The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-05-21
MUCH AUSTRALIAN WOOL.
Largely Increased Importation OF
That Product in the United
States.
Now q Drug or the Market and
Heavy Losses Will
Result.
Peculiar American Demand for Foreign
Wools-Quality Secured IL Very Poor
~-Ipjudicious Buying.

When il became evident last October tha'
Che stock of domestic woods would not be
sufficient to supply tho mills until the new
clip came forward, a number Of dealers and
manufacturers prepared to import large
quantities OF woods from Australia, sayt
Bradstreets. Mono of these dealers had
previously handled exclusively Australian
vools, while the manufacturers had used
them to only a limited extent. These
operators succeeded in securing between
25,00o and $1,000 bales, the larger part OF
which they can neither sell or use.
The expedisnt of buying woods for the
American market direct from Australia lin
stead OF at the London sales has frequently
been attempted on a large scale, and has
as often resulted in heavy losses to the spec
ulators. Thus in 1881, and again in 1882
when the home supply became much re-
duccd, American dealers bought freely IN
the Australian markets, but their stocks
ware nearly all sold at a sacrifice. some
firms losing upward Of 100000 on their
vaccinations. The fact that those who deal
exclusively in Australian wool never buy
their stocks at the Melbourne and Sydney
sales would indicate that both the woods
and the conditions under which they are
anld in these markets are not favorable Tor
the American buyer.
The prospect of q heavy advance In
values in our markets last fall, based on
the extent of the supply of wool, seemed IN
every way favorable for large speculation
in foreign woods. All of the good woods
which the buyers obtained have boen dis
posed of at full figures. But the inferior
woods which formed the bulk Of their i'm
portations have been a drug on the market.
MANY OF these woods which came direct
from Australia were bought as low as SIX
teen cents a pound. but At this, with duty,
freights and other charges, their cost
would approximate thirty-two cents, which,
considering their condition, is too high Tor
this market. They are said to have con-
stituted the poorest portion OF an exceed
ingly bury and tender clip.
Tho demand here for foreign woods is pc
culiar. Manufacturers require a light
shrinkage wool, and one which will at the
same time mix we'll with domestic grades.
Few Of the woods which can satisfy such a
demand are offered in the Australian mar
kets. The growers prefer to adhere to the
old custom and ship their best woods to
London. Especially in of years the major
ity Of the woods offered in Melbourne and
sydney are of an inferior quality, and such
az the American manufacturer cannot use.
The years in which We have bought the
largest quantities direct have been tho
years whom the clip, though large, was
much below the average in quality. These
spondents who know practically nothing OF
the needs Of our markets. The woods
which are secured in London, or the other
hand. receive the personal inspection OF the
dealer. and are selected with direct refer
ence to the demand Of the mills which re
..-~l:nc -;At, ro~Aariclo Whila the npnOno-
tition may be much more intense in Lon
don, there IL at the same time n much
larger quantity to select FROM. The duty
on Australian woods being specific, the fin
est woods pay no more tax than the inferior
grades. Relative to the price the duty is
heavier on the cheaper han on the dearer
woods. The difference in freight charges
on woods shipped from London and on
those coming direct from Australia is an
other Important element which determines
the profit or loss of a cargo. Wool margins
at the best are very small The difference
between the aggregate cost and the current
quotations of the choicest lots secured al
the London sales in January is less than
one cent Fer pound.
The per cent. of shrinkage in the finest
Australian woods is not above 40 per cent.
while of the inferior woods which have come
direct the average per cent. of ~shrlnkage II
not under 60 per cent. Those woods are al
lIlPOIVwa II ~ EAoooSi 70 pNS SoAA A"N
practically prohibits their coming in scour-
ed, 30 that to the manufacturer it is of thu
greatest Importance to secure the woods OF
the least shrinkage, as there has been foune
to be no profit in buying foreign woods OF
great shrinkage.
Most of the Australian woods grown last
year were below the average quality, SO that
it could not be determined from previous
experience what woods would sell in on:
markets. An indiscriminate selection
seems to have characterized the buying O
those who secured wool direct. The wool
which sold readily and paid fair profits hav
besn the Riverine woods, and these wer
not sold in the home markets. The heav,
losses which have followed this speculation
in foreign woods this year will tend to pre-
vent another repetition of the same TO
several years. 1t is doubtless true tina
woods can be obtained at less cost in Aus
tralia than they can in London. but unit
dealers sent their own buyers to tina
country it will continue to be a losing fell
for them.