YORKSHIRE LETTER

Dominion, Volume 14, Issue 60, 4 December 1920, Page 12

YORKSHIRE LETTER

LARGE STOCKS OF RAW MATERIAL

INSIGHT

From Our Special Correspondent.

. Bradford, Octobcr 14, Tile entire industry is passing through a most difficult time (he worst in its history. When tho Al'Kinley tariff became operative in the 'eighties, it was freely forecasted that grass would soon he growing in Bradford streets,'hut that lias not taken placc, yet. Things wero bad then, and unemployment very genoral. Conditions aro worse to-day than they were then, at least so far as the stoppngo of business is concerned. Previous to the tariff there was a big boom only to be followed by tho inevitublo slump. To-day similar conditions obtain, and instead of mills and warehouses being busy, pronounced quietness obtains. To an outsider tho change which has tftkon place is almost boyond comprehension. Why this should havo 'been brought about is a mystery to practically everyone, and yet the common law of cause, and. effect u operating, only the results are most tantalising to all alike. It is tho firm opinion of evory business man in Great Britain that conditions to-day would not obtain if there was free access to the markets of Europo. While anyone can go anywhere without let. or hindrance, yet anyone attempting to do business naturally asks the question. What can be done by way of sound trade when the payment for eoods is uncertain ? It may be that the business people in Europe aro waiting till tho last minuto in the hope of'purchasing cheap woollen fabrics before operating, but in fac« of tho coming winter it is the firm conviction of all that buying would now bo general if the wherewithal pay for tlio goods was forthcoming.

Big Stocks, Sinco last writing; Hie Board of Trade rfturns have been issued' for the month of September, and they make interesting reading, In ordinary times the present movement of raw wool would be sufficient to cause, great surprise, and to find tlmt our imports of colonial wool for tjie first nine months of this year amount to over 2,100,000 bales is staggering. It is so wonder that warehouses at all tho ports aro filled, but this congestion would soon bo relieved if tliero was a froo movement in consuming- centres. The conditions which have befallen, tho trade are tho vory antithesis of what one expected six months ago, and the fact that tho British' Govormuent want to see tlioir wool 'brought home, and Australian and 'New Zealand selling brokers desire to see their warehouses cleared of stock, harmonises with the big weights which are pouring into this country. Unless things alter vastly a good dead of the wool arriving will remain at the ports for a long timo to come; in fact, there is le6s, disposition to-day to put money in to,, the raw material than over. The following table shows the arrivals up to tho en<l of 'September during recent years, what has been re-exported, an<l what colonial wool remains on haud for home consump- ' Imports. He-exports. Detained. Ton -Sent Bales. Bales. Bales. m 2,104,250 557.250 1,547,(100 igjg 2,565,120 218,889 2,316,233 iniß 987,115 46.880 940,235 11)17 1,584,798 57,199 J -527.599 Jq 1G 1.597,596 112,556 1,484.730 ,<lls 2,511,694 260,299 2,251,395 1914 ... 1,826,029. 874,373 951,658 1913 .... 2,012,803' G35.648 1,357,155

Export of Tops, Germany has always teen a very valuable customer to Bradford, and all things considered we think that the export of tops to Germany so far this year is as «ood as anyone could reasonably expect. Last month we txported,, no fowesr than 1,3,31,9001b., or only 60,8001b. less than the quantity of tops Germany took in September, 1913. Jiut for the export of tops last month the trade of Bradford would have been quieter than, it was. Of course, Germany hasgrcat leeway to make ud, ccmparod with whaf slie took in pre-war times, but. after all she is taking practically half her pre-war quantity, and one can reasonably expect, as weeks go hy, and as prices fall, thot our e-port of tops will gradually increase m volume. The following table shows our <vxoort of tops for the flrot nir.o months of tins year, compared with the' e; ports in the corresponding period of 1913: ■ 1913. 1920. ( months. 9 months, lb. lb. Sweflen 1,178.500 829,300 Germany 11,904,700 5,149,500 Japan 4,464,300 27,400 Other countries 12.566,400 10,391,500 Total 33,114,100 16,398,200

Wooi "Growers and tho Now Clip. It is Tory patent from Australasian cablegrams'that growers are not relishing tli& outlook. And this is not to be wondered at. The entire trado ban » good (leal of sympathy with colonial crowd's bwinu to the turn of avento. Judging by tbo colonial Press, manv believe tlTai the. present slump has been engineered with a. view of affectins colonial auctions, but such an assumption is wide of tho mark. It is the world financial crisis, the determination of banking institutions at home and abroad to break the back of all speculation, aided by tho unnaturally hi</h prieos for everything, which lias directly affected both the wool and cotton industries, and it is remarkable that the amount of unemployment and standing machinery is oven greater in tho cotton trade of Lancashire than in tho woollen and worsted trades of Yorkshire. The impression is growing upon the writer that whon values get down to a level more in harmony with sound business, and when textiles can be offered to wholesale and retail buyers at a range of values more in harmony with common sense, then and only then will trade rovive. Letters received from the Continent state that there aro millions of people in dire need of clothing and buying would be gladly done, but flnnneial resourcos are too low to "meet present prices. No doubt there are millions waiting pntiently the 1 advont of lower prices in the hope of being able to replenish their wardrobes to greater advantage.

Need for International Credits. There is no doubt that, the outstanding need is that of international credits. The wool world was startled two months ago with the repeated declaration that three or four leading Bradford houses had decided on a pool and that they had bought i£1,000,000 of wool with a view of exporting same to the Continent. Even if that took placo, about whicli there are gravo doubts to-day, such an amount is a mere drop in the bucket, and we are convinced that not a dozen of the wealthiest in Bradford have sufficient financial power to do a great deal towards rehabilitating the wool textile industry of tho Continent. AVo are more than ever convinced that the only antidote of bad trade is for tho Governments of Europe to face matters in a businesslike way and deviso wuvs and means for a free flow of credits. No doubt tho disturbed portion of Russia may be a great hindrance to the accomplishment of this desired end, Imt surely it is not too much for the Governments of Great Britain, France, nnd the Netherlands, as well as Germany niui Italy, to so arrange matters that business "on a large sciile can be resumed with those countrios which to-day are famishing for want of good clothing.