WOOL SLUMP.

Hokitika Guardian, 11 May 1925, Page 1

WOOL SLUMP.

A JUG SLUMP. LONDON, May S. The ".Morning Post’s” .Head lord correspondent alii nils that, on a low estimate, from eight to ten millions .-terling has been lost on tho wool ’■ought prior to December. This money has none into the pockets ol the Australian growers. This has crippled the purchasing power of the Rriti.sh importers, whose only ehtinie even of portially recouping themselves is by Iniying the balance of the clip in Australia, and also the httik of the next clip at a rock-bottom price. It will take two or three good years, lie stty.s, for Bradford West Riding to recover even a reasonable part of the money lost, through the misjudgement of the outlook list autumn.

COMMENTS OX AUSTRALIAN POOL. LONDON', -May 7. The “Yorkshire Post.** in on article entitled ‘‘Australian Growers and Control.” said: “The prophet of a won I famine is at- discount just- now. The present problem is how to deal with the. large accumulations, which are unlikely to he wanted for some months, by which time the new clips V. ill be marketed in Australia, calling for iv-est.ubiis!iinont of JI.A.W.R.A. which is to marked contrast to the Australian attitude during the latte: half of 1021, when making allocations of new wool to prevent, over hasty liquidation. Instead of this policy increasing their profits, the Australian sellers have let. themselves in for a larger share of losses. The growers are being made to realise tor the first time since the war, that wool is fittdm;■ it trie' economic basis, 'llie

boom after the Armistice was artificial. There is now a surplus and not afamine; and this surplus is being carried not by the Government hot by ihe private traders. Our importers are facing their losses .with courage, without calling for outside assistance. Tim wool growers did exceedingly well for a long time, and they have small claim to special consideration now. Many who have profited by the mad competition in wool at the end 0f1924 call for the re-establishment of 11.A.W.11.A. This means the Australian wool growers want to combine amongst themselves for carrying a large quantity of wool into next season and for tlm arranging for its liquidation with the new clip in 19252ii. That is their business. The slump has m«w gone so far that one cannot lnln concluding that, the Australians are wise ill not forcing the halaiirr of the wool still held in Australia Oil the mraket, at. this moment. If they did so, they possibly would create a panic, and play into the, hands of speculators. The low water mark mav not- yet he touched, butane attempt at a forced liquidation would mean a severe depression in values, wit.li subsequent violent reaction when orders for tops, yarns and piece geods begin to he placed again in n normal manner.” AUSTRALIAN AUCTIONS STOP. .MF.L'ROURNT.. May 8. At ihi' conclusion of the eonl'Tonee between the wool growers and the polling brokers, to discuss the question of the slump in the market, it was otliciallv announced that it lias been decided that public auctioning of wool shall forthwith . ease, and it will ho i-,,„umod on the first of duly if tlm rirc-iiiiisl..;iiH*vs ’wniTiilit.

Sir John Higgins, head of tin' R.A.W.R.A-. in an interview. said that if the B.A.W.R.A. had been given the. power it Mould have regulated tt,e .supply, and thus would have prevented the slump occurring. 11'' strongly urged the need «>t stabilising the industry.

Asked if R.A.W.R.A. would undertake t Ids. he said that- ii Hie R.A.AV.K.A. shareholders wished them to take up the task again, and made such a recommendation, the Australian Hoard would have to consult the British Board. ft would mean that- he would probably have to make a hurried visit to London.