YORKSHIRE LETTER

Dominion, Volume 10, Issue 3127, 4 July 1917, Page 9

YORKSHIRE LETTER

GOVERNMENT AND THE WOOL SUPPLIES DETERMINED TO CONSERVE THEM (From Our Special Correspondent.) Bradford, April 2G. Great events have happened in the- -wool trudo since tho war commenced, but thero appears to bo no limit to the possibility of control and tho introduction of new schonies, and it is quito evident that, whatever may bo said about tho wisdom of introducing now machinery and new methods, tho authorities are determined to carry out their policy. Ono thing which has recently become moro evident has boon their determination to curtail consumption in tho homo trade, this being decided upon because of tho importanco of military requirements, and also becauso of tho seriousness of the question of wool supplies as a -whole. Tho new Wool Advisory Committee, formed in place of the old panel, have 6ot to work in a most serious fashion, and at a meeting held a few days ago somo important suggestions were mado in tlio courso of making a review of tho entire- wool position. Seven important recommendations were made, and after readers have considered them they will see that tho authorities here are not regarding the problems they havo in hand a 9 mcro child-play, but that they are carrying them through • with determination.

Drastic Recommendations. The first recommendation is that steps should bo taken to accumulate in this country a cohsiderablo reserve of wool. This is made necessary by tho largo requirements, and also by tho present stato of wool supplies, which, though regarded •by joine who ought to be in a position to know as being satisfactory, is not looked upon in that light by the Advisory Committee. Second, tho means by which tho aforesaid object is to bo achieved, and also to maintain tho export trade at the maximum, is curtailment of production for homo consumption. Third, spinners and manufacturers should bo supplied with wool and tops under the priority schonio already worked out in consultation with tho War Office and the Board of Trade. This means that these two sections of tho trade (spinners and manufacturers), oven though not actually CDgaged on Government work, will be required to state what, the tops or yarns are wanted. for, and supplies will be provided accordingly. Tho fourth recommendation is that manufacturers should economise wool as much as possible by substituting -for tho civilian trade. Also steps will be taken to prevent accumulation of stocks, and manufacturers, merchants, retailers, or other traders who attempt to safeguard their own individual supplies will do 60 at their own risk. Further thero. should be no distribution of Government wool or tops, and no auction of free wools to bo held till after tho end of May. Further sales of wool or tops should bo prohibited until further notice, except in cases of special hardship. This action is tho outcome of the determination to find out moro fully the true position of supplies, and obviously it would havo beon unfair to stop the business of private dealers without also suspending all public auctions. The lost proposal is that manufacturers and spinners should bo warned that stocks of wool and tops held by them should bo used primarily for Government, or in the event of that being impossible, for export or other approved . purposes. They should also bo given to understand that tho uso mado of their present stocks would bo taken into account in tho distribution of wool or tops required to keep machinery running later.

London Sales Postponed. Tlio \ issuing of tlio order respeotiwj trading in. wool and other commodities, necessitated tlio postponement of the London, sales. It has already bean pointed out that the idea behind tho order is a thorough consideration of wool supplies, aud it is quite possible tnat Capo merinos may. be taken over to fulfil tie ■requirements o£ tho Government if it is found necessary to do.so. 'Tho unfairness of stopping privato trading m tho commodities, to which tho order referred and allowing tho public auctions to continue is fairly obvious, hence tho postponement of tho London suctions, and also the Liverpool sales of River Plato wools. There appears to !ifl every probability of all wool supplies, both merinos < and crossbreds, being taken oier entirely by the authorities, <ind also that they will continue their policy of giving preference to crossbred requirements for military purposes. So far. as is known at present the London auctions will bo held about a fortnight after tho data ordinarily arranged for—namely, May 1, but this is only surmising on the grounds of\tho announcement made in the official order.' Only SO.OOO bales wero scheduled as being available, a very small quantity indeed compared with normal times, and it is impossible to say at tho time of writing whether a fortnight's delay will Tesult in any larger weight being offered.

What America Wants. Australian pastoratists have always valued American competition in their own market, because it has helped in no small degree to bring them good prices for their clips, and judging from what, the writer knows of pastoraliste' feelings they have not welcomed any measures which havo tended to deprive theni of that moans of competition. Readers havo already- beea informed of tho steps taken by the authorities here to enable America to secure a roasonablo i quantity of wool, 10,0001 bales having been set apart for them at tho last London sales. Only half tho quantity was taken, and judging from that fact, and the attitude revealed by tho Amorican trade, tho latter have not taken the bait laid for "them. This is perhaps 6tating the case 6omowhat strongly, but the fact is that American users havo not realised the idea of boing asked to come to Loudon to buy wool when freight charges to that centre from the colonies are so high. With prices boing fixed by our authorities, they would by purchasing hero be compelled to pay more money for the wool they secured than if they had the privilege of buying in Australia. Tho condition laid down by tho Imperial Government was that any profit 'made on wools sold in, London should bo divided between our own and the colonial Governments, ihis pront-making idea does not appear, to nave been relished by the- American trade, but in any ease so far as the trade here, is concerned, there is no objection whatever to America being allowed to buy in the colonies. This really seems the most practical and sensible method to pursue/for freight to London would[thereby he relieved, and American purchasers would be placed on practically, tho samo footing so far as Government wools aro concerned m Homei buffers who operate in London. Certainly growers will havo nothing to sain by America buying in Australia, prices arcadv being fixed, but nil the samo t [fa "matter of some little interest to. colonial pastoraliste that the Amorican trade has no desire to-remove their patr vonago from Australian selling centres.

Market Conditions. The abovo title is really a misnomer, for as a matter of fact thero has been no market during Iho past week in tho veal senso of tho teSn, and visits paid to Bradford Exchange have been entirely for the purpose of talking over tho situation, and clearing up old -business. No buying or soiling of wool or tops or noils has 'been possible, consequent upon an order issued forbidding tho purchase or sale of those commodities until further notice is "iven. Tho announcement came a* n surprise to the trado generally, for full explanations wore not made, tnoueru it was intimated that the order was closely associated witli the question of wool 'supplies. It is not entirely a case of safeguarding military requirements, but also taking steps to find out tho true position of supplies generally, and from what lias already been said in a previous paragraph tho reader will soft that Rome inost°drastic steps are being taken. Some very conflicting opinions havo lieen expressed fven in high circles as to the true iiosition of wool supplies, but whatever the facts of the c;ise inty be. it is evident that the present authorities are determined upon conserving theso supplies as much as possible. Naturally the t ordor respecting wool, tops, and noils lias

put tho market into an almost cliaolic position, and spinners interested in civilian trade have also had tho outlook made still moro obscure by tho announcement that tho War Contracts Department do not intend to issno any further supplies of surplus Botany tops till after the end of Mar. One thing which has helped to strengthen prices in the open market has boon tho persistency with which spinners have been compelled to buy any small weights which they could secure, anil it has been stated on one or two occasions by spinners themselves that if they wait till their turn comes round for the tops they have applied fdr they will not be likely to sot delivery for two or three months after May. Though tho War Contracts Department are not now giving out tops, they are still open to receive applications.