ENGLISH WOOL LETTER

Dominion, Volume 9, Issue 2855, 21 August 1916, Page 8

ENGLISH WOOL LETTER

CONTROLLING HOME AND COLONIAL CLIPS :CFrom Our Special Correspondent.) Bradford, Juno 22.. /■;■■■ So far as the wool trade is concerned, ■ the whole .-industry,'both: home and "colonial, is -passing through a remarkable' time, arid all'kinds of rumours are in the air.' We are told first that one thing is going to happen, and then another, the latest figment of the brain being that it is tho intention of the --British Government to commandeer the whole of the colonial clip. Of course this'(includes tho clips of Australia, New Zealand and South Africa,_ the indention being to control both prices and the'.'distribution of . supplies. The ■writer hopes.that.his head will not ache until that becomes an accomplished ■ -fact,- and although we may see yet a little more control so far as limiting tho operations of neutrals, we doubt v£ry seriously that tho Government lias '"any" real'.intention of laying its hands upon tho colossal quantities of wool .which aro being- grown in the ■British Empire. Could tho thing bo done? Yes, it could, only the handling of such a large quantity of raw .material and the financing of samo at satisfactory prices to growers would be a problem' which to'the writer's mind is beyond the comprehension of the most brilliant intellect associated with either the Home or Colonial Governments. As far as one can see it is taking-Westminster all its time, to evolve a plan for the controlling of the English clip, and when a scheme is announced we shall sec a few anomalies which are certain to be to the disadvantage of ono section'of the trade or another. ■ ,There was in Messrs. Hs Dawson and Company's circular, issued at the cjoso of the recent series of London sales, a rather significant passage. They said: "Tho United States is estimated to have taken 555,000 bales in 1915 of colonial wools (of which only 70,000 bales were Now Zealand's), as against 169,000 bales in 1914, and 54,000 bales in 1913. Italy has taken 130,000 bales, as against 65,000 bales 'in 1914-5. Japan has also taken 60,000 hales during the present season." The above quotation contains food for .serious thought, and 'it is the onslaught of tho last colonial clip which has given rise to serious thought in Government circles. That really is tho cause of the recent request on behalf of the Homo Government to confine the offerings of the Brisbane and Sydney -wools last week 6olely to the Homo trade, but after - strong' representations . ,it was agreed that our Allies, should also-be granted the* privilege of buying. This led to a most active sale, prices again sensibly advancing. At the same time tlie absorption of well en towards one million bales-out. of. tho current colo-nial-clip by outsiders is very'significant, and if the'countries named can do this,-what-could, other neutrals do'if they too •were allowed a free entry into "colonial markets? Our own Government officials are wide enough awake to the land lies in regard to neutrals helping themselves to wool in ; Australia and South Africa, and we arcin. a position to say that it is the. limi-tation-of • tho operations of neutrals next season which will take definite shape. That really is the crux of the .whole question. larger proportion of the new clip is going to be'reserved for. Great Britain and her Allies, and it is to be hoped that Italy will.give to the British Government full-.assurance that nothing is leaving that country for Germany via Switzerland or any other country. So far as tho-whole of tho colonial clips being reserved for Great Britain, that is impossible, because there is not the machinery'available I 'in this country to Work up anything like the full clips of

1 Australia, Now Zealand, and South Africa. Controlling the English Clip. Tho Government has stepped in and stopped tho movement of tho English 'new clip, and all sales are in abeyance. It certainly was a little late to stop business.on tho very day,tho first auction should have taken place at Kettering, and that lias caused considerable annoyance. Up to the time of writing nothing is definitely known as to the procedure to be employed in buying and selling tho now clip, but one thing is very celar, namely that the ordinary channels of trade will bo used, otherwise the Government itself will find its hands tied in dealing with 122,500,0001b. of domestic wool. The writer contends that this is an experiment dictated chiefly by the high first cost, and also the determination of the Government to have under its own control sufficient wool to satisfy its present needs. That is really tho crux of the whole question. Thore is no doubt that the high level of values ruling for wool has surprised the vari-' ous sections of tho Government who have contracts for khaki to give out, and thoy would like to see an end to the rising tendency of both Homo and colonial wools. From inside knowledge tho writer is able to say that that has been a powerful factor in dictating the present policy. If wool , values had never risen like they have, we are certain that there would have been no interference whatever with- tho movement of tho clip, and it is to prevent a further advance and speculation that is the chief cause of the present move. Then, too, there is. the'question of reserving plenty of stock for the use of our own and Allied countries. • The war is not yet over, and it is the writer's firm conviction 1 that important khaki orders have yet to be given"out, in fact no one need be surprised if the British Government does not step in and control yet more effectively the whole fabric of production, including spinners and manufacturers. No doubt firms, in tho West Riding have had some fat profits, chiefly spinners, and this tho Government knows. We shall bo very greatly surprised if there is not a new scale put into operation after • July 15 controlling. tho price of yarns, but that can be left." Wool for Cermany, The cablegram to the London "Times" from its Buenos Aires correspondent, stating that wool to the value of £6,000,000 was being held on German account in that market has given rise to a good deal, of gossip, and no one doubts tho accuracy of tho statement. It is one more astute move on the part of Germany, and shows what its intentions are when the war finishes. It is also knowii that there is woof in interned ships in New York harbour all waiting to be dispatched to Germany immediately peace is declared. One Wonders if this .has any connection with the action of our Government wanting to Control the colonial clip. The reader can take for granted the fact that Germany is going to buy wool on very different conditions in Australia and South' A'frica \yhen the war finished to what she'did in pre-war times, and we ca*n yet. see important developments both in .regard to the South American ; and. colonial clip before a new season •begins. ' " . Bradford Market Quiet. There is not much change to report, the Government action to a very large, extent holding up business. There is no cliango in merinos, quotations for fi4?s tops varying to-day between 45... 3d. to 4s. 4d. Thore seems to be ve'ry little business passing, all sections alike apparently having decided-, to aWait developments before commit-: ting themselves further. ' Interest centres largely on the Government action, and the whole trade is awaiting the announcement.of a scheme whereby the new clip can be bought and sold. Last Friday tho Government announced what it was prepared to do in regard to pulled ; wools, and everything pulled previous to Juno 8 can be sold. Everybody is now wanting to know what effect the stoppage of the English clip will have upon colonial crostfbreds. Tho recent placing of considerable Russian khaki orders has brought a litX!s more new business, chiefly /in 36's and 40's prepared tops, and some, are very optimistic that more business will he done before long in medium and finer qualities, but at the present time things appear to a large extent to be marking time. A fair amount of yarn business is still passing, and it is reported that two 36's out of a 64's'tops was. sold last week .in-Leicester at six shillings, though it is,possible to buy

bwo 48's at 6s. Id. Business seems to have slowed down in cloth, but manufacturers aro all hoavily sold forward, and are awaiting developments in the English trade.