YORKSHIRE LETTER

Dominion, Volume 7, Issue 2261, 22 September 1914, Page 7

YORKSHIRE LETTER

I WAR STOPS TRADE' (From Our Special Correspondents.) Bradford, August 7. Ilio shadow of the crisis in Europo naturally vests on the world of, finance, of commerce, of industry, of politics, and none the loss on the wool trade. Wo are to-day confronted with • very different factors from what were in operation oven a week ago, and to-day everybody in the toxtilo trade is up against war and all its terrible consequences in a very grim and real way. The writer never felt himself more competent \to doal with the wool situation than at present, but to-day we must admit being in "queer street" and what to say wo do not know. Everything is in a state of chaos, and but for tho prospect of this and other Goverenments placing important military fabric orders, we are confident that wool values would have headed downwards like a falling; rocket. It is impossible for anyone, either here or abroad, fully to grasp what war and its inevitable results will do to wool values, and growers as well as users are just as much alive to the exigencies of the situation. All that can bo done to-day is to look on and wait, and that is the programme ovoryone is following. The influence of Germany and France in tho colonial wool trade need not be dilated upon, for their extensive operations during the last colonial season were such as ,to shape the course of wool values. It is almost incomprehensible to the human mind to find seven' leading European countries all with tho sword unsheathand all at each others' throats, waiting to do one another to death. And yet that is what we are face to face with, and wool values undoubtedly are a little thing in the balance that only a minute' section of the people care a straw about.

What is Likely to Happen. Whatever wo say upon the above heading ■ is entirely of the nature of prophecy, and our ideas, in fact the ideas of the whole trade to-day, may bo entirely wrong. Still we can only set forth tho general impressions which prevail to-day in consuming centres. Australian wool growers, and particularly those in New Zealand, have every reason for devout thankfulness that the recent London sales are over and gone, although it is only this week .that the last prompts fall due. We have not lic-ara of any troublo, and hope, that everything has gone through satisfactorily. At the same timo there is still ample time for trouble, but we sincerely hope that the opporunity will not be furnished.'

Tho general impression prevails to-day in. Yorkshire consuming centres that it would be the' height of folly to start soiling right and left, for in twentyfour hours if that lino of operation woro adopted, prices would be at the bottom, and we should see a panic. Men's ideas are running entirely in the opposite diiectiou. They point to the fact that tho two most recent wars produced a busy time for the spindles and lod fs of the West Riding, particularly'( fe woollen industry, and therefore, ,v( (a thore being so much wastage, it /..'/mot be maaiy days before important, kliaki contracts are given out either by tho British Government or other Continental Powers. Everybody, therefore, feels that it is policy on their part to look on quietly, keep cool, and face the future with a strong nerve. No doubt it is i a .difficult, operation, but all alike, -fee!'tKatVtb"'',starf."'slaughtering stocks, would be suicidal, and therefore if the financial situation will,only help materially arid.banks will give all the.assistance they...possibly - can. .to their customers, prices are likely to remain nominally firm. Wo daro say, wo could .here and there buy to-day almost any quantity of top at a fraction less than o fortnight ago, although topmakors are still quoting tho same price. But nobody will do anything, and therefore in the absence of 'a market, we can, only report values' as nominally, steady. As already said, the hopes of the West Riding trade are centred supremely upon future khaki orders. Of course, soldiers on the field want blankets, rugs, and other necessary outfit, the bulk of which is made from wool, consequently there is just that side of the war question-whioh is less gloomy to users in the West Riding.; Of course, the same roiuarks apply to Frenoh and German, as well as Belgian,' and to some extent Austrian manufacturers, although in these Continental countries the bulk of tho mill male employees wjjl be. at the front, which state of things does- not obtain in tho West Riding. Of course there are a fair number of Territorials who aro away to the front, but at a time like the present plenty of hands are available, and war orders would be tackled in real good earnest, and.the work got through with all possible speed. s Of course,' this will mean most support forthcoming for erossbreds. but if a slump can be prevented and mills can be kept running, it will be the best stimulus .that could possibly bo given to the wool trade in general. Wo, therefore, think that- we shall not see very much change in to-day. situation, for at least afew weeks, that is, unless banks compel their custonjers.to reduce overdrafts or an effort is made on the part of those having to pay ten per cent, interest to sell and obtain cash. We need hardly say in passing that all trade with the' Continent has been stopped. Last week many cables were received in. Bradford, where a big Continental trade is done every day, to cease shipments, and now Bradford houses are naturally most concerned about their accounts.. Some are heavily involved, and what will be their 'fate they do not know. It is useless fretting and fuming, no money is being allowed to . leave Continental countries, and therefore many firms are completely at a standstill.

Bradford Conditioning House Returns. The manager of the Bradford Conditioning House said last week that all Continental trade had been completely suspended, and they had nothing to do. He stated that since Tuesday, July 28, they had been awfully quiet, practically -nothing was doing ,the wholo trade of Bradford being paralysed. Of course, the returns for July have not given any indication of stagnation, but the figures for August will bo a big contrast to tho corresponding month a year ago. We want to point out that tho returns for last month show conclusively that the trade up to the outbreak of hostilities was being well maintained, particularly for tops. The increased business done with America and the maintenance of trade with Germany, Austria, and Russia has all helped to maintain tlio total, but the business this month is certain to show a. great'slump. We can. only go upon the data furnished in the last return, and the following figures indicate the weight of goods passed through the Bradford Conditioning House during July of the current and the two previous years:— 1914. 1913. i 1912. lb. lb.. ' ; lb. Tops 6,987,618 6,389,160 7,418,598 Wools 827,521 1,102,594 814,121 Noils .. 981,712 630,100 476,314 Wastes 678,690 573,646 406,836 Worsted yarns 396,467 250,748 286,980 Cotton varus 10,270 8.642 17,928 Siilc yarns 2,920 1,954 4,097 Goods I - weighed only 218,362 132,421 ' 85,076 T'U. 10.103,558" 9,089,265 9,609,950

'Us. - 76,423,412 67,152,902 63^543,030 Conditions in Bradford. • Never in the history of the Bradford trade has the Exchange been so crowded as to-day, but tihere has been practically no' market During "high change" the.meeting was addressed by two important members of the conimercial_ world, who'have been in Loudon during the week consulting with the Government in regard to the' financial and commercial side of the nation's trade. Everybody appeared satisfied that the best thing that can be done at the moment is to keep calm and sit tight, and that is the_ attitude of the whole of the Bradford tfado. All orders for the Continent have been stopped, and at that end things are dimply in a state of chaos. Some small sales have been put through on home trade account; but to all intents and purposes there is no market, and everything is at a standstill. All that one can do is to await developments. The brighest side of the trade to-day is the placing of a few Government war orders for khaki cloths,' blankets, and thick yarns, and more .can bo expected in the courso of /another week. Business everywhere has been reduced to the very smallest proportions, and even orders on American account have grown less during the past week. Several firms state thj* ;hoy could sell to-day if .they were prepared to take less money, but they are not willing to do so. If khaki orders are placed, it.is certain to have some effect upon low colonial crossbreds and English wools, and already fellmongers have experienced a fairly good inquiry for short wools suitable tor carding purposes. Most crossbred spinners are preparing for running only three days por week, sever.il having taken that step already. "Mohair is an absolute blank, and will be, the countries at war being Bradford's largest purchasers of mohair yarns. Since last Thursday about 100 bales of alpaca 'Arcquipa fleece have been sold at Liverpool at a so-called "secret" price, which is understood to be at a slight reduction.'':