THE SURPLUS WOOL

Hokitika Guardian, 1 December 1920, Page 4

THE SURPLUS WOOL

(Per Press. Association.)

WELLINGTON, November 30. , At a meeting of the Dominion Executive of the Farmers’ Union to-day, Air W. J. Poison (Wanganui) suggested that the Government should be asked to inquire whether sotne of the Dominions coarse wool could be sold on credit iff Germany.

He said that Britain, was now trad-' ing with the Gerlridns. It would be in New Zealand’s interests to let the German mills get Some of their accumulated ci’oss-brtd wool. The Germans had mills. They were in great need of those materials that could be manufactured ftom coatse wools; but they were unable to pay cash for the raw material. Air Poison then moved: —“That, the Government be asked to prosecute inquiries as to whether it is possible for New Zealand to sell its wool to Germany, through the Imperial Government, the New Zealand growers assuming the responsibility and nlecepting approved bonds, in whole, pr in part* payment* ’ Air T. Mosd (Dominion vice-presi-dent) said the Government had advised the farmers to hold their wool; but many of them could not do that, without assistance; and he thought the Government should lie urged to produce a definite scheme of -finance. He suggested that the Executive of their union should ask the Government to guarantee advances on wool up to 60 per cent of the commandeer value of wool. Air Poison:—“lt would he, absurd to ask that) The Government, he was sure, would not make advances on any other basis than that of the London parity, which was 4d of 5d per pound for coarse wool.”

After discussion, Mr AY. B. Matheson moved ah amended motion in the following form:—“That the Government be asked to, inquire whether Europefth wooden mills at© willing to take a proportion of 6tir cross-bred wool at a price equal to 76 per cent, of the commandeer price; payment lo be made six months from the date of sale, and fb be guaranteed by banks of staridihg.’’ This was seconded by Air Poison, who Withdrew his own proposal. The motion Was carried.

j The Executive discussed the question of a Government guarantee of advances on wool, and adopted the following motion: —“That, inf view of the necessity for a definite scheriie of finance, to enable small producers and soldier settlers to hold their wool, as recommended by Government, this Executive recommends the Government to advance 95 per cent of the London parity value of such wool; such advances to be made by financial institu- j tions on the Government’s guarantee.