OUR YORKSHIRE LETTER

Dominion, Volume 6, Issue 1743, 7 May 1913, Page 11

OUR YORKSHIRE LETTER

■ THE OUTLOOK FOR WOOL. (Prom Our Special Correspondent.) Bradford, March 25.... We seem to have reached a time in tho woo! traile when a halt has been called, and there is no disposition at the consuming end of the trade to, cause 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 tho final results of tile recent London sales, most optimistic feelings have Tk".'ii expressed in Australian wool circles in particular regarding the future of prices. i 1, lu seen that tile antrci-. pated shortage of Dalgcty's to the extent of 300,000 bales is tho horse which has been ridden the most, mid in face of such an important shrinkage in supplies, everyone has looked through exceptionally clear spectacles, and seen nothing but a further sensible advance in values. There is also the way that tho raw material has been absorbed at Australia, Now Zealand, and South African centres, to consider, wool having moved into buyeri' hands in a record manner. Wo believe that something like 40,000 more bales have been sold this season in New Zealand compared with last, while tho season has been also equally as quick in South Africa and Buenos Ayres. AH these "bull" factors have naturally raised hopes of very high prices in London and Bradford when tho full measure of tho 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 tho surface to find genuine cause for the ripward trend of values beinp arrested. It is safe to say' that if other sections of the trade had been in the samo buying mood as Yorkshire topmakers, the full opening advaneo would have been held intact, but the comparative indiffertmce of America, and tho very limited operations of tho Continent, are factors which played an important part in determining tho course of the market, and if full cognisance is paid to all these facts, London did as well as could be expected.

WHERE PRICES STAND. We can now afford to stand still and consider whero values are compared with twelve months ago. This line of argument is suggested by what one hears every day 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 Mid piece goods, wholesale fabric buyers in particular refusing to operate and pay the advances which arc being demanded, When all is said and done, the price pf j both wool and tops is on a very differ- | ent basis from what it was a year ago, for prices are being demanded anywht,from 3d. to 7d. per yard higher, according to tho weight and quality of the fabric in question. Below I give particulars'showing where pricos stood twelve months ago for good standard descriptions of tops in Bradford, and what are quotations to-day for tlio same article March March 28. 27. AdDescription. 1912. 1913. vance. 70's colonial tops, averago 26 31 5 Gi's colonial tops, averago 25J 30 GO's colonial tops, supei 2-1J 291 5 64's Cape tops, long ...... 3-li '295 JJ 56's colonial tops, average 19 J 23J 4J 50's colonial tops, average ■ 17 21 4 46's colonial lops, carded 14 171 31 •it's colonial tops, corded 13i lGj 31 40's colonial fops, propared 131 161 3J 40's colonial tops, carded 123 15J 3 ■ 3G's colonial tops, prepared 12J 16 3J The reader will see from tho above that very material advances have-been made in the combed article' crcniparSd 'with the corresponding dato a year ago, and it is generally considered that whon merino tops reach a half-a-crown altitude it is wiss to mako haste slowly. When ono remembers the serious set-back which has followed the booming times of 1889, 1899, and 1907, there is reason for tlie present halting attitude of the majority of consumers, and as far as ono can see, there is now every likelihood of further advances being contested by users for all they are worth. It is this fact Which promotes tho present query as to whether prices for wool aro high enough.

THE BULL FACTORS AT WORK. As one surveys tho wool situation, one is bound to acknowledge that for the time being the raw material stands fairly high, and before any further upward move in value occurs both the shortage and the present excellent trado will have to make their influence felt upon supplies. The arrival of such tremendous imports of wool means that practically all users at the moment have their financial resources taxed to their utmost, and we certainly think that tho present halt has been tnoro 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 bo found to finance theso arrivals, cilia topmakers, spinners and manufacturers 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 hero really where the trouble has begun. Tho Near Eastern war ought lo havo been finished before tho end of 1912, but it. still drags on with its awful waste of capital and lives. Experience has proved that war is a costly game, and so much hard cash is now wanted annually to maintain armies and artftaments, that the resources of the people aro being more or less crippled. It is all righi being well prepared for possibilities, but all the same heavy war commitments are a sevore tax upon all nations, and A,nlv those financially strong can afford to play as some nations are doing. But the question arises: What is going to bo the ultimate outcome of wool prices, and may wo reasonably look for a higher standard of values? The best answer we can give to these queries is that we expect the raw material to continue to sell at profitable prices, but.for the time being cannot, see where the impulse is coming from to se.ud 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 account. ] When this letter appears in print, we shall bo in the thick of the next series of London sales and aa far as one can see thero is little likelihood of prices being any higher than they were in March. Supplies are' likely to be somewhat larger than last series and it will toko tho trade all its time to purchase the wools available without prices suffering a relapse. We do not sec why wool should bo 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, but higher values, for tho moment, seem to the writer to bo out of the question. Of course, it may bo found necessary and wise to carry a fair amount forward till later in the war, for it will be in .Tulv and September n'hen any shortage in, thVciirrent Australian clip will make itself felt. What the trade wants to-day is the opportunity of turning itself round. It is now taking considerably more capital to wield business, compared with twelve months ago, for not only is wool dear, but everything else connected with the mill. It is this fact that prompts lis to give a word of warning to those v:ho are expecting materially higher prices. We .cannot see cheaper wool, and as previously staled 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 woollen and worsted industries of tho West Riding are still enjoying a fair measure of prosperity, and mills have hegun to work after the recent holidays. A day or two ago a leading manufacturer of worsted fabrics bemoaned the fad that everyhing wis "stinking dear," and he saw at present little prospect either oi cheaper wool or any other manufacturing commodities. At the same time he t.ii'i that new business was nothing neer so good, and ordejvi were distinctly scarcer

than they have known for sonic months, and lie attributed this to tho 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 tilings with the manufacturer in question, the latter said that at. this time a year ago they wero paying 2s. 8(1. and 2s. 8!d. for 2-10 s yarns spun from (I 4's tops, mentioning one of (lie I>est Bradford .spinners from whom t'liey purchased this count of' yarn throughout the whole year, being a little partial to it He said" to-day their price was 3s. Id., which meant an advance of practically Sd. 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 nt 4-s. Gd. for a solid n'ixture. worsted, they were to-day wanting ss. IUI.,- a price which they found impossible to obtain.