DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES, REVIEW OF OPERATIONS COVERING THE PERIOD FROM 1st APRIL, 1921, TO THE 30th JUNE, 1922.

Appendix to the Journals of the House of Representatives, 1922 Session I, H-38

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1922. NEW ZEALAND

DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES, REVIEW OF OPERATIONS COVERING THE PERIOD FROM 1st APRIL, 1921, TO THE 30th JUNE, 1922.

Laid on the Table of the House of Representatives by Leave.

9 Sir,— Wellington, Ist July, 1922. I have the honour to submit a review of the operations of the Department of Imperial Government Supplies from the Ist April, 1921, to the 30th June, 1922. The period covered by my last report witnessed the termination of the remaining contracts of purchase of frozen meat, butter, cheese, wool, and sheepskins on behalf of the Imperial Government, and the year under review has been occupied in shipping the stocks in question, and in the administration of the Butter Equalisation Fund and the New Zealand Wool Committee. FROZEN MEAT. The shipment of the 600,956 60 lb. freight carcases remaining on hand at the 31st March, 1921, was effected in the following months : —

BUTTER. The butter held in store awaiting shipment on account of the Imperial Government on the 31st March, 1921, amounted to 251,029 boxes. Shipment was effected as follows : — April, 1921 .. .. .. 88,068 boxes. May, „ .. .. .. 54,532 June, ~ . . . . . . 43,000 ~ July, „ .. .. 65,429 251,029 boxes.

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Beef (Quarters). Mutton (Carcases). Lamb (Carcases). Other Meat (in 601b. Carcases). Total (in Equivalent of 00 lb. Carcases). Lpril, 1921 lay, uno, uly, )ctober, ,, 77,944 62,587 63,070 36,564 5.841 10,220 20.408 2,684 507 1,217 2.387 243.939 156.501 158,063 17,778 24,675 11,280 214,881 73,033 4,408 2,387 600,956

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Butter Equalisation Fund, 1920-21 Season. Under the authority of section 12 of the Appropriation Act, 1920, a payment was made to manufacturers in respect of creamery butter sold for household consumption at prices fixed by Order in Council, in order to equalise returns of such factories with, the returns of exporting factories. The maximum rate was fixed at 6d. per pound from the 19th October, 1920, up to the date on which the Imperial Government contract for the purchase of butter terminated — viz., 31st March, 1921. On the Ist April, 1921, the rate was reduced to 3d. per pound, and again to 2d. per pound on the 17th April, 1921. The latter rate was payable in respect of creamery butter sold and distributed to retailers or consumers up to the 31st August, 192.1. Each of the foregoing rates was subject to a deduction in the event of, and to the extent of, the .factories' selling-price exceeding the price of Is. ll|d. per pound bulk in boxes at factory-door, or its equivalent. Interim payments were made to factories based, on monthly returns received from them, and the final payment was made by the Department upon the receipt of each factory's return duly audited by one of the Department's travelling auditors. The total payments made out of the fund for the fifteen months ended 30th June, 1922 ; amounted to £245,099 os. 6d. WOOL. The wool, held in New Zealand on account of the Imperial Governnfent at the 31st March, 1921, amounted to 314,903 bales. Upon the market improving the shipment of these stocks was resumed at the end of November last, and during the seven months to the 30th June, 1922, 260,008 bales were shipped, -leaving a balance of 54,895 bales, which it is estimated will be all shipped by the end of August, 1922. The following table shows the classes of wool contained in the various shipments :—

Ship. Greasy. | Stationscouted. Station Slipe. mentscoured. Government Slipe. Freezing Companies' Slrpo. Total. Date of Shipment. Destination. Mahia Matakana Australia Port Kernbla Maimoa Ionic Otarama Port Darwin Tresithney.. Tairoa Westmoath Kaikoura Mahana Port Albany Somerset Port Curtis Corinthic Port Bowen Treloske Waiwera Dorset Port Adelaide Tainui Zealandio Port Pirie City of Winchester .. VVainrana Port Melbourne Erred Tasmania . . Makalla Port Denison Devon Ionic Matakana .. Port Victor Mahia Huntingdon Bales. 8,340 4,970 15,327 4,316 1,208 2,637 8,763 3,424 2,001 2,052 1,774 2,964 2,273 49 1,607 7,407 3,476 ! Bales. 41 - 457 296 47 500 59 193 8 477 Bales. 59 Bales. 283 2,230 5,127 74 Bales. 2,809 2,027 1,047 Bales. 123 6,154 2,874 421 Bales. 8,787 10,068 29,092 8,711 1,676 5,156 S.S22 7,626 3,182 9,120 3,616 7,047 3,477 49 2,499 8,483 3,476 1,713 11,830 660 920 1,088 1,964 5,333 ■ 4,134 10,439 4,456 3,564 3,441 19,298 12,975 2,576 412 3,704 7,965 4,308 8,819 29,522 16/12/21 17/12/21 21/12/21 15/1/22 19/1/22 8/1/22 14/1/22 21/1/22 21/2/22 9/2/22 9/2/22 17/2/22 1/2/22 11/2/22 31/3/22 10/3/22 11/4/22 5/4/22 31/3/22 31/3/22 9/5/22 31/3/22 10/5/22 29/4/22 26/5/22 25/5/22 20/5/22 ■ 11/5/22 6/5/22 29/6/22 j1/6/22 18/5/22 6/6/22 10/6/22 16/6/22 16/6/22 27/5/22 21/6/22 London. Hull. Liverpool. London. 104 1,597 j 422 102 38 1,173 4,279 1,842 573 236 3,907 I 2,274 { 3,510 Liverpool. Hull. Liverpool. Hull. Manchester. Hull." London. Manchester. London. 90S 1,042 892 3.1. 3 45 207 S.(i4(i 3,184 1,461 Manchester. London. 657 920 1,088 3 4,333 3,825 6,063 2,848 3,515 440 13,577 10,469 1,611 412 1,017 7,816 4,279 4,723 19,719 1,904 990 9 309 1 9 728 457 3,910 880 Hull. London. Manchester. 1 48 2,359 4,330 1,531 277 642 1,390 1 25 950 688 London. 1^975 712 143 Manchester. London. 6 29 3 40 1,597 5,696 680 1,865 1,815 2,184 Hull. London. 1 18 Totals 159,900 2,504 428 44,919 16,374 35,883 260,008

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The balance of 54,895 bales held awaiting shipment at 30th June, 1922, comprised the following qualities : —

New Zealand Wool Committee. As the result of a recommendation by the Producers' Committee, it was decided that, in view of the state of the wool industry in 1921, it was very desirable that the woolgrowers of New Zealand should fully co-operate with the British Australian Wool Realisation Association (Limited), and the woolgrowers of Australia, in regard to fixed reserves and limitation of wool offerings. For this purpose the Wool Industry Regulations were gazetted on the 24th June, 1921, and were administered by a Committee appointed by the Government, and known as the New Zealand Wool Committee. The Committee, comprised Messrs. W. S. Bennett, O. Hawken, T. R. Lees (Chairman), A. E. Mabin, and L. A. Rutherford. This Committee, which was in constant touch with the British Australian Wool Realisation Association, prepared schedules of minimum. reserve prices, issued permits for export, allocated the quantities of wool to be offered at the local sales, and handled other matters incidental to the well-being of the wool industry. The clerical work connected with the functions of the Committee as outlined herein, together with the collection of statistics relating to the production and sales of wool, was carried out by this Department. I quote hereunder extracts from a report made to you by the Committee, covering the period Ist October, 1921, to 31st March, 1922 ; where necessary the figures used have been brought up to the present date — namely, 30th June, 1922 :— The Committee has to record a gradual rise in prices for all classes of wool during the six months, together with, a very satisfactory clearance of stocks in New Zealand. The prices for medium and low crossbred wools arc still below the cost of production, but the keen demand for all classes of wool, and the rapidity with which same have gone into consumption during the period under review, justifies the strong belief that producers can safely look forward to a return to payable prices in the very near future. The system of registration under which woolbrokcrs, banks, and wool-exporters gave written undertakings, enforcible by bond if required, not to dispose of wool at prices below the minimum prices fixed by the Committee has been continued throughout this season, but from December onward the prices at which, wool was saleable have been substantially higher than the very low fixed prices, and it will be unnecessary to continue the system next season. The following are the sales which have been held since the Ist October, and the results :—

i Sales. Merino .. 8 Halfbred 50/56's to 58's .. 1,208 Fine crossbred 46/48's to 50's ,,. 5,914 Medium crossbred 40/44's to 46's 28,011 Doarse crossbred 36's to 40's .. ■ 1,883 Grand totals ... 37,024 Greasy. Bales. Stationscoured. Station Slipe. ' Bales. 1 10 13 3 9 mentscoured. Bales. 2 4 587 4,595 69 Govern- „ ment ' F ™. ezeI Slipe. | Sh P e - Bales. Bales. 17 46 444 1,001 4,470 2,627 2,415 ; 742 726 Total. Bales. 28 1,741 12,017 37,679 3,430 29 32 28 1 90 36 5,257 4,433 8,055 54,895

Date of Sale. Centre. Offered. Sold. Average Price per Bale. Average Price per Pound. 1921. ictobor 14 „ 18 „ 20 Wellington Auckland Wanganui Auckland Wellington Napier Christchurch Dunedin . . Bales. 7,167 5,085 4,032 8,749 15,491 15,966 20,352 10,904 Bales. 6,969 4.558 3,611 6,783 13,433 14,097 18.227 10,302 £ s. d. 7 2 5 6 17 6 6 10 3 6 8 8 8 3 7 6 15 4 9 14 11 9 17 5 d. 4-55 4-45 4-21 •: 4-35 4-95 4-47 6-92 6-90 lecember 5 „ .. 9. .. .. 13 ,16 21

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It will be noted that where the finer qualities of wool are offered at. certain points in the South Island higher average values are recorded, and the, converse applies to certain points in the North Island where coarser types of wool predominate. The sales of New Zealand free wools from the Ist July, 1921. to the 30th June, 1922, have been as follows : Sold by auction in—London, 253,135 bales; New Zealand, 457,553 bales : total, 710,688 bales. Although a great part of this wool has been sold at. prices unrcmunerative to growers, there has been very little speculative purchasing, and the great bulk has been sold for direct consumption in the mills of the United Kingdom and the Continent. On the whole the purchases for shipment to the United States of America have been small. Imperial Stocks. Liquidation of the Imperial carry-over stocks has proceeded steadily during the year, the position at the 30th June, 1922, being as follows : — Australian. New Zealand. Total. Bales. Bales. Bales. Stocks, Ist July, 1921 .. .. .. .. .. 1.554,844 739,753 2,294,597 Sales by auction, United Kingdom and Continent, Ist July. 1921, to 30th June, 1922 .. .. .. .. 701,844 309,753 1,011,597 Stocks, 30th June, 1922 (approximate) .. .. .. 853,000 430,000 1,283,000 These stocks are approximately made up as follows ; — Australian. New Zealand. Bales. Bales. Merino .. .. .. .. .. 203,000 3,000 Fine crossbred .. .. .. .. .. 383,000 14,000 Medium crossbred .. .. .. .. ..185,000 108,000 Low crossbred .. .. .. .. .. 82,000 135,000 Slipe .. .. .. .. .. .. .. 87,000 Scoured .. .. .. .. .. .. .. 83,000 853,000 430,000 The stocks of Imperial wool in New Zealand included in the above, which amounted to 314,903 bales at the Ist July, 1921, had been reduced to 54,895 bales at the 30th June, 1922, and under the present shipping programme will all be cleared from New Zealand by the end of August, 1922.

Date of Sale. Centre. Offered. Sold. Average Price Average Price per Bale. per Pound. 1922. January 3 6 „ II 16 „ 20 „ 25 30 Februarv 3 8 13 17 23 28 March 3 . . 10 . . „ 14 .. „ 17 .. ' ,. 21 .. „ 27 ... „ 31 .. April 5 May 3 „ 5 „ 11 „ 16 „ 18 „ 22 „ 25 Various dates Timaru .. Wanganui Napier Wellington Christchurch Invercargill Dunedin .. Timaru .. Auckland Napier Wellington Christchurch Dunedin .. Invercargill Wellington Napier Wanganui Auckland Christchurch Dunedin .. Wellington Timaru .. Dunedin .. Christchurch Auckland Wanganui Napier Wellington Gisborne .. Bales. 9,903 13,347 19,992 19,986 20,465 14,108 18,426 12,000 10,052 16,095 24.828 18,012 20.108 9,865 18,837 11,704 19,245 12,223 9.934 11.290 14.403 5,007 1,424 2,487 2,993 7,427 4.732 5,260 4,115 Bales. 9.569 11,991 18,007 18,168 19,796 12.499 17.648 11,216 9,623 15,186 21,505 15.422 17,463 8,864 16,714 10,418 17,037 9,690 9,099 10.878 13,901 4,778 1,409 2,266 2,934 7.183 4,608 5,158 4,115 £ s. d. 9 13 4 7 15 11 8 2 3 9 3 5 12 4 7 8 9 6 12 13 8 11 7 8 8 6 5 8 3 8 8 14 11 11 13 10 11 2 7 8 2 3 8 0 0 7 11 8 8 2 11 7 10 3 10 8 4 11 1 9 8 14: 4 12 1 0 10 6 4 10 11 5 8 18 6 9 4 3 8 5 0 10 0 0 d. 6-85 4-85 5-16 5-65 9-01 6-13 8-90 8-02 5-60 5-20 5-30 8-05 7-77 6-04 5-40 4-70 5-02 5-10 7-60 7-70 5-37 8-10 7-18 7-48 6-00 5-72 5-23 6-28 Total 405,125

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Australian Free Wool. Australian wool of the 1920-21 and 1921-22 clips has sold freely during the past twelve months, the latest figures being as follows : — Sold by auction in London from the Ist July, 1921, to the 30t,b June, Bales. 1922 •.. .. .. .. .. .. .. 312,094 Sold by auction in Australia from the Ist July, 1921, to the 30th June, 1922 .. .. .. .." .. .. .. 1,510,702 Total .. .. .. .. .. 1,822,796 The disposals of Australian and New Zealand wool combined for the twelve months from the Ist July, 1921, to the 30th June, 1922, have been as follows : — Australian. Now Zealand. Total. Bales. Bales. Bales. B.A.W.R.A. .. .. .. .. .. .. 701,844 309.753 1.011.597 Free .. .. .. .. .. 1,822,796 710,688 2,533,484 Total for twelve, months .. .. .. 2,524,640 1,020,441 3,545,081. The actual production of Australian and Now Zealand wool, including slipes, for the twelve months ended the 30th June, 1922, is estimated as follows :— Bales. Australia .. .. *.. . .. .. .. .. 1,850,000 New Zealand .. .. .. .. .. .. .. 575,000 Total .. .. .. .. .. 2,425,000 So that the sales of Australian and New Zealand wool during the twelve months have been approximately 1,120,000 bales more than the year's production ; or, put in another way, the sales have been 46 per cent, greater than the production. The operations of the Committee have been carried out for a total expenditure to the 30th June, 1922, of £155 12s. 6d., the members acting in an entirely honorary capacity. TOTAL DISBURSEMENT'S. The total payments by the Department for the fifteen months ended the 30th June, 1922, amount to £2,008,863, bringing the total payments by the Department from its inception on the 3rd March, 1915, to the 30th June, 1922, up to £160,585,507. STAFF. As the various branches of the Department have completed their work the staff has been reduced to the bare minimum required for effecting shipment of the balance of stocks and for the final compilation of accounts. I have, &c, T. R. Lees, Controller. The Hon. the Minister in Charge, Department of Imperial Government Supplies.

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