DISPOSAL OF WOOL.

Taranaki Daily News, 15 January 1921, Page 8

DISPOSAL OF WOOL.

AUSTRALIAN SCHEME APPROVED. TO TAKE IMMEDIATE EFFECT. By Telegraph.—Press Assn.—Copyright. Melbourne, Jan. 14. Mr. Hughes received a cable, from Mr. Lloyd George asking for assurances safeguarding manufacAirers and consumers against exploitation in connection with the wool realisation scheme. ' Mr Hughes complied. Mr. Lloyd George has cabled the British Government’s approval of the scheme, which will take effect forthwith. —Aus.-N.Z? Cable Assn. THE PRESENT CONGESTION. REMEDIES SUGGESTED. VIEWS OF SIR ;T. MACKENZIE. Discussing the wool situation, Sir Thomas Mackenzie, ex-High Commissioner for New Zealand in London, expressed the opinion that the British wool controller made a great mistake in endeavoring to get the very high prices he put on the staple produce, especially after the armistice had been signed. He (Sir Thomas) knew that the British Government was advised by capable experts to lessen the issue price, particularly for the coarser wools, because it was apparent that there would be a lessened demand, and consequently more wool on hand. But instead of reducing the price it was increased, and that largely stopped its use, the manufactured article being above the purchasing power of the great majority of users. Sir Thomas brought this matter up before the Overseas Committee of Trade over twelve months ago, pointing out what the consequence would be. One of the members present, a very active and competent blanket maker, Sir Algernon Firth, stated at the meeting that lie was unable to get wools which he required and that the price was exceedingly high for what he did get. Later on Sir Thomas called attention to the condition of affairs at a dinner given by Lord Northcliffe, quoting the very high prices asked for wool, and indicating that they would inevitably stop the use of the .commodity. The wool controller, in an interview he gave a newspaper, quoted figures which caused the editor to deduce that he expected from £BO,000,000 to £100,000,000 profit from his Australasian wool, over and Above the 55 per cent advance above pre-war prices. All this brought about the congestion, the results of which were being experienced to-day Dealing with his view of the remedy for the wool situation, Sir Thomas said that nearly all that was being proposed at the moment aimed at maintaining prices, but, so far as he had heard, little mention was made of getting wool into use. Tn his opinion until the machinery in Germany was set in motion we could not look for much relief. Germany, before the war, used 274,000.0001 b of the finer wools, and 129,000,0001 b of the coarser wools annually, while the Central Empires, Austria and Germany, together only produced 1 per cent of the world’s fine wools and 5 per cent of the coarser wools. Germany got the greater part of her fine wool from Australia and New Zealand and the bulk of her coarser wool from South America.

That great consumption of wool having ceased, accounted for much of the present accumulation of stocks, together with the factor of the high prices stopping the consumption in British markets. Whether a system of credit could be established giving Germany the wool, or better still, whether the German mills could be employed by the British manufacturers, were remedial measures worth considering. In the latter event we would then get the benefit of cheaper produce to our own customers instead of letting the Germans get it. The difficulty was. however, manufactured stuff in the hands of merchants which had been made up from hiffh-priced wools. If therefore New Zealand could get much of her wool into use at I'easonable prices considerable relief would occur to the market. Statistically the wool production of the world was a sound proposition because, if Russia were excluded a supplying country just now, there were 69,090.000 fewer ’sheep than there were before the war.