COTTON GOODS

Greymouth Evening Star, 14 October 1939, Page 12

COTTON GOODS

1 ENGLISH STOCKS LOW? Accompanying advice of increases of from 40 to 521 per cent, in the list pi ices of cotton goods, a New Zealand soft goods importing firm has forwarded the following letter from its Mar Chester principals to a Greymouth firm: “Since the outbreak of the war a fortnight ago. conditions in the cotton I market have, been chaotic. In the first [place, the trade has been buying raw cotton sparingly for some months, in expectation c.f lower prices in the Autumn. As a consequence, the stock of raw cotton hero is very low. With the declaration of war there is. of course, uncertainty as to the extent to which shipments of cotton can be expected, and to meet that situation raw ketton on the Liverpool Exchange advanced more than in New York. In addition, there is the increased cost 'of transport from Egypt and America to 1: freights and insurance having gone up. The result, is that yarn prices have gone up between 50 per com. and 70 per cent., and spinners are not wanting business until the position is clearer about the supply of col ion. In fact last week we could net got quotations at all from most spinners. Further, our costs have risen appreciably. It costs us six per cent per annum to insure any stocks ■ at the mills and warehouses against air-raid damages, and there are other costs incidental to the war which we shall have to meet. Taking everything into consideration, it is doubtful if the 25 per cent, advance on December 1 prices fully covers all our increased costs. At the present it is rock bottom. Whether there will be an easing in price or whether the advance will continue, remains to be| seen. It is Impossible to take a ra-1 tional view of the market, as the principal factor, that is the supply of raw 'cotton, is unknown. There is plenty ’in America, but. we do not know yet how much and how soon it. can be got across here. That depends upon the speed with which the submarine menace can be dealt- with.”