AMERICAN WOOL MARKET

Hokitika Guardian, 25 May 1923, Page 3

AMERICAN WOOL MARKET

SIT U ATI ON DANG ER 0 l r S. SAN FRANCISCO, April 24. Alost of the American wool houses continue to proceed very cautiously in the matter of taking on the new clip Territory wool, and it Is noted that Western developments have been very peculiar this year, owing tn the small number of buyers in the field. Reports are that some broadening in the buying has just occurred, hut particulars arc lacking and reported operations are often denied by those most interested. The American Woollen Company, however, still is operating having taken over the Idaho Falls clip in Eastern Idaho. About 400,0001'b of wool was involved, and the price paid was 431 cents. Tile season is opening slowly in other States, notably in Wyoming, where only a few clips have been sold as yet, and in Montana, where practically nothing has yet been bought. In Oregon buying is proceeding steadily, though slowly. Prices paid in the States recently wero -10 to 45 cents compared with 25 to 35 cents a year ago. Texas prices to Eastern buyers range from 44 to 10 cents for eight months' growth, and 43 to 50 cents for twelve months’ wool,

President Wood, of the American ■Woollen Company, returning from a two months’ trip abroad, is credited with saying that, “financially, industrially, and politically, flic whole country now is in the greatest period of prosperity, with the outlook lor the futhro remarkably bright.” This opinion is reinforced ‘by the statement just given out authoritatively that the American Woollen Company, “for the first time in its history, is operating at absolute capacity, every spindle and loom being in operation.” CONFIDENCE AND CAUTION.

.Pressure for production .is so great that night shifts are contemplated in some of the mills. This is the way that the market looks to a manufacturer and seller of goods. Over against this may he set a recent cautionary note from Charles J. Webb, (lean ol the Philadelphia, wool trade. His expressed attitude is that wool prices already are too high, and that grave clanger to the wool trade and to the wool manufacturing industry is involved in the way prices are being boosted in the West. All* AY ebb’s attitude, though recognised as having a personal loaning, fully is as marked as that of President Wood, and it lias found an answering chord in the Boston wool trade, where many have hceu taking similar grounds for some weeks, though they have not voiced their opinions quite so loudly. According to a conservative view of the situation, the real strength of the Boston wool market is found in the lack of line and line medium wools there. Not only is there, an extreme scarcity of domestic wools of that c lass, but similar foreign staple is disappearing, with no immediate prospect of stock being replenished. This is true in spite of the fact that receipts of foreign wool still arc increasing, the arrivals for one particular week having been larger than ever in any previous week of the whole wool year to date, or over 19.(>00,000 pounds.

The trend of the American market toward fine wools is still seen in the fact that the worsted mills are having a record business, and a “capacity’ production, and must come into the market very shortly for additional wool supplies. More cr less buying of good Australian merinos lias been done recently in Boston, for account of worsted mills, on the basis of 1.15 dollars to 1.90 dollars clean in bond fur CPs to 70’s, topniaking wools. I.OOKIXG TO AUSTRALIA. This demand from manufacturers had led to renewed trading between dealers, some members of the trade professing to see more chance of a profit in such purchases than in buying the new-elip Territory wools in Western .America at prevailing prices. Comparatively few buying orders are being cabled from Boston to any of the Australian auctions, as it is still possible to obtain some good lots of Australian wools in Boston at rates considerably below the importing point. Therefore, purchases at the going rates in Sydney or Melbourn are not proving attractive to those who have a most bullish outlook upon the future of the market. Heavy importations have reached Boston from Argentina, for in on© week under review over 18.000,000 pounds were grown in that country and placed upen the American market where it fetched exceptionally high prices. In that week of the 20,135,500 pounds of wool received oil the Boston market, all but 530,000 pounds were grown abroad.

For the corresponding week last year the receipts were 0,031,000 pounds ol which 1,418,200 pounds only were American grown.