WOOL DISPOSAL.

Taranaki Daily News, 8 April 1921, Page 8

WOOL DISPOSAL.

EFFECT OF AUSTRALIAN SCHEME. A DIFFICULT PROBLEM By Telegraph.—Press Assn.—Copyright. . London, April 6. Despite the willingness of London wool circles to assist the British Australian Wool Realisation Association to work the scheme in the growers’ best interests it is learned that the fear is widely that the methods the B.A.W.k.A. is pursuing are only tending to continue the depression through which the wool trade is passing. Authorities point out that it is- useless for the to reduce offerings while maintaining the reserves much above current values as it is now doing. An influential representative of the pastoral interests expressed the opinion that there was ample room in England and Continental factories to absorb a million bales ready for blending and ultimate manufacture, but the presence of huge accumulations and the B.A.W.R.A.’s price reserves are preventing wool from reaching the economic basis- from which the renewal of confidence and extended buying are alone possible. He declared that the accumulations of wool were acting like a pall upon the trade revival, which was imperative whatever the immediate losses might be before trade revives. He believed it would ultimately be better for pastoralists themselves if the whole of the B.A.W.R.A. wool was dumped at the bottom of the ocean, owing to the improved outlook new wools would enjoy as the result. He admitted that this would mean a grave financial burst up in Yorkshire, but the trade could not hope to revive before the bottom whs reached. The B.A.W.R.A.’s present high reserves were only reducing sales to a minimum and accentuating the difficulties of financing pastoralists- , 'Mr. Dawson, president of the Wool Federation, -says that the only legitimate way of stabilising the market under present circumstances is a wise limitation of supplies in» order to avert a further collapse and the utter ruin of confidence. The Colonial Wool Merchants’ Association resolved that in the interests of all sections prices should be stabilised and that members should instruct wool brokers to value each lot in accordance with the level of prices ruling on February 7, less ten per cent., th'ese prices to constitute a minimum reserve, except in cases where members have other instructions. — QUEENSLAND GRAZIERS’ ACTION. Brisbane. April 7. The Federal Council of the Queensland* Graziers’ Association has resolved in favor of the adoption of the BritishAustralian Wool Realisation Association’s scheme.