The New York herald., 1920-11-07
SITUATION IS SERIOUS
Cancellations by Manufac-
turers and High Retail
Prices the Causes.
RETAILERS ARE BLAMED
Public Refuses to Buy and
Deeper Cuts Are Expected
Soon.

Special Despatch 70 THE New YORK HERNp.
BosToN, Nov. ga general shut
down of woollen mills throughout New
England and all over the country dur
ing the next two months was predicted
to-day by leading Boston expert in
the woollen cloth manufacturing in
dustry.
The prediction follows yesterday s
closing Of four large mills of the
American woolen Company at Law
renee until next Monday, with the un-
derstandinz that these mills will re-
sumo business next week for an in
definite period upon a four day week
running schedule.
Some closings to ensue will be upon
a part time working basis; other mills
will shut down entirely. Word was re-
ceived in Boston to-day that the owners
Of one woollen mill outside of New Eng
land already had announced their inten-
ton to close down indefinitely.
Cancellation OF orders by cutters
(clothing manufacturers) unwillingness
Of retailers to reduce prices to the buy
ing public and the steady refusal of the
consumer to make retail purchases in
any amounts are declared to be the
reasons for the predicted shutdowns.
Some to Run Part Time.
Some mills. It is stated, will endeavor
TO keep their working forces together
by maintaining part time schedule
until conditions improve. Such owners
prefer to pocket loss rather than TO
let their operating force go.
Slackening OF business will continue,
IL Is expected, until manufacturers begin
on their next fall stock--that is some
time after the first of next year.
Only one thing can partly prevent
drastic curtailments. according TO manu-
facturers. This would be a buying move
ment on the part of cutters during the
next six weeks. at which time the season
Tor the manufacture OF next springs
fabrics closes. Thus far there has been
little purchasing for spring. The run of
light goods has been n fiat failure. even
though manufacturers have made sub
stantial price cuts. Cutters have can
celled orders for spring goods and are
now marking time.
In explaining the present situation one
expert says:
Manufacturers of woollen fabrics be.
gan their season OF manufacture of
heavyweight goods for the current win
ter last March. Prices were booming
ages had advanced and shrewd buyers
anticipating an upward price trend.
were rushing TO place orders for delv'
cry about August ], when the cutte-
begins work on his winter stock.
About the first OF last May syrnp-
toms of n break In the price and order
boom began to make themselves fel.
Very soon every one realized that tn.
buying orgy was over At that time
about two-thirds Of deliveries of fai,
goods had been mnde.
"At about tle same time officials of
the American Woolen Company an
nounced a price reduction Buyers be-
gan to feel that other mills would cut
that cloth would be cheaper II they held
of. At the same time the banks under
the direction of the Federal Reserve
system began to restrict loans. There
was every inducement 10 buyers to can
eel orders and many did The curtail-
ment started in two places at once and
spread all over the country.
During the last six weeks OF the run
OF winter goods manufacturers were
flooded with cancellations, which were
accepted by the manufacturers in cases
where the stock had not been put on the
looms.