The Richmond palladium and sun-telegram., 1919-05-08
GOVERNMENT STOCKS OF OLD WOOL
MAY DEPRESS PRICE OF new CLIP
ey WILLIAM R. sANeoRN

BY VILLAIN r. sAN1oRN
Wayne county has about $500 sheep
which have recently been robbed of
are now on sale.
at any price, Just now. Isn't that pc
culiar situation? 1t is, and again 1t
isn't. But quite number of our read
ers want to know about it. They want
information as to wool market condi-
tions; also what they may hope to get
for their wool and when they may
hope to be able to sell 1t.
Government Selling Wool
The weight in the market this
spring is-the large stock of wool now
in the hands of the government and
for which it has no further use. For
the first time in our history. perhaps,
the men at Washington are competing
for a market with the wool growers
OF the country. Now Uncle Sam is
selling his wool at auction, and will
take his loss philosophically. for an
important loss Is almost inevitable.
Besides the people have already paid
for all government wool and If we find
it losing transaction. 1t will be ac-
credited to the loss incident to the
proper preparation for great war
and the protection OF our boys in the
IaEks.
What is true as to medium" wools
in Wayne county is true in the main
throughout the central west. The
market hasn't opened, except In spots,
and the little buying SO far done has
been purely a matter of hope and
speculation. They have lot of wool
in the adjoining Indiana and Ohio
counties but are not marketing any for
there are no buyers.
But there will be buyers in plenty
little later. 1t is bit early for wool
to begin to move under present condi-
tions, but would not be in normal
times. We are experiencing a period
of waiting and expectancy. The pres.
sure of government stocks must be en-.
tirely removed before we can get
down to hard pan and to the trade
practices of pre-war days.
Uncle Sam took over all the WOO
in the country, it will be remembered
and established price for this pur
chase. But he is going out of the
wool business and is feeding out his
reserve supply as judiciously as pos
sible SO as not to to greatly overload
the market. The government Fl
nanced our last two wool clips ant
paid prices high enough to induce al
increase in our flocks and recreate al
interest in the tagging sheep industry
And we should all be glad Of it. W.
have never really had an over suppl!
of good clothing woods in this country
though at times there has been 1
foH nfc {-, n ~
ing economic conditions.
Governmental Holdings
On April 1 the United States ownet
about 100000 pounds of wool, 100,
100000 pounds of which was thel
in transit from Australia and New
Zealand. Now, the wool crop thi
year is estimated at about three hun
dred million pounds, or not quite a
much as our own government holding
last month. Australia has been &C
cumulating wool for four years. an,
raises possibly, eight hundred million
pounds per year, so must have a yer,
large amount still left to ship. 1t wa
stated last week that Australia ha,
nearly three hundred million pound
then enroute to Europe and few cal
goes on the way to America. So, theT
on low grade woods we have to sc
riously reckon with the Island cont
nent.
While it Is true that Uncle Sar
holds and owns the bulk of the voc
in this country he does not own tn
entire supply. There is always pei
centage in the hands of manufactul
ers, mostly obtained from the govern
nient, of course, but not counted in tn
government reserves, as herein en-,
merated.
Fine Wool in Demand
So far as we have ascertained tn
first sale of Indiana 1919 clips wa
made on May 2, near Marion, and tn
price paid was 40 cents for thre,
eights and quarter blood wool. TIL
government set the price on this grad
at IS cents last year.
AS to opinion in the east, it ma
be said that the mills are anticipatin
a lower market and will only buy fl
current needs until satisfied with th
price. At the government auction hel
recently at Philadelphia, medium WOO
brought but so to SIS cents. and tn
for old and thoroughly shrunken stoc
. Fine Wool in Demand. :.
Coming down to April 7th. we fiji
that on that date the stock as repol