THE WOOL TRADE.

King Country Chronicle, Volume V, Issue 340, 25 February 1911, Page 3

THE WOOL TRADE.

ANNUAL BRADFORD REVIEW. If the measure of good trade be the size of the profits made out of it, then the year 1910 has not been altogether satisfactory to those engaged in the buying and selling 01 wool (wvites the "Yorkshire Observer"). In this respect the trader in the home-grown article has probably done better than the importer ami topmaker. But if volume of trade, and value of turnover be the test of good trade, then we muse indeed have had a bumper year, for never before have we handled so much wool.

The difficulties of the dealer in colonial and foreign grown wool have arisen from circumstances which he is reluctantly obliged to confess are beyond his control. Last season's (1909-10) Australasian abounding crop, which should have pulled price down, didn't, because it was offset by the tremendous shrinkage in the South American production. Again, the collapse of American support this year in Australia, and in this market, has failed to "work the trick," because both England and Germany have been so bus> that they have proved quite able, so far, to take care of what will no doubt turn out to be the biggest crop of wool the world has yet produced, at prices which are considered very high. That it is time prices came down is a curiously commonly accepted article of belief. It is not ten year since we had 60's top below 19d, and in the last ten years of last century the average was seldom above 20d, and the production is increasing.

That is the argument for lower prices. But it leaves cut of sight several irnmportant factors, the chief of which is, put briefly, that wool production over a period of fifteen years past has only increased about 12£ per cent., while the requirements —due partly to increased population, but still more to the development in the purchasing power cf the unit all the world over —have been growing faster than production. Is it not time, therefore, to revise our estimates of what are high and low prices? Everybody will admit that markets are not always governed by the law of supply and demand. A glance at our chart of wool prices will afford a vivid reminder of the truth of this. That terrible, inaccessible peak of 1899 with the abyss whifh followed immediately, that less sensational but scarcely less calamitous descent in 190S, were, as we all know, due to causes quite other than legitimate trade—speculative gambling and a collapse of financial credit. Yet, if we eliminate these quite exceptional periods, it will be seen from the same diagram that the general curve of prices for Botany yarns has been steadily upward ever since 1897--in other words, since production was overtaken by requirements-- and that, again omitting the collapse of 1908, the price of 60's for eight years past has been well over two shillings. If then* has been overtrading, which hardly seems possible as a general proposition, or if there should come war or financial panic, we snould no doubt see a sharp relapse in prices, but, on the other hand, given peace and general prosperity, the supply (and even probable supplies) is not at all in excess of the demand even on the basis of prices established during the last two years.

In the colonial wool market the year opened with a most optimistic feeling. America was still buying heavily, and all our own trade centres, the Heavy Woollen District, the Colne Valley, Scotland, Leicester, the West of England, as well as Bradford, were in good shape, and bought with confidence and even eagerness. And though there have been quiet weeks, and some fluctuations in prices, the consumption in all branches of our industry has been maintained throughout the year. Indeed, as our wool tables reveal, we have taken, and presumably absorbed, a good deal more raw material than we did in 1909, prosperous year though it was. Merinos all through the year have rules remarkably steady. At the first three series of London sales prices advanced, and despite the absence of American competition since March, really good combing qualities held their own until last month, when the influence of forward buying of the new clip was felt, Clothing wools, and especially wasty and defective sorts, have, however, I declined. One very unkind feature ■ for topmakers has been the distressingly low' prices made for noils, 1 and it looks as if this difficulty were : likely to be accentuated in the near future unless new outlets can be ' found for them, as the proportion of burry noils from the new Australian clip promises to be exceptionally large. South African wools have been in great favour, and have made splendid prices. The quality and general get-up of tha Cape wools show a marked improvement upon former years, and us the colour of the Cape top is so good there is special reason | to hope for a large expansion of wool production in South Africa, mainly, : no doubt, in Orangia. Crossbreds have felt the full force of the slump in American demand. At the March sales in London greasy medium and coarse wools in light con- | dition dropped quite 10 per cent., and : in their fall dragged other things with them to some extent. They steadied i at the May series, but relapsed in the : July series, when the total of Ameri- ; can purchases was only three hundred ! bales, and the rather large total of 33,0001b was carried over. All this did not help to make the topmaker's I lot in Bradford an easy one, for de- | spite the large consumption users I were not uncovered, and ail through ! the year they have been able to take advantage of the turn of the market, declining promptly to follow any distinct upward movement, so that after any alight recovery the market has soon "gone off." aagin. The re-sale in London of wools bought for America and stopped in transit, and even of several thousand bales reshipped from

Boston to London, was another factor which did not help the market for medium to fine crossbreds though possibly some topmakers and spinners were thereby assisted to some very reasonable purchases. Another feature of the London sales this year has been the excellent selection of Punta Arenas and Falkland Islands wools, which have sold remarkably well. Swan Rivera, among Australians, have also been prominent. East Indian and foreign wools have sold well at Liverpool, the blanket and rug makers having been busy all the year.