THE WOOL MARKET

Otago Daily Times, Issue 19475, 9 May 1925, Page 9

THE WOOL MARKET

TRADE’S HEAVY LOSSES. IMPORTER’S PURCHASING POWER CRIPPLED. hM AscooisrioD —By Telegraph—Puff ilipfc . LONDON, May 8. (Received May 8, at 7.15 p.m.) The Morning Post’s BradfiJrd correspond dent affirms that on a low estimate from £8,000,000 to £10,000,000 was lost on wool bought prior to December. The money has gone into the pockets of Australian growers. This has crippled the purchasing power of our importers, whose only chance of even partially recouping themselves is by buying the balance of the clip in Australia, and the bulk of the next clip at a rock bottom price. It will take from two to three good years ■ for the Bradford and West Riding to ! recover even a reasonable part of the money lost' through misjudgment of the outlook last autumn, —A. and N,Z, Cable. BAWRA AND LIQUIDATION. MELBOURNE, May V At the annual meeting of “Bawra’’ is was decided, on the recommendations oC the directors, that the question of liquidation be left in their hands. MERINOS IMPROVE. LONDON, May 7. (Received May 8, at 8.50 pjn.) At the wool sales there was rather <ai better tone for merinos, due to improved Continental competition. Other sorts were unchanged. Bradford tops and crossbred® • are quiet, and there is oetter inquiry for* marines. Sixty-fours, 51d; sixties,"' 46d; V fifty-sixes, 345 • fifties, 29d forty-sixes, 22jd; forties, 20d.—A. and N.Z, Cable.

AUSTRALIAN AUCTIONS ABA2S* ’ DONED.

BAWRA AND THE TRADE;

MELBOURNE, May 8. (Received May 8, at 9.30 p.m.) At tlie conclusion of the conference between the wool growers and the' selling brokers to discuss the qmistiou oi ifafl slump in the wool market, it was officially announced that it had been decided ■ that public auctions forthwith cease, and be resumed on July 1 if the cirChnM f stances warrant it. Sir John Higgins in an interview -sail that if Bawra had been given the poWe£ it would have regulated the supply, and.' thus prevented a slump occurring. Efe - strongly urged the need of stabilising tba ; industry. Asked if Bawra would undertake this, he said that, if Bawra shareholders wished them to take up the-task again, and made such a recommendation, - the Australian board would have to consult the British board. It would mean that he would probably have to make 4 -■ hurried visit to London.—A. and : JJj&i - Cable. ‘ ;

GROWERS AND CONTROL.

PRIVATE TRADERS’ LOSSES.

RE-ESTABLISHMENT OF BAWRA. FORCED LIQUIDATION NUT URGED* ' LONDON, May 7. ) (Received -May 8, at 8.10 p.m.) : The Yorkshire Post in an, artiple entitled “Australian Growers and Control,* ■ said that the prophet of a wool fammol •’ is at a discount. Just now the problem?"' is how to deal with the large accntnula*i '}, tions, which are unlikely to be wanted '■ for some months, by which time the new. ’• clip will be marketed in Australia, which! will be calling for the re-establishmhnt of Bawra. This is in marked contrast to , the Australian attitude during the latter' half of 1922, when making allocations, pf, the new wool to prevent over-hasty*, liquidation. Instead of this policy in- . creasing their profits the Australian sellers - let themselves in for a larger share of losses.. Growers are now being made to realise for the first time since the war that wool is finding its true economic basis. The boom after the Armistice waa : artificial. There is now a surplus, not a> ■■ famine, and the surplus is being earned, • not by the Government, but by private? • traders. Our importers are facing their , losses with courage, without calling for ' outside assistance. The woolgrowersvdkj ‘ exceedingly well for a long time, and have? istill a claim to special consideration. - Now many who profited by the mad competition in wool'at the end of 192$' call for the re-establishment of Bawra,. - This means that the Australian wool* growers' want to combine amongst themselves for carrying a large quantity, of • wool into next season, and arranging its liquidation with the new clip in 1926-26. 1 ■ That is their business. The slump haa now gone so far that one cannot hdpi concluding that Australians will be wise in not forcing the balance of the wool, still held in Australia, on the market at 1 this moment. If they do so they- will 1 possibly create a panic, and play into '■ the hands of speculators. Low water' , mark may not yet be touched, but! any attempt at forced liquidation would meant - severe depression in values, with subse- - quent violent reaction when orders for tops, yarns, and-piece goods begin to ba placed again in a normal manner. —A. and' N-Z. Cable.