OUR YORKSHIRE LETTER.

Gisborne Times, Volume XXXV, Issue 3826, 8 May 1913, Page 2

OUR YORKSHIRE LETTER.

THE OUTLOOK FOR WOOL. [l'ilOii. OUU OWN COEEESPONDENT3 BRADFORD, March 28.. We seem to have reached a time in tho wool trade when a halt has been called, and there is no disposition at the consuming end of tho trade to < a use prices to make further progress in an upward direction. Probably tho majority of Australasian wool growers and shippers will have been a little disappointed at the final results of the recent London sales, most optimistic feelings having been expressed in Australian wool circles in particular regarding the future of prices. It is plain to be seen that the anticipated shortage of Dalgetv’s to the extent- of 300,000 bales is the horse which has been ridden the most, and in face of such an important shrinkage in supplies, everyone has looked through exceptionally clear spectacles, and seen nothing but- a lurthor sensible advance in values. There is also the way that iho raw material lias been absorbed in Australia, New Zealand and South African centres to consider, wool having moved into buyers’ hands in a record manner. We believe that .something like 40,000 more bales have been sold this season in New Zealand compared with last, while the-season lias iieen also equally as quick in South Africa and Buenos Aires. All these “bull” factors have naturally raised hopes of very high prices in London and Bradford when the full measure of the anticipated shortage was realised but this last month no consuming centre has responded in the least and the recent series of London sales found values practically unchanged compared with January. The writer must admit his expectations were not altogether realised, and one need not look very much beneath the surface to find genuine cause for the upward trend of values being arrested. Itis safe to say that if dtlicr sections of the trade had been in the same buying mood as Yorkshire topmakers, the full opening advance would have been held intact, but the comparative indifference of America, and the very limited operations of the Continent, are factors which played an important part in determining tho course of the market; and if itill cognisance is paid to all those facts, Loudon did as well as could be expected.

WHERE PRICES STAND. Wo can now afford to stand still and consider where values sire compared with twelve months ago. This line of argument is suggested by what one hears every da v in consuming centres, there being a universal cry that wool is dear enough, and that increasing difficulty is being met with in making current prices for yarns and piece goods, wholesale fabric buyers in particular refusing to operate and pay the advances which are being demanded. When all is said and done, the price of both wool and tops is on, a very different basis from what it was a year ago, for prices are being demanded anywhere from 3d to 7d per yard higher according to the weight and quality of the fabric in question. Below I give particulars showing whore prices stood twelve months ago for good standard descri turns of tops in Bradford, and what are quotations today for the same article:

The reader will sco from the above that ver v material advances have been made in the combed article compared with the corresponding date a year ago, and it is generally considered that when merino tops reach a halfcrown altitude, it is wise to make haste slowly.. When one remembers the serious setback which has followed the booming times oY 1889, 1899, and'l9o7, there is reason for the present halting attitude of the majority' of consumers, and as far as one can see, there is now every likelihood of further advances being contested by

users for all they are wortli. It is this fact which promotes the present query as to whether prices for wool are high enough.

THE BULL FACTORS AT WORK. As one surveys tho wool situation, one is bound to acknowledge! that for tho time being the raw material stands fairly higli.'and before any further upward move in values occurs both tho shortage and the present ex cellent trade will have to make their influence felt upon supplies. The arrival of such tremendous imports of wool means that practically, all users at tho moment have their financial resources taxed to their utmost, and we certainly think that the present halt has been more largely called on account of financial stringency than anything else. One and a half million bales of Colonial wool cannot arrive in consuming centres without huge amounts having.to be found to finance these arirvals, and topmakers, spinners . and manjiiacturers have a need to keep their products going out and turning round in order'to meet their financial obligations. _ The Continental financial situation is far from being satisfactory, .and material increase of international financial trouble has' been forthcoming particularly from Germany, Austria Hungary and the Balkan States, and it is here really where the,trouble lias begun. The Near .Eastern war ought to have been finished before the end of 1912, but it still drags on with its awful waste of capital and lives. Experience has proved that wav is a costly game, and so much hard cash is now wanted annually to maintain armies and armaments, that the resources of the people are being more or less crippled. it is all right being well prepared for possibilities, but all the same, heavy war commitments are a severe tax upon all nations, and only those financially strong can afford to play as some nations arc doing. But the question arises, What is going to be the ultimate outcome of wool prices, and may we reasonably look for a higher standard of values. The best answer we can give to these queries is that wo expec-t the raw material to continue to sell at profitable prices, but for the time being cannot see where tho impulse is coming from to send values to a higher altitude. The fact is the majority in the West Riding do not want to see dearer raw material. Of course, there are many with import wools’to sell, and these'naturally want to turn their Colonial purchases to good ac-

count. When this letter appears in print, we shall be in the thick of the next scries of London sales and as far as one can see there is little likelihood of ]>rices being any higher than they were in March. Supplies are likely to be somewhat larger tnan lost series, and it will take the trade all its time to purchase the wools avaiiac-io without prices suffering a relapse. We do ct see why wool should be any cheaper, and there is likely to be a general desire to operate. in which case we may see recent values again the ruling prices of the day, hut higher values, for the moment, seem no tho writer to be out of tho question. Of course, it may be found necessary and vis - to carry a fair amount forward till later in the year, for it will be in July and .Sept-ember when any shortage in the current Australian flip will make itself felt. What 'the trade wants today is tii*' op]x>rninit/v g)f turning itself round. It is now taking considerably more, capital to wield business compared with twelve, mnulw ago, for not only is wool dear, but everything else connected with the mill. It is this fact that prompts, us to give *a word of warning to those who are expecting materially higher prices. We cannot; see cheaper wool, and as previously stated a few of the present untoward factors will either have to be removed or materially mitigated before wool values further advance.

THE WOOLLEN TRADE. The wooden anti worsted industries of the West Riding are still enjoying a fair measure of prosperity, and mills have begun to work after the re-rent holidays. A day or two ago a loading manufacturer of worsted fabrics bemoaned the fact- that everything was “stinking dear,” and he saw at present little prospect either o: cheaper wool or any other manufacturing commodities. At the same time he said that new business was nothing now so go ml and orders were distinctly scarcer than they have known for some months, and ho attributed this to the financial stringency which existed in this country, and also the refusal of wholesale buyers to pay current prices. No doubt at the present time the majority of firms are disposed to hold their hands, and see what the future has in store. While comparing things with the manufacturer in question, the latter said that at this time a year ago. they were paying 2s 8d and 2< -S.LI for 2-40’s yarns spun from 04 s tops, mentioning one of the best Bradford spinners from whom they purchased this count of yarn throughout the whole year, being a little partial to it. He said to-day .their price was 3s 4d, which meant an advance of practically 8d per lb! He furnished another example of how prices had gone up for the fully manufactured article by stating that a. cloth they had been selling at 4s 6d for a solid mixture worsted, they were to-day wanting os lid, a price which they found impossible to obtain.

Mch 2-S, Mch 27 , 1012. 1913. Adv. .Colonial Tops. d. d. d. 70’.s, average ... 26 31 5 64’s, avorago ... 30 43 GO’.s, super 24} 29} 43 56’s, average ... 191 233 4} GO’s, average ... 17 21 4 46’s, carded 14 17} 3} 44’s, carded ... 13} 163 3} 40’s, prepared ... 13} 16} 3} 40’s, carded . 123 153 3 36’s, prepared ... 123 16 3} 64’s. Cape, long 243 291 4.3