OUR YORKSHIRE LETTER.

Otago Witness, Issue 3100, 13 August 1913, Page 17

OUR YORKSHIRE LETTER.

(From 01-r Special Correspondent.) BRADFORD, Juno 27.

THE WOOL OUTLOOK

Those in close touch with the consuming end of the trade have had the outlook foi wool forced u.oon their attention m a very prominent way. We certainly think tnat lately many factors have been at work which have compel.ed topmakers, spinners, and manufacturers to take in fail, to 1 ’ tno wool ship is not altogether in the calm waters ot some four or five months ago. It is not perhaps for us to say anything on this occasion about the shortage in the current Australian and Bomh American clips; but those looking upon the situation without prejudice have begun to feel that the deficit argument has been a little overdone, and there are ind.sputab e signs that it is 12 o’clock even in regard to merino values. Possibly readers of this issue may not relish this statement, but I think they, as sensible business men, should be prepared to face the facts, and not push their head into the sand in an ostrich-like fashion and pay no heed to what is happening. One need only remember that the tendency of wool values has been upwaiel ever since January, 1912, and however pleasant the experience of receiving more for their cups than they had the previous year may bo to growers, there is a limit to everything, and prices seem at present to have touched the top. I venture the opinion that if current prices continue, even growers will dike no harm, and if to-day a values are to be improved upon when the next Australian clip comes to be sold. America will have to buy in a very determined way and a different 1 temper come over the home trade. IS WOOL HIGH ENOUGH?

The actual user of wool has always to consider how to produce cloths both for men’s and women's wear at prices acceptable to the wholesale buyer. He knows that he has to face individuals who occupy a very important position in ultimately deciding the price of the raw material, and to-day a struggle of no mean order is proceeding between the manufacturer and the fabric buyer. It is well worth asking why markets have turned so quiet, and why there is a pronounced absence of new business. To a very largo extent it is a question of price and the refusal of wholesale clothiers, merchants, and shipping houses to pay the advances which manufacturers are compelled to name on account of wool values having risen so materially. Let us for a moment look at the record of the past 18 months. At the beginning of January, 1912, 64’s average colonial tops could bo bought easily at 25d, compared with 2s 6d to-dav; even 40’s tops were on the market at 151 d, compared with 16<d to-day. Those are advances which in themselves mean to the manufacturer far more than appears on paper, for 5d in the merino top means something like 8d nor yard in the piece. This is a serious advance, and wo do not think there is a sing'e manufacturer in the r est Riding who has been able to obtain anything like this increase. The writer was talking only this week to the buyer of one of the largest West End merchants, who do a high-class trade in Golden square, and he frankly stated that although manufacturers were asking anywhere from 6d to 8d per yard increase on solid worsteds for next spring goods, they were going to nay no such advance. They would pay an all-round 3d per yard increase, but rather than buy at 6d per yard advance they would throw out wholesale so'id worsteds and substitute cheaper woollen fabrics. That shows the temper of the market to-day. and it is an aspect of the wool trade which is exercising the minds of all. CONTRAST IN VALUES. I think I cannot do bettor than give readers a table showing the prices for leading descriptions of tops in January, 1912, and what are current prices to-day: January, June. 1913. 1913.

The above table only serves to emphasise the point which I am setting forth—namelv, that such an advance in values is bound to have an important bearing upon the price of the finished article, and the wholesale trade seems at the moment to have come to the junction where they must accede to the demands of manufacturers or be prepared to accept something cheaper and less serviceable. LOOKING AHEAD. All eyes are at present tinned in the direction of Coleman Street Wool Ex-

change, where the fourth series of colonial wool sales begin next Tuesday. News is to hand that the Brisbane sales this week are in favour of the buyer, which is not a very inspiring announcement in face of the London sales. Private cables received state that the bulk of the wools are par to 5 per cent, cheaper, due solely to the very quiet conditions obtaining in consuming centres and the slight ease in the price of tops. As a matter of fact, buyers are valuing on lower limits than at the last Brisbane sales, and even spinners' 64’s are having to be bought on a basis of 2s 6d in the top in Bradford. This shows a decline of id, and those operating are manifesting strong faith in ttio future even in face of the fact that mills remain fairly busy. The whole industry at the moment is undoubtedly passing through a severe time of test, the past live weeks being unusually quiet. At the forthcoming auctions there will be about 171,000 bales available’, although the bulk of the offerings will consist of New Zealand crossbreds. Many are of the opinion that merinos will not show much change compared with the closing rates in May, and I think that decent combing wools will about maintain the values of last senes. Possibly, fau'ty wools may slightly case, in which case they will do the market no goed. The outlook appears to be still favourable, although spinners and manufacturers are having to work very near the nail head. It -is all a question of price, the contention of the majority being that the present season of quietness is entirely duo to fabric-buyers refusing to follow in the upward wake of values and their unwillingness to pay prices which manufacturers are asking for tho spring of 1914. Lately a feeling of nervousness seems to have come over the whole trade, and it will take Coleman Street next week all its time to dissipate tho fear that prices are going to be lower. However, mills tin the whole remain fairly busy in consuming centres, and this should be a'l in favour of consumption being well maintained.

AMERICAN WOOL TRADE. There is really nothing new to say in regard to the; tariff development so far as wool is’ concerned. ' Private information received this week from Boston is emphatic in declaring that everything points to free wool—in fact, those in the bestinformed quarters in Washington state that it is now a certainty. This should be good news to Australasian, South African, and English wool-growers; but it looks as if the now tariff will not bo in force before October 1. A struggle is still expected in the iScnate, but the difference’s seem to be passing away. Many are expecting big tilings when the American ports are open ; but wo think it wise to entertain sober views, and not to expect the impossible. The figure's given below show' that there are fairly big weights of merinos anel crossbreds in bond, and further shipments are also being sent from Bradford; hence it looks as if there will bo moderate supplies directly the wool is available without duty. What we are concerned about most is the duty on semi anel fully manufactured articles. It seems to us that American mil's nee'd a 45 per cent, duty to face the cheaper products of England and the Continent; otherwise they will not run as they should. The following table shows the quantities of wool at the ports of Boston, New York, and Philadelphia on June 7 and at the; end of the corresponding week of last year: June 8, June 7, 1912 1913. lb. lb. Class 1 : Merinos and crossbreds .. .. 38.911,559 43,529.410 Class 2: English wools 845,548 2.135.5G7 Class 3; Carpet wools 15.481,001 20,283,CG1 Total 55,241,108 71.918,C38

Description. d. d. 70’s colonial tops. average .. 20 31 64's ,, ,) 25} 30 GO’S „ „ suner. 24 i 29 GO’s ,, „ ordinary .. 00 > 28} 58’s ,, ,. average 21 20 56’s „ ,, 194 23 50’s ., „ 17 20> 48’s „ carded 143 1SJ 46’s » ,. prepared .. 15J 18} 46's i, >) carded 14 17} 44’s >. prepared .. 14 17} 44’s fi )> carded, 134 164 40’« n prenared .. 13} 10} 40’s „ „ carded 13 154 36’s ... ,1 prepared .. 12} 1G