The export figures flatter the state of U.K. trade during the first 
nine months of 1925. The Home Trade was far worse than the Export 
Trade, due to prolonged depression in our major industries—engineering, 
shipbuilding, agriculture, etc.; although our export trade suffered no 
more than other countries, yet the general effects of the slump and 
textile depression were more severe than on the Continent. 
The last three months of the year fortunately brought some relief 
and a definite reaction set in. Before the opening of the wool season 
in September buyers naturally showed a great deal of caution. 500,000 
bales had been carried over in Australia and more or less appreciable 
“ carry overs ” existed in South Africa and South America. A record 
clip was in sight, and it seemed impossible for an exhausted Textile 
Trade to absorb easily the increased supplies becoming available. Demand 
developed with astonishing suddenness on the Continent, with England 
a dubious onlooker, but the improvement soon spread to the West 
Riding and was very evident in the usual indexes of trade and machinery 
activity. During the long period of depression stocks in every section 
and stage of manufacture had gradually dwindled away and the improved 
demand on consumption account coincided with a minimum of spot 
raw material. Prices began to rise, reaching a maximum in mid-November. 
The textile stoppage and the shipping strike contributed to the shortage, 
and a good deal of financial relief was given to the wool end, through good 
realisation of remaining stocks. By December spot requirements were 
partially met, the oversold position in wool and tops, to some extent, 
covered, and wool began to come more freely to hand. Political and 
financial complications in France exerted a sobering influence on all 
wool markets, and by the end of the year prices had receded to a lower 
and more stable level. 
The year closed, therefore, with a brighter outlook. The wool 
surplus and the offerings of the current clips had been absorbed with 
rising prices, machinery was very active and good orders booked ahead, 
sufficient to ensure full running for some time, especially in the merino 
section. 
1926. 
Early in 1926 the extreme pressure for raw material supplies dis- 
appeared and steadying influences gained ground in all centres. Heavy 
weights of material had to be financed through various processes, and 
though machinery activity continued high everywhere, new business 
was in smaller compass and buyers more discriminating as to price. 
1.