OUR YORKSHIRE LETTER.

Gisborne Times, Volume XLV, Issue 3988, 22 July 1915, Page 3

OUR YORKSHIRE LETTER.

THE OUTLOOK FOR PRICES.

(From Our Special Correspondent.) BRADFORD, June 11.

One hardly knows what to write at a time like the present. The upper-: most question in the mind of everyone is the war, its continuance, and • what effect it is going to have upon' wool values. A huge volume of business continues to be done, and war requirements are the lever that is moving It is really remarkable what this European struggle has done for the wool trade. Tim magnitude of the struggle can be left for the reader to imagine, but no otic ever anticipated the war having such . an influence iiopn demand and wool values, as is witnessed to-day. At the time of the Franco-Prussian war in IS7O wool markets practically slumped, trade was demoralised, and 1 those living to-day, that is the old men of {he wool trade who well remember that memorable time, impressed upon the minds of the younger generation that the present war would put values to a low level, at least till tiie struggle was nearly over. But times} have greatly changed since then. Since the middle of September wo have been faced week after week with steadily rising values, with only one short period when prices were arrested, and when it looked as if values were ging to fall. Months ago the trade saw distinctly that the present war was going to make a-huge market for wool and its products, everyone recognising that- soldiers cannot figld except in a good suit of clothes. What the War Office of Great Britain and her Allies has realised is that their soldiers must be dressed in something substantial, and therefore wool lias been called upon to supply a want that seemed impossible for greatness at the outbreak of the war. However, we are' to-day in the midst of a conflict which is demanding huge supplies of fully manufactured articles, ami manufacturers everywhere have risen to the occasionTHE OUTLOOK.

la the absence of a more practical subject, i\e might to-day devote a few remarks to the outlook fr the raw material. 'l’lie happenings of the wool trade this last six months have been such that it lias almost made one say that lie will not prophesy again, for all indications have been falsified, the totally unexpected having taken place. Still in the wool business men have to shape a policy. To wool growers as well as users the always appeals, and must ever do so. Those responsible for producing the raw material do so hoping to make a good price. As the w riter looks back upon the history of the past nine months, it is the experience of December which js .to be regretted most, and although some cheap wool was then bought, we doubt seriously if it has done any good, to the trade Tin* low level of values in Australia. South Africa and London really proved to lie a trap which engulfed many users, and Jed to some heavy forward sales at low prices, and with the sudden turn in the market many have had to cover those top sales at a serious loss. Hence it is our firm conviction that no real good in the aggregate has resulted from that low period. There arc many spinners to-day who bought fi t's tops-at 2s to 2s 3d per lb who cannot get delivery because topmakers are able- to sen elsewhere at 3s 3d, there being no reliable standard price to-day for that commodity. Hence it- is the writer’s firm conviction that if there had been no slump it would have been best for the whole trade, and certainly very much better for growers throughout the world. However, that period came, and it is like an ink stain m a child's copy bonk.

A BIG CON>-UMPTIUX ASSURED

As one looks forward, one must recognise the fundamental principle dictating a healthy wool market, namely a large prospective demand. Tho writer for the moment is not taking into consideration the present standard of wool 1 nines, being satisfied: with where things stand from a consumptive standpoint. Wo have emphasised for some weeks the inability of machinery throughout Great Britain to cope with the orders which are available to-day. livery time one comes into contact with a spinner or manuFacturer lie fiddles upon the one string at his command, namely, too busy and too little machinery to cope with present orders. Of course no one likes to turn away good business, especially when abnormal profits are obtainable.AH combers, spinners and manufacturers alike are full to the brim, and they*are trying to oblige all their customers by turning out a certain proportion for each one. For instance combers will only put in 50 sheets at a time for a customer. One oF tlic largest firms of topmakers said to tlio writer only a few day ago that they were not getting above two-thirds of their normal output, and had given their wool sorters a full week’s holiday because every comber that they engaged would take no more sorted matching, and their own place was necked to the door with raw material. At one station last week- in Bradford there were no less than 400 trucks of wool all waiting to be delivered, and every party alike hardly know which way to turn to stoic tho raw material. That is thiei situation to-clay, and yet there seems behind the trade a big pile of raw material which will have to be tackled in the course of a few weeks. Still above everything else, wo have the satisfaction of knowing that there is a huge consumption, and it would he still larger if more machinery were available. As one looks forward to the coming months, the prospect is a pleasant one whcir'viewed from this standpoint.

MERINO PRICES. Many will be wanting to know what arc the prospects for fine wool values, and taking an impartial view we certainly think they are by no means bad. We should say that they are excellent if we saw how machinery coukl deal with prospective supplies, but that is the difficulty. Wool is having to be handled by • the War Office in a very careful manner, for if Continental neutral countries had: full access to raw materials, wo are confident 'that Germany would satisfy her requirements very quickly. Fortunately or unfortunately many of the spinners and manufacturers in neutral countries cannot deal with wool until it is combed, and they have in consequence had to come to Bradford for supplies. To-day export licenses have ceased, so whether they will instal xis

quickly as possible new machinery for dealing with wool in its first stages of manufacture, time alone will decide. No doubt- Italy has supplied Germany with some fairly big weights of wool during the past six months, this having gone via Switzerland, lqyfc vjtjl Italy joining the Allies, it will have brought all such shipments to an end. Prospects to-day point- to a continuance of very satisfactory prices for all good combing /merino wool. The ’ whole trade seems to have settled down to a well defined policy, showing preference to the best descriptions of combing wool, particularly parcels j fairly free of burr and of decent J length. Burry wools take more j dealing with than those which are free, and loom mission wool combrtrs J in Bradford are to-day far from being i willing to accept hurry parcels, there , being an abundance of wool offering I free of shiv and burr. We therefore j think that, for average to good wools j the outlook is very favorable, and we • do not think that even burry parcels are going to sag and fall to the level which some to-day are talking about. EXCELLENT OUTLOOK FOR ‘j CROSSBREDS. j

The future of crossbreds seems assured, <1 ue entirely' to tuc improved outlook from a- military standpoint. It is to-day practically certain that Italy is going to place orders ill tin’s country for fabrics, which will mean a- consumption of coarse to medium crossbred wool. Bradford will benefit, because worsted yarns will have to be used. Italian war fabrics hitherto have been like those of other Continental countries made from woollen yarns, but mills here in England are altogether incompetent to deal 1 with the production of this article, and therefore the next best will have to be taken. This means that solid worsted fabrics which arc sound and well made will he bought, and this means a lengthened life for crossbreds at to-day’s yalues. During the past lortnight prices have stiffened all round for every class of crossbreds from 40-s upwards, and there is every indication of another winter campaign, which means that crossbred wool in the future will be* wanted in big quantities. We nrc therefore of the opinion that to-day’s standard of values is going to he well maintained for both wool and its allied products, for it is certain that war is very destructive, and men on the battlefield have to he replenished very often with a new lot of garments. There is to-day a big consumption of crossbreds proceeding for hosiery purposes, and the outside world is exceedingly hungry f°i supplies of anything of a crossbred nature, hut the present embargo r< likelv to be continued until the uai terminates. It is worth putting on record-that the hulk <;i crossbred wools have risen over 50 per cent since the war began: this alone means that prices are exceedingly good fiom a grower's standpoint, and wo see n<> prospect whatever of values declining. The whole market is certainly in a very healthy stale, and wool is being ground up at express speed. Present requirements are large, and the outlook from that standpoint could not be better.