YORKSHIRE LETTER

Dominion, Volume 12, Issue 156, 27 March 1919, Page 8

YORKSHIRE LETTER

ENDING WOOL CONTROL

(l''rom Our Special Correspondent.) Bradford, January'l6, 'IUI9. Things seem to be travelling fast in the wool textile world, and tlie movement towards (he breaking down of Slate control of the wool trade gains momentum as the weeks go by. Nobody r.eed feel any regret at this, only by tho restoration of recognised trading principles can liiitn's inherent initiative bo brought inlo play. It is well known I hat State control liiis dealt n. very sovere blow to initiative and enterprise; in fact, if Slate control hud continued a lew years longer it would have put tlie wool textile Iracle of Great ISrituin back 10 tile position it occupied in the- seventies. Everybody rejoices' at tlie results which have been aehioved, becauso when nil is said and done the liberty and freedom of the world has beea secured. Muring the past week important slops have been taken towards restoring the trado to its pre-war activities, and naturally a very optimistic tone prevails,.all of which is hoped to be the forerunner of 11 good profitable trade. There arr> thosfa who would like to have seen fitato control continued indefinitely, • at least for the imperial Government to have purchased for many year* to come tbo culoniul clips,, but :n suggestion with more disastrous possibilities could not possibly have been made, for any at-tempt-to nationalise tho wool trade would have meant handing over the control to outsiiers. It has been proved over and over again that nothing helps success like healthy competition, aud given freedom of access to' raw materials, both Uritish und American mill-men can hope to develop their industry and'compete successfully with Germany. South American Wools. Lnst woek-eud a General Purpose Coinmitteo meeting of the Wool, Council (look placs in London, when important matters were considered. First and' foremost was tho importation of South American- wool. Under nn Army Council Order dated May 9, 1917, it was enacted that-no South American wool whatever cnuld bo imported without becoming the property of the Imperial Government. At -a previous meeting of the Wool Council this matter came up for consideration, when Sir Arthur GoldFinch and the members of the trado thought that the time had arrived for withdrawing all restrictions. However, the Treasury have been consulted on the matter, and owing to tho great difference in ; the exchange it has been'decided that the present is not opportune for British buvers" to begin operations. However, the-fast that all restrictions vc-garding the purchase nnd importation of South African wool have been withdrawn, will please tho trade oven better than operating in Buenos Aires, though the feeling in the trado favours purchasing in South America at tho earliest possible moment. During tho past twelve months Bradford importing topmakers have lost that trade. - It has largely gone to the tinited States, and also considerable buying has been done on ( account of German interests,' it to-day being ■ an acknowledged fact, that Germany owns from 75,000 to 100,000 bales of wool in Bueaos ■ Aires and Monte Video, yliicli is awaiting shipment to the Fatherland when peace terms have been arranged. Bradford " importing tepmakers have an idea _ of so developing the South American trade 1 Hint they will be able to compete with Continental manufacturers in the future, and ■undoubtedly the absence of crossbred wool for the'civil trado is preventing many a firm from doing business which they aro missing greatly. Pre-war conditions can only be got back by spinners and manufacturers 'being abln to produce the same class of yarns and fabrics by which their business was made before,'and that is one -reason why 'many firms would-welcome the opportunitrj' of'purchasing at the sources of sup." ply crossbred wools which they urgently need; • ■ • British Wool. The question of whether the Imperial Government is to purchase the next British clip , remains unsettled, and the writer ventures the .opinion that it will not' c-ome off. Here there is evidently a, clashing of interests.' Certain important sections of farmers demand a free market, although tlie Central Agricultural 'Advisory Committee, which is accepted by tho Government as the proper representative of the whole farming community, has passed resolutions contrary to the views of farmers throughout the different parts of the country. It will be remembered' that tho growers are demanding 100 . per cent, above pre-war prices, but Sir Arthur Goldfinch points out that while "BO per cent, over lflH prices wns far from being outside market possibilities, it was not a enfo basis for Government purchase", nnd yet even Bfl per cent, was apparently not acceptable to all farmers, especially those in Scotlnnff." Under such conditions, enn the Government be expected to purchase the next British clip? We havo before pointed out that now that military re.quiremenlfi have practically ceased, there Is no need on the part of tho Imperial Government to be saddled with more wool, the leaders of the trade feeling confident that with having to deal with the .Australian, nnd New Zealand clips, till June 30, 1030,. the Imperial Government have' as much as they caii deal with successfully. The British clip fiiould not be purchased except by (he recular'buyers of domestic wool, ami -we think that that will be the conclusion arrived at by the Wool Council. South African Wools, It became known last Saturday morning tliat tho Imperial Government had decided not to purchase the new South African clip. This is due to less than 150,000 bales having been offered. As things are turning out now, South African growers have acted wisely by choosing an open market. -Apart from any fiiirit. of , patriotism,-the trade feels that South 'African growers have followed right linps, it bein<r officially statpd last Monday that the War Office had decided to grunt, importation of South African wool and tops made without any restrictions whatever. This is the .most important step so far taken in the 'demobilisation- of the trade, and has given every satisfaction. Some are now snvinit,, that it. is not the Department which renlly lias taken this slep. but that South -African growers have forced the issne. The great point is that conditions -are now. fuch"that, the officials of the Department can. now look favourably upon free dealings being allowed in a valuable commodity, 'i'he Soulh African clip amounts to about 500,000 bales. The freight difficulty i; nut yet overcome, but the fact of buying being allowed is encouraging th° few aniong those-.who were lafply in the Government schema to confer Hint freight will he forthcoming, and already fleps have been.taken to as- . ci'tain what are present prices at. the Cane, with a view to commencing buying and importing. : r Future of Prices, Sir, Arthur Goldfinch has given his views regarding the future of values, a tonic of supreme imnminncn to every millowne.r in .Great Britnin, as well as ad-ops the Atlantic. AVe are glad to know (hat all Government ord«rs restricting tho importation or the. free fflo of-wool nre to be. onnrellpd. us rapidly as possible, - but restrictions on export are to be maintained, though thev will lie b.=s severe, than at present. -Under this system all wool except Australian tpid Now Zealand, will bo sold freely in British markels at price* fixed by cinnnetition. but it is to ho hoped that Hril--i'-h vool will be entirely free. , Tt is also Imped Hint colonial wools will be bi-eiight *n England ns rnnidl.r us possible until at least a snllWdit rrwv.vp hns boon built up In meet all the reniiirpnipnls of France. .HeU'imn, and Italy, us well as the United Kingilom. As early ns pn«iblp. prolwblv April, .'motion sales nf colonial wool are to Info' plnce in London, "t the '-ate of about 100,000 bales per .mouHi, and mo ilonW larger niinnfilifls will be offered if (he trade is in a position In ;>lvwb them. Oμ Hi" luithority (if the chnhman of the AVonl Council. ~i reserve price, not very much lower ('inn the present issue prices here in Bradford, is to bp fixed unnii ihp wool offered in Coleinan Street. '!>"( will '"> ii very important matter. Wild InHc is bpimr inclntod in which is himlly worth repealing. Some are forec-isliiisr i> sharp t'oflif" towards the middle nf Hie year, but Hint is "hardly likely. Sir Artiiur GaWßnr.h anys that "Fore Some l.imo at least Hio Government wool and tops would continue to be issued in Brad-

ford at the present schedule of issue prices, wlueh woulu not be altered until tne course ot the auctions showed a clear reason for so doing, cither as regards the general basis of values or as regards the relative values of paiticular dualities."