. It would have been noticed that the cotton, crop for the past season was not up to the average. It was well known that the price of cotton governed to a certain extent the price of wool, and vice versa. The price of cotton had gone up, and the effect would lie to help restore the price of wool to what it had been some years ago.

imperial government stocks. While ho was in England ho visited Bradford. The people there had proved willing to tell him everything that he wished to know, and show linn everything he wished to see. One thing that struck him particularly was that in the <ase of one largo establishment doing a huge business in manufacturing and exporting, particulaiJv to Bussia and Doland, the store., were practically empty. There was just enough wool to keep them going from hand to mouth. On asking what it all meant, he was told that everybody knew that there was an accumulation of wool in the hands of the Imperial Government. This wool was not as good as it ought to be. for it was well known that it had deteriorated by Keeping. The Government was short of money, and nobody knew when it might not be nlaced on the market at a sacrifice. The people of Bradford were sincere and genuine in what they had said. The accumulation was a lug one, said Mr. Massey, but was not so big as many people thought., There was very little more than one year’s clip of New /. aland wool in band. If there were he same amount accumulated for the other places, that would account . for ho whole amount. He did not think that there was much more accumulated than they wore in the habit of keeping in store before the war. , Then there was the Argentine. Ihe people there had been in the business of producing meat, and for a time' it appeared as if they would enter into competition with ns in wool, mutton and lamb. But they were now attempting to get rid of their sheep. They were fattening them and sending them to the London market. Even that was going to make a difference. Another point was that most of the New Zealand wool bed been just the sort, .bat the Government had needed for tie manufacture of khaki. It had been the best war material that the Government could have in the way of wool.

NORTHERN EUROPEAN MARKET. Before the wai'. however New Zealand's principal market, or the marke to which tlie greater part of wool had eventually found its way, was 01th"rn Europe. Poland had been the manufacturing centre ami much of t ■ -roods had' been sent to Russia. Owing to the disturbances and the financial troubles between Russia and Poland the trade could not be carried on and main of (he manufactories were closed down. This was one of the causes ol tho trouble. Nobody could say when normal conditions would return there, and in the meantime it was impossible tor them to deal in the wool Ho suggested that it would be a good thing to make an arrangement with the Polish Government or the Russian people because he believed tliat it would pay to hand that wool over, oven if we did not get x cent for it at once. Tt would relieve (be trouble here. He was perfectly certain, too, that it would help to adjust exchange, and would assist trade in the United Kingdom itself. That was the position so far as lie had been able Io ascertain it, concluded tho Primo Afinister. He lind gone to a good deal of trouble to get to the bottom of it. The outlook did not appear good for the producer of wool, but he believed that the time would come iwhcn tho sheqpfarmrr of this country would lx? able to obtain a remunerative price for what he produced. WORK HARDER

“Wo must either receive less for what we do or do more for what we receive,” said Mr. G. Mitchel! (Wellington South) in the House last night. "I don’t think it is necessary to reduce wages, but it is necessary for every man in the State to put his shoulder to the wheel find work harder.”

“This Government has a sense of humour. It not only censored Ted Europe.’ but it censored gas-cookers, observed Mr. E. ,1. Howard 'Christchurch South), in tho House last night.