AMERICAN INFLUENCE.

Sun (Christchurch), Volume I, Issue 147, 28 July 1914, Page 11

AMERICAN INFLUENCE.

ON THE WOOL TRADE. -: A good'.ideal has been said recently (■writes'".a Bradford correspondent) about the presence' of American buyers in'Australian'/arid'- London wool mar and remarks have also been passed about the 'importance from "their own standpoint of being able to secure wool a : t. the. lowest prices possible.. This way of stating the case,i: however, is not the only one, and there are those interested in the trade to-day who express the opinion that it would best pay American wool users to see prices forced to a higher level, or at least maintained at the point they have nowtouched. , This really means that when America comes into the market to buy wool, her object is tp compete in such a way, compel her competitors to ' buy at higher figures than those,. she pays, herself. The reason for this is that if users in this, country by any diplomatic mpve can be placed in a corner and obliged to pay the top price of the market, they will also be eompeli led to demand correspondingly higher [prices for any tops, yarns, or piece [goods Avhich they make -any attempt to export to America. The mental calcui lation made is. that supposing a cloth i costs a shilling per yard, 35 per cent, 'import duty on the top of that means an • addition of about 4d per yard in the American market. Now> if the English user can be compelled to pay a [ higher price for his wool, necessitating ■ the cost of the cloth he produces being, [say, .1/6, 35 per cent, import duty on that;cloth will mean about (>d more to be added. This means that the higher the price of the cloth, the greater the duty which will have to be paid, and the greater the difficulty English, manujfacturers will have in. competing in the American market at prices which will leave them a reasonable profit. The point just now, however, is not so much the cost of cloth or relative value of the English and American production, as'the effect which this produces upon the raw material. The reader will.- s.ee that this competition, whether it brings the desired result or not, raises the cost price of wool in the first instance. This lias already been the case during the progress of ;th.e present London sales, and shows what a valuable, asset America is in this* inspect. ...; |i PRESENT CONDITIONS. So far as actual proceedings in Brad--1( rd market just now can be recorded, there seems to be very little new. Both txpiiiakers and spinners seem to be in ja Very independent mood, and are chiefIs - concerned about watching the course < reprices. There does not seem to be T-'uich interest being taken in the sellih'g, of the raw material in London. At h/ast, business men here a re. preserving on the surface a disinterested,.altitude, though; this ,inay , be largely , explained by the fact that crossbred wools were .'/ought on a. fairly reasonable basis at the, commencement of the sales, and merino wools are persisting, in being so dear that it is almost impossible' to make a satisfactory .statement about tnem. However, all top and, yarn quotations, here are fully maintained; particularly for merino description, in which sections tops are being very firmly held, with attempts being made by the majority of makers to secure a further advance on the prices they have until recently been quoting. Any busii ess which is being done in fine tops has to be put through at the very highest point of the market, though actual sales are neither numerous nor large. There .ire rumours about the market to-day of tic failure of an important firm of ( rossbre.l spinners, and some are trying ; . make capital out of this with regard to the crossbred trade. There is no leally authentic information to convey respecting the supposed failure, and in any case, though such happeningsare bad enough ■■when they occur, it is not "■■ p rob - .ilde that the crossbred, market will be,affec,ted : .. All quotations are.(inn and steady,, and the greatest fault to be found is the absence of new business. Kven on orders already in hand there is considerable difficulty in getting par ■uculars, and when it is remembered that these orders have been booked at figures considerably below to-day's juices, it does not speak well for rhe development of further new business. At'the same time, a fairly cheerful tone is : felt all round, and there is not the .-dighte'st- indication of any depreciation whatever ii: prices.