OUR ENGLISH WOOL LETTER.

Poverty Bay Herald, Volume XLIV, Issue 14237, 3 March 1917, Page 8

OUR ENGLISH WOOL LETTER.

— -— • — - i GOVERNMENT DISPOSING OF NEW CUP THROUGH. LONDON SA.LI.S. (Special Correspondent.) LONDON, Januaiy 11. Govei'iiment restrictions have been laid both on the press and wool dealing, . . so that we regret we cannot make this letter as detailed as we should like. The wool trade of this country is now practically monopolised by the Govern- $ ment, and tliere is very little definite, that can be said about how prices are , moving. The industry is- being earned, on "under a bushel" to a largo extent, j and there is as much interest m thej outward arrangements of the auctions as m the prices paid. GOVERNMENT DISTRIBUTION PLAN. • During the past week a few manui'ac- " turers who can make Bedford cords and whipcord cloths have been informed thati' they must cut down the production ot'if civilian goods, "«us increased supplies of'< tho above named fabrics are needed foiv army use. Mills have been requested -to" state how much they can turn out dur-!' ing the next three months, and make^ sample pieces. Some who have done so* have been passed by tho Government ' testers, and have been instructed to proceed at once to turn out quantities. ( Their wool buyers are to come to London, inspect wool that is being offered ' on Government account, choose suitable ■ lots, and these will bo drawn from .the , sale and allocated to the mills. No- Zj thing is mentioned about price, except f I that -the wool will be sold ,to the mills lat the prices fixed on the Governmentschedule, and the cloth will bo paid for according to the price of the wool. The manufacturers have to send m .their costings, and after, these have been thor- . oughly scrutinised by the Department, the -_irice .paid for the cloth is made up • on the invoice price of .the wool, plus costings, plus a small profit. In other words, more than ever before the industry is being put on a commission basis for tha Government. The mills who can turn out the goods quickest will have first claim on the wool available. GOVERNMENT (SELLING MERINOS. Most of the wools offered on Government account are those that have been consigned to this country direct bygrowers. The Government has taken over these wools, just as it has taken* over wool that has not passed the hammer m the Colonies, and _he^ -London brokers are offering the imports &üb- . ject ,to. (Government supervision. The wool has to be staged three days' belore the sale, and this has so taxed the capacity- of the warehouse keepers, both m room and labor, that .they asked for . an extension of selling days. This could not be granted. The reason for having the wools staged so much before the sale time is so that the Government valuers, who are about a dozen of the best-known wool buyers, may go round and value the , lots on Government account. The clean : scoured b'abis has been fixed, and the co_nbing wools ai*e diyided into superior, medium and inferior sorts. After the ■Wool has been classified into one of •these, and the clean yield determined, the price per pound is worked out from the fixed clean scoured basis for each quantity. Clothing sorts are '■ - varoet. at prices ruling m, the first quarter of 1914, 1£ per pound is charged for London expenses, and to the net figure is added the 55 per cent advance. • This is by no means an easy task for the brokers, who may have to value ■ wool at to-day's rates, then pass straight on .to a lot and value it at those ruling m 1914. The sale, proceeds as usual, with the exception' that all lots that have been chosen by users as suitable for their work 'are withdrawn, and not offered by public auction. The actual price paid for the growers*.' wools that have been • commandeered after being consigned to this country depends on the values of ' the Government men and the selling brokers. Tlie actual importer has no say m the - matter except that he can tell his broker What he thinks it is worth. Of course, m, the sale of these Colonial wools, as m those of English classes, the Government is making a good profit Nobody objects to Ibis if it is used to the utmost for winning the war, though it has been suggested m London that a large part of the gain, will be dissipated m administration expenses. It will not be pleasing to the Colonial . grower to know that the authorities are malting good profits on wool that they have taken from him at a reduced price, but he must not grumble. The English farmer has had to put up with (he same thing, andi except that he has received less money foi* his wool, he has not a great deal to grumble at. Government weighing,' classing, valtung, as well as prompt payments, have. not been often at fault, ■ and however much people here _jn every department of the industry dis- •> like Government interference, they take it for granted that it is all for the good of the country,, and not only put up with it but support it. Importers have been very hard hit, and m a month or two when they clear off wools that have been consigned to them from, tho other side, will have no business at all. They are out of pocket for shipping expenses, insurance, etc., and. it has been proposed to pay them one and five-eighths pence per pound, plus freight and shipping expenses, to , reimburse them. London expenses may amount to over a penny, and on high priced wool still more. * The importers would prefer to have their expenses returned, plus a commission varying m ••the .ca.e'x.f different firms from one-half ■to two per cent. Nothing; has been decided. As yet the importer., do not ;•*; know at what price wool will be sold by the Government privately to users and can hardly tell how much- to charge up m insurance and other expenses to their different clients. However, .this will be cleared up m due course. PRIOES EASIER. , There have been some very good offerings of new clip greasy merinos as well as, a few scoured marks, and prices have certainly been very good for these. Hardly anything is marking the extreme values of last series, and this cannot be expected .when the whole trade is m such an uncertain condition. Unless mills have definite orders, they will not , 'buy to-day, because they may be entirely employed, on Government account before many weeks are past. It would be a mistake," for'sexample, to lay m stocks, of