OUR YORKSHIRE LETTER.

Otago Witness, Issue 3395, 9 April 1919, Page 11

OUR YORKSHIRE LETTER.

(Fkom Oub Special Coerespondent.) 'BRADFORD, January 16. ENDING WOOL CONTROL. Things seem to be travelling fast in the wool textile world, and the movement towards the breaking down of State control of the wool trade gains momentum as the weeks go by. Nobody need feel any regret at this; only by the restoration of recognised trading, principles can men's inherent initiative be brought into play«. It is well known that State control has dealt a very severe blow to initiative and enterprise; in fact, if State control had continued a few years longer it would have put the wool textile trade of Great- Britain back to the position it occupied in the seventies. Everybody rejoices at the results which have* been achieved, because, when all is said and done, the liberty and freedom of the world has been secured. During the past week important steps have been taken towards restoring the trade to its pre-war activities, and naturally a very optimistic tone prevails, all of which is hoped to be the forerunner of a good profitable trade. There are those who would like to have seen State control continued indefinitely—a* least for the Imperial Government, to have purchased for many years to come the colonial clips; but_ a suggestion with more disastrous possibilities could not possibly have been made, for any attempt to nationalise the wool trade would have meant handing over the control to outsiders. It has been proved over and over again that nothing helps success like healthy competition; and, given freedom of access to raw materials, both British and American millmen can hope to develop their industry and compete .successfully with Germany. *'- SOUTH AMERICAN WOOLS. Last week-end a General Purpose Committee meeting of the Wool Council took place in London, when important matters considered. First and foremost was the importation of South American wool. Under an Army Council order dated May 9, 1917, it was enacted that no South American wool whatever could be imported without becoming the property of the Imperial Government. At a previous meeting of the Wool Council this matter came up for consideration, when Sir Arthur Goldfinch and the of the trade thought that the time had arrived for withdrawing all restrictions. However, the Treasury have been consulted on the matter, and, owing to the great difference in the exchange, it has been decided that the present is -not opportune for British buyers to begin operations. However, the fact that all restrictions regarding-the purchase and •importation of South African wool have been withdrawn will please the trade even better than operating in Buenos Aires, though _ the_ feeling in the trade favours ptTrchasing in South America at the earliest possible moment. During the past 12 months Bradford importing: topmakers have lost that trade. It has largely gone to the United States, and also considerable buying has been done on account of German interests, it to-day being an acknowledged fact' that Germany owns from 73,000 to 100,000 bales of wool in Buenos Aires and Monte Video, which is awaiting shipment to the Fatherland when peace terms have been arranged. Bradford importing topmakers have an idea of so developing, tho South American trad© that they _ will bo able to compete with Continental manufacturers in the future, and undoubtedly" tho absence of crossbred wool for the civil trade is preventing many a firm from doing business which they »are missing greatly. Pre-war conditions can only be got back by spinners and manufacturers being able to produce the same class of yarns and fabrics by which their business was made before, and that is one reason whv many firms would welcome the opportunity of purchasing at the sources of supply crossbred wools which they urgently need. BRITISH WOOL. The question of whether the Imperial Government is to purchase the next British clip remains unsettled, and the writer ventures the opinion that it will not come off. Here there is evidently a clashing of interests. Certain important sections of farmers demand a free market, although the Central Agricultural Advisory Committee, which is accepted by the Government as the proper representative of the whole' farming community has passed resolutions contrary to the views of farmers throughout tho different parts of the country. It will be remembered that the growers are demanding 100 per cent, above pre-war prices, but_ Sir Arthur Goldfinch points out that while " £0 per cent, over 1914- prices was far from being outside market possibilities, it was not a safe basis for Government purchase, and yet even 80 per cent, was' apparentlv not acceptable to all farmers, especially those in Scotland." Under such conditions, can the Government be expected to purchase the next British clip? Wo have before pointed out that, now that military requirements have practically ceased there is no need on the part of the Imperial Government to be saddled with more wool, the leaders of the trade fooling confident that with bavins: to deal with the Australian and -New Zealand clips till June 30, 1920, the Imperial Government have as much as thev can deal with successfully. Tho British clip should not be purchased except by the regular buyers of domestio wool, and we think that that- will bo the conclusion arrived at by the Wool Council. SOUTH AFRICAN WOOLS. It became known last Saturday morning that tho Imperial Government had decided not to purchase tho now South African clip. This is due to less than 150,000 bales having been offered. As things are turning out now. South African growers have

acted wisely by choosing an open market. Apart from any sprit of patriotism, the trade feels that South African growers have followed right lines, it being officially stated last Monday that the War Office had decided to grant importation of South African wool and tops mado therefrom without any restriction whatever. This js tho most important step so far taken in tho demobilisation of the trade, and has given every satisfaction. Some are now saying that it is not tho department which really has taken this step, but that South African growers have forced the issue. The great point is that conditions are now such that the officials of the department can now look favourably upon free dealings being allowed in a, valuable commodity. The South African clip amounts to about 500,000 bales. The' freight difficulty is not yet overcome; but the fact of buying being allowed is encouraging the few among those who were lately in the Government scheme to confess that freight will be forthcoming, and already steps have been taken to ascertain what are present prices at the Cape, with a veiw to commencing buying and importing. FUTURE OF PRICES.

Sir Arthur Goldfinch has given his views regarding the future of topic of supremo, importance to every mill-owner in Great Britain, as well as across the Atlantic. We are glad to know that all Government orders restricting tho importation or the free sale of wool are to bo cancelled as rapidly as possible, but restrictions on exoort are to bo maintained, though they will be less severe than at present. _ Under this system all wool except Australian and New Zealand will be sold freely in British markets at prices fixed by competition; but it is to bo hoped that British wool will be entirely free. It i 3 also hoped that colonial wools ' will be brought 'to England as rapidly as possible, until at Jeast a sufficient reserve has been built up to meet all the requirements of France. Belgium, and Italy, as well as the United Kingdom. As early as possibly—probably April—auction sales of colonial wool are to take place in London, at the rate of about 100,000 bales per month, and no doubt larger quantities will be offered if the trade is in a position to absorb them. On the. authority of the chairman of tho Wool Council, a reservo price, not very much lower than the present issue prices here in Bradford, is to be fixed upon the wool offered in Coleman street. That will be a very important matter. Wild talk is being indulged in which is hardly worth repeating. Some are forecasting a sharp decline towards the middle of the year, but that is hardly likely. Sir Arthur Goldfinch says that "for some time at least the Government wool and tops would continue to be issued in Bradford at the present schedule of issue prices, which would not be altered until the course of the auctions showed a clear reason for so doing, either as regards the jreneral btftis of values or as regards the relative values of particular qualities,"