LONDON WOOL SALES

Dominion, Volume 10, Issue 2910, 24 October 1916, Page 9

LONDON WOOL SALES

OPENING RESULTS REVEAL A SOUND SITUATION (i'roin Our Special Correspondent) London, Scutember 7, 1910. Interest is again manifest in the wool world, the combined buying power of Great Britain and her Allies being largely centred in Coleman Street Wool Exchange, where the sixth series of auctions began last Tuesday. Everybody connected with the woollen and worsted trades is looking towards Coleman. Street with a view to ascertaining the actual standing of the raw material, and more particularly to see what effect tho present move of the Government is having upon men's minds. Many expected to see an important 'Government annoucement on the opening of the series, but that was not tho view of tho writer. Wo have felt all along that when the Army Contracts Department put its hand upon tho English new clip it had quito sufficient work to do successfully, and- that is the view generally entertained even by tho Government officers to-day. It is very doubtful indeed if the machinery set in operation will save the nation a penny, those who should knowestimating that it will absorb fully 2Jd. per 11), in administration expenses, and that might as well have gone into the hands of growers, for tho actual consumer will not obtain his raw materials a fraction cheaper than he otherwise would have done without Government interference. As it is, New Zealand crossbred wools are quite as cheap and going to be, as Home-grown fleece wools, hence so far nothing has been gained, and the whole domestic clip of this country could have been more easily reserved for Home use if other measures had been adopted. With these feelings in mind, all buyers assembled last.Tuesday, more or less concerned over the course 'of values for colonial wools, and what has happened exactly harmonises with our previous views. So long as the situation remains unfettered by other outside influences, both demand and values are' well able to take care, of themselves, and tho sales so far have demonstrated a healthy situation which may bo expected to continue right to the end of the service. A Disturbed Interval. It is not too much to say that the vacation has been more or less disturbed by a lack of knowledge of the lull schema of the Government in regard to commandeering the whole trade, the various rumours circulated more or less compelling users' to hold their hand and to centre their efforts upon tho business already booked. The developments under the present Government scheme are such as to bring to an end for the time being all enterprise, and with tho gradual shrinkage of hands, all alike feel that they had better discharge old obligations than increase them with new contracts. However, it is now generally a settled conviction, that the war will last tnrough another winter, which, means a continuous demand upon'the manufac-' turing ability of. tho trade to satisfy big Army requirements. Russia has been the firjt to place largo orders, and manufacturers have instructons to rush them through with all possible speed in order to get as much cloth as' possible into Eussia before the Archangel port closes. Apart from this, nothing unusual has happened during, the interval, although last week more was doing and the outlook was ■ regarded with greater confidence. List of Wool Available.. For the time 'of the year a nice selection of wools is available, the aggregate total being 110,500 bales. Tho offerings will be about equally divided between merinos and crossbreds,, and this series should see some very good lines of ■ NewZealand sliped lambs catalogued. This wool, being suitable for the khaki trade, should all be absorbed . with avidity. There is quite as large a quantity, of merinos available from New South Wales and Victoria as one expected,' and oven ' West Australia for the time of tho year' will be wojl in evidence. . There is also a very good quantity from South Africa, and with there being 110,500 bales available in the aggregate, the threo weeks' auctions will supply tho opportunity of all branches of tho trado being well served. The following are tho quantities to hand for. sale:—

About 4500 bales Punta Arenas, 2000 bales. Falkland Islands, and 500 bales Eiver Plato will be ofl'ered this series. A Mixed Opening. The selection on the opening day was decidedly disappointing, and that may have had something to do with the somewhat mixed results. Of course, we have arrived at the time of the year when tho offerings are always very miscellaneous, the current series, and the next being practically the sweeping up

of tho past season in Australasia and South Africa. Although thero were three catalogues submitted on the opening day, and all told 8731 bales offered, that offered no criterion of the stylo of the wools. Merinos generally were distinctly poor, and apart from a few scoured lots there was nothing that could even bo called good. What Was offered commanded good competition, and as far as ono could see there was no change for the best, but faulty wools were a little irregular, particularly carbonising parcels. Russia gave indication of still being in the market for good scoureds, paying up to 3s. lid. for the well-known Gibb wools from Port Phillip. The' top price of tho year was also aid for a little line of really good greasy combing Capes, which sold at Is. 10el. Thero were no super sconreds offered. Eussia, so we are told, having cleared the market during tho interval. For medium and faulty scoured Capes a.decline of about-M. took place, which was a rather disappointing feature. . Crossbreds were the most in evidence', aud hero competition was. excellent. Wg could not see a great deal .of change in fine • qualities, but on the whole medium sorts sold }d. and coarse parcels often Id. above closing July prices. Scoured crossbreds and sliped crossbreds were . also firm, the best lots occasionally going in sellers' favour. ,-,,-, , , Succeeding bales have fully confirmed opening results. There is a good bnymg spirit, and for wools showing good characteristics, prices are well maintained. The Outlook. Messrs. H. Dawson and Co. make the following observations with reference to the outlook:—"Tho opening of the sales lias not evolved any noteworthy or unexpected changes. Despite the satisfactory market to-day, there is an anxious and quiet tone pervading the industry and a feeling of insecurity as to the future. The time is drawing close for tho necessary arrangements to be mado for the new sehson's operations on the colonial markets, but the appreheusiveness and uncertainty which obtain as to any possible Government action are such as to prevent business being placed to any considerable extent, and the present prospects for the colonial markets do not appear to be very promising. The extension of Government control into various new branches of trado still continues, which adds to tho genernl' discomfiture in business circles. Consequently, the position in the wool industry does not yet assume those wholesale and satisfactory features which are necessary to inspire confidence for future operations. "There are several features, however,, which are decidedly more encouraging. There has been during the past fortnight an improvement in the demand and in the values of the lower grade of crossbreds, and most sorts of crossbreds appear to be recovering a little from the recent-depression. Thi6 may. partially be due to the fact that the feared competition of tho English clip bought at a lower level had tended to depress values of • colonial crossbreds, while now it is found that the new wools aro being invoiced by tho Government at a considerable profit on their original cost. This alono cannot fail to have a. salutary effect on the values of colonial crossbreds. Thero is, morover, a large accession of now business becoming available to manufacturers, some of which has probably been held back until the wool' position becamo clarified. Unfortunately, tho restricted combing facilities in Bradford are becoming an anxiety to crossbred topmakers. The shortage of labour had already reduced the output to an estimated 65 per cent, of tne normal, but, in addition to this, it is understood that the Government arc beginning to commandeer combing machinery lor tho working of their own wools.

The position in merinos has teen wonderfully maintained. The steady Home demand from salo to sale has jicen remarkable," and the continuance of operations on Russian account has resulted in tho present amazing level of values for scoured wools; There is, however, a very strong feeling in the Home trade that in ordinary merino sorts tho crest of the wave has teen reached, especially in view of the increasing supplies that, will soon bejjn to ho available from the colonial markets. The quantities on tho market at present (especially in hafty combings are so limited that there seems to be little chance of any immediate shrinkage in values."

Total For- , avail--Now ward- able arrivals, iiigs, Old for cross. direct, stock, nalo. Bales. Bnles. Bales. Bales. Sydney ... 32,750 13,001) 1,000 21,650 Queensland 11,300 2,500 -100 9,200 Port Phillip 28.700 18,500 600 10,800 Adelaido ... 2,100 500 — 1,600 Swan River '1,150 — — 4,150 Tasmania 800 — 100 900 Cape 50.050 45,000 200 12,150 New Zealand 19,350 15,500 . 0,300 43,150 189,100 98,000 12,500 106,600'