SELLING OF WOOL

Hokitika Guardian, 22 February 1930, Page 8

SELLING OF WOOL

LAW OF SUPPLY AND DEMAND. (Dunedin paver.) In due course no doubt the present unsatisfactory position regarding the buying and selling of wool will be settled on the final issue of supply and demand. So many charges and counter charges ha,ye, however, been made that the time may be considered opportune to give some views by men who have a thorough knowledge of the wool business. In the first place, it is maintainel by the selling brokers that they have had nothing to do with restricting the quotas to be offered, and thus drawing protests from the overseas buyers, one broker said lie would guarantee that every firm in Dunedin had given its clients but one advice—that was not to withhold their offerings of wool but to sell at the best price they could obtain. If, however, clients refused to place their wool on the market what could firms do. Moreover, if clients came to their particular firm and askec. for an advance on their wool, what was that firm to do? They had the security, and if the farmers could not borrow money from one firm there a ere plenty of other firms who would lend it to them. Another broker was asked if there was any truth in the suggestion that buyers were in the habit of combining and appointing one of the combination to act as their bidder in ait attempt to Keep down prices. The broker said that there was absolutely no truth in the allegation, and tha it would lie hardly possible to rig the market in tne manner described. He said that at a sale in Christchurch, whatever, some buyers may have desired, other buyers wanted wool, and as a consequence the price had advanced Id per lb. Another broker was asked what the position would be if the overseas buyers, objecting to the restrictions in the number of bales placed under auction at the various centres ,refused to bid. “ The alternative is very simple,” lie explained. “ The wool will have to be sent to the London market, and the prices offered there will have to lie accepted,” The “ Daily Times ” reporter was assured that there was easily a full quota of 20,000 hales available in Wellington for what might be termed a quota sale, notwithstanding a statement that only some 14,000 hales could be collected for the sale. The broker who gave this i: formation said that lie did not think Dunedin wouukl have any difficulty in placing 20,000 bales on the market at its next sale, and be was of opinion that, whatever course other centres might adopt, that number would be catalogued. Of course, he added, there would be a large number of withdrawals. but notwithstanding this there would be 20,000 bales available.