BRANDING FLUIDS FOR WOOL

Press, Volume LXXIV, Issue 22429, 16 June 1938, Page 13

BRANDING FLUIDS FOR WOOL

INTERNATIONAL COMMITTEE’S ACTION - LONDON, June 14. A meeting of the International Coordinating Committee for Wool Promotion, formed jointly by the International Wool Secretariat and the international wool and textile organisation, urged the authorities in producing countries to take steps, if necessary by legislation, to eliminate the use of branding fluids not conforming with the Wool Industries Research. Association’s formula?. CONTINENTAL WOOL BUYING THE FUTURE OF PRICES Continental operators have been most valuable buyers at this season’s wool sales in Australia, says the latest report of Winchcombe, Carson, Ltd.* Their recovery in activity has to a great extent been responsible for the fact that Australia, up to a fortnight ago, bad been able to sell about 2,600,000 bales this season, cr more than 90 per cent, of the quantity available for the year. With Japanese purchases much below normal and American buying negligible, the marketing of the clip would have been considerably less satisfactory if the Continent had operated only as in preceding seasons.

The lower cost of wool has been an encouragement for European buying, but stpcks of raw material and tops had reached a very low level in the European countries. At the close ot •September last the quantity of tops on hand at the German combing establishments was 3,900,0001 b. At the corresponding date of 1933 the total was 21.400,0001 b. France was more or less similarly situated, her September stock of tops being 9,000,0001 b below the figure a year before. In 1937 Italy exported three times more all-wool and mixed fabrics than during 1938. Germany exported larger quantities of wool fabrics, carpets, hosiery, velvets, and plushes in 1937 than 1936. French exports of tops were 5,000,0001 b greater, yarns being unchanged, but fabrics were slightly less.

A variety of causes have, therefore, contributed to the larger Continental buying of the raw material. In view, however, of the much expanded -output of artificial fibres, particularly in Germany and Italy, the revival m European purchasing of the wool offers some measure of assurance regarding the use of wool. Stocks of tops have increased on the Continent during recent months. That is a normal development as a result of the supplies of wool imported. News of trade generally at the moment is not favourable, but purchases of the raw material continue to be made.

Prices For Primary Products

Business in most countries is now suffering because of the recession in prices for most primary products. As in the early depression years, primary products the decreased public purchasing""' power resulting gradually curtailed sales of manufactures. As in the past, however, the first sign of recovery is likely to show in improvement in values for raw materials. The idea gains ground that a rise in rates is probable. Manufacturers commence to restock and speculative interest is awakened; but that movement is not so far evident. Hopes of its development centre on the efforts of the American authorities to stimulate industry by government expenditure the bill authorising which has been passed by the Senate. A strong demand for wool will be necessary to ensure a satisfactory monetary "return for the_new Australian clip. Not only will a reduced quantity be shorn, but the length and condition of the wool grown over a wide area, particularly in New South Wales, will detract from its value. The clip of that state comprises about 50 per cent, of Australian - production. The maintenance of a good inquiry from the Continent will be essential for the sale of the faulty wools produced. ' The new season’s sales will open in Sydney on August 29. FOODSTUFFS, LIMITED The annual meeting of shareholders of Foodstuffs (Auckland), Ltd., was held this week. The directors reported a very successful year. Turnover had increased by nearly 24 per cent, over that of 1937, and the increase in membership was satisfactory in view of the keen competition during the period. Additions, out of net profits, had been made to all reserve funds, and paid-up capital showed an upward trend, the authorsied capital issue having been increased by 5000 shares during the year to £20,000. For some months the staff had £een working a five-day week, and as a result of new awards labour costs were much higher, but in spite of the extra charges overhead expenses had been kept within a reasonable limit, and showed a slight decrease by comparison with 1937. An unchanged dividend of 7 per cent, on paid up capital was adopted, and a bonus to employees on wages was again approved, at a rate coinciding with capital earnings. The retiring directors were reelected to serve for a further three year period.