YORKSHIRE LETTER

Dominion, Volume 8, Issue 2380, 9 February 1915, Page 7

YORKSHIRE LETTER

THE WOOL TRADE IN 1914 EVENTS OUTLINED IN AN UNPARALLELED YEAR {Trim Our Bi>e«i*J Oorreiponaent.) Bradford, December 25, 1914. The year opened very expectantly, the trade having hopes of a great business with the "United States on account oi the new: tariff. Tlie last few months of 1913 were very slow, and with January came an awakening. A better tone and better prospects were prevalent, iind values rose distinctly at the beginning of the year. The industry was in a position that admitted of great improvement, mills being by no means fully employed. Half-way through January the London sales showed that tho trade considered raw material more worth having, and slightly advanced prices were paid. Crossbred wools were the best to sell, and the London level all round was above Bradford. The slight rise both in merinos and crossbreds was not refleoted here, and though the whdle industry was steadily improving, business did not increase all at once. America was beginning to make her purchasing power felt, both in Bradford and London, and at the former centre was buying .both wool and tops. The month closed distinctly better than it opened, with merino tops on a basis of 3Jd. for 64's and crossbreds on a basis of lGd. for 40's. Before the year began there had been much talk to the effect that for really good profitable bksines.s a basis' of 2s. 2d. for good 64's was wanted, but it never came. February opened well, the continually expanding consumption making itself felt ii increased.-purchases. Manufacturers were becoming busier, and bought frefely .in yarns, spinners covering some of their sales. Topmakers asked more, and confidence improved iii every section of the market, especially in crossbred wool and its prodiibts. The American factor was' becoming increasingly powerful, both in the purchase of wool' and tops, prices often being paid slightly above the market'lovel. Wool was selling at relatively better prices than tops, aiid. tops than yarns, and topmakers adhered firmly to their-advanced quotations, having, good reason to do so. Crossbred yarns wei'e in refy good demand for export, and a big business was dohe. Sixty-fours rose to 2s. 4Jd. and 40's to 16Jd., and the question of - wool supplies began to trouble the trade, ■ thus making still higher values probable. The chief event in March was the second series of London sales. A,t this series, as usual at the tiiae of the year, crossbreds were in large supply, but the hdine trade had such a demand foi; theto, ably backed up by the United States for the 'finest . qualities, that prices rose sometimes 7j per cent. Naturally Bradford topmakers rose their quotations 1 sharply, ■, but business was very slack. Bradford did not follow London, and it was a case of wool keeping up top valued English wools were selling well iii sympathy with colonial sorts. The stronger qualities, such as lustres were good to move, prices being: distinctly .higher than in February; Downs aiid half-breds also sold fairly well, but not to the same extent. Good 40's, tops now commanded 16.? d., while merinos were about steady with 64's at 29 Jd. . The Second Quarter. April came in, bringing with it no great change. Wool was still setting the pace for the whole trade, and a sharp struggle between tho cloth market and tho wool market was expected, as to whether thß former should rise or the latter fall. The demand for wool seemed Universal, though, topmakers could sell but little, and spinners less still.' Many of these latter had worked out most of their contracts, and were running short time, and a large number of combs also wore standing idle. No. doubt a lowering of values would have brought topmakers more business, but they could not afford to cut. prices with wool on the then existing levol. April saw tho beginning of that curious state of things which lasted for three months. We refer; to wool values being ahead of tops, tops ahead of yarns, and yarns ahead of cloth. For this there is little doubt that restricted Yorkshire buying in the colonies in late 1913, and the incoming of the American buyer wefo the chief oauses. • The American factor was one .to be reckoned with. seriously, until the war began, and there is not tlm slightest doubt that more than once it made , or swayed the market, In April spinnors bought very little, but when they could 6tjUeoze a topmaker. they took /the chances and did so. Medium crossbred tops were the only ones that really showed any ease;, 46's beiiig purchaseable at 17d. Busihess iu these sorts was very slow, topmakers being rather reluctant sellers, as they expected a strong market. Topmakers found trading in wool considerably more lucrative than that in tops, America .being in the market for both merinos and crossbreds. Wool acted on its own, moving top prices up with it, and. god 64's tops were making 2s. 6jtl. at the end of .the month. Tho Easter holidays were there only in name, so far as the market was concerned, for neither the course of crossbred nor .merino tops wVs interrupted. • May saw a continuance, of the above features.. The third_ series' of London sales closed with merino wools Id. a lb. 'higher for the best sorts, compared with March closing results, aiia average wools Jd.' to Id. dearer;; Fine cross-/ breds moved with these latter, being the same amount higher, and the- best IHinta Arehas wools advanced similarly. Most of the offerings were again New Zealand crossbreds, and a very attractive show was there for buyers to vahio. America evinced a distinct preference for bo fi to 58's, and.probably this was why coarse and medium crossbreds were shown. to be the cheapest sorts on the market. The sales opened with BradFord m a very different mood from London. The hoine trade was not in a Btate to justify the prices being paid ■ j l 0 raw ' na^cr * a lj an d as Continental and home demands were no more than the average, the American buying must be set down as responsible for tho high level of wool prices, especially fine crossbreds and merinos. - From now onwards until tho outbreak of war thoso two classes of wools, that is, all qnalities from 56' a upwards, moved together. Ike price of the raw matorial kept top values very firm. Makers coujd not shade quotations if they wanted, without losing moneyi About 2s. 7d. was tho standard price of an average 64's top in Bradford. The home manufacturing industry was slack, especially in the worsted branch. After a two years' spell of good trade this quietness was an unpleasant experience for botany and worsted manufacturers. Continental demand was poor for tops and yarns, and exportorß grumbled a good deal. Botany topmakers-got small encouragement fhnn either the homo or Continental trades, the high prices they were compelled to ask causing less business to be done. A hand-to-mouth system of going on was started by spinners which they continued for the rest of the peace year. The American demand for wool in Bradford kept up well, but chiefly for New Zealand and Australian sorts, IDnglish being rather ueglccted. So slack wero many manufacturers that not a few mills had a full week's holiday for Whitsuntide, which came early in June. This was a new experience to many mills. Tho beginning ol the fight between wool and cloth , Prices had already been made, travel- , lers having been round with their new [ soason (1915) patterns. Buyers showi en a groat and universal tendency to J ( siuJs at the nigh juotatinns, a»rl jnaauv

facturers in many cases could only make an advance of 2d. to 4d. a yard on cloth, that was costing 9d. to >ls. a yard more than tho previous year, due to the inoroased cost of yarn. June on the whole was a month of steady trade in wool and tops, America being as keen, as evef fot 1 fine orossbreds and comeback, but buying less because there was less tb buy. The market'was about cleaned up of these qualities,. and has never had a chance to restock with> aiiy appreciable weights since. Spinners were buying from band,to hioiifch) just taking weights, to keep maohinery going* and hoping;'for a fall. . Merino- tops were very hrm throughout tho month, and above 48's quality stocks were gonerally on the light side. American buying was welcomed by . Bradford wool merchants, but by spinners and topmakers was not .liked at all, except when; it m&aut taking their production; Orossbreds, medium and coarse, were ratlier easier to buy, and wool merchants, sliowed good sense in buying the English clip more advantageously. For ,two years they had paid excessive prides, alid the entering of America into this market, much , as it puslied up values, only just enabled many firms to got out without loss on their 1913 countrj purchases. The general level of prices in tho country was id- to Id. below that of.last year.

The Third Quarter, ; July would probably have been as j dull a month as June, had it not been for the London sales..'The first week of tho month was, very quiet indeed, users waiting to see ho# Londoh would go. As a rise,ill merinos and.fine crossbreds was expected as almost certain, some buying was doue in tops. Good 64's made 2s. Bd., but tlie actual market selling price was 2s. 7jd. Some, very cheap selling in medium and low crossbred wati put through. Tha sales went very strong, tlie rise in wools above 50's, being greatc-r than Bradford expected, sometimes touching per cent., while with the exception of certain classes of slipes and crossbred lambs all .orossbreds sold well at full May rates. The American demand was prominent, though buyers from across the Atlantic were, less numerous. They took a 6 much as they could get hold of it fine crosebreds, and now and again, extended operations to the beat medium wools, such as 48's. Their operations in scoiireds, both orossbreds and merinos, were also very niuoh felt, ltussia being another prominent buyer of these. jThe -great proportion. of the crossbreds offered were sold. The Bradford 1 market still found its centre of interest in American doings, the States taking fair quantities of i\ew' Zealand matchings and cased Wools, also English Downs and. good half-breds. Towards tho end of the month tho trouble on the Continent began to brew. Yarn orders from Austria and Germany were cancelled, and many export houses left with heavy purchases 'on their hands. The bank rate roSo, and though everybody looked on the trouble in its best light, and top quotations were Unchanged, there was an easier market all round. • The bonds of trade between this country and tlie Continent were all broken on August 4. Right -up to the actual outbreak of hostilities a normal trade wa6 passing, in all. branches : except the export ya.rn trade, ii July some fairly big shipments of noils came into the country from America, and ■trade went on. much as usual until the declaration of war. Merchants, whole-' sale houses, manufacturers,' spinners, and all who did a foreign trade, deceived i cancellations of all their orders, even with some neutral countries. The Government; gave out 4. large number lof : ordeis, only to Woollen manufacturerSj and the demand for crossbrbds began. New Zealand slipes, especially lambs, around 46's to 50's qualities, 'Were wanted, but all orossbreds from 40's to 58'e hegan to enjoy a good demand. Morino tops fell sharply to the extent of 5d., but small stocks ' eventually were responsible fof a return to the former level. High freights and insurance stopped the United Stateß trade, and when Japan declared war, trado with the Far East was also "huiig up." The Australian wool sales were , postponed) and some talk was also made of putting off the London sales. Later in the month woollen mills became much busier on Government work, khakij overooating, flannels, and hosiery being greatly in demand. Leicester yarn supplies from the Continent wero cut off,/and soon every mule spinner in. England wiis booked up for six. months or more, and hosiery manufacturers had to turn to using Bradford spun yarns. Worsted manufacturers and spinners wero badly hit, their machinery not being applicable to the makiiig of khaki, and the question 'of dyes began to become serious. Germany had beon our greatest supplier, and stocks wero nono too great. English wools moved with colonial, both skin and flcece making stead-ily-rising prices. 'Good 64's Were at 2s. 7d. ana 40's at lojd.. -actual selling prices at tho close of fee month! Financial matters improved greatly in September, the moratorium being of great aid, especially to export. yarn houses, some of who had up to £200,000 owiiig from Germany. Most traders discharged debts wherever possible, and things moved very well considering the circumstances. The great source of demand was khaki, and the outside woollen trade was growing busier.

The Last Quarter. At the London sales an exceedingly keen demand for crossbred wool was scon, prices being paid above all previous "excellent ones." The sale room was crowded to the utmost, and it was evident that tlie trade was wanting supplies. On the opening day, the Government, prohibited tlife export 6i wool, saying the licen,ias far mermos,-would

be considered if satisfactory, assurances of their destination were given; Exports to all Countries'except Allies, Spain and Portugal were stopped, a lid also toßussian lialtio porta. Best greasy merinos were Id. cheaper, best scoured merinos 2d. to 2Jd. cheaper,- firio greasy cross-bi-eds 3d. to Id. dearer, ecoUreds 2Jd., doarer ( medium and coarse 3d. dearer, Capes Id, easier. 11l Bradford spot priced became excessive, pressure on dyers was tremendous, and inaiiy mills all over the country were booked up till January with British and French orders. The colonies also prohibited the export of wool, except to England, in English ships. At the November London sales crossbred offerings were again small i and prices highen Speculators who had put their money in urossbreds made magnificent profits, wool being 4d. a lb. above July rates.' France bought a little, but' of course no Americans were over, as at the October sale. The Germans took all tho suitable wool in Verifiers, paying well for it, except when it belonged to England, France, or Russia. The mills of Britain were getting busier, tlio Gov--erument inspectors going round to hurry lip production. Russia came into the market, but could not place some orders, because manufacturers were 60 full tip. Consumption of crossbrcds and prices remained unohanged, but merinos were weaker.. No licenses were flowed, and I forward business was done on the New Year at'2d. to 3d. below spot rates for 64's, sales having actually been made for New Year delivery at 2s. Id. for 64's. Also up to 2s. 7d. was paid. ThesO sales were, covered mostly in the colonies, where in early September wool was very cheap, and topmakers have made some good profits. English wools were selling as well as e»er at record prices, Downs making 18d. and lustres • 14d. Many of the export yarn merchants unloaded their stocks, thus under-cutting spinnors, but Botany men began to b« busy, orders coming in from manufacturers for cloths in imitation of Continental fabrics. At the December sales greasy croßSbreds about maintained their leyclj some slipes being even. $d. lower. The selection was very poor, but all crospbreds sold well. Only 10,000 bales were avail-1 able but of 76,000 offered, the merinos bciug mostly now clip wool, and making a splendid selection. Continental competition was missed, as at other sales, and the best merinos fell 10 per cent:, average 20 per cent., and; faulty 25 per cent. Withdrawals wove thri heaviest by far of tho year. Any amount of Government orders are waiting forthoso who can take them, but much is boing placed in America, our mills being all fully occupied. The embargo WAs supposed to be raised at the beginning of the month to allow merino shipments to the., United States, but it has made no difference in this country. Eighty per cetit. of tho machinery is runniug > oh crossbrcds, aud for the rest oh merin.es trade is also good. Considered allrounfl, the iiidustry is in a. very fortunate position. '