LONDON WOOL SALES.

Gisborne Times, Volume XXVI, Issue 2179, 1 May 1908, Page 1

LONDON WOOL SALES.

A POOR START. ANOTHER SERIOUS FALL IN ALL QUALITIES. LONDON, March 20, 1908. (From our Spec ini correspondent.) All eyes are now upon Coleman Street, and 1 have never‘known a time when there was so much interest manHost over the course of wool prices. I have lately thought'that men were as anxious and as much concerned when prices wore low ns when values were high, for everybody seems desirous of 'knowing the fate of the raw material. The interval has been the most disastrous tliat wo havo had ' "sinco 1900, every quality falling consider-; ably. It is impossible for markets to stand still. Tilings havo about reached that point during the past two months as to alarm everybody, for every transaction lias shown a lower price accepted. It is really disgusting to see men spond their time and money in buying an article in tlio hope of trying to make a living profit, and then to find that everything is against them. The money recently lost in the wool trade is tremendous, and it will never bo known what parties have suffered the most. I hardly think that values would have dropped liko they have if the trade had not been confronted with such heavy supplies, all of which have to be lifted and financed. It is at a time liko this when the question (should he seriously considered oi giving a longer time to the marketing of tlio Australian clip in particular. *-.Jt’s all right enough rushing a million hales on -to tlie market in three or four months time when trade is booming, hut when wo encounter a time like the present, it is had any end up. HOW VALUES HAVE FALLEN Tlio course of markets in consuming centres like Bradford always plays on important part in determining' what Coleman Street is going to do, niul I must say that tlio outlook is nothing like wliat wc have been accustomed to during recent years. Last December with tlio financial American crisis, tilings were very unsatisfactory; January was worse, and expectations are still less favorable over the March series. The following table is well worth considering, showing as it does what has been the fall ill Bradford for good standard descrip, tions since the close of the last series;

It might he interesting to know that when the March series began a year ago 70’s colonial tops were well worth 29d, super 60’s 27fd, and 40’s and in the opinion of some experts the latter were to go to 20d by tlio middle of the year. The transformation in wool prices has been thorough, and there is no comparison between the manufacturing conditions to-day and what-, obtained twelve months ,ago. It does indeed seem strange that the whole industry should find itself at this moment in such a state of utter collapse, for both fright and fear seem to be utterly dominating the whole situation. How far this is justified remains to be seen'. Perhaps Coleman Street- will show where the raw material actually stands, and generate a, stronger feeling of confidence. A BLIZZARD AHEAD.

The above was written before I left home for London to be in readiness for the opening of the second series which commenced last Tuesday. The usual contingent left Bradford by the afternoon trains, hut from conversations with acquaintances it was plain to bo seen that "no ono was in good fettle for the sales. Still many of us must go even if wo want little wool. Nothing struck me more as I went round valuing on Tuesday morning than tlio absence of familiar faces, plenty stopping at home till they saw how things shaped. The offerings this series are 200,000 bales, and not since the July sales in 1902 have wo had such a large quantity. Tlio quality is about- equally divided between merinos and crossbreds, and more than sufficient to satisfy all sections of the trade. The pity is that usei'3 are no keener, but then plenty of wool bought in January has not yet left London, and with prices dropping, a very undecided feeling is uppermost in all members of the trade. Before I left home an old member of the trade with a record of 45 years experience at the back of him said that ho discerned signs of the worst ‘blizzard” in wool prices that he had seen in all his life—not a very inspiring thought to set off with.

FLAT OPENING. The three catalogues submitted on the opening day were rather poor, neither the merinos or cross-breds being up to the mark. Evidently selling brokers were not in the humor to submit their best clips till they saw how things were going to shape. The fine wools lacked stylo and character, while the cross-breds were nearly all little farmers’ clips from- New Zealand, it is more than ever manifest that less skirting is being done, and carelessness was everywhere manifest. I am certain that many growers will have a rude awakening when they get to know what tlieir last clip sold at Punctually at 4 p.m. the sale (began, and bids came slow. Evidently cautiousness was the line of action for everyone, competition being funded ami spasmodic. Only the home trade was in evidence, and but lor Bradford the “show” _ would have been a very tame affair. As it was there was nothing of that life 'and “vim” about the room that we have seen for years back, and I called the opening a very flat one. The Continent did next to nothing—both France and Germany being practically spectators. America— represented by some eight buyers—was simply an onlooker, the wools oil offer being hardly good enough for that quarter. When compared with the close oi the .last series, the following, changes were seen:

The decline was. most pronounced in faulty wools, especially seoureds, and these oftentimes were down 2d per lb. There seems to be little call for shabby, burry, wasty wools of an extract character. The dingy crossbreds were all down ljd per lb.,

though the light and bright -parcels sold at within Id of last sales rates. The results wero just about what were expected, and to colonial growers they are bound to bo very disappointing. There, it not a sound feature any-; where, and I am only afraid that things will get worse before better. Bradford firms and brokers who were heavy. buyers last series did practicallv nothing on the opening day, and the sale passed off without inspiring nnvbody. The second day’s sale brought out a better selection of wool, more variety, but no better sitting took place. 1 Till! saleroom was quite as full, but the bidding lacked animation, and seldom did it reach anything liko the hi>di character that one is aceustoineipto. There is on flic-part of everyone too much of the spirit of fear and want of confidence to inspire anyone to do his best, and only the lightest parcels command real serious attention. The Continental trade has been a little more active than on the opening night, but neither Germany or Franco is taking its share of wool. American buyers might as well be at home as here for what they have done so far. Opening prices are just about maintained, but no more. BrokeiVdiardly know what to make of the situation, and I should not be surprised to see both a curtailment of selling days and'quantity as well. It seems to me foolish to force wool oil to an unwilling market, and while I never believe in carrying forward heavy stocks, still at a time liko this there seems to he no other alternative. The trade itself could very well have clone without any series at all, but the wool is here and some at least must ho sold. To see prices fall another Ld to 2d per lb. must indeed he galling to all consigners. V THE OUTLOOK. - Messrs. H. Dawson and Co. in speaking about the outlook says, “The interval lias been one of Unalleviated dulness and stagnation. Mistrust and pessimism have apparently possessed every branch of the industry. The depression has been aggravated in various ways both by disinterested sensation mongers, and by interested speculators. The result has been a serious restriction of business and decreased consumption ill every branch of the industry; while so far as crossbreds are concerned a veritable dry rot in values has ensued. There can only he one way out of such a ditch towards that confidence which ensures a free demand, and that is by the way of cheap wool and cheap money. ‘ Happily there has alreailv been rapid progress made, in that direction since the new year. The sensational shrinkage of -values in cross-breds indicates that wc have travelled a long way towards safe ground and it is not easy to believe that we have much further to go. The new level cannot fail to stimulate demand in many directions, if slowly, still surely. Alongside with this, money is now cheap, anil this will 'bring welcome relief to those, who carry stock, and. will enable the many who have acted with a- zealous caution to operate more (freely. Speaking of merinos, the position has been a fortunate thing for the industry that there were hungrv machines waiting for the early and high priced purchases made at the beginning of the colonial season. These have practically gone out of .sight at a minimum of loss to the topmakers and -spinners. The apprehension and mistrust appears to centre in the future rather than in any serious burdens that have to be carried out at the moment: The caution which has cliarasterised the fine wool branch for the past twelve months has been a great safeguard against collapse and disaster, and today this hand-to-mouth policy still continues. Those who have latterly been actively “bearing” the merminal markets, by selling freely -at lonprices, will probably be f orced to operate in futility combing sorts at the present series, and this is a factor that may help to strengthen the merino market at its weakest point-.

In the nervous state o'f the industry there has been an unreasoning concern about the larger offerings in London. It- is perhaps necessary to emphasise that this does not mean an increased Australian production for the year. Most Australian houses forecast a- decrease, and Messrs. Dalgot.v and Company estimate it at 40,000 bales. ’ Our correspondents place it as high as 70,000 bales. Anyhow, the enlarged list for London is simply -a- transference from the colonial markets where the. decreased sales this season, against t-lrc last one, will probably be about- 150,000 bales. Taking Messrs. Dalgety and Co’s, figures, there will 'lie thus- 110,000 bales more wool to be offered in London ; a moiety of this has of course passed the hammer already.”

Fob. 7. Mar.7. 80’s Colonial tops ... 29J-30 28 -283 70’s ... 28 -283 263-27 64’s 263-27 25 -253 64’s 60’s Cano Colonial \\ supr 26 -263 24J-25 26 -263 243-25 GO’s /, ordn 25 -253 245-24} 58’s „ avrg 23 -23} 22}-23 56’s j, 22 -22} 203-21 50’s 18 -18} 163-17 46’a ... pi'pd 16 -16} 13}-14 40’s ■ 13 -13} ll.-ll-} 36’s 39 121-12} 105-11 32’,s ys 99 1* 12 -12} 10 -11

Combing merinos id to Id decline Faulty ,, Fine crossbreds ltd to 2d ,, Id ,, Medium Id to lid „ Coarse ,, Id to lid „ •Best slipes id to Id ,, Short, faulty slipes Id to 2d ,,