OUR YORKSHIRE LETTER.

Otago Witness, Issue 3773, 6 July 1926, Page 14

OUR YORKSHIRE LETTER.

PROTECTION PRACTICALLY REFUSED. (From Oca Special Correspondent.) BRADFORD, April 29. The event of the week is the issuing of the report of the Worsted Committee inquiry that took place regarding the state of the worsted and woollen trades last October and November. It appears that the report was signed three months ago, and yet it has only just made its appearance. Apparently it has taken the Cabinet a long time to consider, and it leaves the trade very much as it was. Putting the report into every-day language, it recognises no change, no imposition of import duties on foreign-made textiles, unless the franc further depreciates and our manufacturers are beaten off the track. It must be frankly admitted that the maority of manufacturers in the West Hiding were expecting some provision being made to annul the direct benefits accruing to French manufacturers on account of the lesser wages paid, longer working hours, and the greatly depreciated currency—benefits enabling them to sell fabrics at prices which West Biding firms cannot possibly hope to compete against. The verdict is that there is nothing of an outstanding nature causing undue unemployment; consequently the committee cannot recommend the imposition of duties under the Safeguarding Industries Act, unless there is a very marked depreciation in the currency. It is significant that the report was made when the value of the franc was 130 to the f. To-day it stands at 145, and yet there is nothing doing. It should be remembered that Bradford manufacturers asked for import duties of 33 1-3 per cent., which they considered to be more than adequate to counteract the advantages of Continental manufacturers already referred to. At the most the committee recommends import duties of I2£ per cent, when the franc has slumped to nobody knows where. However, the sum and substance is that nothing is to be done, consequently feelings of depression have already begun to arise in the mind of a large number. SOME ASTOUNDING FACTS. There are several features of the report which are well worth digesting by all connected with the wool textile industry from the grower to the actual producer. The committee could not shut its eyes to the growing importation of French woollen and worsted fabrics. That is palpable to anyone who will without prejudice look at the official list of imports. In addition, we have a sensibly diminishing export of piece goods, a clear proof that British manufacturers are being undersold in the markets of the world. The man at a distance—particularly the grower—may think that West Riding manufacturers are reaping too big a profit. We can assure everybody that a leaner time was never experienced in the history of the wool textile trade than at present. That is the complaint of everyone handling the raw material to the finished fabricnothing left at all. This last three months haa seen a bigger consumption in

the West Riding than for the past two years, thanks to orders for dress goods being placed at home, and not abroad, on account of the uncertainty regarding the Worsted Committee report. If there had been any inkling of what the report would be, London and provincial wholesale fabric buyers would have placed big orders in France and left the home trade high aud dry, simply because French reps and poplins (the most popular fabrics) can be purchased from France at Is per yard less than they can be made in Bradford. We repeat that the average reader has no conception of the big difference there is in the price of yarns and pieces spun and woven in France compared to the actual cost of similar yarns and fabrics in the West Riding. It is all due to the lower costs of production, and, of course, in business there is no sentiment, wholesale fabric buyers purchasing wherever they can do so to their own individual advantage. LABOUR DEMANDS.

Those with actual knowledge of negotiations between masters’ federations and the labour union officials say frankly that the representatives of labour frightened the members of the committee, otherwise the report would never have been what it is, and particularly so when the members of the committee are Protectionists and supporters of the present Government. Of course, the labour Party paraded the balance sheets of two or three big firms who in past years have shown a big profit when conditions have been favourable and there ts been a big rise in wool values. But no man to-day can point to a successful concern and one showing good profits. All the big public companies to-day are passing through deep water, and it is common knowledge in Bradford that on ordinary share capital it is very doubtful if any firms will ever again pay a dividend. It cannot be done, and the sooner many firms pro pose a reorganisation scheme the better it will be. Trade unionism is killing the staple trades of this country, and England will never be in the future what it has been in the past. There is evidence of this in the coal crisis which confronts Great Britain to-day. A certain section will never rest until the staple industries of the country are nationalised; but once let individuality be killed and enterprise cease and true prosperity is doomed.

Many thought that Mr Churchill in his Budget speech last Monday would refer to the report of the Worsted Committee., •and owing to the further sensible decline in the value of the franc that duties would be imposed on imported textiles But not a word was mentioned. It may therefore be taken for granted that the Government has simply a watching brief, and the value of the franc will have to fall still further before any steps are taken towards safeguarding the British textile industry. Perhaps Parliament may be impressed with the position of things when a further marked decline is seen in the exports of piece goods abroad, and when foreign-made textiles begin again to flood the land. Already there has been some cancellations of dress goods among _ Bradford manufacturers. Wholesale fabric buyers will do this without any compunction when they know they can obtain all the goods they want at well on towards Is per yard less. As we have already said, there is no sentiment in business, every man being out to buy in the cheapest market possible. Business is business the world over, and steps will only be taken to give home manufacturers a fair show when a period of adversity and loss has been experienced. We are certain that the Chancellor of the Exchequer will have his eyes opened when the present income tax forms are returned showing the huge losses that all sections of the home trade have made during 1925 on account of the wool slump. And yet the Government has made no effort whatever to assure home trade reviving, and so promoting better times both for workpeople and masters. LONDON WOOL SALES. Last Tuesday saw the opening of the third series of colonial sales, when Coleman Street Wool Exchange was filled with the usual concourse of buyers, all sections of the trade being fully represented. There is available 142,500 bales, which will be fully equal to all requirements. The opening was fully as good as anyone could reasonably expect, and the only change of any note was seen in the sale of medium and coarse crossbreds. Values for 50’s tops and below have eased £d to Id during the interval, and as values last Beries were well above corresponding prices for tops no one need be surprised at the slight reaction. Of course, from one sale it is impossible to reckon upon the course of values for a whole series, but no one will be surprised if the Continent purchases freely and the home trade does a fair amount of buying also. The present state of trade warrants no higher values, and we hardly think any are likely just yet. The trade of the country has to recover from the effects of the Budget and the failing to encourage home manufacturers by placing co-efficient duties on an everincreasing import of foreign, textiles. It now remains to be seen whether wholesale fabric buyers will place orders with home or French manufacturers. It will be a thousand pities if the consumption of the last four months cannot be maintained. Above everything, that is desirable, and nothing will contribute more to a successful series than confidence in British manufacturers and a willingness to buy from firms producing both men’s and women’s wear fabrics in the West Riding, West of England, and South of Scotland.

(For Continuation of Farm and Station see page ISM