OUR YORKSHIRE LETTER.

Otago Witness, Issue 3396, 16 April 1919, Page 14

OUR YORKSHIRE LETTER.

(Fhom Oub Special Cobbespondent.) BRADFORD. January 23 « BRITISH-AMERICAN WOOL SITUATION.

Judging from correspondence we have re- ! ceived Irom the United States, concern is felt about the future of tho wool trade on that 6ide of the Atlantic. It is rather surprising to learn that some members of the trade in the United States entertain the opinion that the relaxation of Government control of wool will be followed by "an immediate and substantial rise in prices." This is altogether out of harmony with what has taken place or is expected here, and with what is understood to be the intention of not only the British Government, but also the United States Government. It has been evident for quite a long time that the authorities were doing all they could to stabilise values, their ideas of stabilisation including the principle that it would be more to the advantage of the industry as a whole for wool values to be brought to a slightly lower basis than the present British issue rates. In this country Sir Arthur Goldfinch has been the exponent of this view, which is in harmony with what practical men have considered necessary. AN AMERICAN VIEW. The following communication received from New York this week indicates the trend of opinion in America: " If Government control of wool in the United States has been, or is about to be, abandoned, then the British-American wool situation will be deadlocked. The British Government will not sell a pound of wool to individual manufacturers in the United States as ling as they continue their control of raw wool. They would maintain this policy if the London auction sales were resumed, unless in the meantime the wide disparity betweeen British and United States wool prices has been eliminated. Tho British Government have not heard the last from Australian and domestic wool-growers regarding the high prices realised at the auction sales of 45,000 bales of Australian wool which were held in Boston last spring, and they have no of giving further cause for similar criticism.

" The British Government are ready and willing to release laige additional quantities of _ Australian wool for shipment to the United States provided some central organisation of the wool industry, having official sanction, is organised to control and distribute the wools thus released. It is understood that the total amount of Australian wools that have been released to the United States by the British Government up to the time the armistice was signed was approximately 350,000 bales. " Many topmakers # and other members of the wool-manufacturing trade in this country would like to see Government control of wool abandoned, despite the_ fact that they are aware that this would involve an immediate- and substantial rise in prices. It is their opinion that the advantages to result from release of control would more than offset the disadvantages of higher wool prices. At tho moment, however, there is nothing to indicate that such an abandonment of control is being seriously considered by Government officials. In the meantime the wide disparity between British and. United States issue prices presents a most difficult problem that will have to be worked out before more wool will bo released to America by the British Government."

It is apparent from the known facts that the control of pricos of wool grown and arriving in this country has, from the American point of view, placed the British Government in a somewhat awkward position. It has been pointed out frequently that wool prices in this country have been kept on a moro reasonable basis than in North and South America, the fact boing overlooked that tho restriction of competition in this country has tended to intensify it in other parts of the world. This would scarcely have been worth referring to again had it not boon for the dear demonstration that the British Government have unwittingly mado a stiok for their own back by controlling the price of colonial and home-grown prodtiOO, and then selling by auction in tho United Btnt.es a large quantity of Australian wool. Such an anomalous situation affords ft striking illustration of what is bound to happen when any Government, oven through sheer necessity, undertakes to buy raw manufacturing commodities, and eventually finding that they have some of it to spare, sell it in a market which is not controlled. I think it well to emnhasiso that a more reasonable buying basis will not only do no real harm to the manufacturing trndo of the entire world, but that it will ultimately prove beneficial. No one' has any desire for a slump in values, and there does not appear to he any probability of such a thing happening. Neither American nor British trade will profit by free selling commencing on an inflated basis. American wool-users ought to realise that they themselves will be at a serious disadvantage in competing for the export trade if the price of the raw material in their country is above the parity in this country. Though they now seem to have got a good start, there is no desire here that America should bo deprived of a reasonable share of the business which is certain to develop as soon as peace is finally pottled. GOVERNMENT PROFITS ON WOOL. Some very outrageous statements have been made by British wool-growers at the various farmers' meetings which have been held during the past three weeks, phenomenal profits being alleged to have been made by the Government, matter of fact, this will not stand close investigation at all. For instanco, at a meeting of the Notts. Farmers' Union, held last Saturday, it was stated that Lincoln wool for which the department paid around 21d was being held by the Government at 3s 8d I This is entirely wrong. Nothing like this has taken place, and it all arises out of a statement made' by_ a Leicester correspondent in the press intimating that the Government had_ made about £7.000,000 profit on the last British clip. _ This is seriously wrong, and I am surprised that tho department have not seen fit to make an absolute denial. It is one more illustra-

tion of the trite saying that a little knowledge* is a dangerous thing. The journalist has come to the conclusion that the department has been selling fleece wool at the prico' of combed tops. The profits made by the department are not half what la alleged. The writer has reason for saying that depp lustre fleece wools aro involved by the department at 28id—that is, when any are available for the civil trade. Ihe fact seems to be altogether overlooked that the Government has used SO to 90 per cent of British wools in the production of the khaki trade, the result being that_ they havo had very little indeed to invoice to manufacturers. The writer is not defending all the actions of the department, who certainly have made some good profits, but nothing like what has been stated by several Farmers' Associations.

PROSPECT OF IMPROVEMENT ,IN

EXPORTS

Raw or partly-manufactured material* cannot be exported to any country except our Allies, .France being practically the only country to which shipments are! allowed. Even here everything is done on a strict rationing basis. Before a firm can export any noils or wastes they must first obtain a French recommendation from a Government department in Paris, which, comes to the Commission Internationale do Ravitaillement in London. After a good deal of circumlocution the recommendation finds its way to the War Trade Department, who finally grant a license for export, As already indicated, all wastes were placed on the free list as far back as the beginning of December, but none is* available for export. These were released on condition that firms, having accepted orders, were to carry them out until all military requirements were satisfied, and the man ket to-day is exceedingly lightly stocked of all descriptions of woollen and worsted wastes Noils are still controlled, and during the past week considerable quantities of American noils have been offered and sold in Bradford. It is difficult to give values. They vary as much as 6d per lb, and, while sales of uncarbonised noils have been effected at around ss. others have been disposed of at sensiblv less. Bradford does not deal in the importation or exportation of woollen rag, that being entirely done by Dewsb»>ry firms, who specialise in that direction. The export trade in all the by-products of'the wool textile industry is exceedingly limited, and even to Italy they are all controlled. The fact is, woollen and worsted wastes cannot be exported to any country we know of, and can only be sent out of the country to our Allies under a special license.