The first half of the current year has passed and most of the local houses have finished their stocktaking, and are cognisant of the effect on their financial position of the six months' trading. Some firms have to record a diminished amount of business when compared with the corresponding period of 1914.
The local bankers recognise a shrinking of the volume of business usually affected by the straw hat firms, but as far as the banks are concerned this is fully compensated by the prolonged presence of the military in the town, who must necessarily seek the assistance of the local financiers for their disbursements.
The diminished trade is doubtless that for the home market, as the shipping has shown a healthy expansion. How far the incessant cry to excessive economy has produced this effect is a matter of speculation, or personal opinion, but if every lady in the kingdom were to say, "we will do without a new hat, we will touch up our old ones and make them answer", where would Luton be? Trade stagnant, operatives unemployed, and what organisation is there that could step in and support all those who find themselves unable to earn a living? Judicious expenditure is necessary for the welfare of the country, money that night be spent on non-essential luxuries should go to swell the Government War Loan.
The welcome expansion of our shipping trade is largely due to the practical closing of the Paris market, and the absolute cessation of business with Vienna. Thanks also to the preponderating power of out Navy, our productions can be despatched to all our Colonies with but trifling risks of destruction in transit by a hostile marine. Once past the danger zone of home waters, the wide ocean is unobstructed and subject only to the risks of the unheeding forces of nature.
At the present period the general trade of the town is in a transition stage. For many consecutive ears machine-made hats of fine material were in vogue. During a part of that period fashionable hats were from 20 to 24 inches wide. These were necessarily machine-made and were usually composed of three ends chip or wide tagal. At the present time they average 12 to 13 inches in the greatest dimensions, and the material most suitable for such productions are fancy plaits, especially such as made of artificial silk. These are often used for woven fabrics, such combinations producing light and effective hats. These conditions of trade tell heavily against those operatives who can turn out machine-made hats only and, unless such persons adapt themselves to the altered environment, the outlook is depressing.
The general trade of Luton has been greatly helped by the unusually brilliant spring with which we have been favoured. This has to a large extent counterbalanced the depressing effect of the unprecedented expenditure of the country in the prosecution of the Continental War. Taking all te circumstances into consideration, Luton has prospered to a much large extent than was anticipated when the season opened. The local bankers were very apprehensive that the community would suffer financially as a result of the economic conditions, and have been agreeably surprised.
The velvet hat trade is just now strongly in evidence. At the present moment there are large stocks of the fabrics available, of all grades, from low-priced velveteens to high-priced silk velvets. Many of these are of foreign origin, especially the higher grades which came from Vienna. When these are used they cannot be replaced at similar quotations, unless the war should be brought to a close. We are given to understand that British manufacturers are directing their attention to this subject, and we await the results with interest.
The shrinking demand for machine-made hats had had a depressing effect upon the market that supplies the raw material for such goods. These are chiefly tagal plait of Oriental origin, almost exclusively from Japan. Switzerland supplied only a very small quantity of the highest grades. As a consequence tagal braids, which being imported in much greater quantity than we can consume, have gone down rapidly in price, and there is no knowing when they will touch bottom quotations.
As Japan is so distant, it takes about six months to transmit, execute and despatch an order for these materials. At the moment of placing a commission, demand may be acute and prices firm, but no-one can foretell what will happen in the ensuing six months.
Such is now the position of plait merchants in Luton. They must pay their contract prices, but whether they will see a remunerative result for the trading under such conditions is a matter of pure speculation.
[The Luton News, July 15th, 1915]