OUR YORKSHIRE LETTER

Gisborne Times, Volume XXVII, Issue 2428, 17 February 1909, Page 6

OUR YORKSHIRE LET TER

WOOL IN 1908. BAD YEAR ALL ROLAND, BUT OUTLOOK brighter: (From Our Special Correspondent.) . BRADFORD, Jan. 1. The year 1008 will go down to history like 1890 and 1900 as a bad one, due solely to the slump in wool values. Looked at from any standpoint there is little or nothing over which one can boast, for one and all alike have experienced many reverses. It is true that the end of the year sees distinctly more satisfactory conditions prevailing, but up to the end of October nothing but .a slow, dragging, and depressing time was experienced, with values constantly falling. There are occasionally times in the wool trade when, from a user’s standpoint, even a sensible reduction is an acceptable feature, but the last serious fall came at such a time that ‘it brought considerable loss in its train. Various estimates have been put forth as to the extent of the depreciation in wool values, but certainly if - it was possible to tabulate the losses it'would amount to over seven figures. However, there is one consolation, and that is, that after two or’-three, years of good times the trade -has been able to stand the severe strain, and the year’s trade has not been fruitful in many important failures, although two or three big firms, both in Yorkshire and on the Continent succumbed. During the first six months of 1908 a good deal of financial stringency w r as experienced, but after the trade got through its very dear imports a steady appreciation began which looks as if it would continue. All through the year the entire trade has been adjusting itself to sensibly altered conditions, and the year closes with a recognition of sound principles which 'is hound to be productive of lasting good in the near future. The debris has been, to a large extent, cleared, confidence is restored, and it looks as 'if the year finishes with much more healthy conditions prevailing.

THE LEGACY OF THE AMERICAN CRISIS.

Up to the middle of October, 1907, the wool and textile trades were enjoying unparallelcdprosperity, the outlook was as bright as ever, very few, indeed, looking for a setback. Then, like a bolt from the blue, the American financial crisis fell upon the entire commercial world, crippling and paralysing everything. For -a time the wool trade seemed as if it would he able to weather the storm in a fairly commendable way, but it so unnerved men that all fabric buyers lost confidence, enterprise was completely cut off. and stagnation spread fast through all manufacturing districts at Home and abroad. Under such conditions wool values soon became affected, and a sharp decline set in which really never stopped till the end of June. At the sixth series of London sales, 1907, the first dire -effects of the beginning of the wool slump were seen, but when January dawned a. spurt of buying took place in Bradford which, for file time being, stopped the rot. This led to values being fairly well maintained at the first series in Coleman Street, but no sooner had that series been got through than prices commenced to again seriously decline, the bottom being practically out of the market at the March series. At the end of that month there were -two or three market days an Bradford of semi-panicky order, and 40’s tops actually changed bauds in fair ouantities at 7fd -and Bd, super 60’s being sold in considerable weights at 19]d. This looked as if the raw material was again going to head downwards, confidence being entirely absent, nobody really having the least heart to do anything. A further decline took place -at the opening of the May series an London, but before the finish that was practically regained, the series ending with the trade in a much better form than at any time previously. All the while Bradford responded very little; in fact, while quotations were slightly advanced, still trade continued entirely of a hand to mouth character all through the summer, with prices on a very low level. THE TURN OF THE TIDE. It should be here stated that the bulk of the losses took place on import wools, for when buyers operated extensively in Australia at exceedingly high prices during October and November, 1907, the wool, on arrival Home, had depreciated in many cases as much as 3d'per lb.,- and with spinners, export yarn houses, and manufacturers oftentimes refusing to take up their contracts, the bulk of the losses fell upon the shoulders of importers and topmakers. Even to-day there are plenty of contracts fixed up in October and November, 1907, both of tops and yarns which are still untaken up, and it is doubtful if they ever will be. However, with the turn of tlie half-year slightly better conditions obtained, although trade remained in a very unsatisfactory state until the first week in November. That marked the beginning of the real spurt, everybody feeling that it was time to buy. This really took place after the American Presidential election, for immediately Mr. W. H. Taft was elected, larger orders wore placed in Bradford for the raw material. Home trade spinners and export yam houses came into the market and bought freely; in fact, November and December have proved, by a long way, the most active months of the whole year. The course of prices was-dis-tinctly upward as will be seen from the table below, but the renewed confidence which came over the market, and the same being backed up with largo orders, was perhaps as a feature as the advance in rates. The market has never really looked behind since the beginning of November, although during the first fortnight in December there was a slight ease of Id in the price of both merino and crossbred tops, due more to the slight attempt to “bear” prices than anything. However, the finish of the year saw prices back again to the highest quotations since the turn of the tide, and there is now every indie, ation of much more satisfactory conditions prevailing during the coming year. A fair weight of wool has been picked up at a most reasonable rate in the colonies, and the foundation laid for a better trade in the future. COURSE OF PRICES. Tfee following table shows the full

course of prices for the various descriptions of colonial tops during the past year:— Jan. Alar. June Sept. Dec,

cl. cl. cl. cl. cl. 70’s . 28*. 25 24 ~ m 254 64’s 27 24 224 234 24 GO’S 2G 23 ■ 214 224 23 56’s 22 4 . 194 18 184 184 50’s m 164 15 154 16 46’s 17 114 11 J 124 134 40’s 13,1 104 10 101 H3 36’s 124 12* 94 qc 94 101 32’s 9 9 8S 10