ENGLISH WOOL LETTER

New Zealand Times, Volume XXXIX, Issue 8784, 14 July 1914, Page 10

ENGLISH WOOL LETTER

WILL AMERICA BUY MORE CROSSBRED WOOL? From. Our Special Correspondent. BRADFORD, May 29. The position of merino wool and tops has changed very little since last week. There is f.n all-round quietness on the market, on every side one hears the complaint that there is nothing doing. Why this should be is not easily put down to one reason, but it is indisputable that the slack state of the manufacturing end of the trade and the high level of present prices are the chief sources of restraint. Asked why his trade was so slow, a worsted manufacturer replied to the writer that “new business stopped about last October. The rush was then finished, but while it was in progress it was a real rush. Far too much was made to stock, and to-day there are some wholesale fabric houses who 1 have big sums looked up in worsted cloths, which are not moving at anything line the rate of last summer,’’ It also appears as though the wool trade is like other industries of England. It is a muchmentioned fact that for a few years before last summer the country's trade was on the up-grade, but it is now subsiding again. It is hard to say why trade, moves in cycles, good times and bad times gradually and continually displacing each other, but it seems that the textile trade of England is now on a periodical decline. Experience teaches that before another period of brisk and profitable business can'wine, prices must either move to a slightly lower level, or a stronger demand for fabrics spring up.' Values are so high that nearly all firms are acting as cautiously as they can. There is not much doing in any section. The slack state of the manufacturers is bad for spinners, who are only receiving small orders—and those mostly at unsatisfactory prices—for botany yarns. The same has to some extent to be reported from the Continent, although from all accounts they are better employed than Yorkshire spinners and manufacturers, though they say they do not feel justified in paying the prices Bradford spinners axe forced 'to ask. The reader must understand that the Bradford yarn exports to the Continent amount to a huge sum yearly, the figures for last year being A2J,475,000. Botany spinners here in Bradford are continually complaining of their inability to make a profit. Whenever we refer back to their position during the last three months, the same is to be said. They have had to pay more for tops than they could afford, consistent with possible prices for yarns. It is quite true that there are botany spinners who are -spinning 64’s tops bought at 25,4 d, whereas today these tops stand at,2s 7id. One must not be led to think, however, that they are making a good profit. Perhaps in some cases they are. but in ' most they are spinning the tops to make yarns sold some time ago probably before they had bought the tops. At the present time there are very few spinners indeed who are buying more botany tops than they need, in fact, it is doubtful if there are any. They are only giving out their orders to cover yarn contracts, but even these, few and small as they are. are sufficient to absorb . ‘the’ total production of topmakers. No topmaker is sending more wool to the comber than he can sell as tops, as America still seems to have an unsatiatod desire for wool, and it is admitted by many firms that they have sold nice weights of wool of all qualities , to the United States during the past fortnight. Thus it will be noticed that' everyone m the fine trade is waiting for something to happen, and . only that business is being done which must be done. It is admitted that there is a good chance of merino tops going still higher, hut no one is prepared to risk purchasing on that chance. As a proof of this it may he stated that those topmakers who have not the wool are quoting higher prices than last week for merino tops to give themselve sa margin of safety. If there was a probability of a fall in wool values there would certainly be some wild spirits in Bradford who would sell forward what they had not got. The present level of values is making everybody extremely cautious, and many are wishing they could come down. This is one of those desires that are not satisfied very soon, and we think wool growers the, world over can rely on receiving good values for their wools for some time to come. THE CROSSBRED SECTION. During the week there has been very little done in crossbreds, as in merinos, but some makers of crossbred tops are slightly firmer than they were before the American purchases wore made last week. Some good orders were booked then for wool, and there have been a few purchases since. It can be said here that topmakers are only making as much, wool into tops as they need, for they have two chances of profit open to them if they keep it os wool. First, there is a chance that America will buy it, and second, if they can sell it as tops at a profit, a few days will suffice to comb and deliver it. It is said that the number of sorters out of employment is ‘ greater than has ever been known for the month of May, and it is indisputable that sorters have had a very bad time this winter. As before said, crossbred topmakers are finding things very quiet indeed, and spinners are in just as bad a way as their confreres in the botany section. Woollen manufacturers and Users of crossbred yarns generally have not been slack so long as worsted manufacturers, but now trade is equally bad in both branches. The substitution tactics referred to in our last letter do not appear to be making much difference to crossbred topmakers, at least in medium and low sorts. The feature of the week in crossbreds has been the continued purchases of w'ool on American account. United States firms are taking nice weights of New recased wools, and are paying exceedingly good figures for them. Wo know that one American buyer paid about Id more for some wools thahn the best’ bid the owner received from Bradford firms, and many are making <d to Id per lb profit even on wool they bought in London last series. America has also been purchasing privately from the brokers in the Metropolis, and one of them is reported to have sold good weights at id advance on the closing rates of last sales. The only reason that wo can see for this activity on the part of the States is the fact that they have not yet restocked their warehouses, and that there is a deficiency in the current domestic clip. WILL THE AMERICAN DEMAND - FOR AUSTRALIAN WOOL GROW LARGER? In view of the present state of affairs in the wool trade, tho above is

arriving at a definite answer, one should consider various points of thiUnited States industry. It is a wellknown fact that tho Americans are not so skilful in the manipulation ol short, wasty wool, shoddy,- mungo, etc., as are English manufacturers. There are comparatively few manufacturers in the States who use shoddy and mungo, and in years past they have allowed noils and rags to accumulate in the hands of those who made them, and in some measure beat down the price of them, as the dealer was generally pleased to bo rid of his heavy stocks. Since the new taril! came into force, Bradford noil raei chants found they could see a profi. on noils they oould buy in America. America is taking a great deal ol wool from Bradford, and topmakers ii, that town are not sending much to the combs, in the hope of being able to sell it at a profit to America. Hence, very little noil is being made in Bradford, and as the demand for' it '■ strong, the price is high. From tin above facts, it seems that America, comparatively speaking, uses a great er proportion of good new wool in hoi industry than does England, and a--the United States population grows, it is to be assumed that the demant for wool will grow—provided thai such an extended use is not made id noils, mungo, and shoddy, as to mak< more new wool unnecessary. This provision is a most unlikely one, foi the use of these materials to mals« woollen fabrics is growing everywhere, and must continue to grow, seeing that the world’s wool production is ir. adequate for its needs. It ;is hardb probable that tho use of shoddy, etc., in America will become so large that the country will take no more foreign wool than at present,' but it is alums’ certain that remanvifactured fibre? will be largely used. Thus, we think it is safe to count on less noils amrags being exported from the State--iu future, and more , wool entering them. CONTINENTAL FUTURES.

During the week there has been i. see-saw movement in Continental fu tures, particularly for distant months. After steadily advancing all through this year, there has befn some realising of profits, the. forward selling for distant months bringing about a decline of about ten points. For instance, last week January delivery for 60’s River Plate wool tops Contract B was quoted at 6.47 i (2s 4 3-16 d), the quotation on Wednesday was 6.37 J (2s 3id), but yesterday it had risen 2ic. The following are particulars showing the stocks of tops at the principal conditioning houses in tho north of France: . April 30, March 31, 1 1914. 1914. Kilos. Kilos. Boubaix 1,260,000 1,234,000 Tourcoing 617,000 600,000 Fourmies 172,000 182,000