YORKSHIRE LETTER

Dominion, Volume 8, Issue 2335, 17 December 1914, Page 8

YORKSHIRE LETTER

AN IMPROVED OUTLOOK. (Prom Our Special Correspondent.) Bradford, October 23, 1914. We take it that the wool markets of tho entire world, apart from those of France, Belgium, and Germany, are showing more normal conditions, and everything indicates more satisfaction, particularly from the grower's standpoint. To some extent the exoitement of the past fortnight has subsided, and users are looking at things with perhaps lust a little more reserve than they have been doing, but for all that there is the same eagerness to acquire suitable stock, and some big wants have yet to be covered. It is more than ever . patent that the lifting of the forthcoming Australian, New Zealand, South_ African, and South American clips is going to have to bo done by Great Britain and America, although it is useless overlooking the amounts of raw material which Japan and manufacturers in Australia and New Zealand are likewise consuming. It is quite true that Germany, France, and -Belgium have lifted big weights of wool in Australasia during the paet few. -yearsj and some are beginning to think that tho activity on the part of Germany' during the past .two seasons, when its own manufacturing industry has not been at nil vigorous, has been expressly by way of preparing for the present struggle. One of Bradford's most prominent citizens, who is also the head of one of the.largest importing houses represented in Australia for many years, said publicly a few days ago. that in his own mind he was satisfied that the onslaught of Germany in Adelaide,. Melbourne, and Sydnoydur.ing the past two seasons offered conclusive proof that manufacturers had been given the tip to lay in big stocks of material, ■ and so get'ready for the present emergency. ' Of course there are no trade letters of paper filtering through to this country, therefore,no one knows the conditions of the textile industry of Germany, ,'but* it is safe to .conclude that fair stocks of raw materials were in Germany at the outbreak of. hostilities, for some of the firms who operated extensively in London in July were cute enough to get their wool shipped before the end of that month, and it is a fact that _ a few London firms are to-day wanting considerable sums of money from, Germany, air due for wool purchased in, July and shipped without payment.

Unexpected Strength of Merinos. •The sale that took place in Adelaide last week and also the auction, in Sydney \on Tuesday . has convinced many people that merinos are nothing near so weak as they imagined. Of course, what has taken place during tho past month is' no doubt largely responsible lor the present active buyiiig, and also to the unexpected briskness of botany spinnors, directly traceable to'the boom in'the hosieryHrade of Leicester. Bradlord topmakers as well, as spinners have realised that stocks , with them are unusually light,-the first flush of buying having given proof, of .this.' The rapid advance in merino tops is really, amazing, for whereas at tho end of September some very good 6i's changed hands at 2s. 2Jd. to-day's price is anywhere from 2s. 7d. to 2s. and the very parties who sold at the lowest point now feel anytihng but pleased with what they did. Of course, they thought it policy to cut their loss, because everything pointed to merinos sensibly easing, and even yet-there.is a firm conviction abroad that when tho. present urgent needs have been supplied, owners will have to be satisfied to accept less than to-day S ru ]i n g prices.., SMII there is nothing to indicate any very serious decline ahead, and so long as tho present ,'booming trade continues throughout Great Britain, with a wonderful improvement across the Atlantic, it does not look as if merino ■ values are going to fall-very materially. Of course the best guarantee of present trade continuing is for prices to come to a more reasonable lovel, for in the history'of the world there has never been a big textile boom with values either for merinos or crofisbreds where they / stand to-day. , At the present time everyone recognises! that very exceptional conditions 'prevail, all of which 'are responsible for the present standard of values; but it is certain that the booni is assured tor the nest four months, if not longer.

How the Embargo Is Working. There is no/subject that has called forth so much comment during the past fortnight ae the embargo on.the shipir.ent of wool abroad, and considerable difficulty' is being experienced in obtaining licenses. The writer knows a leading- member of the Bradford trade who has interviewed the officials of the Custom House and also has audience with responsible parties of the Board of Trade, and all this extra work is having to be done by the regular staff. Applications for licenses made a'fortMgnt ago have drawn forth nothing more than, a , formal reply, and many firms are waiting to make shipments of merinos to antral countries, as well as noils and other fine materials, but "they are held up. Many contend that there is still ueed for a more definite declaration on the part of the Board of Trade regarding what materials are barred from exportation. Some firms are feeling the embargo very acutely. For instance, the writer heard a gentfenian* eiiy that lie had aii order for the Far East for so many gross of yarns ivhich are being letailcd at ; about 3d. per length, and the- draft on London terminated on the last day of October. From what ■ he said ,they were s : mply reels of worsted yarn to be Bold out to the ordinary housewife, and absolutely unsuitable for producing war , materials, and if. he could not get a license to ship these, he would havo the whole lot thrown upon his hands. We are afraid that crossbreds, beingj entirely . debarred, it will be impossible to ship the yarns, and there are other firms similarly sitated. Still,-for all that, it is necessary to draw tho line somewhere, and we are s,attffied that the Govornment has acted hi tho best interests of the whole trade,,prevent--tng as much as possible the enemy from helping themselves to crossbred supplies either in wool or yams. Position of Prices. The week has been less active than its predecessor, due entirely to owners of the raw material having less to Ecll. Practically speaking, all the wool purchased at tho recent London sales was disposed of in the short space of a week, at least topmakers arc so inundated with ordors that every pack fche.v can deliver'for the next two or three weeks has. been sold, and all firms alike are eagerly looking forward to tho approaching sales. Tho worst feature is that there are so few crossbreds available, but what else can.be expected? Merinos will have a more thorough test than last series. Many are sanguine enough to believe that fully last sales' pnees will bo realised, and some even think that we shall see a 5 per cent, advance. Our own view is that importers will bo well satisfied if they obtain last sales' values, and I think these will bo forthcoming. Wo certainly thiiikthat if wo have no lower range of prices than was soen recently in Coleniaii Street, every reader of this issuo will have just reason for satisfaction, and cH-orybody will be Rind to so on selling and meeting tho market. As far n.s wo can sre, to-day's prices arc 'Js. 7il. to is. 7.U1. for a Rood stiiiidind li-l's lop. Merinos are lieinp; largely consumed, and many botany spinners say candidly M»t their returiiß from Leicester

are exceedingly good. The worst feature of nierinoa is that there is so little doing in the Homo trade proper, though probably by the time tho boom is over for hosiery and fine serge materials for the Army there will be more doing ton. Home trade account. Of course everybody knows the exceptional circumstances which obtain, and if stocks for the ordinary civilian can:be reduced it will simply mean paving the way for further purchasing of twoeils, serges, coatings, etc., ivhieh will be required in good weights next spring. Of course manufacturers ought at this time to bo receiving considerable repeats for Hie present winter season, but they are' off the map entirely. Some are making ready for delivering their new spring, styles, but even those have had to take a back seat in view of tho avalanche of business which has been placed by the War Office. Conditions In America. The 'embargo eeems to have disturbed the American market considerably, and it was bound to do. Naturally it soon had its effect upon prices, everything advancing about two cents per lb. American mails clearly indicated renewed briskness in raw materials, and tho fact thafmany mills are largely engaged on British, French, and Russian Government orders means that big supplies will bo wanted. We would not. liko to say outright that Germany has placed orders with American mills, but we have our suspicions. However, we have first-hand .information that khaki serge and blankets for both the Russian and French Governments aro being made. Belgium is; also endeavouring to satisfy her wants, and our own Government is naturally taking care of her smallest Ally. One of the most satisfactory features connected with the wool trade seems to me to be tho fact, that American mills are busy, and no doubt her manufacturers will seok their crossbred supplies in Buenos Ayres. The representative of the Uruguayan Government lias made overtures to the American wool tradeto purchase the whole of its clip, and no doubt if American mill-owners cannot 6ee their way to lift it all they will certainly take' more than they have done in years gone by. Of course there is yet ample time, as the new clip is only just on the point of being shorn, but in the course of three weeks there should be some fair weights of wool available at Monte Video and Buenos Ayres, and no doubt there will be a scramble for wool'for a few'weeke when the.market o opens. Still the point-we want to emphasiso is tho renewed activity of the mills of the United States', all of which mearis an enlarged consumption of fine wools, by which Australia is certain to benefit. As we. write this everything is of aj most order, and the outlook is certainly favourable for a maintenance of to-day's values, and, better still, consumption as well.