LONDON WOOL SALES

Dominion, Volume 13, Issue 203, 22 May 1920, Page 9

LONDON WOOL SALES

' • CONTINUED STRONG DEMAND FOR MERINOS ■ (From Our Special Correspondent.) •' London, Maroh 18. Once mora the shouts of eager wool-buyers-are to bo heard in Coleman Street Wool Exchange, tho third series of colonial sales having begun last Monday. There was a large attendance of buyers, in fact the number of men attending'the Eales seems to increase as each series ( comes and goes,, every firm using wool apparently being under the impression that it is policy on their part to be present. This is always a good sign, meaning >as it does that they are prepared to buy. • Tho writer never likes to see half n dozen big Yorkshire firms absent during any week of the series, for that means that they aro not wanting wool or else, are not concerned regarding the course, of the market. To-day there is.n widespread interest in tho course of the market, with everything showing \<nmistakable signs that the general course of values is of more than passing concern. The outstanding feature of all is that both Home, and Continental buyers are keen to operate and although values aro as high as' ever, there is no-slacken-ing in the demand for the raw material. This certainly is the best feature of all, and indicates a steady and large consumption both at Home and abroad; in fact, French buyers are as keen to operate as aver, notwithstanding a strike in the manufacturing districts of Northern France. As a matter of fact, trade in Ronbaix and district has been'brought to a standstill,' although' we understand that both masters and men have got to the talking stage, which is the first move towards settlement*

Upward Trend of Merinos. The outstanding feature of tho series this week.is the further upward_movement of merinos. There wero indications of this both at Liverpool and Bradford; in fact, although something like 40,000 baftes nave been sold since the closo of last series there has been an increasing demand for. fine wools, with prices all against the buyer. ■ Last Monday, it was clearly shownthat merinos occupied as strong a position as over, in fact stronger if that can possibly be. There is no wonder at this in view of the sold out condition of the Ronbaix top market, and if. Germany, can settle aown to business, activity, then we may expect wools of all. qua'Titics to bo in even stronger demand. If Germany can amalgamate all her interests, and agree upon a sound business policy, it may, have the. effect of bringing Russian politicians and militarists to their senses nnd.leading to something liko a rehabilitation of international interests. What 38 wanted in central and eastern Europe is for Ml leaders of the people to oppose a policy of anarchy and Bolshevism as it can only land tho nation into wOrse conditions. Nothing but work and industry can possiblv lead to happiness land prosperity.. There jfi still a great jieed of tho gospel of peace on earth and good will among men. That policy would lead to, perpetual prosperity in ,tho wool textile industry of all countries. Tho' position of merinos to-day is ono of unparalleled strength, and notwithstanding all the shouts of Labour agitators ■they still hold on' way stronger thaji ever. Last Monday saw aM 1 good merinos about 5 per cent, above closing February Tates, -while average merinos, thanks entirely to keen. Continental competition, appreciated 5 to 1\ per cent, This is the direct result >of French operators being keen to buy merino wool for their combs, because every firm alike has met an easy sale for their tons, while we know of big orders still being in Northern France awaiting fulfilment.

. .'. '. 'Crossbreds Steady, Nobody looked for such change in crossbreds and not much has been seen. Fine classes show a hardening, tendency, and thero appears to bo no evidence of buyers being filled with wools .of 56's quality nnd upwards. Both grease and scoured descriptions oT this quality have continued to sell as well' as ever, Sydney greasy wools selling up to 475 d., while Victorian • grease (56's and 58's) liave sold up to 53'Jd, end comebacks 57Jd. Surely these prices leave nothing to be.desired and are indicative of a strong market, in fact it looks as if the pre-war standard if values hns gone for ever, and that big prices are going to be forthcoming in the future for ell descriptions of raw material. One cannot discern such • ohlange in medium and coarse crossbreds. At. times'.one gets an impression that 4R's and super 50's are meeting with a somewhat bettor mnr- . ket, but coarse crossbreds do _ not show •much change, and if .their limits are not ■ realised very soon selling brokers take .them in. Various Tumours are afloat as to what the Government intends to do ■with these wools, and during the recess ;it has been cften stated that negotiations 'are proceeding between the British and ; German Governments, whereby Germany in to' raceivß at least half a million .bales of wool, presumably medium and low crossbreds. Of course, this is simply a rumour, but low wools are taken in without the least compunction, and Yorkshire buyers are frequently wanting to know what is going to bo done with: the wools. -■' because the home trade is the only outlet ■ for them at present. Scoured crossbreds 'are selling readily and aro being taken freely by the woollen trade. Trance joining in the purchase of the finer qualities. ■ Blipes appear to havo made som9 recovery and aro moving ntt very readily.

The German Revolution. ' The state of affairs in Germany las naturally attracted a good deal of attention in textile circles on this sido, and it i 9 regarded with some misgiving. True there has been a sudden change of front 011 the part of those assuming' to hold the reigns of Government, but when all is said and done, the fact of too being serious upsetment almost bordering upon revolution has certainly damped the ardour .of those who were inclined to send wool to Germany for the .purposes of being combed and spun into yarn. In fact, there are to-da/ a good score of British firms who have wool in Germany undergoing the process of combing, while many firms h'ave gone s. step further and have arninjod for tops to be spun and the yarn woven. Of course nobody can be_ expected to proceed with tbese negotiations unless they are certain nf their stuff being secure, hence for the time being the majority are disposed to hold tfheir hand. German agents both in London and Bradford hnvo worked assiduously during the past .three months with the object of inducing good firms to send raw materials to the' Fatherland, 'but the latest development shows that, however good are the intentions of these German agents, tli'ere is always the danger of the wholo thing being killed in twenty-four hours, for any revolution in Germany, after the order of Russia, will mean years of disaster to the ■ German nation. Production and 'Consumption of Merinos. We understand that the Sub-committee of the Wool Council has sent to the Board of Traue a recommendation that all restrictions be removed from the export of tops of all qualities. To some people this seems a strong recommendation, and going s. little too far under present conditions, but the vote is unanimous, and even embraces the support of the Labour Party, ffhat ibeing 60, the entire trade fails to Bee how the Board of Trade can refuse to accede to the Export Committees recommendation, notwithstanding at the present time there appears to be litUo rfock of merinos to export. The only fear one lias Is that with freedom of export of all qualities, fine crossbreds, and rneTinos cannot fail to advance, but the trade must take that risk. This step no doubt "las teen dictated on account of (French torjmakers exporting considerable quantities to countries thht in pre-war days were largely supplied by Yorkshire export houses, it now being felt that if business with Continental customers cannot now be resumed, it means that trade will be permanently lost. Under these conditions, it is believed that the Board of Trade will abandon all restrictions on export, both of wool, tops, and yarn and allow everything to bo sent without let or hindrance where firms desiro to do business.