RISE IN WOOL PRICES

Press, Volume LXXXVI, Issue 26204, 30 August 1950, Page 6

RISE IN WOOL PRICES

“WORRIED MEN IN YORKSHIRE” PROBLEM OF FINANCING PURCHASES (N.Z. Press Association—Copyright) LONDON, August-29. “There, wefe worried men in the mill towns of Yorkshire 1 yesterday, as the wool bosses heard of the 5s 6d sterling spurt in the price of a pound of wool at the Sydney wool sales, says the “Daily Express” finance editor. Even with their stocks. down to four months’ supply—24B,ooo,ooolb — they are faced with finding some £68,000,000 sterling of working capital to finance their supply. “A quick check on Britain’s 10 top mills shows them carrying wool worth £23,000.000 at the old price. To-day it will cost them £35,000.000,” ha says. He quotes a leading mill owner as commenting: “It is a very serious problem for the industry, and if these prices are maintained, I do not see how the trade can buy the clip this season. Further, higher prices will bring serious consumer resistance to wool.” Since the war the woollen industry has faced the problem of the everincreasing value of the raw material. Great companies have been forced to borrow millions from the banks to pay for wool. The first reactions in Leeds and Bradford to the 40 per Cent, jump m Australian wool prices were amazement and incredulity,” says the “Financial Times.”

The “Daily Mail” quotes the president of the British Wool Federation. Mr Frank Christelow, as saying: “It is much too much, and we don’t like it. We partly expected it, but never to this extent. It will mean a serious increase in the price of woollens.”