"GOOD NEWS FOR THE SQUATTERS OF AUSTRALIA.”

Hawke's Bay Times, Volume 16, Issue 805, 18 July 1870, Page 3

"GOOD NEWS FOR THE SQUATTERS OF AUSTRALIA.”

("Wairarapa Mercury, July 6.J Under the above heading the Australasian publishes an extract from a petition to the United States Congress, from the National Association of woolgrowers, in favor of the free importation of fine wool into the United States. If this is good news for Australion squatters, it cannot be otherwise to Wairarapa [and Hawke's Bay] sheepfarmers. It is, perhaps, not generally known that Congress imposed a duty on merino wool in March, 1867, which was all but prohibitory, the importation of foreign wool falling off in one year from 80,000,000 lbs. to little more than 20,000,000 lbs., which may, to a certain extent, at least, account for the reduction in the price at the London wool sales. This duty had a most depressing effect on the American wool industry, and instead of affording protection to the American wool growers, it diminished

the demand for wool of home growth. The petitioners observe: —" To us it seems clear that this unjust exclusion of fine wools not grown here has contributed in a great degree to the decrease of prices of domestic wool. The price of wool iu our market is governed by the price of cloths; and while foreign manufacturers have cheap fine wools, in the absence of competition from us, they can and do import their cloths, in spite of a 45 or 50 per cent, duty, at prices below the cost of production under the 100 per cent, duty on fine wool. Give our manufacturers fine wool at a mere revenue duty, as you do in coarse wool, and the foreign manufacturer must pay more for his wool because of our competition, and will be forced to advance the price of his cloths, to the direct benefit of our own manufactures while our wool-growers obtain an equal benefit by the increased price of their wools." Upon this the Australasian remarks :—" If as our American cousins imagine, the competition of their woollen manufactures with those of Europe, should have the effect of raising the price of the staple, so much the better for the wool-growers of Australia and New Zealand."

The product of merino sheep, whether in wool or mutton, being too small for their profitable culture in the United States, the manufacture of broad cloths in that country is virtually prohibited, while as we have said, it diminishes the demand for coarser kinds of wool which are grown in America, as these are also required in the manufacture of the finest doeskins and broadcloths. A new tariff was under the consideration of Parliament in April last, and it is not at all improbable that the duty on merino, if not on all kinds of wool, will be greatly reduced, if not altogether repealed. If this should be the case, the one great obstacle to a profitable direct trade-with America will be removed. One of the benefits of this direct trade will be the general introduction and employment here of those inexpensive labor-saving machines which enables the American farmer, notwithstanding high taxes and still higher taxes, to successfully compete with the English farmer ia his own market.