YORKSHIRE LETTER

Dominion, Volume 14, Issue 208, 28 May 1921, Page 13

YORKSHIRE LETTER

LITTLE DEMAND FOR THE RAW MATERIAL

(Ffom Our Special Correspondent.) Bradford, April 7. It seems remarkablo that the Depurttoent of the British Government responsible for dealing .with the big stocks of old colonial wool should have made no announcement regarding the 100,000 bales of South African wool offered by the Union Government of South Africa as long ago as last January, As a matter of fact, the announcement of the deal was first made to the British wool trade without any similar intimation being made in South African wool circles, it being nearly three weeks after, on the arrival of Bradford papers, that produce brokers at the Cape learnt anything of what had transpired. Having made the announcement here, Sir Alfred Goldfinch never definitely stated that the deal had been completed, though it was assumed in wool ciroles in London and Bradford that the offer had been accepted. It is now understood that a political motive lay behind the scheme, and there are reasons for believing that the ideas which have prompted the arrangements are sound. Bradford traders ano well aware that 100,000 bales are neither here nor theio among 2,500,000 bales of old Australasian wool. Faced With a toss.

There is no doubt that the terms on which tho South African wool is to be acquired mean a distinct loss to the British Government, that is, unless priybs suddenly and unexpectedly begin Yd rise. The 100,000 bales in question consist entirely of short clothing merinos, tho class of raw material that the trade does not want to have to handle to-day. It is impossibly to ignore this fnct, for the trade of this country has ever provided an extensive market for wools of six to eight months’ growth, and if South African farmers had adoptee! the up-to-date policy of shearing their sheep once a year, the quantity of wool in question would not now have been on hand. It consists of tho 1919 clip, during which year markets everywhere were red hot for good combing merinos. As a matter of fact, all twelve months’ grown wools at the Cape were readily sold, grower's realising magnificent prices, but the short, wasty, clothing msrinos received little support. All these wools will now have to be sold in competition with the huge stocks of Australian merinos, pieces, bellies, and locks, and it is very questionable indeed whether as many as one user in ten will prefer the South Africangrown article before that produced in Australia when the latter is available. It may be expected that the Australian wool will be most in favour, and that prices for South African wool will suffer considerably, if indeed it can bo sold at any price. The redeeming feature in South African wool is the comparative absence of burr, but this wool makes a distinctly leaner piece than when Australian merino is used, and not until Prance and Germany, particularly tho latter country, begin to operate largely, will these South African short wools be wanted at all.

A Forward Policy Wanted. It is high time South African farmers adopted more up-to-date methods in sheep breeding ana wool growing, and Australia may bo taken no a worthy example in this respect. That country stands out pre-eminently as the home of the merino, and stud breeders there have nothing whatever to lose by sending good rams to South Africa, whilst the Cape farmers who buy them should gain tremendously. A parallel case is to be found in the relationship between British and colonial crossbreds. The crossbred flocks of Australia and New Zealand have been built up by the importation of rams from England. The tremendous progress made in the crossbred wool and frozen mutton trade would have been impossible u tins has not Been done, yet British breeds are flourishing in their native land as much a$ ever. Lincoln, Leicester, and Down breeds are all popular today in this country in the districts for which they are individually suited, and exactly the same principle will apply to the best stud merino flocks of Australia, even if South African farmers draw largely from them. Shearing twice a year sTiouiu cease in South ATiffca, for wools of eight to nine months’ growth are undesirable for many manufacturing purposes. In these days of slump, when there seems to be no bottom to the market, the class of raw material most in demand is good long shafty merino, this continuing to sell at profitable prices. Cape Wool of Good Quality.

Excepting the wool growing in two or three districts in South Africa, the Cape article will never bo equal to that grown In Australia. No fault can be found with the quality of the former. The majority of the clips are of 70’s quality, but length land soundness of staples are lacking. Indeed, South African sheep men could quite easily afford to sacrifice at least six points of quality if they increased the length and soundness of their clips. Quality alone does not impart satisfactory manufacturing properties to the wool. The shorter and more tender the staple, the more wasty it Is from a manufacturing standpoint, and it is important to remember that even the best combing staple contains a certain proportion of short fibres which have to he put to an entirely different use. The fact that there is to-day a superabundance of short-stapled inferior wool on the market should impress upon growers everywhere the necessity lor concentrating as much as possible upon something showing length. One reason why wool by-products are so cheap today, aud why business in them is so poor, is that virgin wool has become remarkably low in price, some descriptions being even cheaper than before the war. Fashion will probably exert a certain amount of influence in'preventing the demand for by-products ceasing entirely, but firms with large connections state that they are experiencing very little demand for anything in the way of noils and other wool by-products, which nil goes to show that short-stapled manufacturing raw material is a drug upon the market.

Lower Prices Inevitable, As this is being written it ia exceedingly difficult to know what to say about tile London sales. It is understood that arrangements had been made for offering about 15,000 bales of Government-owned wool, and about 55,000 bales of growers’ wool, but tho series have been curtailed and will not continue after the second week. The announcement made by Sir Arthur Goldfinch, to tho effect that it was intended to put limits on the w-00l wliich .were higher than tho. prices current at tho close of the February-March Series, has aroused considerable comment. Strong efforts are evidently to bo made to stabilise values, but it is impossible to see how this can be accomplished in view of the absence of demand. The fact is, the current series could have been dispensed with quite easily, and no doubt those responsible for arranging them are at their wits end what to. do for the best. Neither importers nor selling brokers over experienced such a difficult time as the one through which they aro passing to-day. It is impossible to depend upon America as a buyer, and neither the Continental nor the Home trades aro in want of raw material. It is unthinkable that oven if there is any latent buying on behalf of the Continent higher prices will be paid. This is altogether out of harmony with tho circumstances inherent in the industry. Ono wondttrs what the price of tops would liavo been to-day if there had been no American demand, which has practically cleared Bradford of merinos during the past two months. Tn ordinary times competition such) as has come from America rotild have driven up prices pence per

lb., but as a mattex- of fact America began to operate at around 4s. 3d., her last purchases being made around 3s. Directly American competition was withdrawn in Australia and New Zealand, prices declined 15 to 25 per cent.