WOOL MARKET.

Taranaki Daily News, 16 December 1920, Page 5

WOOL MARKET.

THE POSITION REVIEWED,

M MINISTER 01>' MUNITIONS,

COMMERCIAL OPINION FAVORABLE,

By Telegraph.—Prese Assn—Copyright.

Received Dec. 15, 9.50 p.m

London, Dec. 'l4. The, Minister of Munitions, in a statement, reviews the exchange of communications between the Home and Commonwealth Governments re wool. The subject, in nil its aspects, has, he says, been continually under discussion between the Central Wool Committee in Melbourne and the Director-General of Kaw Materials. There have also been a series of conferences in London between Sir Arthur Goldfinch and the Australian wool-growers' representatives, at which a somewhat similar scheme was discussed, but was left over for further consideration on the return of Messrs. Young and Devcreux to Australia.

The profits on Australian wool sold after March 31, 1919, have been very large. The present position is that ail the Treasury advances for the purchase of about seven million bales of Australian wool have been repaid, full interest, and a substantial surplus of assets stands in the books free of cost, consisting of about 1,500,000 bales, and a large sum in cash.over and above all liabilities.

The accounts made up to March 31, 1020, are subject to audit, but the result is known with sufficient accuracy. Taking wool at the purchase price, plus transport charges, when incurred, the surplus of assets on the Australian section of wool purchase account is estimated at fifty-six millions sterling, and Australia's share is twenty-eight millions. The statement then gives details of the scheme, and concludes with the Minister's remarks, as already cabled.

The Australian Press Association learns that a considerable volume of commercial opinion in the city supports the Government wool department's policy ; u attempting to arrest the downward course of wool prices. Australia's proposals arc likely to be sympathetically received, as it is now known it does not involve a re-sale to Australia of any of the Government wool, either at 250s a bale or at anv other price. Experts consider ihc prices have been pushed down quite far enough, and that any further substantia]' decrease would cripple the sheep industry.

INDUSTRY THREATENED. Another important inspired statement draws attention, to the difficulties confronting the. wool-growers in the Dominions, threatening the prosperity of one of their greatest industries. The Dominion Governments are being perpetually urged to save the wool Industry from ruin, whereas a section of the Bradford trade is agitating in the Press and Parliament in favor of keen competition between the old and the new clips.

The statement draws attention to the large proportion of wool unsold at the recent and current London auctions. The Australian Press Association learns that the British Government has not yet decided whether to accept the Australian proposals or not, but, if accepted, it may be assumed the British Treasury will imnose conditions ensuring that the British share of the assets shall be properly handled and sold at full value.

HIGH PRICES IMPOSSIBLE. The statement continues: Critics opposing the Australian proposals seem much more concerned with the fear that an attempt may be made to sell wool too dear. Great play is being made with Mr. Justice •Iliggins' statement in February last , that Australian woolgrowers, if united, could dictate the world's merino prices. They fear that the proposed Australian association will endeavor to extort unduly high prices. Official circles in London do not believe the association will attempt to impose high prices, such an attempt being impossible, owing to the present condition of the markets and finance. It can bo assumed that the object of the Australian growers is to secure a market for inferior wools, which are otherwise unlikely to bo saleable. Contrarywi.se, they know tliev must sell as cheaply as the other Dominions. South' Africa is extremely anxious to sell. There is every reason to believe that the new association will he conducted on moderate businesslike lines, scekin" reasonable prices. ° It is understood that Government circles consider this as a matter of such vital importance to Australia that considerable weight must be attached to the views so strongly expressed by the Australian Government.

MERITS OF THE SCHEME.

BRITISH AUTHORITIES FAVORABLE

Received Dec. 1,1, 7.30 p.m.

London. Dec. 1.4. Notwithstanding the Ministerial remarks (cabled earlier) the Australian Press learns oil good authority that the British authorities regard the Australian wool scheme favorably, with certain reservations. It is felt that due weight must be given to the Commonwealth Government's views.

No better successor to the wool department of the Mimstrv of Munitions could be found that tho proposed Australian Association, provided the British Government approves of the directors.

Official circles do not believe that Australia is attempting to enforce unnatural prices as such an achievement is impossible in any case.—Aus.-N.Z. Cable Assn.

SCHEME CRITICISED.

London. Dec 14. Yorkshire newspapers continue fiercely to criticise the wool realisation proposal. The Yorkshire Post says the Australian suggestion to have 'sold back two million bales at a considerably lower price than was paid to them in order, solely in their own interests, to attempt to corner the wool market is regarded as anything but a modest proposal. Wool traders here hope that the future of our wool and textile industries v.-'iT not be jeopardised merely to enable the wool growers of Australia to maintatn tins 'price of (heir raw materia! on a preferential basis compared with the value* at other sources of production. Tlie Australians sold their wool and must abide by their contract Other traders are suitauuM hsajJ