WOOLLEN TRADE

Dominion, Volume 23, Issue 31, 31 October 1929, Page 10

WOOLLEN TRADE

PROSPECTS FOR GROWER AND MANUFACTURER Dominion Special Service. Auckland, October 29. A serious diminution of trade for some British woollen mills owing to the encouragement of manufacture in Australia by a protective tariff was brought under the notice of Mr. G. Hodgson, an Auckland woollen merchant, during a visit to Britain and the Continent, from which he has just returned. Mr. Hodgson said that there was no sale for British serges and worsteds in Australia now, and he had met the manager of one firm which used to send £120,000 worth of manufactures to Australia, but was now able to send only £15,000 worth. The mills which had been concentrating on the Australian market had been badly hit, as that country was taking only about 15 per cent, of the quantity of woollen goods it used to, and speaking generally these mills had recently been working only half-time. Slackness In the woollen trade as a whole was partly attributable to the Continent having obtained command in branches which were previously controlled by Bradford. When Mr. Hodgson left England six weeks ago manufacturers appeared to regard wool prices as at bedrock, and they were placing contracts for future deliveries, whereas most of them had previously been buying from hand to mouth. They were then covering for quantity and stimulated demand should favourably affect prices. “New Zealand wool is down a little, but the prospects are still good,” said Mr. Hodgson. Turning to the state of the market from the primary producer’s point of view, on the other hand, he said the price of Australian fine wools was down as low as that for crossbred, this being due to the growing use of coarser wools and artificial silk. Manufacturers in England were complaining of competition from foreigners, and there seemed to be a growing feeling in favour of trade within the Empire. Mr. Hodgson said that he had detected a strong demand for a protective tariff for everything but food-stuffs.