OUR YORKSHIRE LETTER.

Otago Witness, Issue 3912, 5 March 1929, Page 13

OUR YORKSHIRE LETTER.

RUSSIAN WOOL REQUIREMENTS.

(From Our Special Correspondent.) BRADFORD, December 27. One has heard this last three months very little about the operations of Russia in Australia, and those who should know doubt very much if the representatives of that country have purchased as much wool during the first three months of the Australian selling season as a year ago. As for as one can judge the British Government made a mistake in giving the Soviet Government notice to remove its offices from London. The Board of Trade has always maintained that this did not prevent any British house doing business with Russia if it so decided. This month Russia has purchased some fair weights of raw material in Bradford, which have to be speeedily shipped because they are urgently wanted. Russia’s operations have covered merino matchings, fine crossbreds, botany tops, and medium crossbred tops in oil. together with scoured English matchings, the latter apparently being bought for the production of single crossbred yarns which in pre-war days were spun in Bradford and went to Russia largely through German mercantile houses. The terms upon which the trade has been done arc mostly four months bills. A big weight of business could be done if all firms were prepared to trust Russia and to take her paper money. . All the five leading .banks refusing to discount Russian bills influences a good many Bradford wool firms not to do business with Russia. Apparently those who have a German connection are willing to do the business, and to get the paper money discounted through their German branches. We have no reliable details regarding the consumptive capacity of the Russian textile industry, though we 'have the impression that at least 250,000 bales of Colonial wool could be used annually. Lack of capital is preventing the Soviet'Government extending her purchases in Bradford. London, and Australia. The raw material is certainly wanted, but capital cannot be increased under present business conditions.

There is no more satisfactory feature in connection with the Russian trade than the knowledge that Australian merino wool bulks very largely in the raw materials required. Prior to the war, when buying was done collectively for Russia, b'g weights of Queensland wools scoured in Bradford, and other raw materials, were shipped. A good deal of that stock remains unpaid for to this day. A question of immediate concern is that Russian mills contain machinery that can manipulate the best Australian merino wool, and it is wanted as much as ever. The surprising thing to those with a knowledge of the trade is that Russia always wants her wool scoured before being shipped, for there are good scouring plants in that country. Yet big weights of greasy wool are treated here in Bradford before being shipped. These bales, being pressed packed at the conditioning house, is also surprising. Probably the labour is not sufficiently experienced, and apparently the object is to get the wool through the machines and into cloth with all possible speed. According to all accounts, clothing and hosiery fabrics are scarce and urgently wanted. OUTLOOK FOR BALANCE OF CLIP. Before this letter meets the reader’s eye the second half of the selling season will have opened in Australia, New Zealand, and South Africa, and those who have still their clips to sell will be anxiously waiting to see the course of markets. As far as we" can judge there is not much likelihood of prices easing to the level which some buyers would like to see. We are calculating upon supplies being about equal to consumption, because we are satisfied, that the textile machinery of the world is to-day absorbing a big weight of wool. We very much doubt if Bradford importing top-makers have secured more than half what they did in the colonies a year ago. Unfortunately the buying power of a large number of firms is not what it was, and financial institutions are dealing-more tightly with their customers. There is considerable financial pressure in Bradford, far too many private failures, and too many bills floating throughout the trade, which is all indicative of unsatisfactory trade con-

ditions. This is all the result of the losses through wool values slumping in 1920-21. 1925, and 1928. However, it seems tliat with the combined purchasing power of all traders values are likely to be maintained at about to-day’s level, and we are not expecting anything untoward happening. Germany has given considerable support during the past three months in all markets. Rather than face a reduction n wages the majority of our own Labour representatives are in favour of trying safeguarding. It is now quite possible that, pending a Board of Trade inquiry like that held in 1925. the Government will be able to put duties on imported textiles by the end of next March or April. There is no doubt that sometlrng will have to be done to protect the home trade f m the increasing imports into this cour-z. -y of yarns and fabrics from the Continent. These goods are no better than ours. They are not always as good. It is simply a question of price per yard. EXPORT FIGURES. The annual, issue of the Board of Trade returns is always carefully examined by those wishing to find out for themselves how trade compares with previous years. The issue for 1928 is not available at this writing, but the November issue shows that our exports of woollen yarn during January-November amounted to 6,790.800 lb, an increase of 730,7001 b, and our exports of worsted yarn reached 38,776,700 lb. a decrease of 2,562.8001 b. Our exports of woollen fabrics amounted to 120.182.000 sq yds, an increase 1,043,000 sq yds, and_ our exports of worsteds were 38,079,000.5 q yds, an increase of 1,363,900 sq yds. This is not really a bad record, though the advocates of protection contend that our present exports compare unfavourably with those before the war, and point to the increasing imports of yarns and piece goods. The quantities of these imported this year, in comparison with 1927 and 1926, are shown below:—

FREE TRADE VERSUS PROTECTION. This is the dominant question in the West Riding wool industry and the situation may be described here because nothing vitally different can happen before this letter appears in print. It is quite evident that in making such an inquiry as that asked for by the Bradford and District Manufacturers’ Association, supported by other organisations, the Board of Trade will have to go over a tremendous field. They will have to investigate manufacturing conditions in this district in comparison with the Continent, and in so doing will have to pay all due regard to the standard of wages here and abroad and the quantities of wool textile goods we are receiving. Some say that the whole question should be lifted out of the sphere of politics and treated entirly commercially. This seems to be an impracticable ideal, and we may expect to see political influence continue in operation. One reason why so much pressure is being brought to bear to get forward the inquiry is the hope of, having it finished during the lifetime of the present Government. The anticipation is entertained in political circles that there will be another Parliamentary election next June. In the event of a Labour Government being elected there would be no chance for safeguard.ng. This is true in spite of the fact that the Labour Union officials are committed to supporting the Bradford and District Manufacturers’ Association in asking for ar. inquiry to be held. Our manufacturers state that a 10 per cent, reduction in the standard rate of wages is necessary to enable them to meet all their overhead charges and run their concerns anything like satisfactorily. It is contended that such a reduction as this would contribute to an increase in employment, and ultimately in the operatives being no worse off than they are to-day. Labour leaders are opposed to this line of argument, and if they are to remain true to their principles they will. have to continue their opposition to safeguarding.

J anuary-November. 1926. 1927. 1928. Woollen and worsted yarns— lb. lb. lb. 15,925,350 16,218,823 16,365,040 Woollen fabrics— sq yds. sq yds. sq yds. Germany 8.467,677 10,943,780 11,322,776 France 12,383,847 Other 9,976,469 10,236,237 countries 7,187,627 7,368,142 9,583,800 28,039,151 28,288,391 31,142,813 Worsted fabrics— sq yds. sq yds. sq yds. Germany 179,244 153,963 106,019 France 7,094,902 Other 7.853,238 8,188,204 countries 183,541 340,723 215,601 7,457,687 8,347,924 8,509,827