The San Saba news. [volume] (San Saba, Tex.) 1873-1966, 1889-05-31
How it Happened.

WOOL market IOr year mas dptl9
illustrated the peculiarly sensitive
nature of the trade. Feeling sure
that summary of the fluctuations
in prices, and an outlining of the
causes Of these vacillations, will
prove of interest to shippers of
wool, we give it briefly:
The situation, January l, 1888,
was not encouraging to any branch
of the wool industry in this coun-
try. All authorities stated the
amount of wool on hand, in the
distributing marts, was larger
than that of the previous year.
Manufacturers, although less heav-
lily stocked with wool, were com
PEELED to accept lower prices for
goods; the im,,ortations of foreign
fabrics and yarns that competed
with home products, we're very
large; and to these depressing in
fuenees was added the uncertainty
as to the outcome of tariff legisla-
ton. Under the conditions the
wool market could not be active at
prices remuneratiYe to either
growers or dealers, as mill owners
bought stock only when needed
for immediate consumption and at
lowest prices obtainable, and nat
urally the tendency was toward
lower range of values.
Such was the situation when
Treasury rulings In the spring,
admitting secured wool under
another name at low rate of duty,
contributed to causes already bear
ing the market. As the time for
shearing and marketing the new
clip drew near, some parties that
had been holding woods, melted by
the adverse influences, began fore
ing sales of their stocks, and their
action naturally resulted in estab-
fishing a lower range Of prices.
At the end of April, when new
wool commenced moving slowly in
Texas, standard fine wools, such
as Ohio Xxx, were lower in the
Eastern markets than they had
been since 1860, and there was no
encouragement to be had in any
branch Of the business.
The depression continued, and
in May Ohio Xxx was sold at 29
cents, and as &c price of those
Ecols is the standard by which the
value Of other domestic woods is
determined, nearly all woods were
correspondingly low. This was
one Of the periods Of the year dur
ing which 1t was impossible for
the commission wool merchant to
make sales with the faintest hope
Of pleasing his consignors. Ac-
curate quotations could not be
given, for every manufacturer who
bought wool was able to do it at
about his own price, every factor
influencing prices was in favor of
the buyer, and the seller was IN
able to obtain his idea of value.
OF course this state Ct affairs was
reflected IN the country, and the
new clip moved slowly in the early
sections, prices generally being
below those Of the previous year,
although the extreme views of
growers restricted transactions
generally
Toward the end Of May the
markets were still further depres-
sed By reports Of heavy sales of
territory woods IN the East, at
much lower prices than any hold
ers had yet accepted; and the
month closed with the dullest
market that had been seen during
tie year. The uncertain feeling
that existed In all branches of the
wool trade, as to the fate Of the
tariff bill ID Congress, was a weight
upon the business that limited
transactions every where. Manu-
faeturers bought only from hand
10 mouth, and IN the country
wherever new wool was being
offered, the views Of the growers
were above those Of buyers; as the
latter. under the circumstances.
noted, we're naturally low in their
Judgment Of values.
June developed more inquiry
from manufacturers, but their
offers were below prices asked by
dealers The latter, having a
strong idea that the Senate would
reject the free wool clause Of the
new tariff bin, generally refused
70 make further concessions in
prices, and the sales were therefore
Limited in account The situation
did not improve as the month adj
Tanced Some manufacturers shut
down their mills, rather than keep
the machinery running longer
With q depressed goods market,
and an uncertain future. Shear
ing was generally making rapid
In the country, but wool