OUR YORKSHIRE LETTER.

Otago Witness, Issue 3972, 29 April 1930, Page 17

OUR YORKSHIRE LETTER.

FACING THE PROBLEM OF CONSUMPTION.

(From Our Special Correspondent.) BRADFORD, February 20.

The faet that business is still comparatively quiet again makes it rather difficult to describe the situation accurately, and certainly does not favour the best interests of woolgrowers. It is necessary to say that an element of uncertainty is associated here with the possible movement of wool values, and this is naturally having its effect upon the attitude of spinners and manufacturers, though many of these still say that they think the price of the raw material is about right. They are not clamouring for cheaper wool, and manufacturers can be found who are willing to say that the general basis for yarns is not too high. Everybody is, however, watching the situation very carefully. The problem of the moment is how to handle raw material supplies in Australia and New Zealand to the satisfaction of both sellers and buyers. Information received from Australia indicates that the quantity of wool awaiting disposal in the warehouses is well over a million bales, this being about 200,000 bales more than a year ago. Bradford buyers naturally take note of this and of the fact that after the last series of London sales 65,000 bales were left for future sale. This is a fairly big quantity, though the part played in those auctions by the home trade is shown in the fact that their purchases were larger than at any series in 1929. Continental purchases being smaller. This was mentioned last week, but deserves to be kept in mind as an indication of what the home trade has done to support values. The next series of London sales are expected to commence on March 18, and if. say, 100,000 bales are lifted out of a possible 150,000 bales available it will not be a bad effort. Our own buyers are therefore wondering how the surplus wool is to be. disposed of and at the same time the improvement to be brought about in prices which is needed to satisfy Australian and New Zealand interests.

The policy adopted in New Zealand has caused some dissatisfaction here. It is . possible that misunderstandings have arisen or that, as suggested by a cable received in Bradford this week, many of the large growers refused to sell their wool in the hope of being able to make better prices at a subsequent date. Whatever the facts may be, the reply of the British Wool Federation to the cable received from the New Zealand Wool Buyers’ Association fairly accurately reflects opinion here about curtailing offerings and other means of stabilising values. In other words, there arc limits to restricting supplies. Even now no one is disposed to deny that some good was done by the announcement of Australian selling interests of their de-

cision to accept no less than prices current during the last fortnight in January; but since then prices for wool have shown a further improvement, and it is rather disappointing to learn this week that the Wellington sale has been postponed. The whole question revolves round the ability of Bradford importers and other buyers to follow the market on to a higher level. The feeling here is that enough responsibility has been carried in the past, and it is not vvise for our importers to take big quantities of wool without some reasonable prospect of it going into consumption. What must be regarded as an encouraging recovery came about in raw material values after the serious slump at the opening of the last series of London sales. Though all credit must be given to the motive behind the steps taken to control prices in Australia and New Zealand and to the results which may have been achieved, it really seems to many people in .Bradford as if the actual demand has provided the best staying influence. ANOTHER OPINION. The above paragraph has been chiefly a reflection of opinion held by men who are carrying on their own business as topmakers, spinners, or manufacturers, but are not playing any part in what may be regarded as the more public affairs of the industry. It should be helpful, however, to have the opinion of Mr Wil! iam Hunter, a director of Francis Wiiley and Co.. Ltd., who has given a lecture this week to members of the Bradford Textile Society. His subject was “ Some Reflections on Wool and its Uses.” -He stated that no one could consider the quantity of wool now retained for consumption in this country compared with before the war without a feeling of disappointment. In 1913 1,497,000 bales were retained, but in 1928 the number was only 1,338,000 bales. Considering this, in conjunction with the great increase in the exports of Australian, New Zealand, and Cape wool between 1913 and 1928, amounting to 1,700,000 bales, one began to realise where our competitors had drawn their rawmaterial supplies from, and one asked why the wool textile industry of this country had not been able to absorb its due proportion of this amazing increase. Dealing with the fall in wool prices, he said that the impetus of the decline has taken them further down than the most confirmed pessimist ever anticipated. In his opinion the steps which the pastoralists, in Australia had taken to stabilise values—by a slight extension of the season and the withdrawal of any wool which did not realise prices equal to those ruling during the second half of January—constituted an excellent corrective, and would be an assurance to all wool buyers, yarn buyers, and cloth merchants that they could buy with the feeling that , they were not likely to lose money. This would have the effect of allowing buyers to anticipate their requirements oyer a longer period, and should assist in creating more machinery activity. IMPORTS AND EXPORTS. Mr Hufiter touched a very important point when he referred to the relationship between imports and consumption of the raw material. It is a matter about which very great concern has been felt tor a long time, but it is impossible to see how there could have been anything else but a decrease in consumption’ when it is remembered that our machinerymakers have been busy with export orders. It may be that in course of time the balance will be restored by less w-00l St sent out of the country again it has been imported, but the only way in which this can be brought about is by an expansion of home and export requirements of tops, yarns, and piece goods. Mr Hunter had some very interesting things to say about the uses of wool for purposes other than clothing. He said that after making a rough calculation he was amazed to find that of the 10,000,000 bales of ■wool produced in the world about 3,000,000 bales are used for floor covering of various kinds and about 2000 bales for other incidental purposes. There are no doubt many ways in which wool is used about which the general public have no knowledge, but after all, the most important outlet is for clothing the human body. Suits, costumes, cloaks, overcoats, socks stockings and underclothing all need to have in them a large percentage of wool to be really satisfactory for health, durability, and appearance. As backward peoples become more civilised these will want more wool clothing, and the writer regards this as the best hope for the future of the industry. Some fluctuation in prices will always be happening, and it is very unfortunate that during the past 12 months or so values have come down to a point which growers cannot stand. Reverting to figures relative to imports and exports of raw material, the quantity of foreign and colonial wool received in the United Kingdom during last January was 289,162 bales, a decrease of 22,000 bales compared with January, 1929, and 21,300 bales compared wtih the same month of 1928. The exports of foreign and colonial wool totalled 95,000 bales, a decrease of 5500 bales compared with January, 1929, and 4160 bales compared with January, ’1928. The year has made a poor start in exports of partly and fully manufactured goods. The quantity of tops exported last month was 2,720,0001 b, a decrease of 504.0001 b compared with January 1929. Woollen and worsted yarns show inci eases, but there were decreases in woollen and worsted fabrics. The quantity of the former exports was 9.695,000 square yards, a decrease of 2,729,500 square yards compared with January, 1929. The quantity of worsted fabrics exported was 4,394,000 square yards, a decrease of 1.744,300 square yards. Remembering the decrease in employment in the industry, and the great difficulty which is being experienced in maintaining the present running of machinery, such figures as these are very displeasing. The Bradford trade wishes to be able to take a bigger share of the world’s wool supplies and to turn it to better advantage.