OUR YORKSHIRE LETTER.

Otago Witness, Issue 3400, 14 May 1919, Page 14

OUR YORKSHIRE LETTER.

WOOL COUNCIL .FAVOURS FIXING VALUES FOR EIGHT MONTHS. (Fhou Oub Special Cobbespondent.) - BRADFORD. February 27. Tho last meeting of the Wool Council gave rise to some things which certainly are of vital importance to the entire industry, and show that Sir Arthur Goldfinch (Director of Raw MBterials), as well as the members of the trade, are fully alive ty the various events which are happening in the wool world. There was nothing particular in connection with the Wool Council, except the discussion that took place regarding the future of wool values. This is certainly a matter of vital importance. The writer has already indicated that trade to-day on this side is far from being brilliant; in fact, since the armistice, business has slowed down very materially, and to-day, instead of orders being plentiful and everyone J.aving sufficient work, some firms candidly state that they have done nothing, and ere in a much worse position than they have been for some years. Yet no matter to whom one talks, there is to be seen confidence regarding the future, providing there is a settled policy regarding the future of wool values. Everything seems to hinge there. As a matter of fact, the trade is being deliberately held up until it is definitely known what is going to be the future policy of the department in regard to wool values. That seems to be a matter of first importance, and will remain so until the outlook clears. One regret* very much that trade has so slowed down as to make the outlook anything but. inviting when viewed from the standpoint of many spinners and manufacturers, _ and therefore the entire industry is waiting a promised iurther announcement by Sir Arthur Goldfinch regarding the future of wool values. When one comes right up against spinners, and what they are asking for yarns, .the fact of there even being la per lb difference in quotations shows clearly enough that each is quoting according: to his position, it being a fact that in ■ 2-48's spun from a 64's top, some are sellers today at 10s 9d per lb and others are wanting as high as 12s, it depending entirely upon the position of the-spinner. THE NEED FOR STABLE VALUES.

Every close student of the wool textile world must admit that the problem of the. hour is the desire to stabilise wool values. That was clearly seen when across the Atlantic wool values were anywhere from 30 to 50 per cent, above the issue price here in Bradford last November, and when from the first auction sale in Boston buyers determined to boycott the sales until the Government at Washington reduced values to harmonise with those current on this side the Atlantic. At every council meeting since the question of wool prices has been dealt with, and now that it has been arranged for Lon ion sales to open on April 2 this matter is receiving serious consideration. Anybody reading the official report of the last Wool Council meeting can see that the whole subject is going to be a momentous one, and the fact that the department is contemplating fixing wool values for the next eight months showß clearly enough how matters stand. It is ■■ stated in very responsible quarters that the wool to be offered in Coleman street in April will be catalogued at a reduction of all round 10 per cent, below to-day's issue prices in Bradford for - the civil trade. This 10 per cent, will create a margin for topmakers, who axe expected to buy freely and to turn same into tops. The point at issue is, How long will those new issue prices obtain? As already indicated, eight months is the stated time; but one important member of the Wool Council—Mr H. Norman Rae, M.P.—wished his vote to be registered as being opposed to such a proceeding. Unfortunately, no reasons were-given in the official report as to why he took up this attitude; but as one of the foremost leader? of the trade, no doubt he has sound reasons for voting against the opinion of the resf of the Council. The matter " affects the future of the wool trade of Great Britain and America, and is well worthy of serious consideration.

SHOULD PRICES BE FIXED FOR EIGHT MONTHS? There is do doubt, as already indicated, that the present languishing state of the textile trade on this side is largely due to a lack of certainty regarding the The view is held by some that fixing values permanently for eight months will re-establish confidence and lead to the placing of new business. It iB claimed that values will then be established for a season's trade—a very desirable thing. But ia that time too long? It is patent that Mr Norman llae thinks it is. The issuing of wool in London at a 10 per cent, decline and the fixing of values for eight month* from April onwards should bring about more confidence and stimulate business. In England, as well as across the Atlantic, manufacturers show their new cloths twice a year—namely, for the spring and winter seasons. Some think that reducing wool values in April 10 per cent, below to-day's prices, and letting them run to the end o£ the year, will work the oracle, because then manufacturers will be able to prepare their new designs for the spring and summer trade of 1920, making their next winter cloths from the wool bought in April and May in London. That is the strongest argument that one can adduce for the establisnment of values for eight months. The point that now arises is. Will such a proceeding re-establish confidence and lead to an increase of business? MEETING TRADE NEEDS.

Tha attitude taken up by_ Mr Norman. Rae has caused somo surprise throughout tlio trade, and the question has been Tiotly debated m wool circles aa to whether his position is justified. Apparently the worthy topmaker is opposed to prices being stabilised for eight months on the ground thai they cannot last. Many are asking whether it is not the wisest policj for the department to throw open the London sales entirely and let wool find its real and true level. In other words, let supply and de* mand dictate what wool values should be, that being regarded as the soundest foundation on which prices can possibly rest. Many think that it is only putting off the evil day for the Government to continue the new issue nrices for eight months. It will simply mean users will pursue a hand-to-mouth policy, purchasing what they want —no more; whereas if a clean out is made, and prices are allowed to be dictated by actual supply and demand, trade wfll soon revive. The writer has put both sides

of the question, and it remains to bo seen what the department will do. It is posBible that Sir Arthur Goldfinch will again emphasise the fact that the British Government is at present custodian of big weights of Australasian wool, and no department can afford to ignore the responsibility which the British Government carrier. Having bought the next Australian and New Zealand clip—that is, all shipments up to June 50, IS2o—it cannot be expected that the .Government will throw overboard big weights of raw material, and while the department could afford to take sensibly less than to-day's prices for both wool and tops, they cannot afford to act foolishly by inundating markets and forcing wool and tops on to unwilling buyers. A good deal could bo said on that point. At the same time the issue price of both wool and tops (pan be reduced, and still the department make a satisfactory profit. That really is the crux of the whole question, and it is most important that Sir Arthur Goldfinch states candidly, and. as soon as possible, What the Government is going to do. Then prices may be expected to stabilise and new business to be forthcoming. It is certainly imperative to allow both wool, tops, yarns, and pieces to go out to the Continent at current values., and so let present surplus stocks be cleared before any attempt is made to seriously reduce values, because it is well known that Continental neutral countries will buy to-day if users abroad know that they can do no better by holding off purchasing. PRICES IN FREE MARKETS. Sir Arthur Goldfinch has already stated that the department will be largely influenced by the course of values in the outside world, baying special regard to the position of values in South Africa and South America. Already sensible reductions have take a place. Prices are all round 10 per gmt. under the issue prices of Bradford. Uyers are being prevented from operating in Fouth America, where prices must be suffering; but it is certain that the home trade will be keenest to operate at those centres where values are most reasonable. If either South Africa or South America |a a cheaper market than London, then free pnying will be indulged in abroad, and although operations cannot to-day be conducted in South America, it is expected that buying will begin at no distant date on Bradford account. The whole subject Is difficult, but fixed prices for the immediate future will be a move in the right direction, particularly if lower prices are decided upon.