Great Falls daily tribune., 1920-06-27
FINANCIAL DIGEST
BY THE TRIBUNE
THE WEEK IN BUSINESS

Evidences that money may become
were not lacking toward the close OF
last week when the rate for call money
was up to IA per cent, the highest
mark but one in recent weeks, and the
record high was only Is. Even when
the rates rose that point there still
was lacking any promising source OF
supply. though the quotations later in
the week restored the rate more nearly
the usual with per cent as the ruling
quotation.
The past week in some lines was dis
tinctly disappointing: Wool and hides
are cases in point. Not only was there
no improvement in the wool outlook but
the stagnation in that market appeared
to grow. 1t is true there were no heavy
cuts in the price because there was
no business to make prices. 1t is a
case of non-activity rather than one of
lower prices, although there is insist
ence on the part Of the buyers that when
business is again resumed, there will
be a recession in the price levels.
Due To Mill Situation.
Temporarily the condition of the wool
market may reasonI6ly be ascribed to
idle and other mills are running on
part time. Perhaps the entire mill ca
pacity is about 80 per cent operated
with forecasts of further curtailment
and with such status, the demand
for the raw wool is very light The
Boston wool quotations of Friday,
however, fail to disclose anything that
need worry the wool producer. AS a
matter of fact, the quotations compare
very favorably with a year ago, being
higher for some grades and lower for
others. Wool prices are published by
the Tribune each Saturday morning,
the quotations being the Friday Boston
market. Here are the prices for Fri
day. June 20. 1920, compared to the
prices for the last Friday of June,
1919, which the reader may study for
himself:
Grade 1920 1919
Fine staple .;;:....'s1.1o s16s9I!2
y blood combing :. 1.5O 1.40@ 1.45
q blood
combing >. 1.oO@ LOS 1.15@ 125
Fine clothing ...... 1.50 1.40@ las
Fine medium
clothing :. 1.45@ 100 1909 1.35
No Great Slump Indicated.
The quotations on fine wool sustain
the previous forecasts that the fine
wool demand would hold close to the
prices of a year ago. The other grades
are so near the price of a year ago
that it would not indicate any great
slump if the market holds to the present
levels.
The diSconderting thing about the
wool market. however. has come chief
~ in the lack of definite basis on which
to arrange the credits of the producer
with the banks while the wool is in
transit to the market destination. I'm
certainty as to whether there is really
Ns~ - - -l, +hat ttr,I
carry the price down several cents
materially curtails the producers mar
gin of credit for a loan on his bill of
ladng. His view of the value of his
wool today is no doubt quite truthful
and the wool is worth all he claims it
is, thing which the banker will admit.
but the fact remains that consigned wool
ia not sold until after It arrives and
has been sorted and shown to the pros
pective buyer.
Banks Tighten Up.
No grower would assume that the
banker could afford to take a chance
of giving him 40 or 45 cents advance
on the theory that the wool will bring
60 cents a pound. when there is that
lurking possibility the wool may drop
to 35 cents before the consignment ar
rives. Such being the case, safe meth
DDS demand that the banks insist that
the loan be held down.
In the hide and pelt market there is
even a more disconcerting situation for
here there has been distinct drop in
the prices. For example, the best fig
ure quoted locally for green hides last
week was around six cents a pound,
while year ago the same hide would
have brought 20 cents and it has been
as high as 80 in the last two years
There is absolutely no market for hides
and pelts, according to the local deal
ers and they will buy them only when
they can not escape. The effect is ex
peoted to bo felt reasonably soon in
the leather side Of the market and
from that point 1t would rapidly travel
to the consumer who wears the shoes
Stock Market LIstIess:
Because Of the tightening of credits
by the banks, there has been a more
listless stock market and full session
periods last week fell under total
OF 300, 900 shares, largely professional
in it's character. There was no marked
change in prices of shares. issues gem
orally remaining about the level of
week ago In the exchange market,
sterling continues above 3.91 and 9th
er monies are still at heavy discount
.nrru