WOLLEN AND COTTON GOODS

Dominion, Volume 13, Issue 229, 22 June 1920, Page 6

WOLLEN AND COTTON GOODS

MANUFACTURERS RUSHED

M SIGN OF EASIER PRICES AT lIOM

A local firm has received a letter from a London firm of exporters, which does .not foreshadow, the drop in prices which has been reported by cable since the letter was written. Eespeefing woollen goods the writer .states:. "The. majority of tho manufacturers are already booked up for eight or nine months ahead, but they are not at all inolined to commit themselves any further. In view of the persistent upward tendency in the price of raw material, and- cost of production, It is undoubtedly risky to OTder for delivery mora than twelve ahead. On

tbe'.other hand, many firms have become convinced fllat'prices for all the •.better class goods will not come down L ~'during the next eighteen months or more, and are covering their require•ments to a certain extent. It is all "more or less a gamble with to-day's

.prices, but when one considers the present scarcity of cloth, it certainly looks "ins if prices will remain at the present 11 ' level for a long time to come. Manu-

facturers will riot hear of any drop in , prices. _ They affirm that the spinners ..are - indifferent to tho argument of high cost, and if prices are petting too high for Homo consumption, America and ■Japan are only too eager to buy yarns : to the full.'-capacity of the output at . touch higher prices than are obtained lin .the Home trade. In 6pite of high ■i-firices the demand for the mesh of the finest'qualities still continues. Manufacturers have very little to offer, and rationing on a less generous scale than .last year is necessary. Where reouirc-, taents are not on a wholesale scale, it J'is. advisable to take advantage of earlier "contracts placed by merchants instead of dealing with manufacturers, thus ensuring qiiiok delivery and in most cases obtaining bettei pricrs than manufacturers can quote. For your guidance wo have .recently been quoted by a : leading manufacturer, 265, per yard for 10/lloz. worsteds, for forward delivery t , : February, 1921. The Cotton Goods. -"The month of March has beon a dis» : appointing one to manufacturers as far '•as fresh orders are concerned. ' This , ■■'decrease of new business has, however, i:not been of 'any importance, producers '.-"being still so well booked ahead, and consequently prices are just a 9 firm. Paw .cotton has been irregular, fully middling American being quoted at 30.90 on . Maroh 2, which was. the highest quoth(""tion registered during the,month, and rv28.63 on March 31, being the lowest v quotation. Egyptian cotton has showu : more fluctuations. At the end of February the price stood at 92.50 per lband on March 28 it had fallen to 83. With such a price for the Egyptian raw material, which is three times as much as -was quoted in July last, it it easy 'to understand that a very ■ i'ervous feeling exists among the users ■of this cotton, and in many instauces producers will cease to manufacture certain clothes when their present contracts . run out. ""' "As you know, the arrangement* be,,tween the, masters and the operatives ''-'comes io an nibnth: (April), and ■ notwithstanding the various rumours as to what the operatives will ask, nobody yet knows what will have to be conceded. Up to iho time of writings only one section.of the trade, viz., the weavers, have made their demand. Through their union they have made an application for an advance of 60 per cent. Before many days' the spinners .will put in their _claim. and then the matter will be ■"thrashed out, and we trust an amicable will be arrived at. *"'""■'' A Smaller Output. . "There appears to bo no indication at the! moment of. any increase in the'production of cotton goods throughout Lan- •' cashire, and : the- output, of courae, is muoh smaller than in pre-war days. The arrangement'with the operatives of last 'July 'on tho question of working hours ■ resulted in a decline in the output of -.about 14 per cent. A cwtain.amount of machinery, the product of which is rather difficult to estimate, is standing idle owing to the - shortage of operatives. It.is hold, however, that from 10 to 15 v:<per cent of the looms in Lancashire are 'not working.;'■. The output of individual weavers'is not equal to that of four oi five years ago, and there is ground for the belief that the total production of ■rcloth.is only 60 to G5 per cent, of what. ';it was- in-1918.'-:. In the circumstances, ' there is no possibility of supplies over- •■ .taking the demand until more spinning mills and -weaving sheds are erected, and ways and means are found for securing an increase in the number of operatives. Finding the operatives should be st'y'ery simple matter if> their wages this .•■'■time are satisfactorily adjusted, for ■ -there is little doubt that many have left the industry for better-paid occupations, '•'lt is only with increased production and , more, competition that prices can be "brought to a lower level."