ENGLISH WOOL MARKET.

Press, Volume LXV, Issue 19610, 4 May 1929, Page 17

ENGLISH WOOL MARKET.

CONFIDENCE IN CROSSBREDS. (SPECIALLY -WRITTEN FOB THE PRESS.) BEADFOBD, March 28. As this is being written the wool selling season is approaching a finish. Except for a supplementary sale the last has been held in New Zealand, and after Easter there will only be a few thousand bales to offer in Australia. The Cape season for the combing wool is also over, and importers are naturally now concentrating their attention on the big weights of arrivals from the various overseas centres. The wool bought during the second half of the season has turned out to be much more reasonable in price than what was obtained earlier on. Whether it actually proves to be a profitable proposition, only time will show, and even with regard to the earlier purchases, it is largely a question whether the wool had already been sold forward in the top. If so, even the dear wool will not have been so badly bought as appears by a mere comparison with present prices, or with the widespread complaints which have been made about unprofitable business and the lack of sufficient orders to run machinery full time. Whatever may be the facts of the case in the foregoing connexion, there is no doubt, however, about wool now being much cheaper than a year ago, and though frequently it is found some do not profess to have any real confidence in the present scale of values I see no really sound reason why business should not develop in both merinos and crossbreds.

Wool Going into Consumption. Crossbreds are still dear compared with merinos, but at the last London sales prices were very largely established by the competition of Bradford topmakers, and it cannot be honestly said that merino wool is an excessively dear commodity if it can be made into tops to be sold at 3s 7d to 3s 7|d for average 64's. Fully this price is wanted to-day, and the cost of tops made out of wool bought in London was certainly above that level, but I see no reason whatever for advocating lower wool values unless the other textile raw materials also become cheaper. It need not be inferred from this that I am ignoring the difficulties of the manufacturing situation. The market value of both merino and crossbred tops still lags too much behind the cost of wool, and this is the real cause of much of the dissatisfaction that is expressed. Big weights of wool are going into consumption every week, and presumably the users know quite well whether it is standing them any actual loss or not, but it is more than obvious that the lower cost of the raw material compared with twelve months ago, has not eliminated the long standing anomaly between the cost of the combed article and the price at which it is actually saleable.

The Russian Delegation. It has been observed with approval by many members of the trade that the Anglo-Russian Trade Delegation which has left this country this week includes several important members of the wool textile trade, among them being: Mr R. J. Inman, of Inman, Spencer and Co., Bradford, representing the Export Association of Raw Materials and Yarns, and the Yorkshire Woollen Industry, and Mr Douglas Hamilton, representing the Bradford Chamber of Commerce, and also the Yorkshire woollen industry. Since the war there has been a good deal of diversity of opinion respecting the wisdom of encouraging trade with Russia, and it is probable that this problem will not be left entirely out of account when the Parliamentary election is fought. It may be recalled that many people thought that when the All-Union Textile Syndicate was compelled to close its offices in Bradford, a mistake was made, and no doubt a good deal of wool which might have been obtained in this country has since been bought more directly in Australia. Some spinners and manufacturers were quite sceptical when it was recently reported that a big weight of fine wool and tops had been sold to Russia. They are more concerned about increased consumption at Home. At the same time, the existing opportunities for doing an increasing trade in raw materials, tops and yarns should not be under-estimated. The most important consideration is finance, and whilst the business with Russia has hitheito been considered an exclusive sort of thing, there is no doubt that many other firms would be willing to do a portion of it if they felt themselves at liberty to accept the four to six months' bills which the Soviet Government wish to arrange by way of payment. I have frequently emphasised that it is not in the interests of the Soviet Government to shirk the discharge of any financial obligations in this country, into which it may enter. The trouble with Bradford firms is their inability to get the Soviet bills discounted, because British banks will not accept their paper money, except in very small amounts, most of the bills having to be discounted in Germany. It is a fact, however, that any firm with sufficient capital can do some profitable business, and the Bradford houses with branches in France and Germany are doing.a regular business.

Has Bradford Learned a Lesson? At the annual dinner of the British Wool Federation on Friday* when the Kt. Hon. F. G. Kellaway was the principal guest, Mr George Whittaker, president, made some interesting references to Bradford buying of wool in Australia during the current season, stating that this district had learned its lesson. This statement applied to the fact that wool has been bought more reasonably during the latter part of the season as indicated above. What has really happened is that Bradford buyers have been able to keep out of the market until Continental and other foreign requirement were less pressing. Last season they bought heavily in the early part, but unfortunately after they had done so values fell very considerable, and this involved the trade in serious loss. After all, Bradford cannot force the paee as much as is sometimes suggested. Neither can the buyers for that centre choose very much when to operate at a distinct advantage. As things have turned out. they certainly seem to have followed a wise course this time by waiting. The depreciation in valnes cannot, however, be welcome by growers. Some

clips sold in London at the last series have been knocked down at pence per lb less than the clips from the same source realised a year ago. It is veryregrettable indeed that this has happened.