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.