WOOL CONTROL.

Taihape Daily Times, 29 January 1919, Page 7

WOOL CONTROL.

FUTURE POLICY OUTLINED. - REGULATING THE SUPPLY. ONDON, January 26. Lord Goldfinch, speaking at the Wool Council in London, said that the danger of short supply of wool had passed, and that sufficient was available to keep the mills of England working full time, and also to provide for the needs of France, Belgium, and Italy. The position was now sufficiently clear to lay down broad lines on which control could be liquidated. Speculation in raw material should be discouraged, and prices established as much as possible; the Governments of Australia and New Zealand wished their wool clips to bo so handled as to produce these results. The Department will limit itself in future' to the careful marketing, of Australian wool owned by the Government and would commence auctioning Australian wool early in April, and continue sales in accordance with market requirements. Tho reserve would be somewhat lower than the Bradford issue prices. He expected a maximum of eighty thousand bales could be handled, at the April auctions, and larger quantities in tho following months. But there was no hope of handling efficiently the quantity which would be required monthly if the Allies continued to draw largely upon London, Tho Department will continue to issue wool outside tho auctions at fixed prices, and the present prices would prevail throughout April. He would make no changes until a wellmarked basis had been reached, and would therefore subsequently avoid frequent changes. Three sources of supply would therefore be available. First, the Government auctions; second, tho Government fixed issue prices; and, third, purchases of free wool from all sources except Australasian at prices fixed by unrestricted bargaining, thereby producing a safeguard against excessive competition at auction. This would enable the Government by regulating the quantity of Australasian -wool offered at auction to keep the market well supplied without allowing an over supply. They considered this to be in the best interests of 1 the Australasian producers as well as tho British traders. Consumers must not be overlooked. Tho Australasian contracts gave producers partnership interests in the results of aj re-sale, and they were therefore entitled to know we were marketing the wool carefully in their interests, but producers were aware that a curtailment of the rhcalthey flow of their wool towards consumpticc channels would be against their interests. The sheepgrowers of Australasia wore concerned not only in this but in future clips, and were interested in the healthy development of the British wool and textile trade as much as West Yorkshire. Lord Goldfinch announced that the Government would not purchase the next British clip.