The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1903-05-07
THE WOOL
SITUATION
Conditions of the Market As
Viewed by the Firm of JUS
tiCe, Bateman & Co.
UNNNARRANTED FALL IN PRICE
Reasons Given Therefor-Confi
dence In Future Is Well
Founded

After stand off of two months be-
tween buyer and seller, the wool trade
has been unable to prevent fall in
prices which seems to be totally unwar-
ranted by present conditions.
OF seemingly paramount Importance
as stimulant to prices has been the
small supply of unconsumed wool, which
at this date has dwindled to the lowest
figures since 1896.
Manufacturers have been burning the
candle at both ends, for while imports
of such woods as we produce (wools OF
the first CLASSY have been falling off,
consumption has been the greatest on
record.
The present stock of wool, including
that owned by the mills, is only about
one-third OF that at this date in 1899,
when the quickening in prices was just
beginning which eliminated in the
boom of that year, prices rising 3S per
cent between May and December.
The boom OF 1896 occurred with 6l2,-
100000 pounds of wool on hand, as
against stagnation now with only 204,-
900 600 pounds.
Apparently there are good reasons
why today's prices for wool should lie
safer against decline, than at any time
in many years: yet notwithstanding its
statistical strength, the apathy is so
great that buyers will not take wool
freely, except at concessions from the
low values now current.
| While prices are a shade higher than
they were at this time last year, they
are not as much higher as they should
be, in view OF the Importance of the
many price lifting conditions which
prevail.
Among the most conspicuous reasons
for confidence in wool is the great cloth
ing purchasing power OF the industrial
masses who we're never before so we'll
employed, nor at such high wages.
Another unusually favorable factor is
the Government crop report of 9S per
cent, as against 81 per cent which is the
average of the past ten years. In view
of the reports of crop failures abroad,
this should be of great significance.
One OF the unerring indications of the
volume of general business is railroad
earnings. Measured by this standard,
the merchandise movement has gone far
beyond all previous records.
Another favorable circumstance is the
falling off in the imports of wool of the
tirst class, " hich for nine months end
ing with March, 1903, were Al per cent
smaller than during the nine months
ending with March last year, that from
South America alone having decreased
~ per cent, and as cable advices report
an upward tendency to wool prices in
in foreign markets on qualities like
those grown in this county, il seems
likely that imports will continue to de
crease, which means a still greater con-
centration of the domestic demand upon
home grown wool.
The fall of values, therefore, in the
face OF so many unusually favorable
price. lifting conditions, during the past
sixty days. is source Of both surprise
aud disappointment.
There seems to be no satisfactory ex-
planation of this annual weakness in
price; but the shadow OF an approach
ing clip is without doubt factor in the
wool business, as experience has shown.
The reason given by most manufactnr-
ers for their present Indifference is that
the distribution of wooden textiles has
been 90 unsatisfactory a. to indicate an