OUR YORKSHIRE LETTER.

Otago Witness, Issue 3487, 11 January 1921, Page 12

OUR YORKSHIRE LETTER.

ARRANGEMENTS BEING MADE FOR SALE OF WOOL TO THE CONTI NENT. (From Oun Special Correspondent' BRADFORD, November 4. Things certainly are no worse in the wool textile industry, arid although many will describe the present as a stagnant market, there certainly is a little more interest manifest in the course of the raw material, and in textiles in general. There is unanimous agreement that the next move to be really trustworthy must come from the piece end of the trade, but that has not yet materialised. What manufacturers and wholesale houses are still struggling with are the big stocks of pieces, which all alike say have once been sold, but which have either been cancelled or have been held up for later delivery, That, undoubtedly, is the bugbear of the present situation, and is, moreover, the cause of serious concern. And well it might. For any firm to have in their warehouse piece goods costing anywhere from 35s to 32s per yard, and which have depreciated in value from 14s to 18s per yard, is a serious matter, and whereas solid indigo blue serges were selling at Is 6d to Is 9d per ounce in the fully manufactured state last spring, to-day’s market value is no m re than Is per punee. Getting the stuff shifted on to the actual consumer is the difficulty of the hour, and with so many out of employment and the big cost of living, the outlook for shifting big weights of winter materials is by no means of the best. It all comes back to what we have previously said—namely, that retailers and wholesale merchants and clothiers must be prepared to step into the breach and encourage public buying by offering sensible reductions the same as spinners and manufacturers. Anyone who thinks that the general public are going to be cajoled into buying winter and next spring fabrics at the prices ruling last March will eventually discover their mistake. SOUTH AFRICAN WOOL. News is to hand from the Standard Bank of South Africa that the w T ool market, in sympathy with Europe, is stagnant, and that including the new clip stocks on hand amount to 400,000 bales. * We should say that is an under estimate, and it should be 100,000 to 150,000 bales more, for the South African clip always figures around 500,000 bales, and as a new clip is now coming on.to the market, South African holders are going to have their hands full in getting rid of a decent weight of the new clip. It is well known in the trade that South African firms have been badly hit with the great slump, and also financial institutions. The advances that were made against shipments were heavy, and everyone in touch with the industry realises that the heavy losses have crippled many who have been chief operators in South Africa. There is also reason for saying that banks have had o rude awakening, and that the same facilities are not going to be forthcoming during the coming season as we have been accustomed to see. Of course, if Germany gets into her old stride and begins to purchase freely as in pre-war days, a big weight of Cape wools can easily go to the Continent. During recent weeks some nice sales of super snowwhites have been made both to Belgium and Germany—in fact, one perceives quite a little move in Continental wool circles, all of which is a sure indication of returning prosperty to the industry. Bradford importing tonmakers have been offering 64’s Cane tops for next February delivery as low as 4s 3d, a price which lias not yet been justified by the purchase of any new clip wools at the Cape. WOOL TAXES REMOVED IN THE ARGENTINE. Two months ago a movement started in Buenos Aires for the removal of the small export tax in wool, the object being to encourage European Powers to operate freely and so take off the market the present big accumulations of old clip wools. The information is now. cabled by Reuter that the Customs commission, in agreement with the Ministry of Finance, has decided upon the immediate abolishment of all taxes on the export of wool This is very good news, and should help to encourage purchases The tax has not been great, but if it figured around id to Id per lb it all had to come out. of the grower, and the present move is to induce free purchase. Some weeks ago it was estimated that the present stock of wool in the Argentine amounted'to about 150.000 bales, and as a B.A. bale weighs three times that of a colonial bale, it means that before the new shearing began there was available all round 450,000 bales of colonial size in the Argentine, to say nothing of what was available in Uruguay, Chile, Patagonia, and the Falkland Islands. Germany was always the biggest buyer of South American crossbreds, considerable purchases have taken place during this year, but all the same the weight of wool now available means that something really cheap can he obtained, and with the tax now

being removed there should be a fiee movement of raw material. Recent prices of B.A. crossbreds offering in Bradford have been 25 per cent, under what the British Government wants for colonial crossbreds of similar quality, and it is a fact that 36’s to 40’s crossbred wool, somewhat cot-ty, .has been sold on a clean basis of 12d c.i.f. Liverpool. Good 40’s to 44’s fleece wool is also ottering to-day on a clean basis of 14jd, and probably a bid of lid less would secure reasonable weights. However, everyone feels that the British Government will have to reduce their limits if they intend to get rid of their present huge stocks of medium and coarse crossbreds. WOOL FOR THE CONTINENT. A move has at last been made by the Bntisti Government ill agreeing to sed to the Austrian Oovernment colonial wool to the value or ±IbIA),IK/J. The amount is not great. Out the lact ttiat an agreement lias oeen arrived at with a foreign Bower cannot be ignored. Probably tne sale represents to 35,(X.0 bales, a mere flea-bite out ol present siocks. But mat is not tne chiet point at issue. Sir Charles Sykes said last week that lie suggested that tne British Government siioma sell to Germany ±J6O,OOo,Wa) ot wool, and although the amount is excessive, yet the principle is the same as with tiie sale or wool to Austria. iiie only serious aspect ol the business is tne dueling into competition by the Government with private traders, many feeling that it would be the best p olicy to let Continental Bowers come to Coiman street and purchase in the open market in preference to the British Government selling stocks at reserve prices. There are two sides to tins question. If the British Government decides to sell to a foreign Bower, then naturally its reserve prices will be higher than those forthcoming in jjublic sales, and it will also require the bona iides of the Continental Government In regard to payment ot its account. In any case, all wool brought will have to be on extended credit terms, and who is better able to grant this than the British Government? It is a mistake for any party to say that the British Government has been selling its low crossbreds in London, Liverpool to Huli, on tiie issue prices of last year. The last Government issue price for 48’s average was SYjd, 46’s average 33d, 44’s average 31|d, 40 s average 28id. Since August the reserve price has been sensibly reduced, so much so that 40's iiecce wool has been selling- in London and Liverpool at around 18£d in the grease, 2d more than for 46’s to 48’s, while 30’s iloece wools have been selling around 22d. These prices mean very sensible reductions on the issue prices, but the trade would be glad to know if Continental sales of wool are being made on a parity with the rates ruling at the last London sales or the issue prices of 12 months ago. OUTLOOK FOR THE SALES. Next Monday it is expected that the postponed London sales will begin; the trade generally is expecting a somewhat revived demand for the raw material, particularly good combing merinos. During the past fortnight a fairly good inquiry has arisen from those who must keep machinery running, and they have been prepared to buy on a somewhat higher basis than the rates ruling at the last series. This is a good sign. Many believe that good combing merinos will appreciate all round 5 per cent. There are some American orders on the market already, and the fact that America is buying freely of the super fleece wools in Australia goes to prove that “down under” prices are firm for all decent descriptions. No firms in Bradford seem at present disposed to put good wool forward at recent low rates, for they have never yet been able to cover the sales made. Last week firms were offering good warp 64’s tops for February and March delivery at 4s 9d and 4s 6d has been taken, some say 4s 3d for average 64's tops. This is entirely a speculative move, but nothing has been secured so far to warrant such prices being taken. However, there are still huge weights of wool to submit by public auction, and if the Continental trade would open as one desires the present depression would pass away like frost before a rising sun. TRADE BETTER IN GERMANY. Evidence accumulates that trade is on the mend in Germany, and Bradford has certainly done a bigger business with her best pre-war customer both in tops and yarns during the past two months. Information is to hand that there is a revival of business in Elberfeld, where stocks have been liquidated, and where all spinning and weaving mills have their output sold up to next March. This is good news, and shows that things are developing on right lines. Everybody is assured that a big business could be done but for the high exchange rates, but Germany is paying her accounts in a most remarkable way, only the depreciation in the mark means so much lessened business both in wool, tops, noils, wastes, and yarns. There is going to be a big business done sooner or later, and Bradford and London houses are preparoing for it with all possible speed.