ANNUAL REPORT ON WOOL

Wellington Independent, Volume XIX, Issue 2052, 23 April 1864, Page 4

ANNUAL REPORT ON WOOL

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London, January, 1864

The year 1863 must, so far as legards the commerce and industry <>f Great Britain, be added to the list of the must prosperous on record, notwithstanding that the continued dearth of cotton leaves much to be desired in tlie position of one of the most important branches of our trade. Oar exports and imports, as wrll as all the Stale revenues, have been* in excess of those of previous years. To this result, we need hardly say, our extraordinary harvest (which saved us an expenditure of more than £10,000,000 for bread stuffs in 1863 alone), and in whicli almost all other countries (Ireland we regret to say, being one of the few exceptions), have likewise participate has, by procuring cheap bread, materially contributed. Our Wool manufactures were, with inconsiderable interruptions in some few branches, well occupied during the first six months of the year, wben the harvest added another powerful impulse both to the home and export trade. Although the export of wool has been proportionately quite as active as the home consumption, yet the year 1863 ha 3 in general by no means been a good for importers and dealers, as for manufacturers. The operations which took place in the autumn of 1862, based upon the belief that the rise which took place in the value of cotton, would immediately further the consumption of wool, involved considerable loss on the parties interested ; not only on account of this opinion having up to the present been realized only for certain qualities, and in general to a very moderate extent, but also because the subsequent rise in the value of wool induced a considerable increase in the arrivals. The sale— not seldom forced — of such wools in the spring of 1863 kept tbe market depressed until May, when they were pretty well cleared off and when an increase in the home consumption, and a revival at the same time of the Ameiican demand, led to a reaction. Since then, prices of all sorts have followed an upward tendency more or less marked, although low wools have under the influence of the American exchange been subject to great fluctuation.

The principal wants of England consisted in long-stupled home-grown wools, which consequently show the greatest advance in comparison with the prices ruling this time last year. Similar Colonial and Foreign wools, such as Oporto, and the better sorts of East India, Persian, Egyptian, Iceland, Lima, &c , have risen in value in proportion to their usefulness as a substitute for domestic sorts. Short stapled low wools, which however were quoted far above their real market value this lime 12 months, on account ofthe then prevailing opinion of tbe effects which the cotton dearth would bave on the article, stand now but little higher, and Merinos both for combing and clothing purposes are likewise scarcely risen. Alpaca and Mohair were considerably cheaper last year than in

1862, which can only be explained by the ever changing fasbiob of dress.

Notwithstanding tbe introduction of many new projects, money was sufficiently abundant in 1863, and the Bank rate stood from January 15 to Nov. 2, at from 3 to 4 per cent, when considerable withdrawals of bullion on account oi cotton orders laid out to the East Indies, Egypt China, and Brazils, caused it to rise to d per cent. 3 days later, to 6 per cent ; on 2ud December

to 7 per cent ; on Srd December, to 8 per cent ; from wbich it receded on tbe 24th of the same month to 7 per cent, at which figure it now stands.

Amongst the principal political events of the year — not to mention the Polish revolution, whicb at one time caused fears of an outbreak of hostilities between France and Eussia,- and the Scbleswig Holstein question, which has only latterly assumed such threatening proportions—tbe continuation of the civil war in America stands preeminent, and deserves, partly on account of its influence in low wools adapted for Military clothing, but more especially because the cotton question and its action upon wool as a substitute, is principally connected therewith, the greatest attention. According to tbe Board of Trade returns for the 11 months ending 30th of November, 1863, our exports of woollen goods and yams show a total of £18,496,428, against £15,481,928 same period 1862. Our imports of wool were 6,656,749 lbs., aud our exports of wool were 11,394,835 lbs. in excess of 1862, It further appears therefrom that tbe quantity retained for home consumption during 1863 (presuming the home clip to be of lhe same dimensions as in 1862) is less by 6,000,000 than iv 1862. The mosi remarkable change in our exports and imports is shown by those figures relating to France and the United States. Tbe expoits

of wool to the former country, bave increased

11,000,000 lbs., and that to the latter country 3,500,000 lbs ' at the same time our exports of woollen manufactures to the states have in spite of the almost prohibitory customs tariff again increased £660,000, and that to France has on tbe contrary decreased £350,000.

Concerning the probable future range of the prices of wool it will naturally be much dependent upon the turn of political events ; although the beneficial effects of the late abundant harvest will under all circumstances make themselvesfeltfarintothepresentyear. Regardingthe value of money, although a further reduction of the Bank rate is possible, yet it is to be apprehended tbat though fluctuating, the average standard will be high for some time to come, as in the countries which now supply us with cotton this article must mostly be paid for in coin instead of manufactures ,• so that even though the Bank may constantly adapt its rate to the efflux of the precious metals, yet this cannot prevent nearly all the cotton finding its way to England as the best market for that produce ; but so long as the stringency of the money market does not proceed from a commercial crisis or a failure of the cereal harvest, and business is sound and bread cheap, the consumption of wool and cotton cannot be materially affected by it, though the high rate of interest is otherwise calculated to depress prices. The fact that wool has partly supplemented cotton is sufficiently demonstrated by the sudden increase which has taken place in the value of the exports of woollen goods during the last 2 years, even taking into consideration the enhanced ?_lue of the new material; but the substitution has as yet extended only to low wools, and not (with the exception perhaps of short stapled Capes) to Merino kinds— the best proof of this being that Merino wools are at the present time actually cheaper than in 1860, that is, before the cotton famine set in ; with which of course fashions, which last year were much in favor of the consumption of English and similar wools, and the Inst few years enormously increasing use of shoddy, as a mixture alike with wool as cotton, have had much to do.

The question now presents itself what further progress the substitution of wool for cotttn is destined to make? The present stock of cotton on the spot and known to be afloat is less by 169,145 bales than this time twelve months, and since the general stock taking of tbe article at Liverpool on the 31st ult., prices have again risen.

Notwithstanding, however the dearness of money, the production of cotton in all countries ofthe world suited to its growth, has made such rapid strides that the value of the article is likely to assume a retrograde movement in the couise even of the present year. I Moreover, the eventuality of a cessation of hostilities in America must be considered.

This would bring forward at Once a lar-je (juar* of ctton, at tho same time rc-lucing ihoj-eq'iirK-tnonts of wool for militny clothing purposes in tlie Northern states. On the other hand, the same event would no doiiht throw open a new and good market for woollen goods in the Confederate States, which, having heen so long shut ont to a great extent fron all commercial intercyurse with the rest of the worll, must naturally be quite exhausted of such supplies. This market would however, stimulate the consumption of Merino, rather than low wools. I am, therefore, of opinion that prices of low wools will only maintain their pY-senl position subject to many contingencies, whilst those of Merinos promise more stability. At the presen t moment the transactions in wool are, as is usual at this season of the year, rather restricted ; this is to be attributed not so much to the dearness of money as to the holidays, stocktaking, &c, and a revival may shortly be looked for. As mentioned above, prices may be more influenced by the march of political events and the state of the money market; meanwhile, the moderate stock and the continued large consumption speak much in favor of the article of wool. Annexed are a few remarks on the Australian wool : —

Austkalian. — Arri vals, 241 ,630ba1es against 226,015 bales in 1862. Tbe general condition was if possible less commendable than lastfseasou, and looking at the constantly deteriorating quality of most flocks, the introduction of new Merino blood is urgently to be advised; the breeds of Messrs Steigerof Leutewitze, and Gadegaot of Oscbaltz, both in Saxony (uniting large carcase with iength and fullness of staple, as well as fineness of fibre,) offer perhaps the most desirable selection. Tbe prices of Australian wool after the fluctuations of the year are now a little higher than this time 12 months.