YORKSHIRE LETTER

Dominion, Volume 11, Issue 292, 29 August 1918, Page 8

YORKSHIRE LETTER

STOCKS AND PRICES

AN IMPORTANT STATEMENT (From Our Special Correspondent.) Bradford, July i. AVo are living in very stirring times, nrnl what is happening in tho wool textile world is of universal importance, particularly to those overseas who are :e----sponsiblo for providing the raw material by which tho manufacturing industries of Groat Britain and our Allies can bo continued. ■ Since writing last a meoting has taken placo in London betweon tho Board of Control and the -Raw Wool. Advisory Committee, at which Sir Arthur Goldfinch, Director of Raw Materials, made a very important statement. The gentleman named acts very differently to many other officials of the Department, and whenever he speaks to the niembers of the trade ho throws upon the whole scheme of State control a light which is very illuminating. It is a thousand pities that Sir Arthur Goldfinch was not at tho head of affairs when State control was first mooted, iis a good deal cf heartburning would have been saved, and tho episode of twelve months ago avoided. No member of the Department commands tho confidence of the trade as does Sir Arthur Goldfinch, all alike feeling that ho deserves confidence. Of course, tho statement had referenco originally to the position of supplies as well as to tho requirements r.f thcindustry during the forthcoming rationing period, which begins on August 1 and ends November 30. It has been known for weeks thatthe forthcoming period will be very important, because of the huge quantity of-military work to bo got through, and also duo to the somewhat lessened stocks of raw material that are in the country. Still, there is no uneasiness in the trade, for tho simple fact that stocks of wool are adequate to meet present needs, and wo have every confidence in saying that shipping will he provided to ease the congested warehouses in our colonies, and provido for the want 3 of the trade at this end. Comfortable Stocks. It is always a source of satisfaction to know that thero is plenty of wool, and Sir Arthur Goldfinch said that record stocks of raw material exist in our colonies. That certainly is some satisfaction, but it would have been better still to have known that a good proportion of those stocks were in this country. However, Sir Arthur Goldfinch is looking forward to the end of the war. There is real satisfaction to be derived from the fact that the raw material will then lxi available for British and. Allied mills, and there is faith among the members of the trade that shipping facilities will yet prove equal to bringing Home sufficient raw material to provide a'reasonable surplus when tho war finishes, when no doubt every effort will be made to release shipping with all possible speed in order ti> hurry supplies to the centres of manufacture, both in this and Allied countries. Nature certainly has smiled upon all our colonies during the past two seasons. Not ouly has there been water and grass in abundance, but a cor-; responding natural increase of sheep, which means distinctly more mutton and wool. In Australia especially thero is prosperity among pa.storalists, and there cannot but be a commendable increase when the full returns of the last stock census are made known, and tha lambing next September is bound to be satisfactory, 011 account of the good lime during the present Australasian autumn season.-

Another important point to remember is the purchase of the Australasian, and the negotiations at present believed to be proceeding for acquiring tho South African, clips till twelve months after the war. We expect South Africa to bo a hard nut to crack, but it should bo possible. We have never yet encountered a reasonable objection to this line of action oil the part of tho British Government, even tho trade generally approving of what has been said and is being done in this direction. Even when the war finishes, some measure of control will he absolutely necessary, for it will take tho trade at least twelve months for things to become anything like normal. One cannot but notice with satisfaction the favouring of tho reopening of the Australasian selling markets, a 9 well as Coleman Street, , and tho trade will prefer this even if 'values are controlled, providing all firms are given tho opportunity of buying, and there is an end of the rationing of the trade.. However, thcro is bound to be infinitely more satisfaction derived when it is known that'7s per. cent, of the world's clip of wool is under the jurisdiction of the Imperial Government, and when supplies are reserved first and foremost for Great Britain and heri Allies.

Dangorously High Prices. It is' quite true that wool values are pretty tail, values to-day being higher in this country than when the Department took over wool supplies. The countries of the world can all'ord io pay, aud the profits resulting, we tnice it, will be used for the war. Sir Arthur Goldfinch is convinced that post-war business can best be dono on more reasonable values than obtain to-day, and he is gravely concerned at tho sensibly higher, prices ruling in the United States compared with this country. There is no doubt, as the member of Parliament for Hudderstield pointed out <n the British House of Commons a fortnight' tgo, that when the British and colonial clips were withdrawn fa'om competition, South America being practically the only open market for the purchase of crossbred wool, values were inevitably forced _up to a higher point than they possibly could have been if there had still 1 remained available the British and colonial clips. However, thero is now no longer any chanco of prices advancing across tho Atlantic; State control obtains ■ there, and tho.next move will be to see if tho issue prices in the United States cannot be made to harmonjse more with those prevailing on this side. The idea is certainly good, if it is practicable. Can it bo accomplished? The United States Government is now engaged with the pur. chase of its own domestic clip, which is of considerable size, and we think it is safe to assume that tho colonial wools shipped to Boston should be available at Bradford issuo prices, and still leave behind a very satisfactory profit for the British Government. Oae can foreseo that tho same control and the samo principles of costings for manufacture will obtain in the United States as in England, therefore in another twelve months a scheme ought to be forthcoming to ibring down the issue prices of wools in America more in harmony with those ruling on this side. Thero is no doubt that a much more healthy position could be created if values could be subjected to a steady progressive reduction in America, because after all the l-rico of the iraiv material, and not the standard conversion costs, is the principal item which ultimately determines the retail value of the manufactured product of military and civil goods. It does not need tho wisdom'of a Solomon to see thai; inflated values , will be a serious hindrance to a big export trade, whontho war finishes, and after all it 's imperative that Great Britain and her Allies be in a position to enter tho markets of the world with reasonable-priced products at tho earliest opportunity.

Military and Civil Noeds. After ths statement by Sir Arthur Goldfinch the allocation of wool for the forthcoming' rationing period was considered. Acoording to the report of the Wool Statistical Committee there is an estimated decline of 50 million pounds of clean scoured wool in the total stocks in' tho United Kingdom at the end of .Tune 30, compared with March 31. No one is surprised at this m view of the decreased imports of tho pßst two months,, but present supplies need cause no alarm. If 20,000 tons of shipping are available per month, such a quantity will soon pull.up our reservo stocks, providing tho cargoes can be safely landed. What affects the trade most is the statement thai; the total quantity of raw material available for the August-November period will be 500,0001b. per month in excess of the period finishing this month, but the civil ration is to be reduced two million pounds monthly in order to make way for the increased military orders.

In other words, it looks as if machinery is ;:oLng to bo more fully employed on Government account, beneo tlicro will bo less raw material available for civilian purposes,