THE WOOL QUESTION

Hokitika Guardian, 28 December 1920, Page 3

THE WOOL QUESTION

( [by TELEGRAM —PER PRESS ASSOCIATION] I AUSTRALIAN AND N.Z. CABLE ASSOCIATION. ] LONDON, Dec. 23. A full meeting of the British Wool • Federation at Bradford received its de--putation’s report on their interview with Lord Tenverforth and Sir A. Goldfinch. After ft full discussion the moeti ing passed a resolution, with only two 1 dissenters, approving of tho Australian r wool realisation scheme, on the assur-

! anee, firstly:—That the interests of the : textile manufacturers will bo represented on directorate and on the proposed 1 syndicate. Secondly: That th distribution of wool through the London Sales Association the usual trade channels should bo continued, and thirdly: That reserves will be fixed as near as -possible on a basis of world value. Tho Federa£on telegraphed Lord Tenverforth accordingly. BRITISH GOVERNMENT WOOL. ■ LONDON, Dec 24. Sir A. Goldfinch received a telegram from the Bedford Chamber of Commerce expressing tho opinion that it would be unwise to hand over the Government stocks of wool to any syndicate, and requesting that the whole of the woollen and worsted trades should be consulted before the Government takes any action.

Regarding the Australian wool pool pro posals ,Sr A. Goldfinch in reply points out that the Australian Government, in requesting that half of the surplus wool and half of the cash surplus should he handed over to a Co-operativo Association representing the entire sheep farming community of Australia, are asking no more than they are entitled to receive. Tho British Government would not\ldnk it proper to offer any observation \on the Australian Government’s j proposals for use of these assets. There was an Australian suggestion ' that the British Government should , hand over to the British half of the sur- j, plus wool to the Australian Association ■ j

for realisation on behalf of Britain. This suggestion stands on a different footing; but*there are strong reasons why it should he accepted. Enormous difficulty, and delay, and unnecessary expense would be involved in making a physical divison of 1800 thousand bales of wool. The British Government, moreover, desires to disband its Wool Department as rapidly as possible. The Australian proposal was very welcome to this Department. The terms under which the wool was purchased entitled the Australian Government to be consulted in all arrangements for the sale of this wool. Australia would not agree to the British Government handing over any part of this wool for sale to any agency, except an association on j

which Australia was very largely represented. The Australian proposals con- ' tain nothing affecting the normal course of business in the-Australian or British wool markets. The new wool clip will not be subject to the asociation, so that the flow of wool to England from Australia and other countries should continue to the full extent of the industry’s requirements. Australia asks for no restriction and no preference of any kind. Therefore it is impossible to see j how British wool buyers could he placed at any disadvantage compared ( with their position in normal times, .i The appointment of thoroughly qualified ]

responsible men of business as directors of the Association, whose nomination will be subject to the British Government’s approval, will be a sufficient ' guarantee that, the Association affairs will be conducted in a moderate reasonable spirit. Any attempt to hold up wool for unnaturally high prices was out side the desires of the Association, and would in any case be defeated by market conditions. The Governments of several other wool producing countries «>ere finding themselves forced to take protective measures to safeguard the sheep industry. From this point of view, the Australian proposal was so cautious and moderate that the Wool Department would find it difficult to offer any valid criticism, even if it were permissible to do so. New Zealand wool was not at ,

present included in the Australian scheme. After an answer was given to the Australian proposal, the problem of dealing. FURTHER COMMENT. LONDON, Dec. 24. The Yorkshire newspapers consider tho Wool Federation’s endorsement of th Australian Realization Scheme ensures its ratification, but they continue their unfavourablpo comments. The “Observer” says that half the wool which the growers sold to the Imperial authorities is still the property of the original owners. This is probably the most grotesque fact ever known in commence. It is the growers’ trump card, which tho growers’ have played to our advantage as far as they are able, but the great problem still remains, namely, how to get the wool into consumption. Failing success in this direction, a transference of selling growers from tho Ministry of Munitions to a syndicate will be valueless. rm,o nVn-1.-oliT-n Prvst.” savs ; — lt nn-

The “Yorkshre Post” says:—lt appears Lord Inverforth and Sir A. Goldfinch and the officials of tlie Government Wool Department have obtained a great triumph, but the opposition displayed since the announcement of the scheme has secured important conges-' sions ,which, in some degree safeguard the interests of wool traders and users. The “Post” understands the Government will retain a veto over the Realisation Association’s policy, and also the right of a veto over nominations to tho Board of Directors. These.concessions make tho scheme much 'more aceeptabl to English wool traders generally, but tlie English ought to have five directors, and Australia only four. SALE OF WOOL TO POLAND. LONDON, Dec 25. The British Governent has contracted with Poland to sell 35,000 hales of Australian and New Zealand wool. The transaction will ho carried out in connection with the British relief credts. Britain is receiving as security certain Polish bonds. The deliveries of th? wool will commence, immediately.