THE WOOL MARKET.

Otago Daily Times, Issue 19069, 15 January 1924, Page 4

THE WOOL MARKET.

CONTINUED DEMAND FOR CROSSBREDS. A FIRMER ATTITUDE. PROTECTING HOME INDUSTRIES. IFeom Oca Own Correspondent.) LONDON, November 29. There is increasing evidence as to the enhancement of the market value of crossbred woo], and there is no doubt about the growing demand for fabrics made from 'it. Bradford’s operations at the sixth series of London colonial wool sales, it is remarked by an authority on wool, provided further evidence of the worsted industry’s determination to escape from the depression lately experienced, by a more extensive use of crossbred raw material, in place of merino, which, in tho form of semi-manufactures is finding a very restricted output, owing to the high cost of wool and the under-cutting of competitive foreign manufactures. The great bulk of the offerings at tho sixth, series consisted of crossbreds, and Bradford bought tlie preponderating quantity of the 170,000 bales sold. Bradford took 105,000 bales, this being 40,000 bales more than Continental and United States purchases, and constituting the largest acquisition of wool on Bradford account at any of the London sales this year. Merino wool is selling in. Australia subject to keen competition from all quarters but Bradford, where firms worn stocks of merino are selling them so slowly, therefore having no inducement to replace their wool, that they are seriously wondering what share of the new Australian merino clip they will be able to secure. However, it is general for firms to turn over to crossbreds as rapidly as possible. Tho movement towards the more extensive use of crossbreds is spreading abroad, but at present Bradford has the whip hand by having seized the first opportunity. . Under the stimulus of the strong demand, accentuated by considerable speculation, even the crossbred trade is begining to encounter difficulties. The New Zealand crossbred season has opened with higher values than those upon which Bradford topinakers have been basing their quotations, and the dignity about selling tops has become one of realising relative replacement costs. According to another authority, there has, during the past week, been another strong upward movement in values of crossbreds, and though this is to some extent the result of speculative buying, there is reason for believing that the confidence, in the raw material which is thus being shown will be ultimately justified. It goes without saying that any upward movement ox values based upon an Immediate or prospective expansion of consumption helps to establish such a movement, and this is exactly what is required in tho textile trade to-day so fax as crossbreds are concerned. There is also a better movement in merinos, and these wools are making rather more money. This is probably due to the freedom with which they are being sold abroad. The Home trade has held off purchasing sine© last July, and yet there has been a big demand for Australian and South African wool at prices sensibly above those ruling in Bradford. “Whatever tho root cause of the depression in the Home trade may bo (says the Daily Telegraph), it is undeniable that tho Continental textile industry, particularly in Franc© and Belgium, has set the pace in the buying of fine wool. It is frankly admitted that if Prance had not come to the rescue, merino wcoi values would have fallen at least 20 per cent. Home trade users admit that, they cannot compete with French imported merino dress fabrics, and notwithstanding that they are bidding big prices for raw wool, the depreciated currency is enabling French manufacturers to offer goods to British buyers «t Is per yard less than the cost of making them at Home. That is the most tantalising aspect of the trade in merino to-day, and although our. imports are only one-third of what they were in 1913, French manufacturers are beating British on the question of price. ‘During the past week there has been a slight advance in merino tops, and in© cables received from oversea markets, indicating firm values, have compelled topmakers to take up a much firmer attitude. All information from Australia indicates an advance in every quality of wool, the improvement in Sydney in good Gl s topmaking lines during the past fortnight being 2d per lb, which means higher prices than are ruling in Bradford, consequently local holders must quote more money. It is high time 6s 3d became the price of good warp 64’s tops, for they are costing this in spite of the fact that it is still possible to buy at Id to 3d less according to the character of the article. However, the continued firmness of the market has induced spinners and manufacturers to buy more freely, hence during the past fortnight large orders have been placed for both yarns and pieces. There has also been a big turnover in crossbred wool tops, and yarn. It is quite true that there is the most activity in wool, and everything points to a very successful season in New Zealand.' FREE TRADERS IN DOUBT. The Prime Minister’s visit to the centre of the woollen and worsted industry is destined to exercise a pronounced influence on the results of the elections in. Bradford and the West Riding. Headquarters of the Bradford Conservative! Association report that over 10,099 applications had been received for something like 2500 seats. Microphones and wifeless will be used in the transmission of the Premier's speeches. The keen interest taken in and the desire impressed on all sides to hear him develop his proposals are regarded as hopeful and promising indications of the Conservative Party's success at the polls. T© a very great extent it will be a gathering of West Riding Conservative leaders, candidates, workers, and supporters. Sir F. Watson will bo supported, among many others, by Lord Barnby, tho Hon. F. V. Willey, Mr Ernest Gates, and Mr J. H. Robinson (ex-president of the Bradford Chamber of Commerce). The Morning Post correspondent at Bradford writes: “While it would be idle to assert that this area, is of one mind in regard to the necessity of protecting home industries against unfair foreign competition, it is equally futile to imagine that the wool textile industry stands to-day for Preetrnd© in the same degree that it did when Mr Joseph Chamberlain launched his policy. The manufacturers, with one or two notable exceptions, are in favour of protecting the homo market, and have applied for an order under Part II of the Safeguarding of Industries Act.' In this action they have received the support and co-operation of Liberals, who, I am assured, have jiromised to vote for tho candidates advocating Mr Baldwin’s policy. One of the most outstanding and outspoken declarations on this point has been made by Sir William Bulmer, of Halifax, chairman of the executive of the Yorkshire National Liberal Council. He finds himself in entire agreement with Mr Baldwin in the measures proposed to secure ’ freer trade, fairer trade, fair play for the British worker, fair play for British inlustry, and fair play for British agriculture.’ In regard to the Liberal policy, lie adds; ‘ The lead we have now received is a policy of despair and resignation.’ So in a letter to Sir William Edhe, northern whip of the National Liberals, he tenders his resignation from the reunited Liberal Party. "Sir William Bulmer is without doubt one of tho lenders in the West Riding textile industry. His conclusion is that arrived at by many here who have hitherto been identified with the Liberal Party. Some have taken the same course, others have not yet screwed up courge to declare their convictions. On the other hand, it is only fair to state that there are a handful of Conservative Freetraders who do not endorse Mr Baldwin’s remedy for unemployment. Their position is a delicate one, but it is not thought likely that they will support the Liberals in any case. Then there is an element with which politics have no concern. On many sides to-day I have heard expressions of opinion, irrespective of political creeds, that it is high time something should be done to protect our industries and so reduce our huge army of unemployed. It is in such conditions that tho Conservative candidates in for four divisions of this city are making progress in commending Mr Baldwin’s proposals to an electorate hard hit. by trade depression and unfair Continental competition in yarns and piece goods.”