OUR YORKSHIRE LETTER.

Gisborne Times, Volume XXVI, Issue 2156, 3 April 1908, Page 1

OUR YORKSHIRE LETTER.

THE LOSS OF WOOL IMPORTS,

BUYERS HEAVILY HIT

(From our Snociul Correspondent.) BRADFORD, Fob. 21. Wool importers Phis season lmvo been bit both bin and thigh on their Colonial purchases, and especially on, the largo quantity of bales they secured last September, October, and November in the premier selling centres of Australia. To say that both Yorkshire),, Fronch, German, and Amerncan importers know it, is stating a very commonplace fact, and at the moment the trade is in tlijjjSp vory thick of landing these dear purchases. The couutonanco of somo shows how chagrined they are,, and it is as yet too eanly to say wliat is going to bo the upshot of it .all. It has led to more than one family disturbance and dissolution of, partnership in England and on the Continent, while the head of ono leading Amorican importing house committed suicide a few weeks ago, disgusted and worried to death with the terrible legacy of the. last few months. Of course, this is a question' looked at from .two points bit the grower and buyer, but as a rulo what does well for the latter does well for tho former, and vice versa. A vast change will havo to comb over the minds of importers to what exists to-day, otherwise they will inulce a bold bid to get back out of tho pockets of growers what they have lost this season, and some unforeseen factors will have to obtain if buyers pay the same figures again the next time they go out to Australia, South Africa, and Buenos Aires. A time like the present puts everyone strongly on the <1 efensive and it is certain that importers today seo the serious mistake they have made, and at their first opportunity they will try to recoup their losses.

It goes without saying that woolgrowers who have sold this season in their own market have done well, and pocketed all the profits. Repeated warnings were given to importers in tho public press of this district as far back as last September that prices wore dangerous, hence they have only themselves to thank for the unpalatable harvest they are now reaping. I maintain that tho interests of both growers and users would have been best, if buyers had gone slowly in tho early days of October and awaited developments rather than have rushed in and bought heavily as many importers did. Even the financial crisis in America, which proclaimed from tlio houso tops what was sure to follow, prevented not ,iu tho least the majority from pursuing their mad career. To-day, -with burnt fingers and much lighter pockets, a good many are smarting keenly under their own lash, and we are afraid that banking establishments in the neighborhood of Bradford are to-day exercising considerable pressure unon some of their clients. It is certain that many firms are not having such a comfortable time as they experienced a year ago, and losses anywhere ranging from £3 to £4 per bale are having to be faced. A few salient facts arising out of these uncomfortable circumstances are well worth noting. Tho hall was really set rolling in the Colonies at,/tlie first Adelaide sales which took place last September 26tli, and the first throe sales in that centro were practically red hot,, .notwithstanding. a deepening commercial horizon in England, bit the Continent, and America. Both at Melbourne and Sydney wool was bought 'with great zest, the programme of many buyers no doubt being fixed up and determined by" eonfo orders from Home where “future” sales had been made. Yorkshire was particularly active at Adelaide, duo no doubt to the well-grown, sliafty, deen combing character of many of the South Australian clips, Adelaide wools are strong favorites with Bradford topmakers, eeVeral firms producing good standard super 60’s tops largely buying these wools ,and blending same with shorter stuffs to carry it through. In the table below we present some unique figures, showing the quantity of wool bought in Adelaide of the first of the sales. The most significant fact to observe is the number of Bradford firms who bought 2,500 bales and over. The figures do not include “star” lots, but comprise the regular and larger lots:

that several -Bradford firms figuro at the top of tho list, -along.with one or two from lloubaix. Buyers hero admit readily to having mistaken their bearings entirely, for not only havo they paid high prices, but several have exceeded their limits in estimating the cost of tops, some being out over a penny per lb. Let us turn from Adelaide to Logdon. It is no uncommon thing for an Australian squatter to scl half his clip in tho colony and half in Coleman Street, and in that way either halve his tloss in case of a docline, or incrcsso ]iis returns should there bo a rise during the trausit-of his wool to London. Tho bulk of tho South Australian growers sold their last clip in Adelaide, but some consigned "a portion to Coleman Street.' The following are a few particulars respecting well-known clips wfr.c'a were sold hist- September anil October in Adelaide, and -which--w» re also offered at tho recent senes of London sales: BELTANA. London Adelaide price, price. Greasv super comb’g 10-94 LIS-102. • Ist ~ 10-9:1. 9-Si 94-94-9 ” nieces 8 9A-9 ”, bellies' 7 83-84-72 YJ/BOOMCOOMATTA. Greasy hoggetts 9 IIJ-11-i-lOi ~ A rams 6 8 " ewes 8 10-9:1 LAKE TORRENS. Greasy Ist comb’g ewes SJ- 92 ~ ~ „ hgts. 8-i 9-J ”,, comb’g ewes 7i 9.1-9 i 8J

„ Ist pieces 8 9J-9 ”B„ G 8 The above shows that an averago of ljd per lb. moro has been paid in Adelaide over London prices last series ,and wo aro confident wo are understating tho case when wo say the sumo was paid for wools -bought both in iMelbourno und Sydney. Add to this another penny per lb for freight, insurance charges, etc., which tho buyer lias to pay to got tho wool homo, und this brings up tho loss to 2id per lb. An averago Australian groasy bale of wool will weigh fully 3501b5., which at 2id per lb. means a loss of £5 13s per bale — a very serious thing indeed. Tlio Australian papers which havo come to hand during tho past fortnight havo naturally rejoiced at the largo quantity of wool which lias boon sold in Australia for tho first half of tho wool year, and the following figures show what were tho actual sales at the various centres from last

v'AWo liaVe no desire to exaggerate the unpalatable foots-; so wo will estimate'The loss on imports- at £3 per bale instead of £3 I3s as conclusively shown above. It only needs a school boy to multiply 882,G03 by £3 to see Chat there is an all round loss of £2,647,809 on the wool bought in Australia up to tho end of last year. Wo aro well aware that the purchases in December will not amount to £3 per bale, but those made previously will be nearer £4 than anything, consequently in approximating the-loss at £2,600,000 we are below the mark.- If it was possiblo to obtain the correct amount we are certain it would como to considerably over three millions sterling. We aro happy to think that, the above loss will bo fairly equally distributed between the Home, Continental, and American trades, and if anything France and Germany will be caked upon to divide the heaviest -portions; but what we contend the most is that with reasonable care such,a loss could have been largely avoided. In view of the above facts there is no wonder that tho -present state of the wool trade should be disappointing, crossbreds especially being demoralised. It i 6 common knowledge that in Bradford a good 40’s top has been sold .forward for May delivery as low as lljd, and some say lljd. iMerinos are steadier, but we hear that some importers /are rather keen sellers, and it is quite easy to secure a good super 60’s top at 2od. The wool has never been bought in either Coleman Street or Australia to produce a combing at anything like tho figure, and unless we' are greatly mistaken there is financial pressure being brought to bear upon some wlio are endeavoring to turn theix-' holdings into hard cash. It looks like somebody being either lamed or killed. i Thoso Colonial growers who did not pass by a good market either in Australia, -New Zealand,. Capo Colony, or even Buenos Aires are to be congratulated on their stroke of good luck, for we are certain that they have gained an,'average 2d per lb, all round on tlicir.best combing lots. If the buyers at the time sold forward “futures” they will not loose as heavily as those who have not done so, but many being so badly bitten over their/-future sales -from January to June . 1907- (the result of selling forward in August to October .previous at very low prices) did not adopt last autunin"the same tactics. The result is that tlieir losses are all the greater because from the time tho wool, was bought to its arriving here prices declined somewhat sharply.

CROSSBREDS DEMORALISED

The past week has been productive of very little good in connection with the Bradford end of tho wool trade, and-tilings are depressing. There is no gainsaying the fact that business is completely off, and prices are anything'but steady. Only in tho case of about an; odd firm who; have' sold heavily forward and who want no more fresh orders, are merinos steady, and with perfect case a spinner can buy a real good super 60’s top at 25d. Whether they were made at the orlop, or no is another thing altogether, but the'-fact nevertheless remains- that among one or -two importers there is a little pressure-to sell. Some' take a very sanguine view over the future of merinos, but others equally as strongly contend that prices will be tower before higher unless business mends. Everybody' is simply working off old orders, and there seems a totail lack of confidence, and new business is very conspicuous by its absence. Commission woolcombers are making deliveries as fast as possiblo, and this is about the healthiest sign that at present obtains in the wool trade. Of course, it is topmakers who are making delivery on old contracts, and it is some satisfaction to know that the tops are being wanted. Crossbreds are. simply demoralised, and quotations aro very irregular. A good many idle and ridiculous statements are -being made respecting tho low prices which have been accepted for 40’s, and lljd is freely talked about. This I do not for a moment believe, lljd being taken in one or two cases for a somewhat inferior top. Good -standard makers are still wanting 12J-d though a shilling would, I daresay, purchase the same. The fact of the matter, is trade is about at a standstill, and topmakers -find no business at all offering. Spinners aro finding great difficulty in meeting the market, there being at nresont -so many se-cond-hand yarns knocking -about. There is as much as l/d to 2d per lb. difference between spinners’ quotations and wliat the same count and character of yarns can he bought for elsewliero, and until these yarns are out of ,tlie way. little new business can .be expected. There has been a good move in Turkey mohair, something like 1,700 bales of super quality having been bought in Constantinople on a basis of 18Jd landed in Bradford. A few little lots of Cape have been shifted at unchanged prices. Generally speaking there ..is a lack of confidence, and trade is much quieter all round.

iBiggin 9,685 bales McGregor 9.642 Buchanan 6,275 ,, Maeurel 5,655 ,, Kettlewell 5,307 „ Haugliton 5,275 ,, Provost 5,215 ,, Balthazar 4,479 „ Ayrton 4,642 ,, , Playoust 3,201 „ Anderson 2,532 ,, Exton 2,791 „ Lamerand 2,683 ■ „ Mitchell 2,128 „ Assemaino 1,778 „ Dewez 1,615 ,, Laycock 1,362 Caulliez 1,319 „ Do Wyu 932 Flecker S60 „ It will ho seen from tho above

July 1st to December 31st: — Sydney ... 385,261 bales Mel bourne ... 231,926 „ Adelaide ... 119,053 „ Geelong ... 83,852 ,, Brisbane ... 59,511 „ •I’otal .. 882,603 bales