OUR YORKSHIRE LETTER.

Gisborne Times, Volume XXVII, Issue 2619, 29 September 1909, Page 2

OUR YORKSHIRE LETTER.

GOOD OUTLOOK FOR THE COMING NEW CLIP. (From Our Own Correspondent.) BRADFORD, August 13. Every boat that is now leaving London for Australia and calling at Marseilles, Naples, or Brindisi, is carrying among its passengers a large number of both: English and Continental wool buyers all destined to operate at the various selling centres , in Australasia, this meaning that all eyes are now fast being focussed upon another new season which opens in Adelaide on September 23rd. From the West Riding of Yorkshire all the old firms will be represented, but as far as one can learn there will be only two or three fresh faces, although, I daresay, several new firms will be represented by buying brokers on the spot, firms both from Melbourne and Sydney having been over in the West Riding seeing then old clientele, and endeavoring to secure fresh buying commissions. 11ns all means that as much interest as ever will be centred in Australia, and as tar as one can see the colonial sales will he larger and more important than ever. OUTLOOK FOR THE COMING SEASON.

When this letter sees daylight all wool-growers will be on the qui vive, and full of expectancy regarding the coming season. jOne and all will eb surmising as to the future of prices, and wondering if the present good rates are likelv to continue. In my honest opinion 1 feel I can allay such fears by stating straight off that very good prices are certain to be paid at all colonial selling centres for new clip wools and something totally unforeseen will have to take place if there is to be any set back at all. I must admit that at one time I favored the opinion that as the time drew near for the colonial auctions there might be just a little “trimming” on this side in order to buy wool a trifle cheaper, but there will be a very different opinion in Adelaide on September 23rd next to what thero was at the corresponding series a year ago. How well it would suit the same buyers to pick up wool on the some basis as they did then! However, prices to-day stand on an altogether different level to what they did then, and instead of operators buying wool on a super 60’s top basis of 20d per lb. they will be operating more likely on a basis of 2(xl and 26 Ad. This will tell a far different tale in the price of wool t-o what was seen twelve months ago, and growers can . rest satisfied that they wijl receive adequate remuneration for their year’s work when t-heir clip comes to be sold. Thero are men here who have the courage of their convictions, and who frankly state that we shall see lower values for merino wool by the end of October, but such individuals seem to me something out of touch with the consumptive requirements of the world, and while, no doubt, we shall see Australia turn out another record clip, still the wool grown will be more than is required to keep going the spindles and looms of both this country and abroad. CLEARANCE OF ALL STOCKS.

The wool trade is now passing through the longest vacation of the whole year, and while holidays are everywhere obtaining, still the trade, is fairly alive, and the pulse is beating strong. It must be said that so far as the West Riding is concerned, stocks of the raw material have been very sensibly augumented all through the season, and a bigger weight of wool in a given time never went to Bradford in-the history of that city. However, there are to-day signs that stocks are fast getting exhausted, business has been so good and consumption so large that supplies aro to-day only normal, and before new clip wools can arrive from Australia, there is every chance of there being the customary squeeze. Already we have heard a good deal on the question, but the fact of all combers going day and night is proof positive tnat stocks aro not exhausted, and there, is still a fair weight of raw material available. At the same time there is nothing like a surplus, a.nd the wool in hand will all he absorbed when fresh arrivals are available. When one thinks that last year’s Australasian clio showed a surplus of 233,000 bales, it is indeed a marvellous accomplishment that there are no surpluses, and it certainly is a big feat to find that this large increase lias been lifted and absorbed under constantly rising values. It all proves what I said at the time, namely, that the slump of 1908 was to a large extent of an artificial nature, for no sooner had the commercial world gained its equilibrium than wool prices responded, and machinery got on to running in the same normal way. The question at the moment is a vexed one as to whether Australia will turn cut another large ‘increase during the current wool year, and if the increase is not more than 25,000 bales, then I cannot see how values can be much different to what they are to-day. PRICES RESTING ON CONSUMP-

TIVE BASIS. The most satisfactory asset of the wool trade to-day consists in trade being good, mills busy, and trade prospects good. That is the only foundation which can be called satisfactory; in other words, demand and consumption are equal to supplies. So long as these conditions obtain values can take care of themselves, and look where we will an air of activity obtains in manufacturing circles alike. It is really surprising how steadily mills throughout Yorkshire, the Continent, and America have got back to working full time, and if there has not been altogether the boom of 1907, still all mills alike have maintained a steady pace, and this last four months overtime has been a common experience. Here we have the secret of wool prosperity, and prices would never have held so well intact but for the continuous demand for the raw material. I was in company the other day with a member of a firm in the Bradford district who run two large mills, and naturally our conversation turned upon wool prices and prospects. "We both admitted that wool was fairly dear, and yet the manufacturer said that although he would like to see gggyre***-

things down, he had to admit that ho saw very little, chance indeed of values coming down, and he freely stated that “consumption must be very big, and larger than many people have any idea of.” That is exactly the crux of the whole question. lam satisfied that the combined consumptive capacity of the Home, Continental, and American trades is exceedingly large, and the euantit- of raw material which is daily beiim shifted is almost past the comprehension of the average individual. I have often heard it said “it’s a wonder where all the wool goes to, and so it is, Yet, when one thinks of the endless variety of materials into which wool is finding its way even from stockings to felt hats, he can see that the avenues of absorption are indeed legion. South African merinos occupy exactly the same position as Australian merinos, end the outlook for these is exactly the same. Cape wools are selling as well as «ver, but the strongest demand is undoubtedly for long twelve months combing wools.