Hokitika Guardian & Evening Star MONDAY SEPT. 20th. 1920. THE PRODUCER’S LOT.

Hokitika Guardian, 20 September 1920, Page 2

Hokitika Guardian & Evening Star MONDAY SEPT. 20th. 1920. THE PRODUCER’S LOT.

The lot of tlie producer does uot run always in favored grooves. We have the instance of the local gold miner wfl-j is going cap in hand for a trifling compensation to requite him for the loss sustained in gold, production during the war period. His request is so modest that it will be only a matter oi a few thousands to satisfy, yet he is not very hopeful of succeeding. On the other hand the wool grower has a friend at court before even his troubles begin. Mr Massey has said he is watching the position and hints .at backing it with the country’s resources. He recognises it is “a big thing” he is undertaking, but he believes it necessary. Here the producers lot is more favorable. The Premier no doubt is looking to the al-

ternate value to the Dominion to have later millions rolling in for the benefit of the, country, by the sale of its product. But it is not going to bo an easv business with regard to wool, and the Government will require to have a caro or they might land New. Zealand in serious difficulties. New Zealand is not the only country which has its stores full of wool, and another clip due shortly. The Argentine, our great rival in pastoral products, is in exactly the same plight—only that her figures are probably more impressive. During the war Argentina’s staple textile produce was coarse cross-bred wool, and this article reached unheard-of-prices, almost on a par with the fine wools that are still in demand, though limited in quan-1 tity. Boston replaced Belgium and Germany as a buyer for these coarse grades, and Argentine optimism knew no bounds. In fact, fbepe is still wool shorn two seasons ago lying in private storage simply because the owners could not bring themselves to believe that the rise would over-reach its summit. To- ' day there is literally no demand whatever for coarse cross-bred wool; there are two clips on hapd and a third not far off, and rough estimates put ahe wool in the country and. still unsold at anything from 80,000 to 100,000 tons. If a rough average price of $lO Arg. paper per 10 kilos, be taken, the latter quantity represents some ten jnillion sterling of dead capital) lU'uJi cf which is not only losing interest, but is necessarily incurring expense for storage and insurance. On top of this there is the knowledge that Britain has a great store of wpo), so that it is evident the best mnrkpts of tljp worl 1 are overstocked. What business plight be done in the indifferent markets of Europe, where finance is not strong remains to be seen, hut this would he a precarious business, and tlifg country with its huge debt, should not act hastily—as Mr Massey might be prone to do for the support of his best friends. ' The time must be near at hand when avool will decline substantially. The stores cannot be kept filled indefinitely, and fresh clips coming in, without i break .taking place. Wool manufactured for retajf purposes is still extraordinarily dear, but the product was a dear article to buy in its nntjyp Rtate. The occasion for that dearness—a depleted market and a great call'for material has passed, and the reaction will coma, j The wool grower, as the country must fage a srpp in price more.or less serious jn the near future, and it will not be in the inter£§i§ of any one but the woojgrower and d. ea irt' if the Government strive to roainlfMff a ff artificial price and so add to the cost (>f Jiving. If the supply and demand argument is to carry weight in regard to butter, so it should do with regard to wool—tlie producer can’t have it both ways, just to suit kjpiself. The public at large have some rights i# the matter and Mr Massey is there to watch thpm. If he fails to do so he forfeits public opinion-