PROFITS ON COMMANDEERED WOOL.

Taranaki Daily News, 3 December 1919, Page 4

PROFITS ON COMMANDEERED WOOL.

According to the Manchester Guardian, the British Government is making a profit of £125,000 on every ,£500,000 worth of wool sold at each sale. The paper also states that the Board of Trade is appointing a committee to investigate the charges connected with the sale of wool and textiles, but as to this latter assertion, the Deputy-Controller of raw materials has assured the Australian Press Association that he had no knowledge of such an investigation. In connection with the high prices obtained for Government wool at the sales, the Deputy-Con-troller points out that restoration of normal trade by means of artificial interference in the direction of fixed prices was not only undesirable, but would be unfair to Australian and New Zealand growers, who are entitled to the highest market price, and to share the profits with the British Government. This is a partially sound argument, but from a producers' point of view a return to the | open market would be far more advantageous, yet it must be recognised that the Imperial Government is entitled to some share in the profit arising from the high prices by wpy of recompense for what it did for the producers during the war period, the great sacrifices made, and the expenses incurred in controlling the sales. Had there been a heavy fall in prices the producers would still have expected the valuation price of wool as arranged when it was taken over. In the grave economic position in which Britain now finds herself, especially the adverse , exchange, it is incumbent on the Govern- ' meat to increase t]ie exports as much as

possible, and in this connection producers may bo reminded that the adverse exchange, which seriously affects Britain, necessarily affects the Dominions, so that the process of adjustment will be beneficial all round. So great is the world's demand for woollens that it is improbable that artificial reduction of prices would have any effect in reducing the cost of manufactured goods. The public will suffer, but the outlook for the producers is exceptionally bright. Orders have some timo sinco been placed at Bradford for deliveries next year. At the September sales there were numerous withdrawals among New Zealands owing to the bids not coming up to the reserve figures put on them by the Government, a fair amount of buying being done for export, scoured super combings realising as high as 70d, and greasy crossbred 29jd. It is quite evident that the Imperial Government is pursuing a sound policy under the circumstances, and it is equally clear that New Zealand is losing a golden opportunity in not being able to manufacture the raw material into textile fabrics. Now that wool is being sold by the British Government in open competition, it >is obtaining the best prices offering, so that when the commandeer expires the producers will get the full benefit. Meanwhile, by sharing profits, they cannot well complain. At August 31st last it was estimated that the quantity of wool afloat from Australia and New Zealand was about 120,000 bales, and that 1,400,000 were in stock in the two Dominions, before shearing commenced. '