RECOVERY OF WOOL TRADE

Taranaki Daily News, 9 April 1928, Page 7

RECOVERY OF WOOL TRADE

BRIGHTER OUTLOOK FOR 1928. POSITION FAVOURS BRADFORD. (Frm Our Own Correspondent.) Wellington, April 5. The second of the series of London wool sales closed last week with prices at their highest level in recent years. This is the result of the general trade revival, and the fact that Bradford operated freely arid bought more largely than even the Continent is evidence that Bradford has abandoned the waiting policy. Wool conditions are decidedly more buoyant. The president of the Bradford Chamber of Commerce, Mr. J. R. Point, in a speech at the annual meeting of the chamber, said that while he did nor desire to be termed an optimist, he felt that 1928 would see more employment in the industry than there had been during th© three previous years. Conditions were better in Bradford, but that did not by any means betoken employment for all the looms. The world could not afford dear wool, and growers of the raw material should study the state of affairs in the large manufacturing countries. The rapid growth of the artificial silk industry would make very serious inroads into the consumption of wool if the cost of raw material were made prohibitive. The latest bulletin of the British wool textile delegation says that tops and yarns had naturally benefited and quotations had been considerably firmer, sellers being more inclined to insist <?n prices conforming to the wool basis. There was a growing confidence in wool and in general trade conditions, and while the problem of finance would be more important in the next few months the general soundness of the position seemed to be assured.

Writing in respect of the JanuaryFebruary London sales, Messrs. H. Dawson and Co., of London, woolbrokers, stated that many users still felt that the price of wool had advanced too rapidly and that it had outpaced any improvement in the manufactured product. Statistical facts and th© inferiority of the Buenos Ayres clip had brought about a strong position, particularly in the case, of crossbreds, and had combined to create a covering demand. The problem which remained was the difficulty of passing on to the consumer the advance in price established for the raw material. Dawson and Co. consider that a fight would now have to be made ' y the manufacturers and the spinner to obtain an adequate remuneration for their work, The turn of the wheel has been to favour th© Bradford trade, as a recovery had occurred from the depression and stagnation of the past four or five years.