OUR YORKSHIRE LETTER

Otago Witness, Issue 3495, 1 March 1921, Page 11

OUR YORKSHIRE LETTER

THE REASON FOR STEADIER VALUES IN AUSTRALIA. (From Odr Special Correspondent! BRADFORD, December 23. Since last writing news has come to hand of a sale of wool being held at Adelaide, at which values appeared to have suddenly turned in an upward direction. Messrs Elder, Smith, and Co. (Ltd.) stated that for good topmaking wools competition was better, with prices 5 to 10 per cent, higher compared with the previous sale on November 27. Other cables received have no hesitation in putting the advance at 10 per cent. —a clear proof that demand must have been keener, w r ith buyers prepared to pay a little more. It is significant that the home trade took a leading part in the competition, it being chiefly Bradford topmakers who supported the market. This action has surprised a few, and many have wondered why there should be any advance in view of no improvement in trade, there being no likelihood of more machinery being run in the immediate future. The reason is plain to those conversant with actual conditions which have lately prevailed in the Bradford market. The custom of importing topmakers is to sell forward and then cover their sales in colonial markets. Several leading firms have disposed of tops to bo delivered in February and March, and with the knowledge that no sales were to take place in Australia in January, importing topmakers have been compelled to operate, it being these forced purchases which helped to increased competition at slightly higher values. It has not had any beneficial influence upon the Bradford market, everybody understanding that the covering movement in Adelaide has been solely dictated by the forward sales in tops. Some of the operations in London at the recent sale were on behalf of topmakers who have to make delivery in January, and one only wishes that further big sales of tops had been effected in order to compel users to buy on a still more extended scale. CHARACTERISTICS OF ADELAIDE WOOLS. The thanks of the trade are duo to Messrs Elder, Smith, and Co. (Ltd.) for

their comprehensive cable, giving marks and average prices ruling for several clips sold, I lom tile particulars cabled it is evident that some well-known clips had been catalogued, all of which are well known to L union sales frequenters. For instance, Hawker/Carrieerloo and also Murray/Rhine Lark ate two exceedingly well-known cups, the latter being from one of the leading studs in South Australia. Then Allan 1* ml.lllß us well us 1_) X are al&o very good clips, showing real South Australian cilaiaeteristics. It is well worth asking what are the features exhibited by these wools. South Australian produce has lost a good deal of its fine quality—in fact, users now regard South Australian wools as being little better than good topmaking wools, the outstanding feature being a oig deep grown, bulky staple, the larger part of the wools showing no more than super 60’s quality. If a buyer wants quality in merinos he does not go to South Australia, but chiefly to Victoria, New South Wales, and Queensland. At the same time South Australian wools are great favourites with home trade topmakers and America, and those wanting to spin a worsted yarn of medium counts—say up to 2-32’s—find in these wools everything that can be desired, ihey are largely very sound, and “tear” , best of any wools combed, the tear often being as high as nine to one. Ror the production of worsted coatings they o adrmrably, but where high-class finished iaones are concerned they are not the wools, to use at all, and this is well known by manufacturers. They always come a good colour and although often burrv are exceedingly useful. SOUTH-EASTERN CLIPS. There is one portion of South Australia the wools of which differ very materially trom those grown in the midland and northern districts. We refer to the southeastern district, stretching from Mount bambia to the Victorian burder. The wools grown there are distinctly better in quality, and handle than those grown in the two previous districts, South Australian wools partaking largely of the superfine qualities of the wools grown in West Victoria. It J* entlr ely due to climate and pasturage Of late years there has been a good deal ot cross-breeding in the south-eastern district, but, whether merinos or crossbreds, the wool is always good, soft handling, and largely sound. It lias lost the red appearance seen in midland and northern wools, and some of the south-eastern clips possess characteristics which are indeed excellent. Ihe finishing property of these wools is also very good, and where high-class worsted coatings and indigo serges are wanted the south-eastern wools will be difficult to beat. AUSTRALIAN WOOL SCHEME, Sir Arthur Goldfinch has made a statement regarding the British-Australian Realisation Association scheme, which is bound to engage the serious attention of wool-users in this country. In his usual lucid style, he sets forth the leading features of the scheme, which before long will be dealt with by the British Cabinet. We very much doubt if the wool-users of the West Riding have realised the seriousness .of the claim, or seen it in the same light as the Director of Raw Materials. In the first place, Sir Arthur Goldfinch asserts that the Australians have a proprietary interest in half of the surplus assets of the Imperial Wool Purchase Account. He makes out from this that the Australian Government have a perfect right to have a voice in the disposal of surplus wool. Sir Arthur Goldfinch says that the Australians are really entitled to 900,000 bales of the present old stock, the same quantity really being the property of the British Government. There are those who say that, if that be the case, the 900,000 bales should be handed over to them to sell how, when, and where they like. Sir Arthur Goldfinch goes on to say that “the wool purchased during the past four years was not bought outright and unconditionally at the low price which was then agreed upon. There were other conditions which were just as much part of the contract as the price, and one of them was that all wool used for civilian purposes was to be sold by the Imperial Government on joint account with the other partner, and to the ’rest advantage. It has long ago been admitted that this implies the right of the Dominion Governments to have some -say

As to the selling price of the wool.” Tins is a •very important point, and at once raises very serious issues. It makes one hwonder if, during the past three months, ; the British Government consulted Australia [ And New Zealand in regard to maintaining I limits, and refusing to sell raw material at market prices. We have known all along ‘jhat there were motives behind the maintefjjance of Government limits which the average wool-buyer knew nothing about, and apparently it is the dual ownership which :fcas been responsible for limits being main£tained and so little wool sold. If what Sir Goldfinch says is correct, it appears Wat growers through their own Govern*inent are going to be the dictator of wool 'Tallies, and users must stand on one side. But can such an attitude be expected? We Jpery much doubt it. This realisation

scheme has been very seriously discussed by every member of the wool trade, and users assert that they will not be coerced into buying the raw material at above a market price, no matter whether that price be fed per lb for crossbreds and 12d per lb for merinos. If it is decided to take off the market 2,000,000 bales of wool, the probability is that this action will react upon the promoters, or at least upon the growers whom it is intended to benefit, for there are other factors operating to-day in determining wool prices besides the presence of big u 15consumed stocks in England and in all wool-growing countries. There are those who go so far as to say that the taking out of the market the present, big stock of wool will not encourage higher prices; but if a common agreement can be arrived at between the Australian and

British Governments for the sale of these big stocks, then bolh countries will be satisfied. We still maintain that the law of supply and demand will be the determining factor.