YORKSHIRE LETTER

Dominion, Volume 12, Issue 158, 29 March 1919, Page 10

YORKSHIRE LETTER

1 BRITISH-AMERICAN WOOL SITUATION (From Chir Special Correspondent.) • Bradford, January 25, 1919. Judging from correspondence wo have received 'front the United Slates conetrii is ielt abuut the future of the wool trade on that side- of the Atlantic. It is rather surprising to learn that some memburs of the trade in,the United States entertain the opinion that the relaxation of Government control of wool will be followed by "an immediate and substantial rise in prices." This is altogether out of harmony with what has taken place or is expected here, and with what

Is understood to be the inlenlion of, not only (ho British Government, but also tho United States Government. It has been evident for (juito a long linio (hat tho authorities ■were doing a'll Ihey could to stabilise values;, their ideas, of stabilisation including the principle that it would be moro to the advantage of the industry is a whole for wool values to be brought, to a slightly lower basis than the present British issue rates. In this country, Sir Arthur Goldfinch has been the exponent of this view, which is in harmony wilh what practical men have considered necessary. An American View. The following communication received from New York this week indicates tho treud of opinion in America:— "If Government otrcitrcl of wool in tho United States has been or is about to lx> abandoned, (them the British-American wool situation will ba deadlocked. The British" 'Government will not sell a pound of wool to individual manufacturers in the United States as long as they continue their control of raw wool,. 'J'hey would maintain this policy even if (ho London- auction sales were resumed, unless in the meantime the wide disparity between British and United States wool prices has been eliminated. The British Government have not heard the Inst from Australian and domestic, woolI growers regarding tho high prices realised at the auction sales of 45,000 tales

of Australian wool which were held in Boston last spring, and tbey, havo no intention of giving further cause for similar criticism. !""•" Written fiovrnmf'iit a rn ready and willing to release large additional quantities of Australian wool for shipment, to the United States provided some central organisation of the wool industry, having official saWion, is organised to control and distribute the wools thus released. It is understood that the total amount of Australian wools that have been released to the United States by the British Government up to (he tim'o tho armistice was signed was approximately 350,000 .bales. "Many topmakers and other members of tho wool manufacturing trade in this country would like to see Government contrbl of wool abandoned, depile the fact that they are aware that this would involve an immediate and substantial risa in prices. Tt is their opinion that the advantages to result from release of control would more than offset the disadvantages nf higher wont prices. At the lnor.ient, however, there is nothing to indicate that such an abandonment of control is

IHng seriously considered by Government officials. Tn Hi" wwilim' I .' flip wid» dis-•;i'-ity between British and United l Write? issuo prices presents a most difficult 'iroblem that will have to he worked out bsfore more wool will ho released to Africa liy the British Government." It is apparent from the known facts that the eontrnl of r-rices of wool grown and arriving in this country has, from the American point of view, placed Hie British Government in a somewhat awkward position. It 'has heen pointed out frer|ii"ntlv that wool prices in .this country have been kept on a more reasonable basis than in North and South America, the fact being overlooked that the restriction of competition in this country hastened to intensify it in other nnrts of the world. This would scarcely have been worth -referring to again hail it not heen for the dear demonstration that«the British Government have unmade a stick for their own back by controlling the price of colonial and home-grown produce, and then selling by auction in the States a largo quantity of Australian wool. Such _ an _ anomalous situation affords ft striking illustration of what is bound to happen, when any Government, even through sheer necessity, undertakes to buy raw manufacturing commodities, and eventually finding that they have some of it to spare, sell it in a market which is not controlled. Wo think it well to emphasise that a more reasonable buying basis will not ■-only do no real harm to the manufacturing trade of the entire world, but that it will ultimately prove beneficinl. No one has any desire for a slump in values, and there does not appear to bo any probability of such a thing happening. Neither American nor . British trade will profit by free selling commencing on mi inflated basis. American wool users ought to realise that they themselves will be at a serious disadvantage in competing for the export trade jf the price of the raw material in their country is above the parity in\ this country. Though they now seem to have got a good start, there is no dcsiro here thnt America should be deprived of a reasonable share of the business which is certain to develop as soon as peace is finally sottled.' j Government Profits on Wool. Some very outrageous statements have been made by British wool-growers at the various farmers' meetings which have been held during the past three weeks, phenomenal profits being alleged to have been made by the Government. As a matter oE fact, this will not stand closo investigation at all. For instance, at a meeting of the Notts. Farmers' Union, held last Saturday, it was stated that Lincoln wool, for which the Department paid around 21d., was being held by the Government at 3s. 8d! This is entirely wron?. Nothing Tike this has .taken place, n.nd it all arises out of a statement made by a Leicester correspondent in the .Press intimating thnt the Government had made about .4-7.000.AM profit on the last British I clip. This is seriously wrong, and we ! are surprised that the Department lmve I not seen fit- to w.ke mi absolute denial. It fs one more illustration of the triie [ saying that a littl" knowledge is it i dangerous thing. The journalist hns I come to the conclusion flint t'he Dcnnrtinent has been selling. ft»ece wool at the uric of combed tops. TV nrnfits made Ik the Deiiartmo"t are not half what is alleged. The writer has reason for saying that deep lustre fleece wools are invoiced by the Department at 2SM., tb.M: is, whe" any are available for the civil trade. The fact sneras to be altogether overlooked thai: tho Govnrinnent hi" used SO to DO nor oo"t. of British wools in Pm production of ihe khaki trade, tlm result being t that they have had very little 'indeed to invoice to manufacturer". The writer is not defending .".11 the actions of Ihe Department, who certainly havo made some good profits, but nothing liko what li.t: been stated by several farmers' associations. Prospect of Improvement in Exports. Tiaw or partly manufactured materials cannot bo exported to any country except

our Allies. Franco, being practically the only couiitrv to which shipments are allowed. Even Jiero everything is done on n strict rationing basis. Before a firm can export any noils or wastes tbey must first obtain a French recommendation from a Government Department in laris., which comes to the Commission Intcrjialionalo do Ravitailleuient m London. After a good deal of circumlocution tho recommendalion finds its way to the War Trade Department, who finally grant a license for export. As already indicated, nil wastes were placed on the free list as far back as the beginning of December, 'but none i.s available for export. These were released on condition that firms having accepted orders were to carrv them out until all military rarwrements were satisfied, and the market to-dav is exceedingly lightly Rocked of all descriptions of woollen and worsted wastes. Noils are. still controlled,, and during' the past week considerable quantities of American noils have been offered and sold in Bradford, ft is difficult lo wo. values. Tliev vary as ninth as (HI "per lb., and while sales of unearhoiiise'd noils have been effected at around !W, others have been disposed of at sensibly less. Bradford does not deal in the importation or exportation of woollen rugs, that being entirely done by Dewsilmry firms, who specialise in that direction. The export trade in all tho byproduct.* of Hie wool textile industry is exceedingly limited, and even to Italy they are all controlled. The fact is woollen and worsted wastes cannot be exporled to anv country we know of, and i can only be'sent out of the country to our Allies under a special license.

Dannevirke vocalists and musicians intend compel ing at the Napier Competitions at Easter, and it is possible that a party of them will first, give -a concert at Dannevirke. There is overy likelihood of an endeavour being made to hold similar competitions and a band contest at Dannevirke this year. At least fifty residents of the town will be represented at the Napier competitions, and their numbers will include Misses Fergus, Sattrtip. Punch, Belle Tnte, Evalino Tate, Mrs. Jacobsen, Messrs. A. T. Russell, Laurie Kendall, J. Hood, C. Carston, V. S. Maclean, J. P. Dodds, T Anderson; also three brass riuartets from Dannevirke Municipal Band. The Hawke's Bay Farmers' Co-op. Astn. report on the saie of the late Mr. Davis Canning's property, held on Thursday, as follows.—There was a large attendance, but the bidding was confined to the neighhours- in the immediate vicinity. Both lots were well competed for, the freehold, 935 acres, being sold tinder the hammer to Mr. K. K. E. M. Pedcrsen at £9 12s. per acre. The Education Reserve, comprising 1908 acres, was pas3ed in at auction at £4 10b., but sold afterwards to the last bidder at a slight advance. The Early Settlers' and Historical Association of Wellington are giving another "At Home" on Saturday afternoon next at Godber's Rooms, Courtenay Place, Members and their friends are cordially invited to attend. The work of the association has been suspended for some few months, first on account of the epidemic and then again a number of their most active members were out of town recuperating; but now it is thought proper to call members together again.