AUSTRALIAN WOOL

Gisborne Herald, Volume LXVI, Issue 20080, 28 October 1939, Page 10

AUSTRALIAN WOOL

AMERICAN CONCERN SUPPLIES OF MERINO BRITISH MOVE AWAITED (Elec. Tel. Copyright—-United Press Assn.) (Reed. Oct. 28, 9 a.m.) NEW YORK, Oct. 27. The wool position in America, particularly the i'ate of the current Australian clip, is not only causing discussion in American circles, but ii presents an extremely difficult problem for Australian producers. Groups interested in Australian wobl here are comforted by the thought that Britain will probably release Australian wool on the American market, but it is conjectured that this wool being used to create dollars may be held for over-high prices, causing a diminution ot the demand and encouraging the use of substitute fibres.

Wool interests stress the fact that America remains the outstanding customer for Australian wool, particularly for fine Merino, the demand for which is diminishing elsewhere because of the war. None oi Current Clip

The current Australian clip should be appearing voluminously in American warehouses, but none is seen. It is asked whether if fine Merinos are not released here at a reasonable price, will there not be a post-war accumulation so great that it will be impossible to dispose of it except at a large loss. Furthermore, it is felt that America is a permanent market for Australian Merino and the prosperity of the Australian wool industry is largely influenced by it.

Wool interests emphasise that everyone in the wool trade is interested in increasing wool consumption in the United States which is at present anxious for supplies. The only hope, therefore, is that Britain will quickly announce a plan by which fine Merinos will be made available to American manufacturers regularly and at reasonable prices.