LEATHER TRADE

Wanganui Herald, Volume LIII, Issue 160725, 11 August 1920, Page 4

LEATHER TRADE

■ 1 1 GREATLY DISTURBED. From a condition of lively activity the market throughout Australia for hides and leather has slumped to one of embarrassing uncertainty (states the Sydney Morning Herald of July 22nd) Up tii] the end of March butchers’ hides were selling in Sydney at from 2s 2d to 2a 4d per pound, with sole leather at 3s 6cl and 4s. They can now be bought at from Is Id to Is 6d. The average -pre-war price ran at about 9d per lb, with sole leather at from Is 4d to Is 6d. In those days a cnange of ; )d attracted attention. A fluctuation of -), d created consternation. Latterly variations of 3d have not been uncommon. This has meant about 10s per hide—a matter of groat point and moment lo a tanner who in the previous. week may have purchased a thousand hides. To boot manufacturers the fall in the price of hides has had a particular fascination. The interpretation of its significance by retail traders may be seen by those who care to take notice of the number of ■■'.stablisliments bearing announcements to those who pass that a sale of great bargains is proceeding within. Boot sellers are only having from hand-to-mouth. Tho more cnickly their stock is depleted the more cheerful they feel. Boot manufacturers are not buying much leather. They are slowing down an output to some ox! cut, but many have large orders for both the local and export trade still to fulfil. Neither retailers nor manufacturers are disposed to prophesy about (trices, but the general opinion in the trade is that there will certainly be cheaper boots. There is also a hopefulness that the boots made of the leather purchased in large quantity when prices were high will be got rid of without loss.

Tho evidence given by leather trade witnesses before the Commodities Commission in Melbourne has been read by tcvrmrs in Sydney with great interest. While not prepared to dispute that the market is disturbed, and _ that a great deal o? uncertainty prevails, they express the view that their Melbourne friends seem to be suffering from pessimism in a rather exaggerated form. "To say that the industry is in ‘a state of chaos,’ as has been asserted in Melbourne,” said Mr E. Farleigh, president of the Master Tanners’ Association, “is the wildest exaggeration. A state of chans implies huge accumulations of stocks, a wholesale discharge of workers in tanneries, and all-round confusion. This state of affairs dees not exist. There is no large accumulation. I do not think that 5 per cent, of employees have been dispensed with. The conversion of hides into leather is going rapidly forward.” “What has been happening lately,” said Mr R. J. Anderson, who was deputy-chairman of the Commonwealth Leather Industries Board, "is the back wash of the boom in prices created by the vast purchases of hides and skins made all over the world by American buyers during tho war period. They came into the Australian market and bought enormously, and, aided by tho advantages given them by the rate of exchange, could afford to bid far above ■nilat seemed reasonable to others. The quantities of hides and skins poured into America from other countries snowed tremendous increases over previous years. But the termination of tho war and the confused state of affairs in Europe have resulted in the American and English markets for leather falling rapidly. The exchange rate with England and Europe has rebounded against American manufacturers. They have had to sell for export at a loss. —a tiling they are able to do in consequence of the huge homo market. American buyers are still purchasing hides for shipment at the lower figures now ruling, _ but not in great quantity. This implies that they do not look for supplies at a much lower price. It is instructive, too, that the meat companies will not sell hides at ruling quotations, holding the view that prices are bound to recover to some extent. Most of tho hides coming on to the maiket are butchers’ hides. My own view is that the breaking of the drought will materially affect supplies, and that prices will soon be stabilised.”