HEAVY GERMAN PURCHASES

Southland Times, Issue 23652, 29 October 1938, Page 19

HEAVY GERMAN PURCHASES

ACTIVITY IN WOOL MARKET PROHIBITION SUGGESTED DURING CRISIS At the London September series the home trade took 43,000 bales and the Continent 24,000 bales (mainly Germany) out of the 71,000 bales sold, wrote the Bradford correspondent of The Sydney Morning Herald on October 7. The selection of greasy Merino and sliped crossbreds was excellent, and of all greasy crossbreds considerably better than was expected. Offerings of greasy Merinos were composed of Queensland slips, together with several thousand bales of very good wools offered by United States, English and Continental merchants, and mainly of last year’s growth. These wools were mainly from New South Wales and Victoria, with smaller weights from Adelaide and Western Australia. It is surprising how London for all Merinos remained steady on a basis of about 1J per clean lb above Australia, even after allowing for the extra charges to be paid for war risk insurance. The difference between Australian and London costs for clothing wools was considerably more marked than for combing. Certain types of Merino lambs and locks were costing 4d per clean lb more in London than in Australia over the previous three or four weeks. i

The Continent, notably Germany and Switzerland, has been the chief Merino buyer, Yorkshire securing only a very moderate amount. The home trade, however, took most of the crossbreds of all kinds. CONTINENT ACTIVE The Continent has also been an active buyer in scoured Merinos, in competition with Yorkshire and the West of England. The best Queensland 70’s frequently made 24d to 25d, with one or two lots 26d as in July. Ordinary QueenslX.fi scoured Merinos, however, were about a penny cheaper than in July, more particularly the stained seedy wools and locks. Similarly in

greasy Merinos the ordinary types were a little easier on some days, but recovered ' to make something like July rates. The selection of Merino lambs was quite good in greasy sorts, but nearly all of them, whether free or seedy, sold to Schlumberger combers, at prices about 5 per cent, below last series. The show of scoured Merino lambs was only moderate, mainly from Victoria, and a few lots from Western Australia, New South Wales, and Queensland. Withdrawals in these were the rule, as some of the wools were bought eight or nine months ago at prices several pence per lb higher than present bids, which were 2d below July, During the first half of the London sales, and for two days in the second week, there was very prominent German buying of Merinos, but very little in crossbreds. From what is known of stocks in Germany at the present time, this is a little surprising, as German mills are said to have ample Merinos for their present rate of consumption. During the current year imports of wool into Germany are 50 per cent, higher than in the same period of 1937, but German mills have not been allowed to use even' as much as in that year, with the result that stocks of raw materials are accumulating. One reason given for the active German buying in Australia during the current season is that wool is being bought with the proceeds of the sales of German manufactured goods exported to Australia. Formerly Germany used to take from the Commonwealth a large number of different raw materials, including foods such as wheat and fruit, but so far, during the present selling season, her money has been devoted entirely to wool and a few hides. Even so, compared with what she formerly used to buy, her takings have not been excessive. SHIPMENTS SUSPENDED There was much comment in the industry here, during the London sales, as to the advisability of allowing Germany to take such large deliveries and place such big orders in this country, at a time when it appeared that she was about to plunge Europe into war. The question as to whether the export of wool and its derivatives should be prohibited was discussed in responsible quarters, but as this might have been taken as a provocative action by Herr Hitler and his advisers, it was decided that, so the writer is informed on good authority, nothing should be done. It would have been, in any case, unnecessary. Much of the wool that Germany bought in London, and many of the shipments of tops and yarns prepared in Bradford, could not have been moved after about September 27 or 28, as the British Government had first call on all means of transport. Many Bradford firms suspended shipments as much as a fortnight earlier, but others did not do so until about a week before Germany threatened to march into Czechoslovakia and take the country by force. In Germany itself some traders did not seem to realize the position of Great Britain in the recent discussions, and were greatly surprised when some exporters suspended shipments. Remittances from Germany in settlement of outstanding invoices were being received in Bradford quite normally up to September 24.