THE AUSTRALIAN WOOL TRADE.

Globe, Volume III, Issue 239, 16 March 1875, Page 4

THE AUSTRALIAN WOOL TRADE.

(Melbourne Daily Telegraph ,) The vast and growing importance of the Australian wool trade has led lately to the discussion amongst those primarily interested as to the feasibility of opening up other markets by direct shipments. The subject is one of such vital interest, not only to the growers themselves but to the colonies at large, that it deserves more than ordinary consideration, as any addition to the material benefit of this great industry must act favorably upon the entire community. Up to the present time, with infinitesimal exceptions, our entire wool product has been forwarded direct to the London market, where periodical public sales invite the attendance of continental and American buyers to supply the wants of the various countries they represent. As long as the production of the staple was limited, such arrangements were apparently highly suitable to meet the requirements of the producer and the consumer, but the extension of woolgrowing, the large increase m the yearly export trade, and the extended consumption of the staple in various manufactured articles, have now made it more than doubtful whether |the old channels which carried a limited amount of trade are capable, without depreciating value, of dealing with the extended shipments of the present time. Added to this, certain abuses have crept up, probably induced by the monopoly so long enjoyed by English consignees, which call for immediate redress; and as the demands made by the latter are either wholly ignored or only partially recognised, it certainly behoves those who are pecuniarily affected in the issue to lose no further time in impressing on London agents the true relation existing between consignor and consignee. The president of the Pastoral Chamber of Riverina, in a recent pamphlet, has pointed out in most unmistakeable terms how grossly in many instances are the interests of Australian woolgrowers neglected by the very parties who are remunerated to protect them, whilst the evidence collected at least goes to show that, through the supineness of the squatter in the past, a system has grown up respecting weights and sampling which involves a loss to the latter of a sum equal on an average shipment to the expense of placing the same on the London market. The gain in weight which the wool makes by the voyage, up to a very recent date, , and then only incidentally, not generally, has been credited to the shipper, whilst by the peculiar system in force of drawing broker’s samples a further deduction has heretofore been made, in the account sales rendered, from the original weight. It will not be a matter of much surprise, when the extent of a year’s operations of any leading firm is taken into consideration, to learn that between the actual and nominal quantity of wool in a bale, as received and delivered, there is a margin of sufficient profit to realise a fortune. Again, the Australian consignor labors under the disadvantage of a custom in vogue for the broker to be paid by both vendor and vendee —a practice which is sure to militate against the former; whilst, what is still more objectionable, brokers purchase at their own sales without disclosure. All these evils are fairly attributable to the want of energy shown by the Australian squatters, who seem in the past to have considered it useless either to attempt to find another market for their wool, or to kick against the impost annually increased by the parties entrusted with the sale of their produce in London. To what extent this neglect of their own interests was carried may be judged from the fact that a short time since, when the grievances of certain woolshippers came prominently before the public in New South Wales, a committee, consisting of the very men whose laches gave rise to the complaints, was appointed to adjudicate on the matter, and recommend any reform they should deem necessary. It is needless to say that the parties who drew so golden a return from existing abuses could hardly be induced to find fault with a system so admirably adapted to suit their own interests; hence the former still remain rampant. In dealing with the subject of wool exportation a short time since, the importance of fostering the rising demand in Germany and Russia for our staple was strongly insisted upon, and the personal observation of Mr W. A. Brodribb adds the weight of his testimony to our remarks, whilst he aptly quotes the establishment of a direct trade in cotton between Germany and India as illustrative of what might fairly be done in regard to Australian wool. If once the Australian growers go fairly and with a direct purpose into the question of shipping regularly direct to the continent of Europe and America, and show they are really in earnest in the matter, little more will be heard of any objections on the part of London agents to meet the legitimate and reasonable demands of the wool shippers. The market will no longer be at the mercy of those who have interests other than the growers to serve, and the establishment of monthly instead of quarterly sales will be acceded to, thus affording a permanent relief to that apprehension of an overstocked catalogue, which at present always overhangs the limited number of sales now accorded to this staple. Those who have at heart the interests of Australia, and with it Victoria, can appreciate the efforts of any body of men linked together to effect reforms in a system prejudicial to one of the largest colonial industries; and the Pastoral Chamber of Riverina, through its president, has boldly proclaimed the wrong yearly done to this country by the manner in which our wool is sold in England. If, in finding the means of redress, fresh channels of commerce with foreign countries are opened up for Victoria, it will be a matter for general, not particular congratulation.