WOOL MARKET.

Taranaki Daily News, 7 December 1920, Page 5

WOOL MARKET.

• THE POSITION AT HOME. GROWERS ADVISED TO HOLD. STATEMENT BY THE PREMIER. >• By Telegraph.—Press Association. Wellington, Last Night. Mr. Massey stated to-day that in view of the Bales about to be heid it would be of interest to wool-growers to be acquainted with the present wool position is shown by the information on hand. Valuable information was contained in the cable from the Imperial authorities circulated last week-end, and after quoting this Mr. Massey continued: "As the Imperial Government intimated that it was keeping its reserves for the next sales on a higher basis than at last sales it will be realised that every support will be given to the New Zealand market. It may be also stated that, in response to a cable sent a little time back, the Imperial authorities replied as follows: "The Ministry has up to the present held stocks of New Zealand wool very firmly, recognising that the current prices, especially of close crossbred wool, must be very near the • coat of production, and very grave con- ! sequences might result if any further | aerious decline took place. It is the indention of the Minister of Munitions, as ;j far as possible, to handle Government || stocks of wool in such a manner as not | to. cause injury to the legitimate intertests of wool growers. The possibility I of the selling price of the stocks* of | wool held by his Majesty's Government I being permanently maintained at about 'the present level must depend to some 1 extent upon the action of the New Zeai 'and wool growers."

Mr. Massey added: "Hence there Is good reason for New Zealand growers to take up a stand against sacrificing their wool at too low values for the sake of getting it off their hands quickly, especially as to do so will bo Rimply playing into the hands of buyers, who, ■itlike t,ho»e who buy for the legitimate Manufacturing purposes of their principals :'b Great Britain, are simply making speculative purchases in order to enable those prowers who need immediate flnaxeial relief to obtain it.

"The Government, after conferring with financial houses, has made arrangements with the bp,nks under which the growers wili be able to obtain advances from their brokers or direct from their banks up to whatever is a reasonable limit in each case. What constitutes a reasonable limit cannot be arbitrarily expressed in explicit figures, seeing that the advance which can be made to each individual depends not only upon the quality and condition of his clip, but also upon his general financial standing. "The action of the Government in supporting the banks will enable advances to be made with a degree of confidence which otherwise would not exist, and will place growers in a better position to face the market. The special conditions under which returned soldiers settled on the land by the Government are financed may call for special arrangements being made in connection with advances on their clips, and a re; port in connection therewith is now j being prepared toy the Minister and | officers of the Land Department."