WOOL OUTLET.

Ashburton Guardian, Volume 60, Issue 250, 30 July 1940, Page 8

WOOL OUTLET.

THE POSITION IN BRITAIN.

PROBLEM OF CONSUMPTION. LONDON, June 30. Tho now rationing period for wool begins next week, and it is exported that the Wool Control will decide to issue a temporary civilian trade ration to cover about a month’s requirements, pending clarification of the present difficult position. The capitulation of France has removed the world’s second greatest consumer of wool. Practically half the world market is now under German and Italian domination.

The “Yorkshire Post,” commenting on speculation regarding tho future of tho British wool trade, says: “Some views predict a sharp decline in activity on Government account, others point out that, although French demand may not bo of the previously expected volume, the growth of British armed forces will ensure a healthy demand for clothing and equipment of various kinds.”

The “Manchester Guardian’’ Bradford correspondent says that attention is being given to tho Wool Control’s recent intimation that overtime was no longer necessary in the wool-sorting section. He expresses an opinion that this does not necessarily mean that trade and machinery generally will he less active. The authorities are faced with the problem of how to dispose justly with French-bought wool which was diverted to Britain by mutual-arrangement. Trade circles consider that by some means fair to Franco it will be used to augment Britain’s resources. The United Kingdom’s wool stocks must bo at a very satisfactory level.

The favourable trading position of the wool textile industry is amply borne out by the experience of Patous and Baldwins, Limited, which shows an increase of £125,000 in profits for the year ended April 30. However, shareholders are not benefiting. The company has appropriated £270,000 for contingencies of which £30,000’ is for tho company’s air-raid precautions.

The “Statist” says: “The wool textile industry is certainly working at present on a good profit margin, in spite of restrictions on the home market and the loss of substantial prospective French orders.”