Wool Trade.

Hokitika Guardian, 1 September 1922, Page 1

Wool Trade.

AUSTRALIAN SALE CONTROL MOVE.

IUSTRALIAN AND N.Z. CABLE ASSOCIATION

MELBOURNE, Aug. 31. j A conference of wool interests to discuss subjects lias opened. j Sir John Higgins, in the course of a ■ lengthy statement reviewing the posi- \ tion, drew particular attention to the fact that the New Zealand Wool Brokers’ Association endorses the policy ot •control of allocations to prevent excessive quantities of wool being offered at individual auction sales. He declared that tlie market prospects for the current Australian wool season were particularly encouraging. Regarding tile crossbred position, lie said, that it was fundamentally sound from the statistical standpoint, but a substantial proportion of heavy purchases made during recent months remained undigested. This "was sufficient reason for not pressing more and more crossbred upon buyers in quantities in excess of their immediate requirements. Improved prices certainly will ho obtainable if the stabilisation scheme were adopted. B.A.W.R.A. was prepared to do its full share in any equitable scheme by a system of reasonable offerings, wherein, he believed, it would have the whole-hearted support and co-operation of the New Zealand Wopl Committee. He • believed that tho position could be greatly improved. B.A.W.R.A. was prepared to discuss any co-operative scheme which will meet the position. If the market was to be protected and , crossbred wool growing retained and developed as a profitable industry, provision must be made to finance the grower needing immediate assistance. He read the cable message from Sir Arthur Goldfinch in reply to his inquiries which stated that the improvement in the textile manufacturing trade was becoming very marked and would assuredly continue unless the international position became worse to a degree which was most unlikely. No surplus merino wool now existed, and an acute shortage within the next teii or twelve months was extremely probable. Regarding crossbred, Sir A. Goldfinch stated that the production had fallen below the present machinery consumption, and .the disproportion was increasing. He anticipated that tho absorption of B.A.W.R.A.’s crossbred surplus would proceed much more rapidly in 1923, because of the scarcity of fine wool. He re-affirmed the view that the crossbred situation would be completely rectified within eighteen to twenty months, irrespective of any action taken by Australia or New Zealand, but the present Australasian clip would derive little or no benefit, unless much more tenacity were shown by growers than was displayed last season.

Sir .1. Higgins then submitted a series of suggestions whereunddi' B.A.W.R.A. filiould purchase the whole of the clip of fifty counts, and under, at prices secured during the last three months of 1921-22 season," and hold off the market until the opening of the 1923-24 selling season, or such time as was considered advisable. Purchases would be either straight nut cash or on the basis of 85 per cent advance to growers. Another suggestion is that sales he continued, and B.A.W.R.A. buyers attending all sales, and if tho bids exceed their re-, serves, the sales proceed as usual. The practical effect of the proposals would be to guarantee a minimum price to the grower free of responsibility, but with a participation in profits, if any.

The conference discussed Sir John Higgins’s proposals, also resolutions Submitted, by the Australian Wool Powers Council, approving of the present system for the allocation of wool, and its continuance for another 12 months; also .approving Sir J. Hig-

gins’s proposal for the stabilisation of crossbred wool. The conference after discussion adopted these resolutions, but in divisions thereon, the members of the National Council of Wool Selling Brokers of Australia present did not vote.

Negotiations are proceeding between the various interests represented at Ihe conference from which arrangements acceptable to all parties will, it is hoped, result. The President of the Wool Selling Brokers urged that after September 30, all allocations in regard to the forthcoming clip he left in the hands of selling brokers, they receiving and carefully considering any suggestions made by B.A.W.R.A. or the growers’ representatives, their object being to arrange dates so that the full strength of buying interests lie concentrated at each selling centre in r °At io a n iater meeting of B.A.W.R.A. and the Selling Brokers’ Council repiesentatives agreed that the allocations for the Commonwealth for the September auctions be 108J100 hales.