LONDON WOOL SALES

Dominion, Volume 8, Issue 2429, 7 April 1915, Page 7

LONDON WOOL SALES

PRICES ALL AGAIN DEARER

(From Our Special Corrcspondnols.i London, February 26. Oncb more the interests of tho trado arc centred in Colomiui Street Wool Exchange, where last Tuesday tho second series of colonial sales began. The auctions aio coming thick and fast, and yet there is tho usual large crowd of buyers, who all seem on business bent. Some quibbling has beon done among those whose habit it is to complain, these stating that a few buyers liavo not turned up on account of tiieir .January purchases not yet being to hand. No doubt with the smaller men, say those buying around COO bales a sale, the frequently recurring auctions aro not acceptable, especially at a time like the present. They say what they bought in January has not arrived home, notwithstanding the wool was paid for immediately it was bought. They therefore have been unable to get the woo) into tops and pold, consequently a few probably will not turn up till tho March auctions, when they are hoping to be ready for operating. That is really the situation. The larger firms, who seem to have unlimited credit, are free buy(frn( and apparently will bo., It is to their interests to keep well stocked, because all alike can to-day sell any quantity of tops, iii _ face we foresee a deficiency in machinery to cope with the present business which is offering. AVe are certain that many have not realised that all the trade that German, French, and Belgian topmakers have been able to do with such countries as Spain, Italy, Hollandj Norway, and Sweden, is to-day being launched upon Bradford,- and commission wool combers is. the West Riding are unable to eppe with the business offering. One firm said this week in Londpii" that they could not take an order for the combing of tops this side of July 1. The Wools to be Sold. There is nothing particularly significant about the arrivals. This week there has been a very good selection, and there always is during the first three or four series of every year. Of course soveral new brands have appeared in the catalogues, and no doubt throughout the auctions some first-class clips will bo seen. Queensland and New South Wales aro going to be fully represented, and some good offerings from West Australia are also in evidence, but South Australia is not very prominent, nor will it be. What tho trade feels the most incensed at is tho sparse offerings of New Zetland crossbreds, especially the wools which are most wanted. But oven thoso must take their turn in regard to being offered. A fortnight should not make a great deal of difference to the industry, and oveii in crossbreds the scarcity is not as severely felt as was the case towards tho end of last year, ajtliougcli many topmakers would feel greatly lionefited if a few thousand bales of direct imports wero speedily released. However, the trado welcomes the 103,000 bales which are available, and below we show how they aro made up:— \

New South Wales, 30,200' bales; Queensland, 22,160; Victoria, 11,300; South Australia, 2550; Western Australia, 6650; Tasmania, 100; New Zealand, 13,400; Cape and Natal, 6650; l'unta Arenas and Falkland Islands, 9200; River Plate, 800. Total, 103,000. Amerloa a Buyer. The Board of Trade announcements made last Saturday and Tuesday have cleared the atmosphere very considerably. America now knows where things stand, and as a result we have seen free buying this week in London. Everybody knows that America is in urgent need of considerable weights of Australian merinos. This also has materially altered the prospects for the marketing of all the colonial clips which are yet to come to hand, and it is clearly the intention of the Board of Trade to allow the export of merino wool both to America and neutral Continental countries, all of which cannot but satisfy Australasian and South .African growers. The formation of this United States Textile Allianeo is certainty a move in the i;ight direction, there being a similar organisation in Holland known as the Netherlands Overseas Trust. We take it that these bodies are composed of influential business men who are familiar with the trade, and whose character and standing can be accepted as a guarantee that no trading with-Ger-many wDI be done in wool or its allied products. America this week has been a very\ active competitor in Coleman Street Wool Exchange, and it is patent that- they' are prepared to buy a big weight 'of wool. It is generally acknowledged that leading Boston wool dealers have refused to <lo business with oiitt or two firms who have been shipping wool to Germany, such action commending itself to the officials in London. Providing intending shippers act honourably and furnish proper guarantees, wo see no difficulty whatever in them being able to obtain licences, and so meet the requirements of American mills.

All Wools Doarer. The opening last Tuesday when viewed from any standpoint must bo regarded as very good. Not a single person that we came across expected the full advance which took place, hut it was drectly due to the latest announcement of tho Board of Trade respecting shipments to America, which buyers frpm that country interpreted as meaning the free granting of licenses to export wool. Buyers assembled in full force, there being a hie number representing Home trade interests, several Frenchmen, and also a good number from the United States. A very spirited sale took place, notwithstanding a rather poor show of wool. Many wants were laid bare, and it is amazing that values are being made in Coleman Street in view of the.fact that there is 110 Continental' buying of any moment. That wool is dearer goes without paying, and everybody concedes that fact, much to the chagrin of Yorkshire topipakers who have sold forward huge weights of tpps at- low prices. It was not, long before everybody realised that higher prices were forthcoming for merinos, the best wools making 0 to 7} per cent, mere than last series, although on the wasty wools, the advance was more often 1\ to 0 per cent. Scoured? appreciated about 26 per cent. alsp,_ -prhile lambs rose about Id, It was in the medium to good wools that American competition was most in evidence,, and very good prices were forthcoming for anything decent in character. Cross-brc-ds sold as well as ever, and the advance was an average 5 per cent. Slipes too appreciated about 2} per cent., but for greasy parcels of good 46's to 50' a quality, the demand was of the keenest. There was a- verv good show of Punta Arenas and Falkland Islands wqol on the opening dav, and these too sold very freely indeed coinpetion being confined absolutely to the Homo trado, and prices appreciating about equal to what was seen for the Zealand wools. Tho result of tho opening sale surprised a good nuinber but it shows how well situated things are when the Hqme trade is prepared to absorb wools at the present rate and pay steadily advancing values. All this is an ocho of the looming times being enjoyed throughout the United Kingdom in the textile industry. Since' the openini prices have further advanced, and both merinos and crossbreds are now 10 per cent, higher. Tho Outlook. i Dealing with the outlook. Messrs. IT. Dawson and C'o. sn\: "The market is nlill piibjsctsd to an abnormally sfcronc

supplies are being seriously retarded by shipping difficulties, and more especially—after arrival ill dock—by congestion on railways, and at the ports. Serious loss and inconvoniece is thus being entailed amongst _ users by the general lateness of deliveries in all classes of wool products, and machinery is often being rendered idle at a time when it can be ill-spared. Here at the London auctions it has been found impossible to deal with all the wools which have arrived for this series, because of these difficulties. This holding up of supplies undoubtedly contributed to the hardening of values_ at the last series, and there are certainly 110 signs of adequate relief at present. "The United States demand, which would be stronger if licenses could be easily obtained, is temporarily disorganised, pending some new arrangements which are being made for supervision on- the American side. 'The recent unfortunate incidents, of trading with the enemy on the nart of some Boston houses, have had the effect of Tendering very difficult the securing of licenses. Preference has meanwhile been given to manufacturers who are making cloths for the French and British Government. It is now announced that facilities are being provided whereby wools may be sent to the United States of America under the following conditions:—Applications for licenses have to bo made to the War Trade Department, Westminster, and the_ goods consigned absolutely to the chairman of the Textile Alliance Inc., 45 East Seventeenth Street. Now York. _ The wools will be held by him at shippers' risk until he and the English Embassy have decided whether delivery may be made to the ultimate purchaser, whoso guarantees would have to be made satisfactory in such event. It is stated \hat these arrangements are experimental and may be revised. Naturally, there is considerable' anxiety in the trade regarding this new experiment and some doubt as to its success.

"The issuing of licenses in favour of the Allies and Italy is likelv to bring a _ slightly increasing support to the merino market at this series. _ "The iposition of crossbreds is becoming of very serious import tc the industry. Values are now at a very high level: but the present rate of consumption is so enormous, and the contracts for months ahead are so heavy, that a complete and. early absorption of the colonial cro3sbreds seems to be assured, unless there should be a sudden termination of the war. The New Zealand market is drawing to a finish after a most successful run and unprecedented competition. T)ia River Plpte market is of course, now controlled by neutral buying, at nrices which are prohibitive to the English consumer. Sonsequently. the industry will now be confined to London for its crossbred supply. It would not be surprising were vet to become necessary to include within the range of wools smtablH for Government cloths all broad-haired and shafty merinos."