WOOL PURCHASES

Otago Daily Times, Issue 26177, 13 June 1946, Page 5

WOOL PURCHASES

A STANDSTILL DECLARED PERIOD OF TWO MONTHS (N.Z.P.A. Special Correspondent) LONDON, June 11. The wool textile industry in Bradford is officially informed that after June 30 no sales of wool from joint organisation stocks will be made until auctions commence in the dominions and the United Kingdom in September. This is interpreted by British firms to mean that after the end of the month they will not be allowed to buy' dominion wool either in the dominions or from official sources in Britain until the auctions have resumed, although it is assumed that they will be permitted to buy from British merchants who might hold privately-owned stocks for disposal. This is the first time since September, 1939, that a standstill in wool purchases has been declared for the industry in Bradford. On the former occasion, however, the standstill lasted only a few days whilst war-time control was inaugurated, but on this occasion it is scheduled to last fully two months. Presumably it is now necessary to enable United Kingdom and Dominion Disposals, Ltd.—the new Government corporation charged with the regulated marketing of dominion wool—to arrange the big changeover form present conditions of supply to auction market disposal, which the trade now learns for the first time is to be resumed in September. It is also necessary to enable the official selling organisations in the dominions to clear orders they may have on hand and prepare for the staging of auctions. The trade in Bradford recognises that some such interval is necessary, but the announcement of two months’ suspension of buying—both at Home and in the dominions —has been received with misgivings, as there is doubt whether the wool supplies now in trade hands are adequate to bridge such a gap. It is pointed out that, although commercial purchases of wool have been permitted to the wool-importing and manipulating trades for several months, those purchases were for a considerable period restricted to the current needs of the industry in Bradford, and only in comparatively recent times have these trades and spinners’ manufacturers been allowed to begin to rebuild their stocks. It is true that the industry is normally accustomed to two or three months’ interval between wool-selling seasons, but on those occasions it had the remainder of the year in which to build up stocks to bridge the interval, and a corresponding opportunity has not been present in recent months. On the other hand, it is pointed out that during recent months the authorities in Bradford have been encouraging the industry to import dominion wool on the most substantial scale possible, and it will probably be suggested that adequate opportunity has been given firms to acquire sufficient stocks. In any event, more than a fortnight remains before the embargo on new purchases operates, and that period is likely to see considerably extended buying activity in such suitable wools as remain available.