THE WOOL POSITION.

Taranaki Daily News, 14 April 1921, Page 5

THE WOOL POSITION.

A GLOOMY OUTDOOR SUPPLY EXCEEDS DEMAND By Telegraph.—Press Assn.—Copyright, London, April 12. Interviewed regarding the wool position, Sir Arthur Goldfinch said that unless arrangements were made to hold wool, tiie value in Australasia would dif«

appear. It would have no value, so greatly did supply exceed demand iu the present disturbed etate of Europe. Every holder of stocks of wool or wool products saw their value written down 15 per cent, or thereabouts monthly, while prospective buyers all over the world were holding back orders because the senseless lowering of prices frightenec then from investing in woollen goods. If these conditions continued, tens o? thousands of sheep-farmers must bd driven out of business. He was convinced that Australasia, and perhaps some other wool-growing countries, would end the disastrous fall of prices, and, by a unanimous agreement among growers, refuse to sell below certain agreed limits. Meanwhile the Realisation Association was pushing forward stabilisation proposals, notwithstanding the opposition of textile trades, which, he believed would not conflict with, but on the contrary improve the position of textile manufacturers. The association was seeking an agreement with owners of the new clip, permitting the liquidation of the old clips within a reasonable perio< of two, three, or at worst four years: Growers very slowly and reluctantly would adopt artificial limitation.

CONFIDENCE IN BAWRA. Melbourne, April 13. Sir John Higgins stated that the failure of the Bawra wool sale was a minor matter. It was a bit of a set-back, but as the current price of wool was far below the cost of production they must have a reserve and must obtain a price to cover the cost. He expressed the opinion that Bawra will succeed eventually, as buyers must operate, and they cannot get wool elsewhere. The executive of the wool-selling brok-

ers has decided that there shall be no wool sales in Australia this month, owing to negotiations by Bawra with colonial wool merchants. It is understood the banking section is the stumbling block.

FREE WOOL SALES. Received April 13, 11.25 p.m. London, April 12. At the free wool sales there was a good average selection of merinos, medium and low crossbreds. Continental representatives were the chief buyers-of merinos, which sold freely at late rates, Yorkshire operating cautiously. Practically all the crossbreds were taken for Germany at late rates. Slipes and poor quality wools were withdrawn. About 70 per cent, of the catalogue was sold. New Zealand lots sold include “Mangatap iri,” top price lOd, average 7d.