LONDON WOOL SALES

Dominion, Volume 8, Issue 2373, 1 February 1915, Page 8

LONDON WOOL SALES

CLOSE OF A MOST UNSATISFAC.

TORY SERIES

(From- Our Special Correspondent.)

Bradford, December 18. Since writing last, the final auctions of colonial wool for the year have come to a finish, and Coleman Street Wool Exchange, emptied itself of buyers last Wednesday evening. All seemed glad to get done, and Yorkshire representatives cleared away by the .evening trains. One or two French buyers have been over, and these have gone back to Boulogne, that being as far as they can get into France with any degree of safety. Business continued very similarly during the last three days of tho series to tho opening week, and we regret to say that merinos improved none whatever. Some nights showed a little more competition, but there was that spirit of indifference about buying which was so prominent a feature during the earlier.part of the series. However disappointing the auctions may have been to colonial growers, what else could be expected when there is not the machinery at present available in the home trade for handling merinos, and when there have been no Continental or American buyers present to push Yorkshire? It is all right saying that good shafty merinos did not lose ground a great deal, but Id. to 2d. makes an appreciable difference when a grower counts his returns, and wo say that the war has directly knocked at least £3 per bale out of the value of the Australian clip this season. That is-a very serious item, but at the same time we see no reason for saying that by holding the wools over any improvement would take place, and therefore growers havo wisely decided to meet the market. Alterations in Evidence. We give below our usual particulars showing what changes have taken placo compared with the close of the previous series' a month ago:— Australasian Wool.—Greasy merino, superior, Id. lo lid. cheaper; average to good, 2d. to 3d. "cheaper; poor condition, 2!<l.'to 3d. cheaper; inferior locks and pieces, 3d. cheaper; scoured, superior, 2!d. to 3d', cheaper; average to good, 3d. to 'ild. cheaper;. inferior, 3d. to id. cheaper; faulty, locks and pieces, 3d. cheaper; greasy, lambs, superior, 2d. to Id. cheaper; medium, 2d. cheaper; inferior, 2d. to 3d. cheaper; crossbred, fine, superior, unchanged;' ordinary, unchanged; medium, superior, J-d. cheaper; ordinary, id. cheaper; coarse, superior,' Jd. cheaper; ordinary, -Id. cheaper; scoured crossbred, fine, unchanged; medium and coarse, unchanged; slipe, fine, par to id. higher; medium, id. higher; greasy Purita Arenas,, well conditioned, par to id. cheaper; wa6ty, par to id. cheaper; Falkland Islands, par to'fd. cheaper. South African.—Snow white, super, Sd. cheaper; medium, 4d; to 4«d. cheaper.; inferior, fd. to Qi. cheaper; greasy combing, light, 2d. cheaper, unsaleable; heavy, 2d. cheaper; clothing, light, 2d. cheaper; heavy, unsaleable. The reader will see from tho above what a radical alteration has taken place in merino values, and various views are expressed regarding the future course.of prices. The demand for merinos all through has been very indifferent, it being a long time since we have heard selling brokers make the remarks they .have when they have called for bids during the course of the .sales. Many bids have at times been little better than sporting offers, but. growers' interests havo been protected as much as possible "by those looking after them at this end. Still, when good average wool is fetching no more than lOd. per lb. in Coleman Street, It shows that wool is not at all dear, and those in a, position'to. use this material can to-day pick up some first-class wool at most reasonable values. ' , Can the Embargo be Modified? The embargo is still a burning question in the minds of many representing the interests of growers as well as shipping houses. Fine wools have been knocked down largely on account of limited competition from the outside world, and the longer the embargo obtains the lower will merino valuss go. What fine wools wanted to-day is broader competition both in Australia aud London, otherwise we shall see prices still lower next month. We believe that the Government realises this just-as. much' as, anybody-jclse,- and they cannot'refuse''to allow- merinos to be shipped to neutral Continental countries I very much longer. Several countries have already put embargoes upon the export of wool, besides yarns and piece goods, and we think under proper Government guarantees the wool bought in London and Bradford would not find its way to Germany. We are therefore inclined to say that with the turn of the year the embargo will be modified in, favour of allowing line wools, fine tops, noils, wastes and shoddies to- be exported to neutral Continental countries, for only by so doing can we hope to see trade continued and consumption of fine wools maintained. America seems to be talking about retaliation, for evidently they are fearing that if prices are lowered to such a point, Yorkshire manufacturers will be enabled to make fabrics at such a price as to undersell American manufacturers of dress goods, worsted coatings, and the like in their own market. Wo hardly think this is likely to take place just yet, particularly now that the embargo has been lifted on merinos in favour of the United States. Whatever cheap wool is available to British users, is also accessible to United States spinners and manufacturers, and: therefore their fears are entirely groundless. We Want to 6ee merinos goin» to Continental neutral countries, and then we may expect the market to become steadier. The Outlook. Writing with reference to the outlook, Messrs. H. Dawson and Co. say: "The closing of the final series of wool sales for the year has left the market in a position which is not only perplexing but precarious. Inflation and boom characterise the coarser grades, while panic and. depression havo seized the market in fine wools. "The war has. early bequeathed its legacy of disaster to merinos, and we havo to report the most serious decline in these sorts since tho memorable, black year of 1900. Nobody would complain of this sacrifice, which, so seriously affects colonial interests and the home industry alike, if there would be any gain to,the national interests at this time. On the contrary, nothing has been gained, but much sacrificed, by the lack of a little wise discrimination, and there exists a very strong feeling that such disaster might have been mitigated. The home trado is ohiefly occupied with crossbreds and cannot absorb the merino supplies, but there aro hungry supplicants for these wools amongst our Allies and friendly nations, whose buyers are willing to give the fullest guarantees that the wools will not bo used for trading with' tho enemy.

".The announcement made at the opening of the series by Sir George Eeid regarding- shipments to the United States has been ineffective, because no definite statement could be obtained from the authorities as to the form and nature of ,tlie guarantees required or that licenses would bo at once granted. Considerable United States orders were on the market, but were consequently unavailable. Meanwhile the anomalies in demand and in values have been most perplexing, and there seems little chance of adjustment so long as the present abnormal conditions continue. If tho market were thrown open there would probably be some rectifications ithich would be welcome. Seeing that tho "War Office mainly insist on crossbred fabrics for Army purposes—which is a very questionable point at issue—the discrepancy of values favouring the coarser grades is likely to be more or less maintained while the war lasts. It seems incrottible that a coarse wool, such as an ordinary 4-6's khaki quality, should lie at the same level of value in the clean scoured state as a medium 64's fine merino, wlu'le the best SB's (clean) arc 25 per cent, higher. Meanwhile the military authorities .are satisfied to pay the bill for tho coarser article. Some sweeping adjustments will como when the demands for military cloths become normal and the ordinary trade of the world is resumed, but until then our industry m>ust patiently suffer a time of perplexity and fluctuation. "Happily our mills are well employed, and with all the world's standing armies to l)o clothed during thi6 epoch of strain and warfare, there is no early prospect of depression in the home trade; and the outlook for crossbreds is therefore extremely bright; so long as such- conditions obtain. The. outlook for merinos is entirely dependent on the removal or partial removal of the embargo. "The South American wools are now beginning to arrive at-our shores, and- | should greatly relieve the strain oil cross"~?4s iutjjycjis jtfxt [ejj