SHOULD IT BE EXTENDED?

New Zealand Times, Volume LIII, Issue 12612, 24 November 1926, Page 11

SHOULD IT BE EXTENDED?

WOOL-SELLING SEASON SUGGESTIONS FOR REGULATION FARMER MUST SELL EARLY A suggestion which was made from London recently to the effect that the colonial wool selling season should be extended was discussed/ yesterday by an authority on the question as far as New Zealand is concerned. If Bradford wished for an extension of the selling season, he said, this could be brought about, but the move would have to be made from Home. The suggestion that the wool should be disposed of over a greater period than is at present the case was made by Mr Vernon Willey, who was Controller of Wool Supplies at the Munitions Ministry during the war, and who declared that the governing factors in wool textiles were the world’s decreased buying power, the attraction of money in other directions —foe instance, in the purchase of motorcars and the vagaries of fashion —and the cheapness of cotton. The best correctives would, in his opinion, be the collection of fuller statistics, a revised system of distribution, and a futures market for wool tops. HUGE CREDITS “The only place where a futures market for wool tops could be created,” said a reliable informant when discussing the question from the viewpoint of this Dominion, “is at Bradford where the tops are made. There are futures markets with wheat and with cotton, but I am unable to say how this wpuld apply so far as wool is ooncerned. We here are essentially the producing country, and the farmer’s chief concern is to get rid of his wool within a reasonable period from production.” There were several influences which had to be considered when the question of extending the selling season was concerned. There was the undoubted fact that when the purchasing power of the people in the Old Country was reduced —as- it unquestionably was at the present time —the manufacturers found it increasingly difficult to manage the huge credits which they were forced to make *n January and February of each year for the New Zealand wool, while on the other hand the buyers, and to some extent the growers themselves worked against this: IN RUSH TIMES The buyers, and even the brokers, were keen to see the last of the season’s wool, for during the rush period, November-March, there was no peace for either. The buyers themselves wished to get back to the Old Country, while the brokers murmnred a fervent, “Thank God,” when the last bale was disposed of. In addition to that the grower ex pressed, a healthy desire to have his woo] disposed of during the first two months of the year, or at the latest by the end of March. One reason for this was that the annual-general balance occurred at the end'of March and the farmer, as well as the rest of the community, wished to see how much money was going to be forthcoming. There was a tremendous rush during the last three sales —approximately 140,000 bales being disposed of at the two greatest, sales—and if this could be spread over a greater period—say an extension into April—it would be much easier for the manufacturer and also for the grower, for the buying power would be better through being intended over the longer period. FARMERS WILL SELL Another feature which would make Sn extension of the .selling period desirable was the fact that a great number of men were thrown out of work at soon as the wool -season was closed. “We know that they will have to go without the prospect of other employment,” said the informant, “and we would like to be able to keep them on—even for another month. It would mean such a lot to them'. I . . If the sale could be extended to -April it would probably be better for' them, but it would be impossible to get the farmer to hang- on-to his products till the.middle of'the year. He likes to get it on to the market, although there are a few who would haySt-ns to bold it and gamble .for prices”-’' , If it were the desire of the trade it Home to straighten out the prices By extending the period of soles, it rested chiefly with the buyers themselves, who were perhaps the best judges of whether the trade’s resources wete equal to lifting a year’s supply in a : few months. . IMPRACTICABLE The suggestion in respect to tho collection of fuller statistics . was- , dismissed as without the Tange of practical politics insofar as it was almost impossible to get hold of the amount, of wool held by the man who mattered —the manufacturer. The only way this could 'be accomplished was by compulsion, and after all.it washardly fair to pry into the business of the manufacturer and make -him tell the public how much goods he had on liabd. It was not done with other commodities, and could not justifiably be done with wool.

“If they require these alterations -in the regulation of trade,” the informant concluded, “there is perhaps none letter situated than Mr Varnon Willey himself to commence the movement towards them.”