WOOL AND TEXTILES

Poverty Bay Herald, Volume LXIII, Issue 19135, 2 October 1936, Page 2

WOOL AND TEXTILES

CONTINENTAL REVIEW

CONDITIONS IN GERMANY

BREMEN, Aug. 18.

There is no marked alteration in the position of tho German textile trade. An unproved industrial spring activity held on surprisingly well into the usually quiet mid-summer', substantial orders tor autumn and winter requirements keeping the mills employed beyond the midsummer's average, dune and duly slackness this year was only in evidence when prolonged"scarcity of the raw materia curtailed work; even the manufacture ol viscoso 'fabrics still requires the admixture of a considerable proportion ol pure wool. Any cloth for ordinary wear containing too little sheep's wool is resented by the buying community., although the production of mixed substitutes has attained remarkable efficiency, especially in the turnout of material for dress goods. The. Reich's worsted, woollen, and knitting industrial sections showed acceptable results in turnover for tho last months. Inland unemployment, in general, has declined bv 144,000 hands since June, and now has receded to only 1.170.CC0 persons receiving dole. Civil service, and military textile orders have been a great help to the. industry, and the authorities' decision to continue similar commissions for execution during the quiet, manufacturing periods in future is regarded as a commendable innovation. It is long since a more promising! inner domestic "economic situation has been manifest. Foreign political disturbances certainly diminish much international business, but do not visibly impede the interior turnover. ABNORMAL CONDITIONS In the Continental market for wool, top, and yam, somewhat abnormal conditions prevail'. Scarcity of the raw product in Germany, strikes in France, and want, of political stability in Europe, engender nervousness, which the opening week of London's fourth series of wool sales plainly depicted. Values have consequently become irregular. Nevertheless, the,' higher basis of prices reached in Germany, through import curtailment, remains firm, and does not react to adverse fluctuations in foreign markets, although the industry is inconvenienced by the difficulty in bringing the value of the finished cloth into harmony with quotations from the primary wool-selling centres. Fears are entertained that this divergence cannot last, and an oversea market reaction must eventually result, but this the satisfactory statistical position of raw: wool hitherto, luckily, prevented from occurring. So-called merchanting in the wool trade on the Continent has become an ungrateful task uncle prevailing market conditions, and many firms have been compelled to make decisive alterations in their method of assuring! an adequate turnover. The large commission combing establishments of the Reich could slightly improve on employment, mainly owing to a surplus balance'of the national foreign transfer exchange account, allowing of an additional purchase of oversea wool. THE JAPANESE DISPUTE The tariff controversy between Australia and Japan is of concern to the Continent. In the ruling! circumstances, Germany expects to meet with an extended competition in the South African wool market for the new season. In order to seek compesation for a possible deficiency in the purchase of wool, the advisability of taking advantage of other buying opportunities for the merino, comeback, and finer crossbred grades is under consideration. However, opinion here runs in the direction that Australia, and Japan ultimately will find means to arrange matters conveniently.