The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-06-28
re Wool MARKET CRISIS.

TT SEE1Ts very certain that New Mexico wool growers viii follow
: association, and hold their Wool until normal conditions have been
restored in the wool market or at least until q market has been re
stored. for there Isl no market now Of any kind at any price. This is
simply common sense business policy Any grower who would dump
his wool on ,odays market for what it would bring would be victim
Of fright. Fear : the worsf business counsellor in the world. Fear
should me present mnrke. conditions he continued for any great
length Of time il - easy 70 see that financing the owners of the New
ever Ssr's hat stP sh II 4 pssss t1e first rst' tme tS DSi bottom has besn Knocked 70 out
Of wool They will recall that in years past growers nave usually
as the present; and it should be recalled in this connection that
similar situations in former years could call forth no such aid as has
been proffercd by the federal reserve banking system which holds out
an emergency aid which seems quite adequate to take care of every
1na,ier of arranging the amont Of the credit between the grower
aud the banker, bni should there be banks unable TO take care Of
pansion Of the discount privilege offered by the federal reserve.
hanks; and i would seem that this aid should relieve very materially,
If not wholly. any excessive strain upon the banks ofthk state.
This very aid which the federal reserve banking authorities have
authorized will immediately suggest that these authorities regard
the present situation as temporary. Indeed it cannot be otherwise
Even at their present rate Of consumption, with mills running at
~ @oJ IF f cent not capacity p ssSes ID iss % %onshs. TSs British srS s1'p goter s !" has as
stopped deliveries Of Australian fine woods TO this country, one of
the causes Of the Overturn Of the market. Manufacturers now feeling
their way will see a much palmer course within three months from
today and very probably before that date. II is not improbable that
The restoration Of a wool market will be as sudden as its destruction
II is, Of course. unfortunate for New Mexico that This overturn in
portunity to recover from losses suffered in 1915 during the drouth
Ne. Mexico .in banks Wi. 's sas, care { o. .t NJ wool e sro y ,roaa nut y TG dong Ge
itself may :, not 4 pra & E z %sl9 q a%d e gr5 ,ee i ars u .S5' u d gy = WHY disa ssse
As Mr. Miller has pointed out in his interview in Saturdays
Herald. the present condition is temporary and likely 10 be Of brief
duration. There win presently be a market for our woods and New
Mexico growers who have been made the victims Of fright or sudden
change Of policy On the part Of those at the fountain head Of the wool
market situation, will get a measure AT least Of what is coming to
them. il 70 be expected that when a wool market is restored il will
be upon a lower basis than that Of the past two years Growers may
make up their minds 10 that and adjust their operations accordingly
Looking facts squarely in fhe face never does any harm. In the
mean time there is nothing in the present abnormal situation to
brighten New Mexico wool growers, or New Mexico business ia gen
eral The wool industry in this state has faced many situations in
the past far more serious than the present one, and has emerged
without serious damage.
Mr.. Miilers suggestion that the present situation is one which
might be used 10 the financial advantage of dealers who might take
advantage of frightened growers 10 gobble up clips at beggar prices,
n perhaps correct as an abstract proposition. Practically applied 20
the situation in New Mexico we cannot see much danger 10 growers
from this angle. The grower must be much harder pressed than are
any New Mexico sheep men today, before he will give away or sac.
rifice a wool clip That has been produced on the years very high
basis Of production cost Moreover; and this is quite a. important
reputable wool buying firms in New Mexico are not going to take
unfair advantage Of growers in such a crisis as the present. They
expect 10 remain in business just as the growers expect 10 remain in
business. Even were buyers disposed 10 profit by this situation their
business Judgment would Immediately suggest the wiser course.
which is 10 keep in mind the mutual interests involved, the future
business at stake. A wool buyer who expects to remain in the bust
temporary profit. The established wool houses Of the States are as
keenly interested in helping the growers over this crisis as are the
growers themselves and their bankers.
This wool market situation may properly be described as a meteor
thrown off the swiftly revolving circle Of cost on cost increase and
wage on wage increase. That vicious circle is in process of disin
tcgratiOn. There will be many such meteOrs before the vicious circle
breaks up. Courage, cool heads aud good judgment will enable
business 10 dodge al the meteoFs or absorb the shocks without
permanent damage. THIS is far better than To have the thing blow
up in one destructive explosion.
Pennsylvania \ delegation at San Francisco has voted to stay
with A. Mitchell Palmer for the nomination to the bitter END. Such
an end would indeed be bitter.