WOOL PRICES.

Taranaki Daily News, 27 November 1920, Page 5

WOOL PRICES.

A DIFFICULT SITUATION. COMPETITION NOT ADVISABLE. By Telegraph.—Press Assn.—Copyright. Received Nov. 26, 11 p.m. , London, Nov. 25. J-lie Morning Post publishes a semiomcial reply to the adverse criticism of the British Government's policy of refusing to fix the selling prices of its vast stocks of wool below the Australian auction prices for the new clip, whereby the wool trade contends unemployment will be increased in Britain. The reply states it is simply madness to suggest that the British Government should undersell the Australian auctions to obtain all the business, leaving the Australians high and dry with the new clip, as this would only lead to disastrous "cut-throat" competition in prices, involving everyone in Europe holding wool or woollen goods m equal ruin with the wool growers. It would also be madness from a political point of view, as Australians and New Zealanders would regard it as a breach of faith, and would bitterly resent it. The British Government has no option bllt to follow the Australian market at a respectful distance, avoiding any appearance of "cut-throat" competition as long as a cautious and moderate policy of handling our auctions can keep prices on something like an even keel. We must recognise that the Australian woolgrowers, compelled for financial reasons to sell part of the new clip to the British wool department, after paying interest on all capital employed, will hand over to the Treasury a 'profit of not less than £25,000,000, and a similar am'ount between the Australian and New Zealand Governments. This estimate is based on the remaining stocks of wool being sold twenty per cent, below the purchased price,—Aua.-N.Z. Cable Assn.