WOOL MARKET.

Taranaki Daily News, 9 December 1920, Page 5

WOOL MARKET.

VALUE OF COLONIAL STOCK. SIXTY MILLIONS AT COST PRICE. LIQUIDATION MUST WAIT* By Telegraph.—Press Assn.—Coprrifht Received Dec. 8, 9.50 p.m. London, Dec. 7. A report of the Ministry of Munitions says that the value of the Ministry's Australian and New Zealand wool at cost price is approximately £00,000,000, comprising 2,51)0,000 bales, of which about half is in England or in transit. In the present extremely difficult position of the Wool trade, forced realisation of this £60,000,000 worth would he impracticable, and would ruin the entire woollen trade in this country if attempted, quite apart from the fact that Australia and New Zealand are interested in the profits realised from the sale of Government wool. Thus a complete liquidation of colonial wool cannot be effected for some time to come.—Aus.-N.Z. Cable Assn.

SCHEME TO HELP GROWERS. STABILISING THE MARKET. PROPOSAL IN AUSTRALIA. Melbourne, Dec. 8. A'conference Of wool growers of the Commonwealth is considering a scheme for the disposal of cjiry-over wools, amounting approximately to two million bales, appraised through the Central Wool Committee. It was resolved [that the British Government be asked to terminate its wool contracts on, say, December 31, making a division of the cash, wool, and other assets in the ratio of 60 to 50; that a new Realisation Association then take control of its share. The conference requested Mr. Hughes to petition the Imperial Government by cable to the British Government, that a special executive committee which had investigated the position recommended the formation of a British Wool Realisation Association to act in the control and disposal of the Australian carryover wool in conjunction with the present clip. The conference decided to agree to the principle of the scheme. The conference to-day will further consider details of the scheme. Received Dec. 8, 7.20 p.m. Melbourne, Dec. S.

Tn the event of the Imperial authorities favorably considering it, the Brit-ish-Australian AVool Realisation Association scheme will be launched with a capital of 25,000.000 £1 shares, representing the present Australian interests partly in cash, wool, and other assets, issues to be made to the Australian growers Interested, half in debenture stock and half in shares worth 20s in the £l, but the actual value of the shares will depend on the realisation of wool. The directorate will consist of nine members, five in Australia and four in London, with an advisory council for each State. There will be one member of the directorate in Australia representing British interests and one on the London directorate representing Australian interest*. Both debentures and shares will be negotiable. In order to give early relief to small growers, it is suggested that all debentures and shares under £lO be paid as soon as funds are available from the sale of wool. It is estimated that thereby the number of holders of stock will be reduced by 20 to 30 per cent within a month or two of formation of the organisation.

| It is claimed the scheme will secure what is most essential at the present time—the restoration of confidence by stabilising the wool market, and prevent forced sales of carry-over wools in competition with auctioning of the current clips, which would spell disaster. It is statetf the intention of the association is not to go on to the market to purchase wool, but the object is to assist wool-selling- houses financially in order to enable them to make advances to needy growers.—Aus.-N.Z, Cable Assn. RIVALRY OF SOUTH AMERICAN CUP. London, Dec. 6. In the House of Commons, Mr. Alfred Short (Labor) suggested that British firms could have used Governmentowned New Zealand greasy crossbred wool instead of South American wool, had the Government been willing to sell New Zealand wool at market prices. Mr. Hope replied that, in view of the fact that considerable quantities of South (American wool were always imported into Britain, and that the imports for the first ten months of 1913 were 50 per cent greater than for the corresponding period of 1920. there was no reason to suppose that South American wools were displacing those of New Zealand to anv material extent.— Aus.-N.il. Cable Assn.