OUR YORKSHIRE LETTER.

Otago Witness, Issue 3418, 19 September 1919, Page 15

OUR YORKSHIRE LETTER.

POSSIBILITIES ACCOMPANYING THE SIGNING OF PEACE. LESS BUSINESS DOING IN TOPS. (From Ouit Special Correspondent.) BRADFORD, July 3. Though nothing important has happened internally affecting wool textile circles, due recognition must be given in this article to trte fact that the peace terms have been signed. Many members of the industry—it may be said practically all —have been looking forward with genuine interest towards the announcement being made that anotner definite step has been taken towards the establishment of peace; now that the terms have been signed we know ior a certainty that the war nas at last entered updti its really final stage,' and that when tho conditions attached nave brought them fully into operation, tho wool textile tradealong with all other industries may settle down with greater contentment to carry on both their internal ar.d external business transactions. It is obvious that one reason why so much interest attaches itself to the signing of peace is that it is regarded as the forerunner of the development of a large export trade. Whilst file war has been in progress a remarkable tendency has developed in fashion, and to-day a very large part of the demand for wool textiles is runninjr on the finer qualities—that is, cloths and other fabrics made from merino or fine crossbred wool. Comparatively speaking, crossbreds have been left out in tho cold, though more recently a greater interest has been taken in them, particularly medium and no doubt more business has been done in these than is generally known. The part which Germany will be allowed to play in taking supplies of textiles from this country is still a matter of conjecture. Ihe fact that she very largely played the part of a- clearing house for other countries before the war, and that through her large weights of lowquality yarns were transmitted, seems to suggest that it will be necessary to give back to her the position she occupied in that respect. Ihe large weight of raw material coming into this country also points towards some of the wool being allocated to Germany. There is every prospect of supplies being quite large enough to more than satisfy all the manufacturing needs of thi3 country, and after those have been supplied it is only to bo expected that the surplus, 'consisting of low and inferior qualities of woo!, will be allowed to go first to our Allies, and then to Germany to assit in providing the necessary raw materials and work for the textile operatives of that country. That our own Allies should receive preference is no more than just, and an indication of the policy which will be pursued has already been given in the quantities of wool which are being allowed to go to France and Belgium out of the current sales. THE LONDON SALES. These are proceeding on lines very similar to tho3o recorded last week. It is evident that the extreme keenness to buy has disappeared, and the anticipations of those w r ho - forecasted that before July had expired wool would be selling on u more reasonable basis bid fair to be fully justifiecL There is no doubt that for the best combing greasy wools excellent prices are forthcoming, but for any tiling which is not particularly attractive to spinners, the tendency is decidedly mere reasonable. Topmakers who have been in London and have watched the course of the sales say that they are not prepared to take tho lead given .to them by the saleroom. They adhered strongly to their belief that the prices being paid for the raw material are not justified, and they aro doing what .they can to prevent tho inflation being continued. They are also severely handicapped by difficulties connected with transit, and if they cannot get the wool home they argue quite rightly that it is little use buying it. A largo proportion of the offerings aro still of the crossbred type. Over 4700 bales of New Zealand wool was offered last Monday, consisting largely of grcasies. A considerable quantity of Australian greasy crossbred was also offered, and the prjees for these were somewhat helped by the fact that Continental buyers competed, thereby forcing the hands of home trade representatives. Greasy crossbred pieces and bellies have also sold fairly readily. The selection of merinos has been small, and a large proportion has been suitable only for the French trade. The various lots of these were practically _ all taken on French account, prices ruling practically on a level with the recent rates. The competition for good scoured Australian combing has been excellent, French buyers making their pre sence felt in these also. The prices paid ranged from 61d' to 77d. Faulty scoureds suitable for carbonising have shown little alteration in values, due, again, to the fact that large weights have been taken for France. On the whole, the tone of the room has been good, but, a 3 already said, it has been noticeable ' that the ' sensational prices which have nppeared to make the buying power of the trade limitless have not been paid. EFFECT OF HIGHER WAGES. ' An pxample of how in?reased wages reflect upon the wool textile trade has recently been afforded by what has happened in connection with a recent ruling of tho Industrial Courcil that higher rates of pay should bo granted to combers' operatives end warehousemen. The new scale will be operative from the week ending May 5, and will apply to the wages of merchants and topmakers' warehousemen as well as to the woolcombers' warehousemen, the iate of pay now being £3 for a 48-hour •week. The point has bcen_ raised by topmakers that the increase in the combing tariff was forced upon them without adequate warning; but the reply of the woolcombers has been to the effeci that, as they themselves did not receive much warning respecting the increased wages decided upon by the Industrial Council, they no alternative but to hand forward the increased cost in much the same way as tbey had received it. The opinions held by topmakers respecting the treatment of the new

charges do not appear to be quite unanimous, somo advocating that the time may come when, so to speak, they may be able to get their own back in the form of a reduction in the combing tariff brought about by conditions which will, of course, be quite the opposite from those now prevailing. There is, of course, an element of hardship in topmakcrs beins compelled to pay the higher rates, possibly on contracts foi- which no allowance for higher combing charges lias been made; but the whole circumstance shows how, when wages are forced up, there has to be somo compensation somewhere. If topmakers were not fairly well satisfied with the margins they are able to make on the present price of tops, ihe opposition would probably be much more ac.tive than it has been, and. as already said, there is a feeling that what is now being partly lost may be ultimately recovered. THE STANDARD CLOTHING SCHEME. Another meeting of tho committee appointed to deal with the standard clothing scheme ha 3 been held. It is obvious, from the fact, that it has been necessary to consider tho revival of this scheme that all is not well with the trade. If the usual competitive forces had been working in a normal manner, the price of clothing would not have been so high to-day as to make it necessary to consider the institution of means for bringing about a better state of affairs. The Labour party cannot be blamed for their strong opposition to anything likely to contribute to .an inflation of tho cost., of rlothing, or which is likely to keep it as high as it is to-day. It is beyond question that it ought to be possible to place goods on the market at more reasonable prices, and at the same time for those engaged in i.heir production to secure satisfactory profits. The sinister tendency wh : ch< is only, too much in evidence is that the Labour party are hankering after the nationalisation of the wool trade. If th : s vere to' coins about a severe blow would be struck at the industry. It may be possible, by exercising great care and by enlisting the co-operation of the distributing end of the trade, to use the standard cloth scheme to carry the trade through to the time when the laws of supply and demand should operate more naturally than they do to-dav. It is impossible, however, to rid oneself of the impression that the only way to stabilise values and to prevent the public being fleeced is to put more strenuous endeavours into the work of production. NORTH OTAGO FARMERS' COOPERATIVE ASSOCSATION. A PROSPEROUS YEAR. x (From Our Own Correspondent.) OAMARU, September 13. The annual meeting of shareholders of the North Otago Farmers' Co-operative Association was held this afternoon, Mr J. B. Taylor (chairman of directors) presiding over a large attendance. The chairman, in reviewing the year's operations, said that the concern hod never been in a more prosperous condition than at present. Tho actual turnover in all departments reached £250,"O00, and the earning power of tho association in relation to the capital had risen from 39 per cent, in 1914- to 71 per cent, in 1919, while the net profits had increased from 16 to 33 per cent, in the same period. The income tax assessment had increased during the same period from £591 to £4257. Tho gros3 earnings amounted to £25,992, a record, while the expenditure, including bonuses and rebates, showed an increase of only £;SO on the previous year's total. The directors proposed to pay a dividend of 7 per cent, and to transfer £2500 to reserve, bringing the total in that fund up to £19,000. Some adverse comment was made on the directors' action in voting a. contribution of £25 to the National Efficiency League, but the report and balance sheet were, adopted, and the retiring directors were re-elected.