OUR YORKSHIRE LETTER.

Otago Witness, Issue 3331, 16 January 1918, Page 11

OUR YORKSHIRE LETTER.

(Fboh Oub Special Coebkspo^dent.)

BRADFORD, November 1. GOVERNMENT ADVANCES ITS PRICES FOR WOOL AND TOPS.

Another.step forward has to be chronicled in the scheme of State control. The longexpected advance in wool and top • prices which the writer has known about for many weeks has at last taken place. It is indeed significant in face of the declared intention of the Imperial Government when it first bought the colonial clip, that tho important step was taken with a view to controlling prices and preventing things getting dearer. I understand that tho prime reason for advancing prices is that on the sale of tops money has been lost; but that is regarded in Bradford topmaking circles as a fairy tale, it- being often asserted by the biggest firms that at the price the Government secured the wool in Australia and New Zealand, 64's tijps would hot cost much over 4s per lb. For a warp 64's the current price is 5s 9d, and on December 1 it will be 6s 2d. The writer has heard more than one important Government official assert that nothing has been made out of Government tops; but, as already said, if that is so, the administration expenses must be terrible, because on the clean, scoured cost in Australia topmakers have never had anything like the margin between the first cost and the sale price in 'the combed article. However, the fact must not be_ los s t sight of that expenses of shipping, insurance, and losses at sea have all to be provided for, and the writer justifies the present action of the department in their effort to make the wool purchase scheme leave behind a profit after making due allowance for losses. _WOOL PRICES TO BE HIGHER. The 1 department rightly divides colonial wools into two classes —namely, combing and clothing. The destination of the former is decided in London, where distribution and allocation of combing wools is made direct to Government topmakers and those who are affiliated to them. It is their business to take this wool and sort and prepare it for combing. No list oi prices has ever been published for these wools, and it would be interesting to know what tops are actually costing the department. When it comes to the . question of clothing wools —that is, wools for the woollen trade, the department all along has been up against a different problem. From the very first a schedule of prices has been in operation, and advances have been made three times since the original table was got out. When the writer stated that prices for wool were to be _ advanced, there was consternation in certain quarters. At one time the department sold clothing wools to woollen manufacturers engaged on military clothes pence per lb cheaper than for civilian purposes; but recently the department has issued only one scale of prices, which has applied to Government manufacturers as well as to those wanting wool for civilian • purposes. This is bound to give a good deal less trouble to the men in charge, and in the long run it will make very little difference indeed* to the exchequer. The' department has pursued the right policy in valuing wool and reselling it on a clean, scoured basis. Of course, the departmental officials are by no means infallible, because manufacturers have found by experience that the experts of the department have been as far out as 5 to 6 per cent, in " clean yield estimates," and a man has a right to question the stated clean yield of any lot of wool he buys at Manor row, Bradford. However,no serious difference has yet arisen, and adjustment has been possible when wools have not given the clean yield which has been stated. , Last May_9 the department published a list of..prices on which it was selling wools for the woollen trad& and that list is given alongside one published this week, whore the reader will see the advance which has been made:

It is remarkable, but top prices have engaged the attention of the trade more than anything. The average advance is exactly 8 per cent. This is considerable, and far more than the majority expected. The outstanding feature of the Government figures is the big advance in- 46's to 50's carded tops. The advance in,4B'".'? and 50's is actually 6d per lb, and in -46'3 carded

5d per lb. The most remarkable things of all is that in the current list, which will finish at th 6 end of November, the difference between 50's and 56's is exactly lOd per lb. In pre-war days there was seldom more than 2d per lb difference between these two descriptions. In tho new scale the difference will be 7d per lb. This seems tremendous and unwarranted, because in the actual sale of wool in cither Australia or London no such difference ever existed, and I do not think ever will in normal times. However, the following shows the advances which have been made in top prices. Current quotations—the new list—and tho percentage increase are all given:

Tho department is unable to promise that tho present values for wool and tops will remain permanent. The list is open for revision after March 31. Evidently the Shipping Controller is playing an important part in deciding wool and top values. At the bottom of all things it is purely and simply a question of freight and supplies. Given adequate arrivals, there will be no need for further advances; but as things are, no one is justified in expecting the upward trend of values to cease. Prices are to-day higher in South Africa and South America than the revised Governmenn lists, and therefore there is some justification for the Government, putting up values here. v

May 9. t£ct. 27. May 9. Oct, 27 Super. Super. . Avge. Avge Description. Grades. Grades. Grades. Grades d. d. d. d. 80's 70 75 67 72 70'swarp.. 68 72 65 63 70's 67 70 64 67 64's warp.. 67 70 64 67 64's 66 69 63 66 60's super 64 69 61 66 60's 63 66' 60 63 58'8 • • 56 60 53 57 56's • ■ • • 50 53 48 50 60's *• «7 • • 44 48 42 45 48's ., 39 .43 37 41 46's 35 89 33 37 44's 31 87 29 35 50'3 prepcl. 39 — — — 43's ,, 34 — — — 44*3 32 —• — —■ 40'3 31 34 29 32 3C'a „ - 30 33 28 31 TOP VALUES HIGHER.

Current Revised Per cent Pi'ioes. Prices. Advance Description. d. d. d. 80's .. .. .. 72 80 11.11 70's warp .. 70 77 10.00 70's .* .. .. 69 74 7.24 64's warp .. 69 74 7.24 64's .. .. 63 72 5.88 60's super ... .. 66 -70 6.00 60's .. .. .. 64 69 7.81 58*s .. .. .. 56 62 10.71 56's .. .. .. 52 55 5.76 50's ... .. ... 42 - 43 14.28 48's .. .. 38 42 16.66 46'3 carded... .. 34 39 14.70 44's „ .. .. 33 37 12.12 50'a prepared .. 39 —- — 48's „ .. .. 36 —• — 46'a „ .. ... 84 —i — 44's .. .. .. 32 36 12.50 40'a .. .. .. 31 34 9.67 36's .. .. .. 30 34 10.00 32's .. .. .. 29 — — FUTURE SUPPLIES.