YORKSHIRE WOOL LETTER

Gisborne Times, Volume XXXIII, Issue 3660, 23 October 1912, Page 2

YORKSHIRE WOOL LETTER

SATISFACTORY OUTLOOK FOit THE RAW MATERIAL. ...

[ruoai our own correspondent]

BRADFORD, Sept. 13

Renewed interest seems to have been kindled in the course of wool values with the opening of a new season in Australia, the results of the Sydnoy auction being awaited with a great deal of concern. Yet, that is hardly the term to employ in describing the present standing of the ran material. Prices seem to be so strongly established that nobody expected anything different from a firm opening, and although we are facing a new season with fairly high values, the demand is such that in all probability they will keep up for all wools shovving good combing characteristics. It is surprising how quickly time passes. It seems but a few months since Adelaide, Melbourne and Sydney last threw down the gauntlet, and 3’et twelve months have elapsed. As one looks back, it is remarkable what a weight of raw material has been shifted, and still the demand of the trade is as persistent as ever. We feel tempted to-day to size up the various factors which are operating in the wool world, and to give serious attention to the future. After what has been. done in consuming centres during the past six weeks, even the most sceptical must acknowledge the sound standing of the raw material, and without- doubt, considering the large quantity of textile machinery which is at present running, I am satisfied that all the wool that is being grown is not more than sufficient to meet the wants of the textile world. Old members of the trade who have had a hand in buying the raw material during the past 30 to 40 years often speak in a very surprising manner of the great change which has come over the Australasian wool trade, and when they contrast the offerings in Coleman Street, which is consisted practically of the whole of the wool grown “down under” with the tremendous weights which are now sold in Australia and New Zealand, they express wonder where all the raw material is going to. After afl we see here remarkable evidence of the great expansion that has taken place both in production and -consumption, and what is more natural considering the development of largepastoral areas in the Commonwealth and the large increased population than to find bigger wants being met by equally large supplies? This is a feature of the trade which is well worth considering, for it shows distinctly that in the onward march of progress both, wool growers as well as have kept abreast of the-times.

WHERE IS THE WOOL GOING? This week’s Australian mail brings in full particulars of the distribution of the last Colonial clip, and. the figures are simply astounding. The fact that 2,£13,000 bales have been disposed of is almost past- human comprehension. A more outstanding fact still is that all this weight of raw material has gone into the hands of consumers without prices having broken down in the least. The question arises; Where has it all gone? The only reply is that the mills of Great Britain, the Continent, America, and Japan also, have absorbed this enormous weight of raw material. There is one aspect of the wool trade which has not yet reached the attention it deserves. I refer to the large quantity of now machinery which has been installed during the •past three to five years. The town o'f Keighley is the best criterion and barometer of the conditions which obtain, particularly in the worsted spinning branch of the wool world. The reader perhaps may not know, but r.t that town, situated about nine miles from Bradford, worsted spinning machinery is made which goes to me uttermost ends of the earth. Two firms there and patricularly one of them, have been very busy for ver s, and as their capacity is, we believe, about 70 completed machines penweek, it means a great output in the aggregate. There is hardly a vor-

sted- spinning company in Yurlshi’.e that during the past three years i as neither installed new machinery, not thrown out old spinning plants t-i.tl replaced with new*. This fact emphasised one other—that all this new machinery shows that the raw material is needed to keep it running, and also a market is required where the yarns and pieces can bq sold. i + is. also very remarkable that the textile industry of the West Riding has not shown any sign whatever of slackening for at least three years, and though today mills everywhere are busier than ever, we do not feel justified in using the word “boom.” This is the case although adverse -factors have had to be faced all through this year. -Some are quaking with fear that we shall see quieter conditions owing to the unsatisfactory harvest, it having been computed this week by an eminent authority of The British Association that the agriculture of Great Britain alone has suffered a loss of twenty million sterling. Yet as one carefully analyses the position of things, the fact- is remarkable that the product of all the increased machinery is finding a market somewhere. We have before made the estimate that both in England, France, and Germany there is 15 to 20 per cent, increase in wool consuming machinery running to-day on the amount known to be working five years ago. and undoubtedly that is correct. The reader will therefore see that the installation of all these new plants means that more wool will he required to keep them running, and I say that here we have the most important factor of all in shifting big weights of the raw material.

COLONIAL SALES EQUAL TO EXPECTATIONS.

'Hie Sydney sales this week have gone very much as the majority expected. Nobody looked for cheaper wool, and it was not to be found. Private cables have been received to the effect that 64’s tops of average character will cost 2s 3d, while other similar cables put down the standing cost at 2s 3d. This is fully equal to prices which can be made in" Bradford to-day. It therefore looks as if there is no prospect of much cheaper raw material in Australia, and Adelaide next- Tuesday is hardly likely to prove any, exception to Sydney. I am in a position-to say that the bulk of limits out in Australia- on Bradford account are 2s 3d for 6a s. unless Germany or France begins foretog tactics, it is hardly likely that 1 ere will be any advanced limits sent out, for users in the West Riding ao not in the least feel disposed to advance on current rates, while several we could name are very anxious >o be able to quote a penny less on New York account. It has been stated on Bradford Exchange this week that at least one firm has taken its future in its hands, and fixed up contracts to deliver their well-known standard 64’s next January at 2s 2d, but it is well-known that- it is not one of the best tops. Still it is only right to say that a start has been made in selling forward, and so long as this obtains. the fact might as well he published as not. To be candid, practically all firms are at present indisposed to anticipate the future in this way, preferring to wait and see how Adelaide, Melbourne an 1 Sydm.> shape. MERINOS VERY F'RM

It can hardly be said that any more money can actually be made for fine tops in Bradford, although full recent rates can be obtained. As I mentioned a week ago, the fn.-i is v :> p-iunt that large imparns ar< n i Urn h a>t disposed to do fj. ivnd !u:M!ic*> .0 over sell. Tho/ >*?* w lonh i’g forward to being aide to i't-.m ?■ mewliat cheaper wool in Australia if at all possible. It looks as if a good deal is going to depend upon the position of the Continental buyers, and if Germany asserts her authority and buys very freely, as was the case a year ago, there is little likelihood of any cheap wool. Many here will he surprised if good, shafty, long combing merinos are any cheaper than today, but probably short, mushy wools wiil hardly maintain to-day’s level. At least, that is the feeling in consuming eolitres, and the clothing trade should have a fair chance of being able to otbain a large weight of supplies at reasonable values. If accounts can be relied upon, it seems as if tliere will be no surplus of long combing merinos, and as this trade must continue there is every likelihood of a strong demand for everything that shows . length of staple. Business in Bradford is in no sense wanting, and all things considered a nice weight of top sales are being affected. The big importers say that they are not doing a great deal, simply because they do not want to mortgage the future too much, but these having spot lots for sale are able to make 7d for a good 64\s. It is too much to say that 27 1 d can he made even bv good topmakers, .Jd less being generally the actual selling price. Yarn spinners during this last fortnight have booked considerable new business, and all things considered the situation is a healthy one. CROSSBREDS FIRM AND UNCHANGED.

Tho position of crossbreds shows practically no change during tho past fortnight. Toprnakcrs advanced their prices all round I'd, and this to a large extent has stopped business. Many firms say candidly that they could go on soiling at old prices,- but that it is impossible to make more than 14d for a good -Mbs prepared, although 14!d is the general quotation. If the truth is told the majority of spinners have just about, covered their wants up to the end of the year, and- nobody need be surprised if wo have now somewhat quieter markets, although there will be no less eagerness to buy crossbred wool at tho forthcoming London sales. Business generally must be' regarded as very good. Topmakers are'all busy either recasing or sorting wools ready for combing, and commission combers if anything are somewhat hotter employed than they were. There is still business to bo done on expert account, there being a very satisfactory demand for carded tops, and considerable weights aro going to the Continent. The quantity of tops which has been exported this year is surprising, and for the first eight months of 1912 the- figures are 29,164,200 lbs, compared with 26,474,1001hs for the corresponding period a year ago, and these figures furnish ample proof that trade is good.