The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-07-12
is 1T PANIC PROOF

"THE INsrEcTon"a a cen observer Of affair" in Wilmington and
attracting considerable meritcd attention. concludes his article published
saturday that had the wocl industry been financed through the Fedora
Reserve banks as h cotton industry has been. 1t would hnv been impos-
sbe for manufacturers and Influences at the market enters of the wool
business to have Kicked thu bottom u OF the market over night He avs
n shuE mat were all producing industries In the sam position today
as is thu wool industry. the nation would he in the throcs Of a great panic.
He points to the tact that cotton, while manufacturing is also slowed ~. is
cotton cotton I nausyco or IN" south nss b %u u, ,mn ne ova %" o,res 20 "S n as ' nm,o uS
under the shcreuns wing Of the Federal Reserve banking system. He says
and correctly that wool growers are now urgently seeking the assistance of
the Federal Reserve board He might have added that tey have been sue
cN@fi in getting that assistance
In his analysis o the wool situation Tho Inspector" is partially right
and partially wrong. Fod he son a little deeper int the cotton situation
he wOud have found tina while the first grades of cotton are holding fairly
as% "s s s% ;AS 8S:ssi' 2 s' s"iss 4 .1ss '; sg';s" 30, SSo n. ,s : %' ns9,h %ss "%i 9
' s%' r E %%sss' r i% fine has Ts sSs sS .@ aas nnSss' 6s me- poorer grades sue" a"
Ills conclusion ~ TO- .S SlO ;. s", the h. SSHSinF n syIts% of Of ~, The , country yy is unable
S 1 %sT '% mst VI with IN NJ So% Governor %%Tssry of + t "%% Seds %aiT Reserve %% 'S bank Sa' board I'M a w %SS
c @sTm rssI aS Instructions oe S1na% PO%Po ~, as'S member sr0 S"nss Of to r accent wtn msTssou se
ssSses to Ssd Rnss Sa '' ThS p sa 'S %a noi Ss, 'S Sas on o. v Sg0 sa sSGS iSs@' r tS p
'" q" e eme 81 T ssf %Si f% srowep Il %rs and T tn tam ns' tS %IS" %aP s raSS tm 10
sT wee % Ras lot I besn 'S SSrS nit Ds' BY he he S%%a p i% R %s @ S dse'' T Bat %G is w aso
s%1Ss : %% 1S' ars IN to a sSS f fS%nS a 10 w s1T' ss% a me "S % n SS'S business arc a
S"n" sn"r banks I@" IL is only mi ii6 s ss6 a1 s' sroo~ers !" who @Sf have 6eennN ca%shr
. .$ tn Or 's ssS a s%S /" financial na %S S %"a. is ''"''' the first to get ''' " tt
little ' TTsh a' TS fs rd %is@' a a tSe P fedSral G 4s.s %1a' sanS of he sy% %$l 'f Te mah a
hoS When which slowed IoSS S Sp' BUYING %S paV T@StS M ID credits rs Ss' SSa By Sro %s tV % a crisis hSs't the
with demands fr Increase wages during the preaent month amounting to
1 InG "a, Of on I as IL som M grey SrSn. p blade C% had Id s% %Ta t "%poss to " %ar%&eg a sEdnS O %Sd
i is%F Sta %ss long Ta app %o GA %@i lss er S%' They r" hS seem on . IS seS %s !" Of
S S%a s"s schedule ss li IN 'i SpG %G %saia. They simply quit altogether or cut the "''-
same The he : soi Ss% S %Sn'G an "a S's ss ,%s moae II 9av OF a :, to- % naa.sry 'S Gs the M
Solid South mas beenf financed. II would ave been easier fol- FOOL growers
had they been guarded al he administration has guarded he cotton growers
of the South also the situation would AVE been made much easier for vest
en hanks. and as a result 1t would nav been less trying for all western
business which has been seriously affected by the wooden crisis. because Of
the necessary Tightening If h local one markets throughout all wool pro
ducng regions. Wool growers, like cattle growers. have been leftto paddle
their own canoe through thu stormy periods of the past four yeGr 1t viii be
their financial affairs Turing h var, cattle and sheep srowersfound 1t nec-
essary 70 petition urgently and repeatedly before any relief - ud C had from
the war Industries board; TINT relief, when IL came, vas 10 resricted a.
had no limits TO their credit II III ho%c banks Wool growers are not likely
forget these things. t...-..
In the meantime there is N panic in the wool industry. Fortunately
there rs a large lamb crop thtsye ear m range conditions are good. The mar
ket for lambs is opening strong. There is nothing in the situation to justly
any long continued depression in the wooden manufacturing industry. Tia
industry wni remain N ut idle until the present labor crisis is past The
market Will remain unsettled until after the presidential election The great
bulk O wool growers will find II possible to hnancc themselves and to hold
their woods, There will be 10 wholesale dumping of woods on a fiat market
When the demand resumes, a 1t is bound to resume because of the definitely
known conditions OF stocks and available supply, II VIII be 1t Il Tall pncei rot
the price Of The wr years perhaps hut n price that will yield growers a good
profit. Instead OF losing the three or four million dollars that would he lost
stance. viii simply he delayed fou months or less IN reakng 81 the years
clip. aI.
When we consider the general cop staadion the wool growers are in no
worsec case than other producers of stapleA Ii is well known thJ wheat
growers throughout the great western and central wheat districts are being
advised by their banks. and by the authorities Of the department Of agricul-
tuet to stack their wheat wherever elevator pac il lacking. While this '"ice|
h due to the en- shortage he effectu upon tbs growers IL tn same.
In n vital phase Of the situation 1.-THE Inspector" n quite right. The.
effect OF the present crisis in II wool industry will probably be to BRING to 1t
tn share OF care and conservation from the Federal Reserve banking system
which it, merits and to remove the control OF the industry from BoGon,
vast network of dealer machinery which the great woo interests W main
tanned throughout the west will be less effective in controlling the industry
marketing plan is o yet perfected. A cooperative system that is efficient
In Ohio or western New York is wholly Impractical for the range industry Of
New Mexcoi but cooperative marketing Is o n the way. The loosely conduct
ed associations Of the past are rapidly developing into closely knit, efficient
business organizations. Such an organization IL beginning 10 ihow its tnnu-
ence here at home While the present situation 10 troubl@on for wool
growers, and for all business affiliated with the wool industry in n region like
burs whee Il il a major industry, the final result WIN he good. because wool
growers are not likely 10 permit themselves to be caught again in a situation
wherein The weaker members may be squeezed