development of Australian wool industries) proposed to form an association of Australian wool growers and British Govern- ment representatives, with the object of realizing at reasonable values the large stocks of wool held in Australia and England, the Wool Council accepted the proposed control. Indirectly the Wool Council was apparently sacrificing the possibility of cheap wool for the manufacturers of this country: but it regarded the pocket of the whole country as coming first and the manufac- turers' demand for cheap wool as coming second. The Austra- lian Board was thinking chiefly of the interest of the Australian grower. The association was registered in April 192 1 , as follows :
" British Australian Wool Realization Association, Ltd., Caxton House, West Tothill Street, Westminster, London, S.W.I. Incor- porated in the State of Victoria, Australia. Registered April 14, to acquire and take over (a) one-half share of, or interest in, all Australian wool bought by the British Government through the Government of the Commonwealth of Australia and still undisposed of, and in all real and personal property acquired in connexion therewith and still undisposed of; (b) one-half share of, or interest in, any surplus profit on resale of Australian wool so bought still undistributed. Also to take over and assume one-half of all or any liabilities and obligations connected with and chargeable to such wool, property and surplus profits not yet liquidated. Nominal capital 25,000,000 in 25,000,000 shares of l each. Names of persons authorized to accept service; Sir Arthur Home Goldfinch, K.B.E., 8 Rosecrpft Avenue, Hampstead, London, N.W. (Govern- ing Director British Australian Wool Realization Association, Ltd., Delegate General Chilean Nitrate Producers Association) ; James Alexander Cooper, C.B.E., F.S.A.A., Mentmore House, Uxbridge Road, Kingston on Thames, Surrey (Assistant Governing Director, British Australian Wool Realization Association)."
With the lack of demand for goods and consequent lack of consumption of wool the world over, even the best merino continued to fall in value up to May 1921, and the poorer sorts in some cases were below 1914 values (see Chart 3). Whether the enhanced values realized in May by both merinos and cross- breds would be maintained was questionable. Table n, from the Yorkshire Observer of May 16, showed a turn of the tide if there were no set-backs. Demand from the United States in anticipation of the new tariff might be, at least in part, the explanation. Germany had already commenced to buy wool.
TABLE 12
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1914
Description
1921
1921
July
May 7
May 12
d. per Ib.
Combing
d. perlb.
d. per Ib.
32
7o's super fleeces
40/42
40/44
3<>i
64/67*3 good medium fleeces
35
36
30
6o/64's good medium fleeces
27
30
28
64*8 good pieces .
30
33/36
27
6o's good pieces .
30
33/36
27
6o's good pieces .
23
26/28
29
58/6o's good medium fleeces
30
3
26
56's fine crossbred fleeces
24
2 4
23*
50/56*3 fine crossbred fleeces
17
18
18
46/5o's crossbred fleeces .
H
15
17
46's crossbred fleeces.
12
1 3
16
44 ? s crossbred fleeces .
10
ii
I5l
36/4O's crossbred fleeces .
9
9
Capes
27
io/12 months' combing Capes.
28/30
None
24
'6/7 months' good clothing
Capes
None
None
Carbonizing
26
60/64*8 good carbonizing pieces
, 2 3
26
25
6o/64's carbonizing pieces and
bellies
20
24
20
64*3 average locks
16
18
64's average lambs
20
20
IV. PROSPECTS IN 1921
Wool Manufacturing. Australian combed tops were on the Bradford market, on the American market, and were also being worked up in Japan in 1921. Did this presage a re-distribution of the world's wool manufacturing industry, and if so what was the line of distribution likely to be followed?
The astounding prosperity of the British wool-manufacturing industry following the Armistice attracted world-wide attention, and it was but natural that every one with any connexion with the industry the world over should wish to share in the prosperity.
There were two types of country in which the development of manufacturing would undoubtedly be attempted, and in which the attempt is undoubtedly justified, (i) the wool-producing continents or countries, Australasia, S. Africa, and S. America, and (2) new wool-consuming countries such as India, Japan, Brazil. In Australia some few mills were developing before the war, and after the war, under private enterprise, stimulated by the energy of Mr. Hughes and others, and, in some cases, further encouraged by the mother-country financiers. Australia made strenuous endeavours to develop a huge wool-manufacturing industry. Her ideal was to manufacture one-tenth of her wool production per annum say, 50 to 60,000,000 Ib., and in 1921 nearly 40 wool manufacturing mills were already in existence. Similarly South Africa, stimulated by Gen. Enslin, was also making a bid for wool manufacturing.
In the case of Australia no forethought or skill was being spared. The mills were being equipped with the finest machinery French-made combs, for example, had so far been given pre- ference over the speedier but less exact British (Noble) combs and the best skilled workers were engaged in many of the mills. Excellently combed Australian tops were already on the Brad- ford market.
So long as profits remained high and high rates of wages were maintained, the appeal to the financial instincts of the worker, even in the case of Australia, might be expected to hold him in the mill. But if the conditions of 1914 came round again and the skill and temperament of the newly developed Australian industry were pitted against the skill and temperament of the older industrial countries, which would win out? Broadly speaking, in anything beyond combing it would be the older countries' fault if they did not dominate. Again, with the need for harder conditions in the factories which must almost inevit- ably follow severe competition, it was a question which opera- tives would best stand the strain. Australia, and possibly S. Africa and S. America, might develop quite considerable wool manufacturing industries, but it would seem inevitable that the old manufacturing countries would almost entirely retain their hold on the bulk of the world trade in manufactured wool goods.
In the case of India, Brazil and more particularly Japan, it was probable that the growing demand for wool goods would be only partly met by local production, and for some years to come the outside demand of these countries for manufactured goods seemed more likely to develop than to contract.
So far as the British wool manufacturing industry is con- cerned everything depended upon (i) the introduction of scien- tific method into the works; (2) efficiency in manipulative skill, and (3) efficiency in organization. With reference to the first and second points the introduction of automatic machinery was day by day placing an enhanced value on careful, thought- ful workmanship. The Englishman likes to get a job done, he prefers " driving force " to thoughtfulness. The continental controllers and workers are too often years ahead of the British managers and workers; in thoughtful outlook the American managers and workers are up to the British in bulk production and threaten to pass them even in excellency of output.
With reference to the third point, organization depends upon both directors and workers. An unsympathetic attitude on the part of either will lead to trouble and disaster. The scale of organization had probably been set by the United States. There the Arlington mills each day treat the fleeces of about 35,000 sheep say, 200,000 Ib. of wool: and this is said by no means to be the largest wool manufacturing company in the United States. Along with this enormous organization goes an efficiency in organization and cleanliness in installation which puts most European mills to shame. The American manufacturer has no time to develop that " secrecy " which is far too much in evidence in European concerns; he relies upon progressive efficiency.
To sum up, it would seem that while wool-growing countries may develop quite considerable wool-manufacturing industries, these will not be to the exclusion of the older manufacturing countries. On the other hand, American enterprise (and possi-
