BRITISH TRADE.

Press, Volume LXIII, Issue 19162, 19 November 1927, Page 16

BRITISH TRADE.

COTTON, LINEN, AND JUTE. (WBITTZ* FOB THE TBESS.) (By the Commercial Expert of the London "Economist.") A month ago we deplored the absence of effective co-operation in the cotton trade. We emphasised the fact that the Federation of Master Cotton Spinners' Associations and the Cotton Yarn Association were unable to evolve a common policy. Fortunately, wiser counsels have prevailed since these words were written. Thus, to the extent to which there is the promise of co-opera-tion the outlook for the cotton industry is brighter. During the past few •weeks meetings have taken place between tho representatives of these two organisations for the purpose of arriving at some agreement with regard to minimum prices for yarn and the curtailment of production. These Conferences have resulted in a measure- of success. In the first place, a minimum price arrangement has come into force which all American yarn firms are called upon to observe. Theso prices have been calculated on the basis of mule and ring spinning mills, "rationally equipped and financed," every item of cost being taken into account. The minimum prices are stated to be based on rotton futures at lid per lb subject to the usual trade terms- It is sought to overcome the difficulties regarding short time by sectionalising the trade into coarse, medium, and fine spinners. A ballot is to be taken as to whether these sections are acceptable. But it remains to be seen whether the scheme will be successful. There is no unanimity of opinion and at best the arrangement must bo regarded as an experiment. But the welcome feature is the fact that a better feeling has developed »etweon the Federation of Master Cotton Spinners' Associations and the Cotton Yarn Association. The will to evolve a common policy for restoring the industry's fortunes is, in this case, hardly Jessf important than the actual. steps taken. The Irish Linen Industry. The Irish linen industry is somewhat disturbed regarding the future. It is itrue that, at first sight, the outlook is reassuring. The post-war prosperity of America and the cultivation of taste in house-furnishing are keeping certain Irish linen houses extremely busy- But the raw material market is providing ground for anxiety. During the present year prices have soared to very high levels, whilo the prices of manufactured linen goods lag seriously behind the prico of the raw material. Linen enters into the manufacture of many products which, by no stretch of the imagination, can be described as luxury products and therefore tho retail prices of theso articles can be raised only as the very last resort. "The supply of flax," says a trade journal,""may be as acute as it appears to be, but spinners cannot pay prices £2O to £3O per ton more than they recover, and they arc •without expectation of obtaining prices anywhere approaching the raw material cost." This is read as indicating an early advance in the price of manufactured goodsThe present shortage of flax, with the consequent rise in prices, is due. to the recent reduction in the Russian crop; and Bussia is by far tho world's most important source of supply. Fortunately, encouraging signs in regard to Bussia are not absent. One says "fortunately," for it is clear that alternative sources of supply, such as crops grown in Great Britain and ifeland or within the British Empire, are by no means promising, at any rate for many years to come. At the moment interest chiefly centres in the harvesting statistics of 1927, for they will govern the trend of future prices and without lower prices the Irish linen industry will undoubtedly be faced with a very serious situation. The Jute Outlook. The estimate of the jute crop for the fceason 1927-1928 has had a disturbing•ffeet upon the jute market. There is •very appearance that the crop will be larger than was considered likely some months ago. The actual estimate is 10,229,700 bales and this is sufficient to meet the world's requirements. Tho consumption of all consuming centres last season was 9,798,000 bales, the Calcutta mills alone using 5,804,000 bales. .The stocks of the Calcutta mills at the end of August were 3,270,000 bales, iwhich is equal to nearly seven months' consumption, while thoße outside India were 1,250,000 bales, which represent some four months' supply. The promise of a larger crop has naturally been refected In a decline in the price of jute. In market circles the impression prevails that quotations will shortly reach • stable level. The determining factor •o far as prices in the immediate future •re concerned is the buying policy of tho Calcutta mills. Any considerable purchases from this quarter would, it is ield, stimulate prices. But at the moment there are no signs of such a move. !As regards the Dundee trade, owing to ;lhe prices of yarns being near the prices of the raw materials, there is some incentive to buy. The trade throughout the district is on an improved basis and the position of spinners and manufac- ' turers appears to be assured until the end of tho year. Tho numerous enquiries are believed to indicate that orders remain to be fulfilled on an extensive scale. AUSTRALIAN STEEL. INDUSTRY NOT FLOURISHING. (BT CABLE—PRESS ASSOCIATION*—COrVRIGHT.) (AUSTRALIAN* AXD S.Z. CABLE ASSOCIATION.) SYDNEY, November l:J. Owing to the recent importations of •tructural and merchant steel from England at prices which defy local competition, grave fears are at present entertained, regarding the future of the Broken Hill Proprietary Company's vorks at Newcastle. For many months a steady falling-off in orders has been experienced, and already the services of several hundred men have been dispensed with. It now has been decided to close down part of the works. It is estimated that when this is put into effect next Saturday considerably over 1000 men will have been put off, CEREALS. (Received November ISth, 8.30 pm) „, . LONDON, November 17. Hour is steady. Australian, ex More is quoted at as* 6d to ;j9s a ton. lulet" *'* fim ' PC " * re Bleady ' and bpans