The Record-courier. [volume] (Gardnerville, Nev.) 1904-current, 1920-06-18
WOOL MAY 60
TOFORMERPR|CE

1toptC dioIOut a6in6 i1BOiI ID tOn-
cerning the future wool market, GER
tain facts are being brought out that
give strength to the hope that the
market will return to the sixty-cent
basis from which 1t recently receded
Many and conflicting are the opinions
coneering the wool market. financial
AFFAIRS and business outlook for the
United States. Private advice has
been received in Winnemucca from
men interested in wool stating that
they look for the market to recover
within the next three weeks.
special report on conditions af-
fecting values, sent out from Wash
ington Woolen Mills Company. is in
teresting and follows:
Recent developments in our indus
try have been so radical that we feel
that our views in the form of a spec
ial report might be appreciated.
I'VE are going through form of
hysteria in the liquidation of mer-
chandise through forced sales and large
discounts. which has both its good
and its bad features.
The banks of the country became
over-extended I'm their loan discounts,
due not SO much to their customers
Increased volume of business In the
number of articles handled, but to
the fact that the price of each article
had increased approximately 300 per
cent in five years. thereby forcing
every manufacturer and merchant to
seek undue bank accommodations.
THE banks started to correct their
conditions at the close of 1919, and
We believe would have accomplished
sufficient liquidation without disturb
ing general business conditions If It
had not been for the railroad strike
and consequently blockade of trans
portation facilities. The embargoes
made it impossible for manufacturers
to ship goods, and their banks were
absolutely obliged to loan total of
hundreds of millions of dollars which
would not have been required If the
productions could have been moved
along their usual channels, and the
result was that the first of May found
the bank no better off than they were
the first of January.
1T is well-known fact that bank
loans must ordinarily increase stead
lily as the crops grow from July to
October. and are then liquidated as
the crops are marketed. AS the crops
must be provided for, there has been
no alternative except for the banks
to demand the payment of loans as
they mature, and this In turn has
forced merchants not only to liquidate
merchandise. regardless of cost of re-
placement, but also has forced them
to sell their liberty bonds and other
securities to take up their notes.
I'VE have for the past two seasons
plainly advised retail merchants to
buy only for their positive require
ments, and We have repeatedly urged
that profits be held in liquid form to
meet decline in values of stock on
hand which eventually come, but we
desire to go on record now to the
effect that the present hysteria of
liquidation is causing merchandise to
be sold at retail in many instances
for less than II can be replaced at
wholesale.
Mills are shutting down through
out the manufacturing districts and
do not regret the opportunity to do
so. in order to correct the excessive
demand of labor. and II Is altogether
possible that there may develop as
great shortage of textiles and cloth
ing this fall as has been seen during
the entire war period.
''The only possible solution of the
high cost OF living problem Is cur
tailment of purchases on the part of
the public and an increase in produc,
tion by manufacturers. The present
forced sales of merchandise is cous-
ing the public to greatly increase
their purchases. while mills are re-
ducing production, even to the extent