WOOL CONTROL.

Taranaki Daily News, 2 July 1921, Page 7

WOOL CONTROL.

THE CARRY-OVER WOOL. ALLOCATIONS OF SALES. One of the matters that is being considered by the Wool Committee is the handling of carry-over wool. It is estimated that about 150,000 bales of lowgrade wool, which is very difficult to sell under present conditions, will be left over at the end of the season, and the problem to be faced by the committee is what course to pursue in the handling of this wool so as to secure some return for the producer. It will be remembered that the British-Aus-tralian Wool Realisation Association offered to take New Zealand’s carry-over wool, and make an advance on it, and sell it on commission. This offer will be considered by the Wool Committee, but the indications are that it will not be accepted. The decision of the Producers’ Committee was that while cooperating with the B.A W.R.A. in the limitation of offerings and the fixation of minimum reserves, New Zealand should retain control of its own wool, ■ and the policy thus laid down is being ! followed fix the Wool Committee.

An alternative method of handling the hold-over wool would be the formation of a combination of growers, with or without the active support of the Government. Some sort of pool would require to be brought into existence, and arrangements might then be made, if necessary, for the payment of an advance on the wool. It has to be remembered, however, that the low-grade wool forming the bulk of the probable holdover is of very little value under present conditions, and that much of it can scarcely he regarded as an asset at all until the market makes a substantial improvement. Many of the New Zealand farmers wisely are retaining their seedy wool, pieces and locks in their own sheds. If they had to pay storage on top of transport charges they would be liable to receive debit notes instead of cheques when the wool was sold. It is possible that a demand for this low-grade wool will arise presently, since manufacturers may develop new uses for the material when they realise that very large stocks are available. But in the meantime the growers do not appear to have anything to gain by sending forward the low-grade wool. Some anxiety has been expressed lest the limitation of offerings month by 1 month should have the effect of compelling some farmers to wait a long

time for their returns, while others secured an earlier market. No difficulty of this kind is arising yet. The wool allotted for the July sales in New Zealand comprises nearly all the. wool that was in the brokers’ stores on June 21. There is much more wool in the country districts, apart from the inferior grades already mentioned, but many, growers are in no hurry to send forward their holdings. They have been able to make reasonable arrangements with their bankers as to advances, and they believe that they cannot lose anything by delaying sealisation, while there is a possibility that they will get the advantage of a rising market later. If the allotment made by the Wool Committee to a broker in respect of a certain month’s sales does not cover all the wool he is holding for clients, he is left to put up the wool for valuation in the order in which it entered the store. There does not appear to be an/ need to anticipate present difficulties on this point.—Dominion.