LONDON WOOL SALES

New Zealand Times, Volume XXXVI, Issue 8222, 10 September 1912, Page 8

LONDON WOOL SALES

CLOSE OF THE JULY AUCTIONS. REVISING THE AMERICAN WOOL TARIFF. CONSUMPTION WELL MAINTAINED. From Our Special Correspondent. LONDON, August 2. After lasting twenty-eight days, the J uly series of colonial sales have come to a finish, and many a man felt very much inclined to sing the doxology When tho hammer dropped on the last lot sold this afternoon. The sales have been rather long and dragging, and under normal conditions it would have been as well it they had finished five days earlier. Through the entire series exceptional circumstances have prevailed, the trouble at the warehouses compelling selling brokers to bo very moderate in their offerings. The recent strike at the docks has been the sole cause of this, and it is a marvel to the majority that the auctions were not susjiended at the end of the second week. To some extent the steady continuance day after day of the wool sales helped to givei the death-blow to the strike wliich has lasted ten weeks, it being the hope of the lighter-men and the employees at the docks that the wool sales would he brought to a speedy termination. However, the authorities are to be complimented on what they have done, and the finish of both strike and sales happily cam© together. Vessels which have been held up in the river for many weeks and unable to discharge will now get speedy relief, and the lightermen should have little difficulty in getting wool to a point where the dock officials and the railway companies can handle same. It is rather noteworthy that those who consign wool direct for shipment to Yorkshire consuming centres have had no difficulty in getting it on to its destination, and I am certain that next season more wool, will go direct to Hull than hitherto, although a big advance has been made this year in the direct cargoes of raw material landed at the Yorkshire pert. MERINOS FINISH SOUND. The past week has seen nothing new develop in regard to the course of fine wools. Some very nice offerings have been submitted daily, the principal lines consisting of Queensland new clip, and also some very good speculators’ lota chiefly from Victoria and New South Wales. I caimot say that the market gained in strength, as the finish drew near, certainly the superior Rues rather tended to sell at lower rates than otherwise. These wools have sold steadily from first to last, the Home trade being by far tho best supporter. At on© time it looked ae if America would purchase a fow good lots, but expectations were by no means fulfilled, it being almost entirely Yorkshire and West ■ of England manufacturers, particularly tho former, who bought these superior greasy clips. It would be most interesting if it were jioesiblo to ascertain, what quantity of second-hand wool has been catalogued, for the proportion has certainly been fairly large. The quantity placed on the lists has to some extent been responsible for these wools not selling i at higher prices, but it needs a very good trade, and a profitable on© too, to enable users to pay 13d to 14d for greasy wools that will not give a clean yield of more than 52 to 54 per cent. If we look at topmaking wools, wo find that the demand has' been steady, persistent and keen from first to last, and on, the whole circumstances warrant one in saying that these finished at about id more than they made last series. Tho call all through has been particularly strong for super quality wools, Bradford topmakers being very eager indeed to secure 70’s and upwards. River grease has sold remarkably Well, and if tops were combed from this class of wool alone they would more often cost 2s 4d than less. Scoured merinos have sold steadily, but they canUpt bo called more than id dearer than at the close of the second series. Fine wools throughout have don© splendidly, and it has been surprising what support has been forthcoming at the hands of the Home trade in particular, Germany coming next, France being quiet throughout the series. WHAT IS THE RISE IN CROSSBREDS? All things considered, crossbreds have done well, and they finish fully as sound as anyone could reasonably expect. A very big weight has been available, and tho quantity carried forward is much less than tho most sanguine expected. Importers and soiling brokers have been willing to meet the market, and buyers have not been slow to avail themselves of the wools offered. The catalogues during the closing week contained a much worse selection than earlier on, this to a large extent limiting tho competition of American buyers. Some left for home last week, that is, six days before the series finished, but those who remained manifested considerable interest in all suitable wools, although they were not disposed to pay the extreme prices which they gave earlier on. Some nice 46’a liave been bought at lOd to Hid. Good half-breds fell to their bids at from Hid to 13d, a few very superior lines selling as high as 15d. The most pronounced rise is certainly in medium, light conditioned wools, and they must be called J-d to Id dearer than last series, halfbreds being very little different. Coarse crossbreds suitable for America are also id to Id dearer, but ordinary topmaking wools finish only par to id more. After the persistent reports coming from Bradford that it was with extreme difficulty an advance could be obtained, topmakers had no alternative but to lower their limits a little, and with some fairly big quantities being bought, the' slight ease during the past two weeks of the series was only natural. Sliped crossbreds also lost a little ground during the closing week, and at the finish good haifbreds were only fetching last sales’ prices, but coarse • and medium wools were still in many cases worth Jd more than in April. Scoured crossbreds also lost ground, all the previous penny improvement seen during the first fortnight of the series being completely lost. Scoured faulty skin wools did even worse, and these must be called id to Id cheaper than the prices actually realised in April. The call throughout has been most pronounced for good greasy topmaking wools. .TAMPERING WITH THE AMERICAN TARIFF. Very interesting information has been cabled this week from across the Atlantic, the Senate eight days ago passing what is known as the La Follette Bill, which places the taxes on wool and textiles on a distinctly lower basis. This news of a tariff authorising lower dnties having passed the Senate must not be taken too seriously, but it is evident that the thing is not going to be allowed to rest, for word came to hand last Thursday that the Democratic leaders in the

House of Eeprcsontatives and the Senate had come to a definite agreement that a Wool Tariff Bill of some kind or other should bo submitted to President Taft before tho end of the session. It is stated that this Bill will be a compromise between the Underwood Bill, which passed the House of Representatives last winter, and the La toilette Bill adopted a week ago by the Senate, and it will be presented to Mr Taft for his approval and signature. When the President vetoed tho last measure, it was on the ground that he was awaiting the Tariff Board report. That important issue has been made public, and it favours a reduction in wool, as well as on semi and fully manufactured articles. Mr Taft can no longer make the excuse that he did some months ago, and while the present move is said to be entirely political, yet sooner or later lower duties will be in force. The general impression in Bradford is that the President will again veto the measure, and that the American public will be called upon to elect a now- President before lower duties come into operation. I hear by cable from Boston that tho present move has to some extent caused a feeling of uncertainty to obtain. The market is quieter, and the election will now be waged more fiercely. American buyers in Coleman street have spoken cheerfully about manufacturing conditions across the Atlantic, and it is pleasing to know that mills are to-day busier than they have been for several years back. QUIETER CONDITIONS IN BRADFORD. During the past fortnight distinctly quieter conditions seem to have prevailed in tho principal consuming centres, and it is useless disguising the fact that after the spurt of buying which took place during tho earlier period of the recent sales, the market has settled down to a jog trot pace. The undertone continues good, but when all is said and done that Boes not amount to much when viewed from a practical standpoint. What the sellers like to see is a continued demand for tops, and although consumption is very large, top makers say candidly that they find littlo response, although they are actually willing to take less than Coleman street warrants. It is possible to buy a good Gl's at 2s 3d without any difficulty. Those topmakers who were quoting as high as 2s 3Jd have come off the perch, and are willing sellers at even money. After carefully watching the course of prices in Coleman street, I cannot see how a decent article can be made out of wool recently bought in London at 2s 3d, ono of the largest firms of topmakers having throughout the series a limit of 2s 3id, and still their buyers were unable to pick up anything like sufficient wool to satisfy their requirements. The best feature no doubt is the continued demand for toils on old contracts, and here there is certainly much of an encouraging nature. Crossbreds are even slower than merinos, particularly the lower counts. This is very surprising in view of how 36 J s and 40’s wools sold in Coleman street, but topmakers from Bradford must have known their business, and no doubt they have faith in tho future. My own view is that both merinos and crossbreds will be worth quit© as much money next September in London as they ore to-day, and the continued big consumption which is already warranted cannot but make a big hole in the stocks of wool held throughout tho West Riding. I have been very optimistic all through this year regarding wool, and must say that I cannot see much indication of an era of cheaper raw material. As already said, tho outstanding feature of all is a healthy consumption, but with the holiday period being on quieter markets are inevitable.