The Daily News. TUESDAY, SEPTEMBER 13, 1921. WOOL DISPOSAL.

Taranaki Daily News, 13 September 1921, Page 4

The Daily News. TUESDAY, SEPTEMBER 13, 1921. WOOL DISPOSAL.

The opposition to the operation of the B.A.W.R.A. scheme for controlling and regulating the quantity of wool placed on the market for sale, is still evident, though it is mainly kept alive by the Yorkshire Press. No sound economist has claimed that, the principle on which the scheme is based can be justified, under normal conditions. It is an expedient to meet exceptional circumstances, and, as such, is proving beneficial to the producers, though not to the speculators. So far as the manufacturers are concerned, they may safely be left to look after themselves, and there is no question that they are likely todfcrr.v on without profit to themselves. In theory, a controlled market where raw materials are affected means that the consumers have to suffer, but experience has shown that very little, if any, heed is paid to the consumers’ point, of view—they have either to pay the price demanded for commodities or go without, unless they can secure an acceptable substitute. If the speculators were eliminated it. is extremely probable prices would soon find their level. At any rate it is quite Certain that if it does not pay the producers to market their wool they will have to turn their attention into other means of obtaining a livelihood, and then the lot of the consumers will be worse than ever. The B.A.W.R.A. scheme must be judged by results, and as the evidence shows that a gradual recovery in the price of wool has taken place, it may fairly be claimed that it has met with some success. The Yorkshire Post contends that the recovery was inevitable, and resulted from improved economic conditions. Manifestly that is an ex-parte assertion to support the argument that the scheme should not have been put in force, but most impartial observers will lean to the opinion expressed by Sir John Higgins, that the larger sales and firmer markets are directly the result of regulating supplies and fixing minimum prices. No one can deny that the slump in wool prices was such that the need for some practical means for protecting the growers became imperative, and it may fairly be claimed that, whatever improvement has taken place in economic conditions has, if not directly caused by the operation of the scheme, certainly it acted as a stimulant. At any rate the improvement has taken place, and it is probable will de-., velop. Hence it is a justifiable inference that the scheme has certainly not been harmful, and that fact alone disposes of the main arguments of the adverse critics. It has been recognised for a long time past that the weak link in the chain that connects the Dominion producers with the overseas consumers was marketing the produce. The B.A.W.R.A. scheme has demonstrated, though not in the most, attractive form, that organisation is a vital necessity if the interests of the producers are to be conserved and advanced. Vested interests in Britain are extremely powerful, and, in the past, have proved, irresistible. It is evi-

dent a way has been found to break down, this barrier, which was regarded as impregnable, and a new era should dawn for the overseas’ producers if they will only co-operate in an effort to secure satisfactory prices for their goods. By this we do not mean that market prices should be arbitrarily controlled, but that free and open markets—in the full sense of the term.—should be obtained, and proper safeguards taken to eliminate unhealthy speculation. Apparently the strongest argument the Yorkshire Post, ean put forward for the removal of the B.A.W.R.A. scheme is that important wool interests have declared in favor of such removal. Obviously those wool interests differ materially from the interests of the producers. That is nothing less than a demand that the producers shall let the wool trade have the raw material on its own terms, manifestly a one-sided arrangement that would not suit the growers overseas. It is all very will to suggest that the regulation of offerings can easily be arranged in conference with the selling brokers and buyers, and to dangle the bait of saving the expense of maintaining the B.A.W.R.A. scheme. What those who are operating the wool mar ket in Britain are evidently striving for is the mastery of the market. To yield this would be most unwise under present circumstances. Let the scheme have a fair trial, and it may be that it will furnish an object lesson that the producers will find cheap at the price.