YORKSHIRE LETTER.

Dominion, Volume 6, Issue 1820, 5 August 1913, Page 6

YORKSHIRE LETTER.

THE WOOL OUTLOOK.

DEFICIT ARGUMENT OVERDONE

(From Our Special Correspondents.) Bradford, June 27. Those in close touch with the consuming end of the trade have had the • outlook for wool forced upon their attention in a very prominent way. We certainly think that lately many factors have been at work which have compelled topmakers, spinners, and manufacturers to take 'in sail, for the wool ship is not altogether in the calm waters of some four or five months aco. It is not perhaps for us to say anything on this occasion about t.Jie shortage in the current Australian and South American clips, but those looking upon the situation without prejudice have begun to feel that tho deficit argument has been a little overdone, and there are indisputable eigns that it is twelve o'clock even, in regard to merino values. Possibly readers may not relish that statement, but we think they, as sensible business men, should bo prepared to face the facts. One need only remember that the tendency of wool values has been upward ever siuce January, 1912, and however pleasant the experience of receiving more for their clips than they hod the previous year may be to growers, there is a limit to everything and prices seem at present to have touched the top. We venture the opinion that if current prices continue, even growers will take no harm, and if to-day's values are to be improved upon when the next Australian clip comes to be sold, America irill have to buy in a very determined way and a'difforent temper come over the home trade.

Is Wool High Enough? Tlie actual user of wool has always to oonsider how to produce clothes both for men's and women's wear at prices acceptable to the wholesale buyer. He knows that ho has to face individuals who occupy a very important position in ultimately deciding the price of the raw material, and to-day a struggle of 110 mean order is proceeding between, tho manufacturer and tho fabric buyer. It is well worth asking why markets havo turned so quiet, and why there is a pronounced absence of new business? _ To a very large extent this is a question of price, and tlie refusal of wholesale clothiers, merchants, and shipping houses to pay tho advances which manufacturers ure compelled to name on account of wool values hiring risen 60 materially. Let us for a moment look at the record of the past eighteen months. At the beginning of January, 1912, G4's average colonial tops could be bought easily at 25d., compared with 2s. Gd. to-day. Even 40's tops were on the market at 13id., compared with ICJd. to-day. These are advances whioh in themselves mean to the manufacturer far more thwi appears on paper, for 5d." in the merino top means something like Bd. per yard in the piece. This is a serious advanoe, and we do not think, there is a single manufacturer in tho West Hiding who has been able to obtain anything'like this increase. The writer was talking only this week to tho buyer of ono of the largest West End merchants who do a higli-class trade' in Golden Square, and ho frankly stated that, although manufacturers were asking anywhere from Gd. to 9d. per yard increase on solid worsteds for next spring goods, they were going to pay no such advance. They would pay an all-round 3d. per yard increase, but rather than buy at Gd. per yard advance they would throw out wholesale solid worsteds, -and substitute cheaper woollen fabrics. That shows the temper of the market to-day, and it is an aspect of. the wool trade which is exercising the minds of all. Contrast in Values. We think wo cannot do better than give readers a tablo showing tho prices current for leading descriptions of tops in January, 1912, and what are current prices for June. The June, 1913, figures are gjven in parenthesis:— Seventies colonial tops, average, 26d. (Sid.); 6i's colonial tops, average, 25$ d. (30(1.); GO's colonial tops, super, 24} d. (29d.); GO's colonial tops, ordinary, 22j(1. (2ii}d.); 58's colonial tops, average, 21d. (26d.); sG's colonial tops, average, 19Jd. (23d); 50's colonial tops, average, 17d. (20Jd.); 48's colonial tops, average, carded, 143 d. (18id.); 4G's colonial tops, prepared, 153 d. (18Jd.); 4G's ' colonial tops, carded, 14d. (17Jd.)i 44's colonial tops, prepared, lid. (17} d.); 44's colonial tops, carded, 13jd. (IGJd.); 40s. colonial tops, prepared, 13£ d. (fGJd.); 40's colonial tops, carded, 13d. (15Jd.); 3G's colonial tops, prepared, 12jd. (lGd.). Tho above table only serves to emphasise the point which we are setting forth, namely that such an advance in values is bound to . have an important bearing upon the prico of tho finished article, and the wholesale trade seems at tho moment to liaye come to the junction where they must accede to tlie demands of manufacturers or bo prepared to accept something cheaper and less serviceable. American Wool Trade. There is really nothing now to say In regard to the tariff development so far as wool is concerned. Private information received this week from Boston is emphatic in declaring that everything points to free wool, in fact, those in the best-informed quarters in Washington state that it is now a certainty. This should be good news to Australasian, South African, and English wool-growers, but it looks -as if the new tariff will not :bo in force Keforo October 1. A struggle is still expected in the Senate, but tho differences seem to be passing away. Many are expecting big things when the American ports are open, but wo think it wise to entertain sober views, and not to expect the impossible. The figures given below show that there are fairly big weights of merinos and crossbreds in lxind, and further shipments are also being -sent from Bradford, hence it looks as if there will be moderate supplies directly the wool is available without duty. 'What wc aro concerned about most is the duty on semi and fully manufactured articles. It seoms to us that American mills need a (5 per ccnt. duty to fneo the cheaper products of England and tho Continent, otherwise they will not run as they should. Tho following table shows tho quantities of wool at the ports of Boston. New Yorlc, and Philadelphia on June 7, and at the end of tlio corresponding week of last year: Juno 8,1912. June 7.1913. - Lbs. Lbs. Class 1, merinos and crossbrcds ... 38,911,509 43,529,410 Class 2, English' , voo l 3 845,548 2,135,5G7 Class 3, Carpet woo l s ; 15,481,001 2G,283,661 Total 55,241,108 71,918,638