THE WOOL CLIP

Otago Daily Times, Issue 16916, 31 January 1917, Page 6

THE WOOL CLIP

CONFUSION IN THE MARKET.

THE LATE ANNOUNCEMENT,

(Feom Ohe Own CobbesfondentO

LONDON, November 24. Discussing with me tho position, with regard to moat and wool, Mr Maesey aaid ho was most uneasy about shipping matters. Of course, tho Imperial Government undertook tho shipment of tho meat and wool, but freights were still soaring.. They were simply i.-übulous now. An emergency cargo of wheat from Australia was paid for at tho rate of 10s. per bushol. It was almost incredible, and he did not know how lon-g it was going, to last. As for tho commandeering of the wool clip of Xjw Zealand, he could not say yet how that would go. Tho difficulties wore increased 'by tho fact that tho Imperial Government did not mako any announcement until right on tho evo of tho wool sales.

Referring to tho wool sales just concluded Messrs Weddel remark that, apart from tho strong demiilK* for merino wool,' the series will be remembered for the quick change which took place in the crossbred position. Large Government orders wero given out, and, as tho market was adjusting itself to a slightly higher range of values, there came the news of tho postponement of the Christmas sales. Prices wcro promptly put higher. There was a regular scramblo for all available lots.

A SURPRISE FOR THE MARKET. Though no details axe to hand in Bradford, it ii taken for granted that Government control of tho now wool, both in tho dominiou and in this country, will be exercised to coyer military requirements. The Yorkshire Evening Post says the information has had an important bearing- on the Bradford market, and makers of tops have declined to quote for crossrbreds, preferring to wait and eee how tho situation develops, bpinners in.both the botany and crossbred departments are busy, though their operations are restricted by the scarcity of labour. Home-grown wools, also, aro held iirraer because of what happened both in this market and at the Cape, though consumption at this, centre is restricted 'because of machinery being taken for the Government work A Bradford correspondent writes: " The Urst of tho new season's wool sales in New /.eaJand has been stopped by order of tho dominion Government. The procedure has been very similar to that taken in relation t> our own domestic wool clip for this season. War Office officials havo mado no secret of the fact that what wool they want-they will have, but whether the control necessary would be on this side or tho other they have declined to indicate until the_ day fixed for the first of the new season s sales. Even now they have not disclosed details of the scheme of control to be put into operation, though opinion inclines to the belief that purchase at a fixed price and financed by the Government will be necessary to achieve that which our officials have in mind. The reasons for such a bourse feeing adopted in regard to the New Zealand wool are more compelling than those which prompted that proceeding when dealing with our domestic clip, for the wool to be brought from the other side of tho world to this country, with all the necessary cost of carriage, insurance," - etc., which, if left with a variety of purchasers, even on Government account, to arrange, would be very heavy indeed. Tho wool once bought and financed by our Government, it could control the shipping and carry its ovyn insurance, and so bring the wool to this side far cheaper than otherwise would bo the case,"

In special reference of crossbred wool, tho same writer continues: "It is obvious that there will not be as much employment for those engaged in the crossbred trade of this district in connection with the New Zealand clip as there has been for those in the Home-grown wool trade in connection with the domestic wopl clip, for the buying, assuming is done by our Government and financed by it, will be done at the source of supply, and the raw material will be only to sort and warehouse on this side. It is quite expected that some of tho leading firms engaged in the crossbred trade will be associated .with the Government scheme. I 'suggested some. time ago that the change of attitude might have something to do with tho coming scheme for dealing with the New Zealand clip in a manner similar to what had been dono with tho domestic clip, and that those who had hitherto cursed the compulsory purchase of the home-grown wool had been led to bless it, because they, or their associates, would soon bo engaged dealing with, tho New Zealand wool on similar lines. Those engaged in the skin and wool teade -will also remember hoy they were repulsed when they asked for assistance from this quarter. Now tho Now Zealand! clip is to bo controlled, the personnel of the officials will be scrutinised with not a little interest.

" Another point which'has been much discussed, since it became known that the New Zealand sales'had been stopped, is as to the position of those firms who are known to have been freely purchasing wool before, it was shorn, as well as what has already been shorn in the dominion. It will be remembered that some concession was made by the Government m .regard to new wool bought before the Ketteriper sales in this country, but it is not anticipated that the speculators in New Zealand will come off well on this occasion. It is believed the Government will take all wool so bought, the price being a. matter of negotiation." Writing in the Yorkshire Post from Bradford, its correspondent points to the folly of the attitude adopted by those who scoffed at the idea of the woollen and worsted trades being put on a more or lees communal basis for the- period of the war. "Events," he says, "have developed so rapidly this last week as to remove all doubt concerning tho intentions of the Govern-! ment. The New Zealand wool sales have been stopped, and it is taken for granted that our .Government will buy the clip, finance it, '£«id control its distribution in this country. What is more, -within the last few days terms have been come to with spinners for the production of khaki yarns on a fixed 'basis. Thus two important 'steps have been taken towards putting tho -whole of the trade, so far as Government work is concerned,'on a commission basis, whilst, of course, the War Office officials have power to take what machinery and labour they require for the execution of their orders. CRITICISM OF OFFICIALS.

From the same writer I quote:—"Though many dislike the measures taken by the War Office to make secure the covering of military requirements in this tinio of national crisis, most of our leading traders in all departments agreo # that no consideration should stand in the* way of,, providing the fighting m6n, whether they are in our own or the armies of the Allies, with all that is necessary. They are : indeed, only too anxious to do all they can to assist in achieving a victorious issue. The 'Government, officials, having set out in a certain direction, cannot now turn back, but must pursue to its logical conclusion tho communal system of trading for war requirements. This much is now conceded even by those who cling to the belief that the eame end might have been achieved with much less disturbance of _ existing trade organisation, and less serious loss to many of the smaller firms engaged in the industries. Having the goodwill of most of our leading traders in their endeavours to do what is best in the national interest, it is unfortunate that greater efforts are not made by officials to maintain amicable relations with traders The latter still complain that they do not receive nearly so much consideration as they deserve, and the sudden stoppage of tho Now Zealand wool sales is quoted as another illustration of that fact. In tho absence of any official Government annoucoment concerning their intention to buy and control tho New Zealand wool, many traders came to the conclusion that tho idea had been abandoned, and made arrangements as usual for taking up tho clip. Buyers have been sent out, arrangements made for credits, and everything done as in former years. Then, at the last moment, as in the ease of the domestic clip, tho Government intervene. Ofiki'.ls cannot be surprised that in such circumstances those deeply interested in crossbred wool make serious complaint of being kept in the dark. It is not every one who knows of the delicate negotiations the Government have had to engage in which in a great measure excuse their reticence. Even so, means might have boon found to indicate to traders the possibility of the now clip being held up, after which those concerned would have made their arrangements with some knowledge of tho risk they wore running. For tho moment no further information is to hand regarding details of the scheme." OUTLOOK FOR SMALL TRADERS. Again it is tho smaller firms who are most anxious regarding possible developments, and naturally so. Since speculation in the domestic clip was cut out, many firms have been trying to cultivate business in crossbreds, and have found employment for their capital by purchasing at the London sales. Private dealing in domestic skin wool has boon largely stopped, and it is taken for granted the latest movement will mean that none of the now clip of New Zealand wool will be offered in London. Further, as the Government have found it necessary to' interfere with New Zealand crossbreds. it is suspected it will be compelled to exercise some control over Australian crossbreds, and may bo even, also becomes buyers of Ana-

tralian merino wool. In such circumstances there can bo no surprise that many of tho smaller firms regard the future with considerable apprehension. When thoso engaged in the skin wool trade approached those whom they thought thoy had a right to, with tho view of making representations in their interest, they met with a blunt rebuff, and far less consideration than from tho Government officials, who, at least, werecourteous. _ It will bo interesting to see in what spirit tho smaller firms in the crossbred trade are received, in case they think it worth while > to ask that representations be mado on their behalf. In consequence of tho disturbance created by the news from New Zealand, business in tho Bradford district is much restricted. Many topmakers havo declined to make quotations for either crossbred or merino tops. '