LONDON'S. WOOLLEN TRADE

Evening Post, Volume CII, Issue 61, 9 September 1921, Page 2

LONDON'S. WOOLLEN TRADE

"London's woollen trade is passing through difficult times," says .the Daily Mail. "Many-of■ the merchants are unable to meet their liabilities to cloth manufacturers, and about a score have already been compelled to convene meetings of their creditors. Profits made during the boom period that ended last summer have been wiped out by the subsequent trade depression. Customers have refused to keep their contracts <or meet, their bills, orders have been cancelled, and fresh buying almost suspended, and the merchants hare had thrown back into their hands large stocks which had already been sold. The most serious feature, perhaps, is the problem of future commitments. When trade was booming early in 1920 large orders were placed at'inflated prices for delivery this spring, but the merchants are quite unable to pay for these goods. Manufacturers have agreed to grant extended credit and hold over supplies for a time, but in the'absence of buyers these concessions help very little. New fabrics can now bo bought from the manufacturers at half the prices ruling fifteen months ago, while sellers in dive need of ready money are offering materials at a'-quar-ter, the old prices. The merchants must wipe off as a loss at least half the cost of their commitments, and then they would have to hold for better times or be prepared to lose still more heavily if they sell now."