WOOL PURCHASES

Nelson Evening Mail, Volume LVI, 9 May 1925, Page 5

WOOL PURCHASES

EARLY IU'VEILS’ HEAVY LOSSES (By Electric Telegraph.—Copyrisht., (Australian A N.Z. Cable Asßooiation.i LONDON’, May 8. The Morning; Rost’s Bradford coirespurulent affirms on a low estimate that from eight to ten millions was lent on wool bought prior to December. The money lias gone into lire pockets of Australian growers. This crippled the purchasing power of our importers, whose curly chance of even partially re coir ping is buying the balance of the clip in Australia and tiro bulk of the next, clip at rock bottom price. It -will take two or three good years for Bradford West Riding to recover even a reasonable part of the money lost through misjiulgmcnt of tho outlook last autumn. YORKSHIRE COMMENT LONDON, May 7. The Yorkshire Rost in an article, entitled ■'Australian Growers and Control.” says that the prophet of a wood famine is at a discount just now. lire present problem is how to deal with targe; accumulations which arc unlikely to be wanted for some months, by which time now dips will be marketed in Australia, calling for (he re-estab-lishment- of Bawra. which is in marked contrast to Australia's attitude during lire latter half of 1924, when making allocations of new wool to prevent over hasty liquidation. Instead of this policy increasing their profits tire Australian sellers let- themselves in for a larger share of the losses. 'Growers arc now being made to realise for the first time since* the avar that worn is finding its true economic basis. The boom after the armistice was artificial. There is now a surplus, not a Tamine, amt the surplus is being carried not by the Government but. bv private traders. Out importers are. facing tTieir losses with courage, without calling for outside assistance. Wool growers did exceedingly well for a. long time and have small claim to special considerations now. Many who profited by the mad competition in wool at the end of 1924 call for the re-establishment oi Bawra. this means that the Australian wool growors want to combine amongst themselves for carrying a large quantity ol wool into next season and arranging its liquidation with the new clip m 1925-26. That is their business, Ine slump has now gone so far that one cannot help concluding that the Australians are wise in not forcing the balance ot the wool still held in Australia on the market- at this moment. If they did so they would possibly create a panic and plav into the hands of speculators. Ine low-water mark may not yet be. touched but. any attempt at forced liquidation would 'mean a severe depression iu values with a subsequent violent- icaction, when orders for tops, yarns, and piece goods begin to be placed again in a normal manner. AUCTIONS TO CEASE MELBOURNE. May 8. At the conclusion of the conference between wool growers and selling nokers to discuss the question o the slump in the market, it was officially- announced that it had been decided that public auctions forthwith cease and be resumed or. Ist July if circumstances war- ' *\sir John Higgins, in an interview said that if Bawra had been gi.tn power it would have regulated the supply and thus prevented a slump occu ling. 1 He -strongly urged the need o stabilising the industry. , . Ah i(1 Bawra would undertake tins, he salt that if Bawra shareholders wished them , *„t- n. on Die task again and made such* recommendation the A " s | > ra p X ‘ l Board would have to consult the Bn hsli Board. It would uiean t .i. would probably have to make a. burned visit, to London. CONSTERNATION IN SHIPPING CIRCLES SYDNEY, This Day. Tire decision to abandon all woo sales till the Ist of July was receded with consternation by the oyeisea shipping trade, and will have a serious effect on export trade for the nex - lew mionihs. The chairman of the Overseas Shipping Representatives Association said that the abandonment of .sales would inflict hardship on the shipowners, who had already despatched ships from the other side of the world to take places in leading berths for various sales. The vessels could not find employment elsewhere. Apart from woo. there was no other profitable avenue of employment for shipping from Australia to the United Kingdom. The only other cargo is wheat, which lias been reduced to a- bedrock figure.