YORKSHIRE LETTER

Dominion, Volume 14, Issue 57, 1 December 1920, Page 10

YORKSHIRE LETTER

GENERAL DEPRESSION IN THE TRADE (From Our Special Correspondent.) Bradford, October 7. I ho outstanding event of the week has been tho opening of the sales in Australia, Adolaido having opened the bull with a public Kile last Friday, and Sydney beginning on Tuesday. The news Horn tho Soiuh Australian capital shows clearly enough what is the actual standing of the raw material, and together with the finish in Coleman Street, there has been demonstrated the attitude of consumers towards tho raw material. The writer has been connected with the wool trade for tho past thirty years, and well remembers the slumps of 1800, 1000, and 1908, but the slump of 1920 is greater and more serious than all the other thick periods put together. As the president of the Bradford Textile Society remarked a few days ago, big fortunes have been made during the years of wur, but equally big losses have been encountered this year already, and the trado'is not yet out ofthe wood. Had tho trade been in. anything liko a buying mood more than 30 per cent, of the Adelaide offerings and ft good deal more tlinn half tho wool offered in Colem:,n Street during the past fortnight would have been sold. The limp and listless attitude of the trade towards the raw material shows clearly enough that users either have no financial power to operate or they aro unwilling to increase their stocks, and in -the opinion of the writer lioth these, influences are at work to-day. All topmnkors, spin, ners, and manufacturer* alike are to-day having to carry so much stock on behalf of their client that they think a cautious policy is by far the best, and the sensiblo reduction in production tends to increase and not diminish. AYe have never known a timo like the present when so much wool offered Tiy public auction failed to find purchasers, and it is a commentary on the present state of the industry, which, to say tho least, is far from satisfactory.

Adelaide Results, Messrs. Elder, Smilli, and Co., Ltd., novo resorted lo their pre-war practice of cabling average prices realised for fleece wools, some of the marks offered last Friday being woll known for regular frequenters of the sales in Coleman Street. I ho prices are by no means bad; in fact some of them nre good. For instance, 52 bales of Calperum were sold.which averaged Us. 53d.; Yaoknra averaged' 24id. for /I bales; Belmore made 2Jd. for 64 bales; Woplgangi 23$ d. for 66 bales; Keller, which is usually a -well-grown, sound,.but somewhat red, earthy woo! averaged 221 d. for 222 bales; Bimbowrie' averaged 221 d. for 32 teles; Cuthero, also a good 64 s warp wool, somewhat red in appearance, averaged 2lgil. for 217 bales; Boltnna, a northern-grown clip, of real Continental style, which is always verv red, averaged 20|d. for 117 bale's; and Poo amacca, which is a ,deep, shaflv GOV wool, somewhat wasty, averaged lfitl. for 101 'bales. The New Zealand Loan and Mercantile Agency Co. state that compared with appraisement prices, values were as follow:—"Merino super Gi's to 7fl's 75 per cent, higher; ditto, good shnfty fleece, spinners 64's to 70's, 75 per cent, higher; ditto warp lleeces spinners, G4's to 70's. 35 per cent, higher; ditto good spinners, GO's to Gi's, 25 per cent, higher; ditto shnfty lonmakors, G4's, 20' per cent. higher; and ditto good average topmakers, GO's to (14's, 10 per cent, higher. For inferior descriptions there was no bidding, while pieces and bellies were mostly withdiawn at under appraisement prices."

Expectations About Realised. The above prices just about harmonise with what Bradford expected. IJ has been known for weeks that importing topmakers have sold Gl's tops for December delivery at ss. Gd., eonio assert that ss. has been taken, and good, tops out of Adelaide wool can be made'anywhere from ss. Gd. to 6s. Had Oliero been anything to indicate higher values, a very different sale no doubt would, have taken place, but in face of a big new clip to market, many feel Hint any weight of merino wool will bo- bought in Australia to produce good 64's tV>ps on a ss. basis. The very fact of America purchasing only a small quantity lends one to think that directly the bottom is touched there will be a good buy on home, C'ontinen*i.l. nnd American account. _ The one drawback here is that there is no incentive to purchase, trade being about the worst ever known. It is 'not merely a few firms that aro quiet, bui/ every mill alike is feeling seriously the absence of new business and the taking up of old orders. Trade is practically at a standstill, and many would not have been surprised if less wool had been sold at Adelaide than is reported. Many are of the, opinion that the difficulties of financing business nre going lb bo a very serious menace to the entire industry during the forthcoming season. Changes Seen. Prices for wool nre dropping so fast that it is well to put on record the alterations that take placo tu> each series of London sales. The closing week of the auctions saw no improvement, and compared with the previous series ms following nre tho changes, all of which will be seen to be in a downward direction ;—

Australasian Wool.—Greasy merino, superior 7d. to Bd. cheaper, average to good od. to 6d. cheaper, poor condition id. cheaper, inferior locks and pieces, H. cheaper; scoured merino, superior 12d. cheaper, avcrago to good Bd. cheaper, inferior Gd. cheaper, faulty locks and pieces id. cheaper; greasy merino, lambs, superior none offered, medium id. cheaper, inferior 3d. cheaper; greasy crossbred, fine, superior id. cheaper, 'fine, ordinary, 3d', to id. cheaper, medium, superior, 2d', cheaper, medium ordinary ljd. to 2<l. . cheaper; coarse, superior no market, coarse, ordinary, no market; scoured crossbred,. fine Si. to lOd. cheaper, medium and coarse id. cheaper; 6lipe crossbred, fine lambs Bd. cheaper, medium lambs 3d. to id. cheaper, coarse lambs no market, faulty classes no market; greasy, Puntn' Arenas, well conditioned 2d. to 3d. cheaper, was\\y 2d. chenpor. South African Wool.—Snow white, super lOd. to 12d. cheaper, medium Sd. cheaper, inferior Gd. to.7d. cheaper; greasy combing, light Gd. to 7d, cheaper, heavy id. to sd. cheaper; greasy clothing, light 2d. to 3d. cheaper, heavy 2d. cheaper. Trade Bad. There is no disguising the fact that itrade is distinctly bad, the/- worst we have ever known. It is not to-day a question of price at all, but tho refusal of practically all firms to buy anything. It is frequently remarked on 'Change that whereas to-day's prico for Si's tops is around Gs., if Sliey were offered at is., they could not be sold, all firms alike feeling that it is the best policy to increase their obligations no further, and the only business that is actually doing is in purchasing: small weights tf> keep machinery running as far .as possible. To say that business is slack iB to put it mildly, the entire industry to-day is suffering severely on account of the depression in business that obtains everywhere. More mills are standing over the week-end, practically all commission wool-combers are running four days per week, and unless trade revives, the majority of spinners will also stand Saturdays and Mondays. '