THE WOOL TRADE

Evening Post, Volume CX, Issue 51, 28 August 1925, Page 8

THE WOOL TRADE

COURSE OF THE MARKET AN INTERESTING REVIEW. The wool trade as a whole was reviewed by Mr. Duncan Carson, chairman of directors of Winchcombe, Carson, Ltd., at the annual meeting of shareholders of that company recently held in Sydney. Mr. Carson, in the course of his speech, stated that s the trade had passed through a wool year that had brought with it great variations in values. Owing to the statement of Sir Arthur Goldfinch, published in 1924 in England, wool-users, perhaps Yorkshire wool-users in particular, had been led to believe that the undoubted world shortage of wool would force values to very extreme levels, and that practically there would be in the end i a scramble to get sufficient wool to carry on with. Sir Arthur Goldfinch had forgotten, as he had since admitted, that when shortages ■. in any article cause an extreme price for that commodity, such unusual increase in values restricted the buying capacity of the users, and forced those using the article to hunt round for substitutes. This was exactly what had happened. FASHION A FICKLE JADE. Manufacturers of woollen goods had suddenly found that they could not pass on their high, costing manufactured goods made from wool purchased ih November and December at a cost of £40 per bale and over, whilst manufacturers of wood silk on the other hand had found a tremendous demand for j their manufactures; not only this, but they had found that fashion, always a fickle jade, helped them largely, in that ladies' fashions swung heavily to the use of artificial silk. . The section of the woollen trade that had felt this most was that of hosiery, but all round the demand for wool had been greatly lessened. One point in Australia's favour was that the fine wools grown in ' Australia were the most suitable to blend with this artificial silk. Early in the new year this downward swing mi the demand for wool had become manifest, and drop after drop had occurred in wool values, until in April values had been fully 40 per cent., and in some lines 50 per cent., below the NovemberDecember parity. A WEAK DEMAND. The demand had been so weak, especially from the Bradford trade, that sales had been suspended until 13th July in Melbourne, 14th July in Brisbane, and 20th July in Sydney. This cessation of sales naturally had had its effect on the company's turnover for the year, and whilst increasing the costs had also affected the returns. Sales, however, had been maintained since the re-opening, and prices, though not on the high range of November-December, were ones that should give quite a good return to the pastoralist, and enable the manufacturer, where his wage list -was not too high, to manufacture at a reasonable cost. And prices also being, say, 40 per cent, below the top values the banks would be able more readily to finance. buyers. This had been a serious trouble during the early portion of the 1924-25 season.

All were hopeful, continued Mr. Carson, that the balance of the 1924-?5 clip would be promptly dealt with, thus leaving,the way.clear for the realisation of the 1925-26 clip, which, he trusted, would be cleared at about the present level. Owing to the drop in values, there had been again an outcry by a section of the graziers, as there always would be, for a scheme to stabilise values, and Sir John Higgins had been asked to put forth a scheme. Sir John on all sides was considered an able man, but graziers, like himself, ■ f"!t the scheme a 8 proposed had very little to recommend' it', and the graziers, in his opinion, had wisely turned it down. Unfortunately, waiting for the scheme to be put forward had delayed the sales, which otherwise would haxe opened on 29th June in Sydney, and thus delayed the clearing up of the 1924-25 clip. CHEAPER AND FINER WOOL. Sales were progressing favourably, but a large manufacturer in Bradford had stated that Yorkshire wanted more and cheaper fine wool. With the high costs of production in Australia, to go much lower than the present range of values ■would again turn people away from wool-growing. Adequate supplies fot manufacturers could only be obtained whilst wool-growing remained a payable proposition. There had been an unfortunate strike in Yorkshire, and, as many there had been hard hit by the drop in wool values, Yorkshire was having a bad time. But one found they were selling wool tops, etc., at considerably under the relative values which wool was bringing in Londoii and Australia. They had been hit in November and December by buying at high prices, particularly in New Zealand, bnt they looked like increasing their losses by selling unduly low at this period, Growers here asked for stabilisation. What was wanted in Yorkshire was a scheme to block selling at prices that the trade of the world did not warrant. Trade in America and France,- it was reported, was good, so with solid support from these centres the grazier could look forward without much fear to the 1925-26 season.,