OUR YORKSHIRE LETTER.

Dominion, Volume 1, Issue 163, 3 April 1908, Page 10

OUR YORKSHIRE LETTER.

THE LOSS ON WOOL IMPORTS. BUYERS HEAVILY HIT. (FROM OUR SPECIAL CORRESPONDENT.) ' .;'j. . Bradford,-Ecbruary-21.

'■ Wool importers this season have been hit .Jioth hip and thigh' on colonial purchases, and especially on tho large quantity of : bn!"s' they, secured l ' last ' September,.- October, aiuV 'November in the premier selling centres of Australia.' To say that both Yorkshire, French, German, and American importers know •'it;Ms stating a very'common-place fact, and at the tho trade is in the very of.landing these dear purchases. .The countenance of < some shows'how chagrined' they are, and'it is as yet too'early to say what is going to ;he the upshot of it all. It has led to more than one family disturbance and dissolution of partnership, in England and on the Continent,' ■while'-[the head of ono leading American importing house committed suicide a few weeks ago, disgusted and ■ worried to death with the teiriblo legacy, of. the-last few months.- Of course, this" is a question looked* at from'two opposite points by the grower and buyer, but -as a rule what docs well for the latter docs well for tho former,.and vice versa.' .-A vast change will have to come over ,the' minds of importers to what exists Jo-day, otherwise they will make a bold bid, to get back "out of. the pockets of growers; what they , have, lost 'this season, and some unforeseen factors, will have to obtain if'buyers'pay the same figures again the next time they go out to Australia, South Africa, and Buenos Ayres. A time like the present puts everyone strongly on the defensive, and it iB certain that importers to-dav seo the serious mistake they have made, and at their first opportunity they will try, to recoup their losses. BRADFORD LOSSES. It goes without saying that woolgrowers who have sold this season in, their . own market have done well, and pocketed all tho profits. Repeated warnings were given to importers .in. the public Press of this district as far back as last September that prices were dangerous, hence they have only themselves to thank for tho unpalatable harvest they are now reaping. I maintain that the interests of both growers and users would have been best served if/buyers had gone slowly in tho early days of October and awaited developments rather than have rushed in and bought heavily'as manjr importers did. Even the financial • crisis in America, which proclaimed from the housetops what was sure to follow, did not in the least prevent the majority from pursuing their mad career. To-day, with burnt fingers and much lighter pockets, a good many are smarting keenly under their own lash, and wo are afraid that banking ..establishments in the neighbourhood of Bradford are to-day exercising considerable pressure upon some of their clients. It is certain that many firms are not having such a comfortable time as they experienced a year ago,' and losses anywhere ranging from JB3' to <£•! per'bale are having to be faced. A few salient facts arising out of these uncomfortable circumstances are well worth noting. 't Tho ball was really set rolling in the colonies at the first Adelaide, sales, which took place last September 2G, and the first three soles in that centre wero practically red hot, notwithstanding a deepening commercial horizon in England, on tho Continent,, and' America. Both at Melbourne and Sydney wool was bought with great zest, the programme of many buyers no doubt beinsj fixed up and determined by some orders irom ITome where "future" sales had been made. Yorkshire was particularly active at Adelaide, due no doubt to the well-grown, shaft.y, deep combing character of many of the South Australian clips. Adelaide wools aro' strong favourites with Bradford topmakers, several firms producing good standard super 60's tops largely buying these wools, nml blending same with shorter stuff to carry it through. In the tablo below we present some unique figures, showing tho quantity of wool bought in Adelaide at tho first four sales. • The most significant fact to observe is the number of Bradford- firms who bought 2500 bales and over. The figures do not include "star" lots, but coinprifo tho regular and larger lots: — \

Biggin 9G33 M'Gregor GGt2 Buchanan ■" G275 Masurel 5655 • Kcttlewell 5307 Haughton ... ... 5275 Provost 5215 Balthazar 4479 Ayrton- ■lIM2 Playoust 3201 Anderson 2532 < . Extpn ... 2791 Lnmcrand 2G83 'Mitchell ... ... 2128 Assemaine 1778 Dewez 1615 - Laycock 13G2 Caulliez 131!) Do Wyn 932 riccker ... BCO BUYERS MISTAKEN. It will be seen from the above that several Bradford firms figure at the top of the list, along with one or two from Roubaix. Buyers hero admit readily to having mistaken their bearings entirely, "for not only have they paid high prices, but several have exceeded their limits in estimating the cost of tops, some being out over a penny per lb. Let us turn from Adelaide to London. It is no uncommon thing for an Australian squatter to sell half his clip in the colony and half in Coleman Street, and in that way either halve his loss in case of a decline, or increase his returns should there be a rise during the transit of his wool to London. The bulk of the South Australian growers sold their last clip in Adelaide, but some consigned a portion to Coleman Street. The following are a few particulars respecting well-known clips which were sold last September and October in Adelaide, and .which were also offered at the recent series of London sales :— BELTANA. , ' London . Adelaide !' Prices. Prices. : ■ : d. d.. . d. ; d.■' d. .Greasy super combing 10 9J ( lli .10} Greasy Ist combing ... 91 '10 Greasy Ist combing,... 9 8J 9i 9J 9 Greasy Ist pieces ..... B■' 9-J 9 Greasy bellies ... ... 7 ' 8j ' Bi. 7j YJ/BOOMCOOMATTA. Greasy hogg'ots ... ... 9 lli' 11$ 10J Greasy A. rams 6 8 Greasy ewes 8 10 9J '! LAKE TORRENS. Greasy. Ist combing. , ; ewes ... ... ... 8i 93 Greasy Ist combing . - \ ,- hoggets . ... ''... Sf. . 9J . Greasy combing ewes:.. ;• -.71 9j 9' Greasy combing ... 7 8\ Greasy . Ist pieces ... ■ B,' 9J 9 Greasy B. pieces ... G 8. . The above shows that an average, of lid. per lb. moi;e has in Adelaide over London prices last series,-and we are confident .we are understanding the case when we say the same was paid for wools bought both in-Melbourne and Sydney. Add to this lid. per. lb. another penny for freight, insurance charges,' etc.'v which 'the buyer has to pay to get the wool Home, and'.this brings up the loss to 2Jd. per lb. An average Australian fjreasy bale of wool .will weigh fully 3501b5., which'at 2Jd. per lb.' means a of £3 13s. per bale—a very serious thing indeed. The Australian papers which have conic to hand during the past fortnight have naturally rejoiced nt the large quantity of wool which has been sold in Australia for the. first .half of the wool year, and the, following figures show Avhat'were the actual sales, at the various centres from lost July 1 to' December 311 Bales. , -. Sydney .. 1 ' ...., J 385i261-\ . Melbourne '.... ... ,234,926 , :r ■ .'Adelaide ... 119,053 ; , -1 . ; . Geelong' ... '83,852' : .Brisbane 59,511 •. . . . .Total ... . ... 882,G03 '•! We have no desire to exaggerate the unpalatable facts, so we 'will estimate, the loss on imports at J63 per bale instead of <£3.135. as' conclusively shown above. It only needs a schoolboy Jo multiply 882,603 by £3 to that' thero is an all rdnnd loss of .£2,617,809 qrilthe.'' wool bought in Australia up to the end of last year. Wo are. well aware that the purchases in December will not amount to i 3 per bale; but those mado previously .will be nearer J3-t' • than. anything, consequently in approximating the loss -at GOO,OOO we are below the mark." If - it. was' pokible'. to obtain the cor-' rect amount we are certain it-would come to considerably oyer three millions sterling. Wearo happy to think ■ that .the .above loss will be fairly equally' distributed between theHome, Continental, and American trades, and' if. anything France, and Germany, will bo called-': upon to divide the heaviest portions; but what, we contend the most is that with reasonable care such a lo6s could have been largely avoided. ; , ' FINANCIAL PRESSURE. '■ In view 9f tho above facts thero is no wonder .that the present state'of the wool trade shouldbe disappointing,, crossbreds especially being dembrahsed.' It is common knowledge that in Bradford a good/40's top has been sold forward for May delivery as low as lljd., and some say Hid. Merinos aro steadier, but wo hear that some; importers are rather keen sellers,! and it is quite easy to secure a" good..super 60's top at 25d. The' wool has never been bought in either Coleman Street or Australia' to produce a combing, at anything like that' figure,-and unless 1 we .'are .'greatly mistakeu thero is' financial pressure being .brought to' bear upon somo w'ho fare endeavouring to turn' their holdings into harcl cash.; It 'looks like, somebody being either ' lamed or killed, i' V-

Those colonial growers who did not pass by a good market either in Australia,'. New Zealand, Capo' Colony, or. even. Buenos.. Ayres are to'< be congratulated- on their' Stroke of good luck, for we are certain that they have gained an average 2d. per. lb', all round on their best combing lots. If the buyers at the time sold forward. . "futures" they will not loose' as heavily, as those who have not (lone so, but many/being so. badly bitten over their future sales from January to'' Juno, 1907 (the. result of is'elliiig forward in August to October' previous, at very low prices) ditf not adopt last autumn .the same tactics. The result is that their Hosses are air the greater, becauso from the time, the wool .was, bought to.;its arriving here prices declined somewhat l sharply; CROS3BREDS DEMORALISED. The last week lias, been productive, of very littlo good iu connection With the Bradford end of -the wool trade,'and things , are depressing. There is no gainsaying the fact that business is completely off, and prices are anything but steady. Only in tho case of about ail odd firm i who have'sold heavily forward and who want 110' moro fresh orders are merinos steady, and with perfect ease a spinner can buy a real good super 60's top:at'2sd-. Whether they, were made ;at;tho price or-no-is another thing altogether, but'tho fact,■nevertheless re-; .mains that among one or .two''importers thero is a little'pressure to sell. Some take a very sanguine view over the future of merinos, but others equally as strongly contend that prices will bo -lower before higher unless business mends. Everybody is sihiply working off old oulers, and there seems a total/lick-.of.'con-fidence, and new business is. very' conspicuous by its absence. Commission ,woolcombers are making deliveries as fast as possible,,and this is about the healthiest sign that at , present obtains in the wool-'-.trade.'. Of course, it is topmakers -who are making ■ delivery';-on old contracts, and it is some, satisfaction; to know that the tops are being wanted. , 7 , Crossbreds are simply.' demoralised/ and quotations-are very irregular.. Agood many idle and ridiculous statements'aro, being made respecting the low prices .whichi have been ae-' cepted for 40's, and lijd.' is freely talked about. This I do not, for a'moment believe, lljd. being taken in one or two cases for a somewhat inferior top. Good- standard makers are still wanting 12jd, though a shilling would, I daresay, purchase the same. The fact of the mat-ter-is trado is about.at a"standstill, and topmakers find no business at all offering. Spinners are finding great difficulty in meeting the market, there being at present so many secondhand yarns knocking about., Thero is as much as lid. to 2d. per lb. difference between spinuers' quotations and what the same count and character of yarns can bo bought for elsewhere, and until theso yarns are out of the way little now ■ business can be expected. Thero has been a good move, in Turkey mohair, something' like. 1700 bales of super quality having been-bought in-Constantinople 0:1 a basis of 18J-d. landed in Bradford. A few littlo lots of Cape have been shifted at unchanged prices. Generally speaking there is a lack of confidence, and trade is much quieter | all round.