THE PRIMARY INDUSTRIES.

Taranaki Daily News, 7 April 1921, Page 7

THE PRIMARY INDUSTRIES.

HIGH FREIGHTS, LOW PRICES UNCERTAIN MARKETS. PREMIER ON WOOL POSITION. An important statement in regard to the future prospects of the Dominion’s primary industries was made by the Prime Minister at the Producers’ Conference at the Dominion Farmers’ Institute (Wellington), last week. “We are undoubtedly up against a difficulty in this country,” stated Mr. Massey, “a difficulty in connection with the finances of the country, and the financing of its trade and industry. We are undoubtedly up against it. But I don’t mean to say that it is so bad as many people are endeavoring to make out. There is no need for any man to be a dismal Jimmy on an occasion like this. (Applause). We are up against it properly, but I am quite certain that if we adopt proper measures we shall find a way out- This particular difficulty is due to the drop in the prices of our staple products on the one hand, and the increased cost of handling and transportation on the other. The most seriour part of the difficulty is in connection with wool. I think those present will agree that the present season’s clip will not be more than the value of last year’s clip, I think it will be less than half the value of last year’s, or less than half the average of the laist five years, I think that will be admitted. WOOL OUTLOOK BAD. *T am sorry to say that the outlook in connection with wool is not so good as that in regard to our other staple products. The only hope I caw see at present is this: A day or two ago it was stated in the cablegrams in the papers that Bradford was not buying to any extent, but that stocks were very low. No, that cannot last very long, they must stock up some time or other; and I don’t think it will be long before they do so. Another matter is the difficulty in regard to the German indemnity, which will, I think, be settled very soon. It is clear that Germany is going slow at present, because the question of the indemnity has not been settled. We and the other parts of the Empire have not Veen able arrive at a decision along with Germany. But I think that as soon as that is settled, there will be an improvement in regard to our wool, because everybody knows that Germany and Northern France and Belgium were good customers before the war for the wool we produce in this country. A document I have been furnished with shows that the quantity of New Zealand wool in store in both hemispheres at December 31st was 754,000 bales, and the quantity of Australian wool was 1,77i3,000 bales. That is Imperial Government wool and in reality does not include any of this year’s clip- I take it that that means that, in addition to the present season’s clip, there is a clip and a half in store. I suppose it* is usual to have at least half a clip in store by way of carry-over so that the position is that we have two New Zealand clips instead of one to-day*. I think it will take some time to get rid of that. There is no question of that. I am not going to express any opinion as to whether we should join with Australia in the organisation that has been set up over there, except to say that if we choose to join with them in the disposal of wool, the Government will do anything it can to help. The Government will, in any case, do what it can to help; and that in the»interests- not only of the producers but of the country as a whole, because if we are to pay our way the producers must be prosperous. (Applause.) THAT £8,000,000 IN HAND. “There is also a difference of opinion between the New Zealand Government and Sir Arthur Goldfinch and his department, which has twenty-two million pounds’ worth of New Zealand wool in store belonging to the Imperial Government, and against this £8,000,000 is held in money, the idea being that the department on selling will make a loss equivalent to the eight millions sterling it has on hand. In that event, there will be nothing for us. That was what the New Zealand Government had been trying to avoid; and he hoped that before the matter was settled he would have an opportunity of discussing it w’ith Lord Inverforth, who, he believed, was the principal, and with ■Sir Arthur Goldfinch, his lieutenant. I had been connected with the whole transaction from the first, and may be able to put a different view of the matter before them. A telegram has been dispatched op that very point, and if I can get an opportunity of talking to them, I will try to convince them that the position they have taken up is ■ not a fair one for the producers of this country.” (Applause-)