Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-07-25
BELIEVE RECENT
PLAN To FINANCE
WOOL IS SUCCESS
STEPS TAKEN Al CONFERENCE
Will. RESTORE CONFIDENCE
N INDUSTRY.

special 10 The News
COLLEGE STATION. Teyis. July &.
-l;opros, natives Of III" national Wool
Growers Association and Fleece state
Associations, recently held conference
with the Federal KC@iyc Hoard Tor the
purpose of working cut plans whereby
the Wv growers could be- financed
until the wool market opcns up. This
conference resulted IN the formulation
Of simple plan which H. hoped viii
lrcstorc confidoncc IN ,Io wool industry.
and make II possible Tor the wo,l grow.
trs to hold their wool untll they are
offered fair price for H. II was
| clearly shown that no disposition To
maintain artificial prices existed. the
object being 10 finance the clip until
something like normal conditions M the
wool market can be- restored.
The committee pointed out that since
the raw wool, In the hands Of the deaf.
crs and mills was not larger ut this
time than during former wears. the sup
ply of yarn goods VOL goods and suits
In the hands Of wholesale and retail
tTade Is not exceptionally heavy. There
| should be no great slump In prices.
There IN uut much doubt hut what
| here will he n general reduction of
| prices al along the line and naturally
the wool growers viii be- expected In
bear their rnIt This situation IN not
alarming provided the producers OK.
hibit an optimistic view aud do not
flood the market rs soon as buyers
commence bidding.
| Tho following plan was worked out
by the representatives NJ Washington
and suggested ~ n means IN asSia, In
the linancing 81 this years clip
| ~ wool grower may ship his wool
60 one ~ the usual points II dis,ribu.
ton. obtaining from the railroad hill
nj hdng for the shipment: the grower
may then draw u draft against his bank
for a'h an amount as may he agreed
upon by the grower and the hank.
secured 10y the hill of ladng The Fed.
eral Reserve Act authorized any mem.
her hank To accept u draft r'curcd In
this manner al the time nf acceptance.
provided that the drau natures In not
moro than six months from the time ~
1
draft bearing the endorsement ~ u
member hank IN eligible Tor rediscounl
or purchase by Fccdral Rcserv,
Bank. provided that Il has u maturity
III not more than three months from
the rcdiscount or purchase.
"i' was sngvested that the Ecdern
Reserve Board communicate with IN,
4 i.l
hot the shipments 4 wool to points Of
distribution may properly be- financed
- acceptance. IN IA, above manner"
The rate of interest and amount al
"rncei viii oe agreed - m by grower
and banker \ number ~ banks hnt
already advanced M hitch ~ thiri,
cents before the above plan was worked
cut.
The wool growers who expect 4,
take advantag, of above plan will prom
ably find II advantageous u place THEFT
, wool IN county pools or with some 10
liable firm that makes a buAness n
handling consignmcnts. rhcI" nri
twcnty.one county organizations 4.
Texas that now have wool pooled. u
Twill DO necessary Ia write these asso
clations to find out their terms q
handling the wool before u has beef
rhippod The secretaries Of the associe
tons should conIilt their local bankers
n regard 20 financing the members
The colfty associations Of this stat
have agreed To- store wool until IN
market assumes more normal status
The future Of the organizations Dc
pcnds upon whether the members hol'
together or break up and sell indcpcnd
ENTITY.