The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-04-09
IMPROVED TONE.

The Wool Market Begins to Look
The circular issued by Justice, Bate
man & Co., wool commission mer-
chants of Philadelphia, April /, bears
a message of hope to the wool raisers
of the country, and to none does it
come more gladly than those Of this
section, which is the banner section of
the United States. The letter in
part says:
Although there is an apparent in
consistency between a firmer wool
market, and at the same time the low
est quotations since 1897, yet these
contradictory conditions have been the
essential feature of the wool situation
during the past month.
Notwithstanding the improvement
to the tone Of the market, however, SO
much wool is still offered for sale that
there is no pe1ceptible improvement
in prices.
The gradual completion of the liqui-
dation of bankrupt wool stocks, which
for more than six months have been
such a depressing factor, has helped
the situation; but what has been of
most Importance is the growing be-
lief that after twelve months of almost
uninterrupted decline, prices seem to
have at last reached bottom.
The firm closing of the London wool
auctions probably contributed much to
this belief; and while prices may re-
main stationary for some time, it
seems reasonable to expect the next
movement to be an advance.
AS yet the increased activity in
wool has not developed a correspond
ing improvement in the demand for
textiles; and manufacturers are not
only unable to obtain better prices for
their goods, but are still finding it
difficult to get orders for satisfactory
quantities even at the present range of
receipts. The gradual depletion of the
much exaggerated surplus stock of
wool is clearing the way for recovery
in prices of both wool and cloth.
Owing to the belief that prices for the
new clip will be so low as to offer
tempting opportunities for investment,
competition promises to be keen, and
: this may be the initiative of a substan.
tial improvement.
3 Disappointment is probably in store
for many who expect to replace with
new wool stocks which they are now
selling, SO as to sell at a profit on the
q present basis of values.
The decrease in the wool supply has
C-s1zl - AA~noA ~--..., A.
reduction has been mostly in the in
: vitible supply, or what is known al
: the "mill surplus" r
y During 1900 manufacturers carried
heavier stocks than during the average
OF several previous years; and il il
this abnormal mill supply" which
has been going into consumption, leav
S ing that in the hands of middle mel
and producers, (Which is the smalle.
part Of the total stock) without buy
Q ers and owing to the pressure to sell
k to manufacturers aladrey we'll sup
piled, buyers had exaggerated notion
d of the amount of wool on hand.
9 This feature of the situation ha
= thus operated to conceal the fact that
taking the country over, the aggregat
: supply is undoubtedly smaller than a
e any time during the past four years
g While there is no evidence as ye
IS that prices will be any better during
the next few months there seems to b
le a general opinion that they will not b
n lower; and it is hoped that this viii
prevent any concessions from curren
k quotations.
d Although there seems to be consid
If cradle apprehension as to the effect Q
II the new clip upon present values, j
70 should not be forgotten that a YER
ID much larger available supply than eS
If lists at present was carried over with
1t out depressing the prices of the ne,
is clips of 1897, 1898, 1899 and 1900.
is While the present rate of consuml
t. tion is less than during the boo1
" period, it has. steadily reduced tn
le supply, which. however, is still NOR
le than sufficient for the demand, and
is owing to this that prices have faller
at The long, imperfectly understood
IN decline seems 10 have blinded bot
1T buyer and seller to the fact hat FOL
,e eign markets are lower than at an
n time in II years and as a consequence
gs of this, an advance becomes inoreas
g, ingly more likely than a further d.
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