AUSTRALIAN WOOL

Otago Daily Times, Issue 26629, 27 November 1947, Page 5

AUSTRALIAN WOOL

REDUCTION IN AMERICAN SALES HEAVY DROP RECORDED Rec. 8 p.m CANBERRA, Nov. 26 Reduced Australian wool sales to the United States for the four months ended October 31 have cut Australia’s dollar earnings by more than £25,000,000. This is equivalent to the estimated gap between Australias dollar earnings and dollar expenditure for a complete financial year. Treasury officials say that, unless the United States resumes buying Australian wool, the Government will have to impose dollar import cuts even heavier than those it is now considerThe actual wool exports for the four months ended October 31 totalled 818,286 bales, compared with l.bM.ssa bales for the corresponding period of the previous year. Because of the higher prices, the value of exports did not drop in relation to volume. Exports to America fell more than 80 per cent, in volurrie and nearly 70 per rent, in value. . , ~ • Commonwealth officials fear that the hesitancy in wool buying by the United Slates is due to the economic situation in America, rather than determination to hold off the pending completion of international trade pacts. Official reports from the United States indicate that prices have outstripped purchasing power. This is having a depressing effect on trade.