The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-07-29

1 WOOL AND WQOLENo PNlCEo,
A correspondent OF the Chicago Daily
News demands explanation OF a situa-
tlon in which fayIner IL offered but
II cents a pound Tor his wool-less
than half the price OF cotton--but II
The same farmer wants to buy a suit
Of clothes estimated to contain six
| pounds OF wool. he is asked TO put up
/ sYb. The News. in response. does not
oxrlain all features OF the transaction,
hut intimatos that II has Its suspicious.
II comedies. however, that wool has
accumulated in plentiful quantities and
Ia cheap, with little demand.
Perhaps the case cited by the corre-
| spondent may be considered an extreme
instance. as indeed It was. serviceable,
not to say dressy, wooden suits may be
had for considerably less than SIS.
There has, In fact, been a perceptible
tendency toward lower prices for cloth
ing. This, however. has been by no
mean so pronounced as has the de-
| cline in wool. In the public mind, the
prices OF these two commodities are
necessarily and very properly associated
together. But, of course, there are rea-
sons why the movements may not at all
times be exactly synchronous.
As was inevitable, the News had not
proceeded far with It's explanation until
the American Woolens company came
into the discussion. That concern man
ufactures a large portion Of the wooden
cloth used In the country. II was
noted that its net earnings were $1b,-
$4,000. s12,324.o0o and s15.513,0o0 re-
spectively for the years 1917. 1918 and
1919. as against s2.7ss.o 900 for the year
1914. II was further noted that Mr..
Wood, its president. and this company
40 q corporation recently escaped con-
viction on charges Of profiteering. on
The technical holding that wooden cloth
Ia not clothing AZ contemplated by the
Lover law.
MIR. Wood. however, since the fore
going transactions have become public
property. has closed down his factories,
claiming there IL no demand for wooden
cloth. Before doing this, he manifested
a charming sense OF humor by granting
his employees q Is per cent. increase Of
pay. This may. in q measure. console
them for having nothing to dol The
city government Of Lawrence, Mass.
where the mills are situated, however.
wan anxious TO keep the wheels going,
90 city governments usually are. They
asked Mr.. Wood to meet them to dis
cuss the situation. but Mr.. Wood po-
ltely refused.
In the circumstances, II 10 legitimate
tn infer that the slackening OF the
demand for wooden cloths OF which Mr..
Wood complains. was largely due to his
failure to recognize the downward trend
In liking his prices. II follows logically
that the shutting down Of his mills Ia,
In all probability. strike against the
public intended to hold the prices OF
wooiens UP to the wartime level. There
II no doubt that the people will con-
tinue to wear wooden clothes-so long
40 they can get them-and the slowing
down Of orders 10 nothing more than q
protest against Mr.. Woods prices.
The explanation 10 ventured, however.
that Mr.. Woods stubbornness about
lowering prices In accounted for on the
theory that his present stocks Of cloths
wore made OF higher priced wool than
that now available. The insufficiency
OF this explanation. however. is seen
In the practice Of raising prices Of
WOODEN products as the prices OF the
raw material advanced This being the
case, the public can see no reason why
the prices of the two should not go
downward In something like the same
ratio.
The slowing down OF orders IL also
accounted for as rejecting the hesita-
ton Of dealers and buyers who expect
still further reductions. This explana-
ton, perhaps. contains an element OF
truth. but II the prices OF woolens
were made to, keep step with declining
prices Of raw wool, buying would pro-
ably go forward as before. The war Ia
over and Mr.. Wood will sooner or later
be compelled to recognize the fact.
Prices are bound to be lower. The peo-
pie will not much longer submit to a
hold-up game for his amusement and
profit.