Empire Wool Marketing
In these times when there is a world scarcity of so many raw materials it is a relief to know that there is at least one essential commodity of which there is more than enough—raw wool. In normal times Australia, New Zealand and South Africa produce two-thirds of the world's supply for export, but during the war there has neither been the shipping to transport the wool pro- duced nor the European markets to receive it. The United King- dom, which has been buying up the clips from year to year, and accumulating stocks, now holds a surplus equal to more than two years' production in the Dominions. What is to be done with this without interfering with the current clips now offered by the pro- ducers. In most countries there is a serious shortage of woollen goods, but plant, power and labour have yet to become available before the raw wool can be turned into clothing, and it will be some years before the whole surplus can be used. The problem has been solved by a four-Power agreement to set up a joint organisation repre- senting the United Kingdom and the three Dominions, which will provide for the orderly disposal of the old wool and the purchase of the new. If world consumption increases by 12 per cent. it would take about thirteen years to dispose of the old stocks and the new ; but it will be extremely disappointing if world consumption does not rise by a higher percentage. If a policy of full produc- tion and employment, backed by generous capital equipment, is pursued as it ought to be pursued the standard of living should be raised throughout the world—and clothing is an important element in working-class expenditure. But whether the progress is slow or rapid this excellent example of economic planning will free the wool industry from disturbing variations in supply and price.
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