YORKSHIRE LETTER

Dominion, Volume 12, Issue 184, 30 April 1919, Page 10

YORKSHIRE LETTER

SOME GOOD WOOLS

TO BE OFFERED IN LONDON

(From Our Special Correspondent.) Bradford, February 20, 1!)10 All eyes are now turned in the direction of Coleman Street, and it is expected that by tho end of the week more official information will be forthcoming regarding the programme that is to he adopted at the first series of sales 111 April. The selling ol wool by public auction will be the means of testing the actual position of the raw material and whether it is wanted by the trade inception has been taken to the methods adopted by tho American Government in offering Australian wools by public auction immediately the armistice wis signed, the Washington officials showing undue haste to realise stocks. litre seem to the writer to say_ tilings which are totally unjustified, because thev are completely ignorant of the conditions which obtained at the time across the Atlantic. It seems that American buvors were simply determined to take wool only at the same issue price at which British firms were receiving their wools at the hands of our own Government, that of itself being a sufficiently important factor to justify the attitude adopted by American mi 11 Much irresponsible' matter/is written nowadays by journalists whose practical knowledge of the-trade is nil, and who totally fail to appreciate the position of the "actual spinner and manufacturer, who knows how- imperative it is to obtain the raw materials at the lowest possible price, when ho is competing with those in other countries who are obtaining wool at' 25 to 50 per cent. less. That fact alone justified American mills in refusing to take in wool at the issue prices which were ruling in the United States last October, and anyone can see that subsequent events have fully justified the attitude they adopted. It is absolutely necessary that prices in Yorkshire and the United States harmonise to a large extent, and this is appreciated to-day more than ever.

Conducting the Auctions. The trade is now advised to some extent of what the procedure will be, though there are many important details which wait completion. At the met Wool Council meeting Sir Arthur Goldfinch (Director of Haw Matariels) said emphatically that wool i/ould be catalogued and each lot limited, the price being slightly below the ..present issue prices per clean seoural .pound m Bradford. il is believed that the margin will average about 10 per cent., in order to give merchants, topinakcrs, and others a reasonable chalice to make a.profit on. their purchases. Nobody will ntul fault with this,. There will be a minimum price, biit not a liiaxiniuni one. If any topitiulcer fancies a line of wool and is prepared to bid above the limited price, ,\vell and good. Kvei-y man will know that every extra halfpenny lie bids will come oil' his profit, but what difference docs that make when a man has machinery and margins are considerable. Some are already fearing that there will be a very big demand for good combing wool, both merino and crossbred.* It is expected that about 20,0(1(1 bales of New Zealand erossbreds will .be available, M.OOO bales of good merino combing wools, and -0,000 bales of short clothing carbonising classes. Take Hie crossbreds: these Will certainly be weknme, but such' a sniall quantity cannot possibly meet all tho requirements of users. , It is thought, that an important section—spin--ner-conibers —will be so keen to buy crossbreds that the ordinnry topmnker will have to stand on one side. Spinnercombers have their own combing plant and prefer to buy wool, so fit. it to their particular requirements', and then make the toll " 1( '.V Wi,n '- Tl'i' l ' l ' are a o®"' many such linn.' in Bradlonl and., district, ami in all probability the keenest competition wil eoine from that quarter. To obviate any "runaway" market the Department proposes to continue issuing wool at Manor liow, Bradford, at prices, but when all is said Mid done users prefer to see tho bales open and to have the privilege of valuing and selecting wliat they think will best suit [heir purpose. However, e\ery effort will lie made to bring about a successful sale, And it is to'be hoped that the trade will rise to the occasion and operate freely.

Reasons for Lower Prices, There is no disguising the fact tlnit at the present time there is a lack of confidence throughout the entire trade, largely due to the policy of the Department in regard to future values 'rot yet being announced. What ainiizcs til-? writer most is the great expectations of many members of the trade whose ideas seem to ho totally unjustified. The British Government, who oavii the Australian and Xerv Zealand clip, 'and who are largely 'the trustees of the British public as well as colonial growers, cannot reasonably be expected to hearken to the whims ano fancies of everyone. It is up to them to market the raw material in a. commonsense and reasonable way, and if the a<)-. vice of those members of the trade who are in a position to give sound counsel is taken the Department will not,t'o far wrong. The British Wool Federation lias made one demand which at the moment cannot b? Veasonably expeclec! to be carried out. The top-ii-akins section seems to want the Department' v to cease milking and selling tops directly '-.lie London sales ope' 3. The Department rill serve the best interests of the trade by being in n. position to supply tops it wanted, and this will act as a check to any speculative movement which might be engineered. It seems to the writer that the "best thing the Department can do is to announce their minimum prices for the sale of the raw material, and to put as much on the market as possible. This will then soon test where _ things actually are, and if reasonable prices an> asked the trade will buy. Then, too, it should be declared how long current values are to rtnain in'force. Till July 1 finds most favour. If the trade throughout the world knows that there is to be no altoration in the issuo price of wool at the London sales before that date there will be some encouragement for all sections of the. industry to iterate, and the writer thinks that will be the courso followed. The question has been raise*?. whether the Department Is justified in charging a profit on shipping expenses The fact has never been stated before, but the.writer is in a position

to fiiiy that every poiuul weight of wool brought: from Australia and XeV Zealand has boon delivered in Londtm at. under (id. for freignt, this covering' all costs -even when war risk was at tlw top point. To-day we should say that it is costing the Department no more than 3.M. to 4d. per lb., nnd with a steady dfieiino in shipping chaises the (foverninent will he able gradually to mm* thoir isriiio prices for wool, and if done successively, say at tho end of oyer? throe or four months, it will bo a direct means of i\stablishjng'confidence and leading to a continuance of good, sound business.

Will America Be Permitted to Buy? This (juestion Ims been raised with leading officials of the .Department, and it is understood that at piesent it is hardly likely that any firm will be allowed to operate in Coleman Stieet on American account, at. say. the first two series of London sales. It is well known that the United States Government was given the privilege of purchasing in, Australia niiouf 325,000 to* XKI.OOO bales of wool. Part has been liftc.!, and the balance remains at their disposal. The British authciities have undertaken in the first instance to meot all tho demands of Great Britain and her European _ Allies, ana until it can be reasonably said that these have been met America will not be granted the privilege of operating in Coleman Street. No reasonable man can find fault with that, notwithstanding there pre American firms who have stated expiicity that even to-day tiey prefer to purchase raw .materials in Coleman Street, rather than Boston." This is the opinion expressed in letters received in London during the past week, though it isj not clear why this sl.ould be. Possiblv American firms think that the selection rill be better in Coleman Street, and probably it will. It is no secret that among the offerings in April there will be 6ome very good wools, both jnerinos and crossbreds, particularly the former. We understand that some of the crack clips from West Victoria are to be catalogued, and if so these are the' w ; ools always most appreciated by United States buyers. However, the privilego will no doubt be granted American firms to operate as soon as ever opportunity comes .o do so. When big supplies' ar<. to hand and all reasonable wants relieve i our American cousins will be welcomed n' Coleman Street as in days of old. v