Douglas Island news., 1920-09-24
FUR SITUATION
 AT PRESENT TIME
lconlInucd from pago '

close to S80o.o00.000. Reduced to a raw mr basis. m.s amount ia haly- cd making Che volume Of raw iura sold during Che year approximately
 sl5oo00.OOO Tho estimate of stocks of raw mu now held h f75.ooo,-
 0O0. % largo part of which Ia carried by tho auction companies in Che ] shape of shipments not yet "cloored. Tho sales last January gave every indication of continued high prices. but ho April and May nloa saw
 arrc declines shippers who had obtained advances based or January
 prices must mako good Ono difference between thc advanced and Che re- duccd values established at the last auction. These are Che mi.Quidatcl advances spoken of and which thc trade now has difficulty m meeting.
 Considerable "pyum.dIug' 20 was ! dome by sDcculat0u Thus with Che money obtained as am advance pay- mcul many traders bought add.- uoam quantities which In turn were shipped for sale and Che advance money received used again But thc only investment was Che original one and Che success of Che entire
 series or transactions depended on
 continued high or higher prices Whom values collapsed tho losses on hoc cumulative transactions wore tremendous. and Che auction come pauIos row have luree quantities of ! skins which cannot bo "clered or withdrawn from heIr warehouses for want ol Che money vIth which to pay back One advances made. Out- id. hc auction companies Che same
 speculation was being udu'rod u. ! bu 10 moro eztuasant degree. The story was told of s.z tranac-
 uom on small lot oi skins that passed from trader to trader wlth- out over being seen by Che parties 70 ! Che aIes Finally after Che price ! had been run up some 900 per cont. Che u.t purchaser required posses
 sion ol Che mr Upon seeing Che
 pcts he sued Che seller ou Che
 grounds that thcy were m.rcpre- . .mtod to him and were worth even ! lo. chan was originally asked for ] them.
 The situation n tho speculation
 worn ur trade however has eascd m considerably since tho decision
 to postpone Che October auctions . rIcd up vItb contracts which .t had no means of carrying out Che indus us has passed thc point where n
 looked os .l Che whole market was
 ,oasuue down grade with thc throt . uc wide open and headed for a
 curve. N1 one .mar.uH chat ur hor rudImut of ur values Is
 not in nro.pe.t but Che industry
 loes hat a more gradual liquidation . win conserve Che interests Of an
 concerned The rcadImmot has
 been carried out so far m D way cha,
 important factors m Che busue . feel .s most uaacwor.by n view O. . tho crisis presented By tho strong . eHor.s of Che far trade leaders. a . nu crash was ayuteI The s.tua . uon was put up to the bunka and ] following a preliminary tendency to
 resor, to harsh measures. they have
 co-oporatcd ,o Che satisfaction Of Che ! industry
 At mt hc action Of Che banks ! in putting pressure on liquidation In mu came n for sharp criticism ! Though uo formal protest was made
 such protest was entertained by
 thc mr interests Aa thoy saw it . Che banke were not only willing hut ] oarcr to mancc operations on @ ] rising market some of them ac
 oarer. m uct that speculation was
 greatly encouraged thereby Bu'
 when tho slump camo. matters were . put m different ueht Iusioncc ] were related ol urst-ratc trade ac. . ceptauccs being turned down. oven
 when Che endorsement Of tho bank
 customer alone should have proved . One highest guarantee If thIs was ! Che way concerns oi Che best clas.
 and financial standing were treated
 10 may bc Imagined what Che lot oI
 Che smaller fry was. lt was hove
 eyer through sharp treatment oc.
 corded Che bos. houses chat Q fuller . understanding Of the iudus,ryspe
 was conveyed Co Che banks They
 were shown thot shutting down ou ! Che entire trade was a penny wis. ! and pound looish" policy Th, ! honest business man would have been
 made Go suGor equally witch Che most
 Irresponsible apccu'ator and in th,
 ard fre whole fradc brought t0 ruin