YORKSHIRE LETTER

Dominion, Volume 14, Issue 56, 30 November 1920, Page 10

YORKSHIRE LETTER

TRADE ADOPTING A CAUTIOUS POLICY IVora Our Spccial Correspondent.' Bradford, September 23. Last Tuesday blu\" tho oixeninff of the "Q" Beries of London salca, and tho interests at stake, viowod from the stamljjpint of a colonial grower as wall as a Homo user, aro as great ns ever. In fact, as tho vear advances, it looks as if cocli succeeding sories of London sales increases in importance. This is duo solely to the approaching opening of tho sales 111 Australia. At the present tinio thero is nothing whatever to indicate any revival of business, and many are feeling that those responsiblo in Australia for tho sale of the now clip will have to offor the wools very judiciously, othervieo values will bo forced to a much lowier lp.vel. Tho writer forecasts that Australia will miss this season the very valuable! competition of both Germany and E.ussia seon in pre-war days, and neither London nor Australasian markets c<in assume a satisfactory basis until tho incoming of the two countries named. It was exceedingly pleasant to seo wool values soar as thev did during 1919, but tho aftermath bids fair to be a terribly costly one, and but for tho recovery of this year's losses through tho E.P.D. of tho threo previous years, many in tho wool irrado would to-day be insolvont. A Go-Slow Policy. Practically tho whole of tho trado in tills country has deeided upon a policy ol' "go slow," and the writer hns never known such a lack of enterprise in tho whole trado us is tho case to-day. This is the direct outcomo of the excessively high prices which ruled for wool- from last October to the end of March, and but for tho mad upward rush of values, to-day's aftermath would not luvvo been as # unpleasant) as it is. When ono thinks that 2-to's yarn spun out of 70's tops were sold anywhere from 225. to 2-Ks, per lb., and that blue sergo was sold by the thousand pieces at 325. to 3ls. per yard, is thoro any wonder at wholesale anil retail fabric buyers refusing to tako delivery when pieces cannot be sold? Instead of tho production of looms to-day going out when tho pieces aro finished, we_ find accumulating stocks everywhere with manufacturers saddled with stock which ought never to liavo been on their hands if Homo and export houses would hnvo stood Ituo to their orders. This state of affairs is almost universal, both in Great Britain and America, and is drectly responsible .for ih:e stagnation of trade Which is everywhere in evidence, consemiontly there aro abroad to-day strong feelings which indicate no good to tho wool trado in general, and mean a still lower level of values in Coleman Street :is_ well as in the colonial. It can bo said that f.s a. ■ new season approaohes thoro is less encouragement to-day to buy than at any previous tinio in tho history of tho trade. In 1899, G4's, tons were considered excessively dear at 34d.,-and they fell to around 18d. That was regarded as a ruinous time. Since the bsginning of April, CJ-'s tons ha ve slumped from 13s. Or], to 7s. lier ,Ib., and a good many firms interested in the coloninl trado are leertninly staggered with their present experience, and are going to bo cnlled upon to meet Very serious losses indeed. It is here whore wo havo in_ evidence that spirit which is to-day crippling' enterprise, and compelling oven big firms to eay that they are going _ to adopt a hnnd-to-moutji policy until 1 there is a vorv different state of alfairs.

Decline in Coleman Street. There is available this series no fewer than 133.000 bales, which means three weeks auctions. This is going to !»■ tho longest series since May. Everybody assembled last Tuesday feeling in 'poor buying form, and as one went round valuing, it was apparent that the majority expected a decline in values. Thoro is going to be this series what wo will call good commercial wool offered, which under ordinary conditions would have sold exceedingly well. To-day wo nro laced with verv limited purchasing power, H 110 .! n ® ' ns P' rc °n° 'to have a flutter j in fact, all say that thoy ore. "imply KOing to cover urgent needs and await developments. Tho initial sale wns very much as expect od. The Continent was the ohief buyer of merinos lost week at Liverpool, and judging bv the first tew days m Coleman Street, both Franco and Belgium are in .the running. It is a j°b" that this is so, otherwise tho initial decline of 10 per cent, in merinos would liavo been more like double that amount. Fine wools went verv much in sympathy with Liverpool, and we are glad that selling brokers aro prepared to meet tho trade providing decent bids are offered. Wo consider that good topmakmg merinos are to-day selling on n clean basis of about SOd. to BGd., and thiiit that medium merinos can l>e bought at sensibly less. Still, the. decline is nere, and tho Imperial Government will be wisely advised to meet tho market. The writer is satisfied that neither in merinos nor crossbreds is there anything to be. gained by sticking to stocks. In face of a colonial new clip and colossal stocks of old wool in tho hands of the Uritish Government, (lie right policy is to accept what the trado is prepared to pay, especially in view of the fact that merino wool is skill leaving behind a very substantial profit to tho British Government.

In crossbreds, wo have still n very useful article, but there seem to bo very few buyers for wlint is being offered except the Home trade. We may see soino American buying beforo tho end of the sories, but there ia nothing yet to warrant America or the Continent purchasing nt all freely. Fino crossbreds are certainly tho turn in buyers' favour, and some very good, tine crossbreds nro now becoming nvaiTable nt KM. to 35d. Tho Government havo certainly lowered their limits by 2d. to 3d. per lb. compared with .Tulv, hence good -18 s crossbreds are now available nt 20d. to 22d., nnd when these limits are not realised the wool is passed in. Scoured crossbreds and slipes aro also moving at the reduced limits of tho Department. The scries havo opened as well as can bo expected, and wo think Hint there will lie real cause for satisfaction if opening values aro maintained to the finish. Russia a Buyer of Cloth. Tho papers have made a great to do over the reported sale of big weights of cloth to the Bolshevik Government through its London offices, amounting to •£1,000,000. There is no doubt tlint something definite lias been done, for threo weeks ago huge sales of blankets to somo foreign Power were reported, but apparently 0 no one knows what has actually taken place. The inspired statement reports the cloth as boing "of tho worsted variety," but this is not the case. Itussia has never been n country whore worsteds wore largclv worn, and when Tiussia wns Great Britain's ally nothing but woollen fabrics were purchased for the Army. Russia boing a very cold country, thick, heavy woollen cloths aro mostly worn, and seeing that worsted cloths aro still exceedingly doar, the Russian delegation naturally want as much ns possible for thoir money; hence chenp, thick woollens hnvo been largely purchased. These nro mado in Hatley and Dewsbury, and tho

purchases will not bonelit directly the woollen trade, but move directly tlio shoddy and mungo truck's. Hovrcvor, it will help to reduce some of the big slocks of the by-products of tho trade, and if mills can bo kpj>t running it will do something towards reviving trade in general.

Tho greatest, move should confc from | Germany. . All those who have been through" that country report that tho populace is very 'badly in need of clothing. There certainly is more wool being manufactured in Germany than at anytime since the war, but all the same there is still room for a vast improvement, anil wo think that improvement cannot be long delayed. No matter what tho exchange, the Gorman nation will lmvo to purchase wool clothing. However one dislikes to refer to the fact, lower wool values will certainly help to bring Oorliian Hpinners and manufacturers into the market to purchaso big weights of raw material.