TEXTILE TRADE.

Auckland Star, Volume LXVIII, Issue 29, 4 February 1937, Page 4

TEXTILE TRADE.

POSITION IN U.S.A. BOOM CONDITIONS ARISE. The marked activity of Americans at the wool auctions this season is partly explained in the latest report issued by the National City Bank of New York upon economic conditions in that country. "The most sensational performance among the industries," says the report, "has been turned in by the textiles. Demand for cotton goods, even after many months of activity, seems insatiable. Although cotton mills are w : orking at an all-time record rate spot goods and early deliveries arc scarce, and buyers willingly pay premiums for them. In some cases buyers have booked through the second quarter of 1937. As a whole, mills are probably sold farther ahead than ever before and at profitable margins over cotton prices, even allowing for the wage increases. The situation is leading to the reopening of mills in New England which have not operated in some time, including four units of the failed Amoskeag Mills, which have been leased to the Pacific Mills and will be put back into operation. "The rayon mills are equally active. Demand for viscose yarn has absorbed all reserve stocks and keeps factories operating at capacity, while fabric sales and prices have both improved against the usual seasonal trend. Despite the tight market, yarn manufacturers have not raised prices except for the elimination of certain discounts effective January 1, and all the important companies have plant expansion programmes under way.

"'The woollen situation has turned strong after a period of unsatisfactory margins, and spring goods pliers have been raised 13 to 27 cents a yard over the opening. Wage increases, advances in raw wool and taxes under the Social Security Act have raised costs; buyers therefore have accepted the higher prices as inevitable and bought freely, giving the mills a good backlog of order:*. This willingness to operate ahead extends to clothing buyers as well, since clothing prices are moving up in turn. rf ßaw silk also lias risen and the business of the hosiery manufacturers, now the chief consumers of silk, is good; buyers of hosiery have been anxious to cover forward needs also, but manufacturers have not been disposed to accept 1937 business at the old prices. . "In all merchandise lines willingness to buy ahead is more general than at any time except in the boom of 1933. Prices of rugs and floor coverings have been raised. Furniture business is active with a price advance scheduled. Advance shoe sales are good. On some items of gift merchandise premiums are the rule for prompt deliveries."