FINANCIAL ASPECT

Evening Post, Volume CIX, Issue 43, 20 February 1930, Page 11

FINANCIAL ASPECT

(^ROWERS CAN SHIP AND DRAW

Some financial opinion ascertained ■ on inquiry by "The Post" is to the effect that growers can meqt the position by shipping their wool. The, attitude taken up by the buyers in declining to attend the sales unless, a minimum of, say, 20,000 bales is offered, it was held, need not occasion the slightest perturbation in the minds of growers, because in the event of the sales not being held the banks and financial companies can and- no doubt will gladly assist the growers to\ ship their wool to London, making liberal advances thereon. "In fact (it was said) they would be only too anxious to help growers in this way in the present circumstances."

"The option of the buyers may prove a blessing in disguise," was the opinion ot a banker, "because in respect to shipments there would be a delay of, say, six or eight weeks while the wool is in transit, and it is just possiblo that' there may be an improved tone in the London market by the time those shipments of wool arrive, i ..... "It seems to me .that; r the buyers k are putting vp a bluff to a certain extent, and it is, opportune that growers should call their bluff by shipping their wool for sale later- on the London market, instead of storing it for realisation -later on in New Zealand. • "No doubt the buyers' are anxious to purchase on behalf of their principals, and ■if they see that the growers can act independently 'of them, I fancy it is only a question of a short time when they will be brought to heel. "If the wool be quickly dispatched from the Dominion to London, the proceeds to be derived from its sale there will provide cover in London, for which the banks may be said to be hungering, at the moment. "By the augmentation or accumulation of funds in London from realisation of wool there would follow, a most favourable influence over the pi'usent position, caused by the high rate of exchange for telegraphic transfers. - "As soon as the wool is aboard the vessel bound for London or the Continent, to all intents and purposes it will bo equal to a remittance in transit, and the banks in London would be able to at once frame their policy in respect to exchange accordingly." ,