AUSTRALIA.

Taranaki Daily News, 30 April 1921, Page 5

AUSTRALIA.

TRADE AND FINANCE

NAVAL POLICY.

SPEECH BY FEDERAL PREMIER.

By Telegraph.—Press Assn.—Copyright.

Melbourne, April 29. Prior to his departure last night Mr. Wm. Hughes (Federal Premier) made a statement in the House of Representatives justifying the Government’s financial proposals, which he said were framed on economical lines.

The present position, he said, required stress to be laid on the importance of naval defence. He declared that until Australia obtained the assurance, which he hoped to obtain from the Imperial Conference, that peace in the Pacific was assured, he would not cut down the naval expenditure a thousandth part of a penny. Dealing with the wheat question he stated that sos million bushels had been sold to overseas buyers. The total f.o.b. value was £25,715,000, equal to slightly over 9s 3d per bushel. Other sales had been arranged, totalling about eight million bushels. He considered the world’s position in regard to wheat now to be sufficiently normal to return to pre-war methods and marketing, therefore the Government would take no steps to form a pool for the 1921-22 season’s wheat.

THE WOOL MARKET.

Regarding wool, Mr. Hughes said that the position was very serious. There was sufficient accumulated surplus to suply the world’s demands on a pre-war basis for 2% years, though the present demand was less than before the war. That mountain of wool threatened to fall and crush the industry utterly. In addition to this there was the present season’s clip. Mr. Hughes told the House that, at the suggestion of Sir John Higgins, chairman of the Australian section of Bawra, who had informed him it was the attitude of some Australian banks, with their head offices in London, which had brought about the collapse of the Bawra reserve, he had. called a conference of wool interests and the associated banks to discuss the question of relieving the position. The conference requested the Government not to permit the export of wool, except on a guarantee that the shipper would not sell under the Bawra reserve. He asked the conference to make the reserve a fixed one and that it must not exceed the bare cost of production. Subsequently he received a written communication on behalf of the Victorian banks stating that they had discussed the conference proposal, but. owing to the failure at the time to consult the banks in other States, the Victorian banks rt?gretted that they were unable to join in the proposal.

GRAVE DANGERS.

Mr. Hughes, again strewing rhe grave potential dangers of the’ wool situation. said he was sure Bawra was not going to hold .the market up. though it might prevent’ a collapse for some time. He then suggested that the price of wool be fixed at 9d or ey en a penny lower and thereby prevent the bottom falling out of the market. When they had achieved that they, could take other action to meet the situation. The proposed" time limit of two months had been fixed for the operation of this proposal in order to give the Ministry, the banks and Bawra time to see what the position will be, and himself an opportunity to go to England to consult the Imperial Government. The House, at Mr. Hughes’ suggestion, will consider the proposal to-day.

THE WOOL OUTLOOK.

STEPS TO RELIEVE POSITION.

Received April 29, 10.50 p.m. Sydney, April 29.

The wool position outlined by Mr. Hughes has not caused any stir in local wool circles, as the statements were fully expected. A general meeting of Sydney buyers will be held on Monday, when certain proposals will be put forward, which it is hoped will relieve the position. —Aus.-NjZ. Cable Assn.