LONDON WOOL SALES

Dominion, Volume 12, Issue 12, 5 September 1919, Page 10

LONDON WOOL SALES

!:.::■ values fully maintained ■ RESTRICTED OUTPUT OF MACHINERY London, June 19, 1919. , Though there have been no importan ' developments in the local situation, thi tendency" of values is still very firm There is no doubt that' increasing attention, is being paid to medium qualitj tops and yarns, but strong advances still have to be recorded in the fine) sorts in suoK .cases where any sales have been * made. Topmakers have sak this week that their position-is far fron being • a ■ favourablo one with regard tt delivery. Indeed, they are 60-far behind that they can only • regard theii prospects with some feelings of exasperation. -On the other hand, there is some compensation in tlie prices which spinners are prepared to pay for certain delivery at the time required. For instance, an average price for a good' long 64's Cape top was around 93d. for JulyAugust less than a wesk ago,,but in the interval sales 'have - 'been . reported at pence per lb. more money, all duo to the_ eagerness of spinners to provide for their requirements. The Cape season seems to bo practically over, and the majority of Capo firms have' now closed their books, though there i 3. little if any- abatement in the' interest of buyers. It would be possible to consider further business for deliver)'"both for spot and around October,-which-cannot be put through for reasons ■ already named, but topmakers are refusing it on account of the obligations, they have.al- ; ready accepted. There is every prospect of increased Wool arrivals' during the remaining months of 'the, present year; the figures for last May being'very satisfactory. The inference .drawn is that values for the raw material may show some depreciation before the present /year expires, but there ■is .no, sign of a'correspoiiding fall taking place in tops and'yarns. Increased combing charges, - demands for advanced wages, and heavy taxation will all tend to: keep . m> values for these two commodities. The position is not entirely satisfactory, and the only rear source of relief is an increased output from the combing machinery. Opinions at tha Wool Council. These matters were brought out in a very prominent light at tlji-last meeting of the Wool Council held in London. Dealing with the question of output, the ■'-Director 'of Raw Materials emnhasised a'fact which has long been .'recognised ' in the trade, which' is, that until more 'tons are produced it is impossible for th 9 present artificial state'-of .'affairs to bo Telieved. It was, of course, 'no part of the .director's duty to ..deal, w'ith, the. relationship between employer and.employee, but it is somewhat,: gratifying , to know tlmt'Vesponeible' heads of departments and trade representatives on Government bodies have got a thorough grasp of the difficulties which are now having to be faced. Apart from the much dis- - .cussed considerations ;of wages and ;■■ working conditions, the time of the year is.not favourable, to an increased production in the combing establishments, and this-is another ; factor-: tending to present'the "Volume of output being as largo as■ is desirable.. The worsted ; trade is, of course, ; the first to suffer- when tho Supply, of. tops is not adequate, but it that some effect .will be produced upon other branches of the .manufacturing..industry.. Noils, for instance, : are' very dear, the margin be/tween the.prke at which! merchants liave taken them _ over from the' Government and the basis on which they have been sold to users being M. to sd. per lb. AH- by-products are exceptionally dear, due partly to the large demands of the woollen industry ,_ but:also to some extent to the diminished:, output in the worsted« section. .........Jncrßased Wool Arrivals. Another important point is that the Department are making strenuous : endeavours to offer increased quantities of wool. - -•-Thero is apparently no deficiency off'thetr part in this respect. ■--,; Indeed, 'it 1 was' made clear. at the -meeting of tho Wool .Council that they are prepared to offer': quite" as much wool as tlie ' trade has absorbed in normal- times. If this is the case the question of handling facilities ■ will becomo more prominent, and there are indications that' those whose custom it is to visit the London sales will have to spend a very largo , part 'of their time'in Coleman. Street'if all the; wools which are likely-''to .be available are to bo absorbed. There is aJs>_every prospect of reasonable quantities being availablo for export to Belgium arid-other countries. The Commit teo of London Wool Brokers have announced that, the quantity which mil be allowed to go out of the current: London 6iiles to Belgium will be 15,000 bales, including 3000 bales of 'merino combing ■wool and 12,000 bales of merino clothing and 'Mortars. Italy will be allowed to take 2000 bales each of merino and crossbred combing, while 5000 bales have been allocated to Canada. These quantities will help partly to'satisfy outsido but it still remains to bo seen[_ what 'share German firms will ho allowed" to take after the peace terms are finally settled. Judging from tlie figures given of expected wool arrivals during this year and tho quantities which tho authorities intend to offer, there will be every opportunity for all'parties to fill their requirements and put in good stocks against prospective needs. One of the reasons why values have advanced so tremendously in London sinco the sales were restarted is that spinners' and manufacturers' stocks were very' low indeed, and as soon as.thoy -were able to do so they took every available bale of tbo classes most miifcablo for their individual requirements. The offering of larger quantities in London with that centre as tho principal source of supply instead of the tantalising Departmental offerings at fixed prices will help to obviato some of the evils which have had to bo borne sinco the armistice was signed.

Bettor Transport Facilities Wanted. •Even with an adequate supply of wool In. the country and a correspondingly increased output from tho combing machinery the position will not be greatly improved if better transport facilities are not afforded. One of the disadvantages accompanying: the delay in bringing wool from London is that when tho owners cannot get it to the combs their capital is lying idlo in the warehouses, and unless they are in an exceedingly strong financial position they are seriously handicapped. It is understood tliat several cargoes of Capo wool have arrived in port recently and that they- are only coming to Bradford in email consignments, a; few bales being taken from one cargo and a few bales from another. When this happens there is email wonder that Capo topmakera are very indifferent about making any offers on forward account, and that such extreme prices as the one already named for Capo tops should be realised. Tho position of Cope firms at tho present time is almost entirely protective, due to the difficulties which are being experienced in the way of bringing wool forward and letting it through tho maohinery. London Auctions Open. 'flfhb 'ffiitd series: of* London sales comjfiSn&JT'.iast Monday.' The attendance w'fls'not large, which inay bo partly Accounted for by the fact that Monday is an awkward day for' opening l any series. More Continental buyers were present than during tho May series, and these were chiefly interested in the lower

classes of wool, which" are most suitable for carbonising purposes. Aa a result of their competition, prices for this class of ran- material showed a slight improvement compared with tho basis established ufc tho Slay auctions. Tho market generally has 'remained firm, thoro being little cause for complaint about competition for any of the wools available. Tho catalogues offered have Been fairly representative, but the selection of New Zealand crossbreds has been large. The total weight of wool offered on the first day was 9390 bales, of which quantity 4672 bales wero from Now Zealand. . The demand for merinos was very good, the prices realised showing an advance or 5 to lo per cent, compared with the close of the previous auctions. This brings values for tlie best wools on to a parity luth the figures realised at tlie sale at Liveipool un June 5. Medium merinos and shabby lots were occasionally cheaper, the interest shown in these not boing quite eo keen as in the better wools. Only a limited quantity of fine crossbreds nnd comebacks ; havo been available, but .these havo been readily taken, and also made prices quite equal to the Liverpool basis. Little change has been seen in the New Zealand wools, while slipes, though selling'well.' have not drawn forth sufflciont competition to mark an advance. Before the sale of Government-owned wools commenced, about 750 bale* of Capes were offered. Prices for good combings showed no varialion from the. rates previously established. Scourcds went somewhat irregularly, and withdrawals were" Tajrly numerous. The programme for the, current auctions as at present arranged is that they will continue till July 4. and the total quantity scheduled is about 140,000 bales.