THE WOOL TRADE.

Ashburton Guardian, Volume V, Issue 1362, 5 October 1886, Page 3

THE WOOL TRADE.

In a very interesting paper on the wool trade, by W. H. Chard, published in the Sydney Daily Telegraph of the 13th September, the writer says the colonial wool trade of London now forms a remarkable portion of the gigantic commercial operations of that city. During the year 1885 no less than 1,199,732 bales were received in London, and of these nearly 313,000 came from Victoria, nearly 258,000 from New South Wales, 245.000 from New Zealand, 145,500 from the Cape and Natal, 115,000 from South Australia, 85,000 from Queensland, 23,000 (nearly) from Tasmania, and close upon 15,000 from Western Australia. The whole of this wool was warehoused by seven firms, viz :—The London Docks Company, Gooch and Cousens, Brown and Eagle, Hyatt, Parker and Co., J. Cooper, - East and West India Dock Company, and Millwall Docks, and about a million bales were sold by eleven auctioneers, the lion’s share of the business being done by Balme and Co., Jacomb, Son and Co., H. P. Hughes and Sons, Buxton, Ronald and Co., Edenborougb and Co., H. Schwarlze and Co,, and Willans, Overbury and Co. At the June-July series (the third of the season), which occupied only one month, over 364,000 bales were catalogued by the eleven firms referred to, and Mr Chard shows that annutly -hree-qu rters of a million sterling is derived in the shape Lof charges and commissions by those in the trade in London. His estimate is as follows : —For the warehousekeepers. £300,000 to £350,000 ; auctioneers, £150,000 to -£200,000; London Banks, Loan Companies, merchants, and consignees, £200,000; of w"hich £550*000 is divided among eighteen firms of warehousekeepers and auctioneers, the chief share however falling to eleven firms, only a small proportion falling to the other seven altogether. Mr Chard speaks in the highest terms of the manner in which the sales are conducted, that is to say, in most respects, “Every bale has sewn to it a printed card showing the date of sale, name of auctioneer, lot, brand, number and total bales of which it forms part. The sampling, lotting, taring, weighing—all deserve a word of praise. . . . . . Every bale is cut open, some at the cap ends, others at reverse ends ; mixed bales are shown and cut all along the side; the passages between bales (stacked only three high) are from Bft to 12ft wide, giving ample light and room, with small tables to put wool upon. Buyers accustomed to the London style of displaying -wool would find the Melbourne and Sydney style very unsatistory.” He goes on to say : —“ There is one radical fault which I blame more Upon the representatives of shippers (the London consignees) than upon the jmetioneers or warehousekeepers. I allude to the showing of wools in five, six, or even eight warehouses on one day. This is a great evil, and arises out of a desire to distribute patronage too much among the various warehousekeepers. What would be thought in Sydney of a large wool sale, when the wool was shown in a store at Miller’s point, another at Pyrmont, another at Botany road, another at Woolloomooloo, and three or four more ftores near Circular Quay, and to

repeat this sort of thing every day in the week, Saturdays included ? Yet this is what is being done in London to the manifest injury of wool shippers. There have been daily catalogues of 12,000 to 16,000 bales. The wool is on view from about 8 a.m. until, say, 3 o’clock. At 4 p.m. the sale begins, several miles from the scene of valuation and inspection. I consider it is disgraceful mismanagement to allow wools to be shown in more than two or three warehouses during one day ; f yet day after day buyers are compelled to trudge round through the wet, fog, or heat (as the case may be) to five, six, and frequently seven or eit>ht warehouses, covering distances of four or five miles. . . . Three auctioneers, having, say, 4000 bales a-piece— 12,000 spread over six warehouses, embracing a radius of four miles, is a nice little complication for a buyer who must conclude his work, have his lunch, clean up and be ready to attend the saleroom before 4 o’clock ! I emphatically condemn this wretched system of selling colonists’ produce, and recommend that the Chambe'S of Commerce in Sydney and Melbourne, orsome other influential body, should be requested logo into this question and put an end to the present state of things. If the woolgrowers and shippers could fully realise —as I do, being on the spot--the way things are done, they would eagerly take action and bring the matter before the London wool importers’ Committee who are to blame tor ever having allowed the thing to grow up. There is no occasion for it.” But Mr Chard does not see why the wool should be sem to London for sale at all, and argues, very wisely, as we think, that the buyers should be induced to come to the colonial markets. He writes: —“Of the Australian wools sold in London, most is taken by men who could just as easily purchase direct in colonial markets, viz,, buying brokers, wool merchants who sell again as they buy, or woolcombers who sell after washing and preparing into tops, noils, &c. Buyers combine branches of business in many ways. The number of manufacturers, pure and simple, who regularly attend London sales is nominal. The wool must of necessity go through several hands between seller and manufacturer. There are certainly a few wealthy manufacturers who attend and buy, but the idea prevalent in Australia—that by sending their wools to London they are competed for by most of the manufacturers from all parts of Europe and America —that is quite a mistake. Some manufacturers attend for a limited time, then hand over their instructions to some broker. A very large number of important manufacturers never bother themselves with raw wools at all, finding it more suit-

able to purchase the tops, noils, yarns, See., as they require them, and getting credit when desired. Under these circumstances, it is evident that no insuperable difficulties exist in transferring the buying from London to the colonial markets. Wool-growers must realise how important it is to them to gradually bring this about. The press in Australia is more ready to distribute useful information to them than any other source, and the benefit derivable is enormous. Encourage the sales of wools in Australia ; do not hurry off wools at extra expense to distant markets ; make the wool season last eight months instead of four every year; show the wools for sale to perfection ; give fair tares, plain, reasonable reserves, and gradually you will draw over representatives of all branches of buyers, and have the various merchants, combers; spinners, brokers, and manufacturers competing at your doors, Instead of doing all they can on this side of the world to frighten your consignees when every new clip reaches the'-e shores. Remember the wool is sent to London for absolute sale, holding over is boycotted by buyers, any panic may be on, the artificial regulation o five distinct series every year leaves a good opening for floatation. And frequently there are not roobuyers bidding at the saleroom.” It will readily be seen that if only in the retention in the colonies of the large sum above shown to be expended on commission on sales, warehouse charges, etc., in London, the change of venue of the sales would be very desirable, and as the Telegtaph, in commenting upon Mr Chard’s paper, very sensibly says there is no more reason why Aus'ralians should rush to London to sell their wool than that Chicago should “ hawk her wheat in Mark Lane or Foochow merchants come to Sydney to peddle their choice new season’s “chops.’”— Mail.