AUSTRALIAN WOOL

Waikato Times, Volume 125, Issue 20957, 9 November 1939, Page 13

AUSTRALIAN WOOL

METHOD OF DISPOSAL CONCERN IN UNITED STATES PROBLEM HARD OF SOLUTION 'United Press Assn.—Elec. Tel. Copyrterbn NEW YORK, November 7. A variety of difficult problems in connection with the method of the disposal of the Australian wool clip are, it is understood, delaying the statement which American wool circles expected an Australian source to make.

The whole gamut of the methods of disposal have been mooted, from Australian-supervised auctions in the United States to a United States Go-vernment-supervised system of distribution.

The latter system eventually is most unlikely, though it is understood that the Australian authorities are consulting the American Government in order to assure the most mutual satisfaction over the method.

The question of price continues to prove hard of solution. Some sources insist that release at a low price would arouse the strongest opposition of the domestic producers. On the other hand, a high price would tend to reduce consumption. The Australian authorities are desirous of injuring none of the interests which are safeguarding a permanent market for Australian wool, and believe that the same can be done yet. It is announced that the Prime Minister, Mr Menzies, expected that despite the delicacy of the position the flow of wool in important quantities will occur before the middle of January, which is considered the deadline.

Interest has also been aroused by the British Government’s purchase of Louth African wool on the open market, it is conjectured to protect the prices of its own holdings of merino wool.