The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1920-07-31
REVIEW OF
WORLD WOOL TRADE
Recent Speculations Should
Discourage Hoarding of
Commodity; British Profi-
teering in Wool Ends This
Month.

VI 1a
America is fast passing. Wal condi-
lions in the wool markets are giving
way with improving transport. Prices
of this important raw material are
falling. The decline must be reflect
ed in due time in the cost of clothing.
The optomist foresees the time not
long delayed when the supply of all
the basis commodities responds to
the worlds needs, says the Daily FL
nancial American.
Recent developments in wool should
discourage spectators who hoard
these commodities. The British gov
eminent has been doing out small
portions of Australians fine wool at
high prices. These stocks accumu-
lated during the war period, owing
to lack of ships. About 100000
bales of $50 pounds each were on
hand the first of this year. The small
amount of the first grade sold in Lon
don brought as much at $3.50 a
pound, u~nwashed. American mills
were troubled by scarcity of fine ma
terials. Many looms were idle. The
Australian producer complained that
the government had sold at 100 to
200 per cent above the price 1t paid
him for the staple. The ministry ad-
mitted that it had made IAN extraor-
dinarily good bargain" A parlia-
mentary inquiry showed big profits.
British government p~rofiteering in
Australian wool will end by legal lin
itation with this month. The Aus
tralian Spectator would like 10 con-
tinue the corner, but the commodity
seems already to have gotten out of
hand. The British government is un-
able to market its own holdings. ever
at a recent drop of 20 per cent in
prices. It's auctions have attracted
few buyers. They expect a further
decline as the enormous Australian
stocks are placed on the market.
These will be augmented by this
years clip, estimated in all at 2.000,-
900 bales, or 660.0OO.000 pounds.
1t is pointed out by the director Of
the Australian bureau of commerce
and industry that no matter where
Australia markets her wool, 1t will
| probably ONE into competition with
| that owned by the British govern
nent, especially as England expects
to reduce its large stocks to $4,000
bales by the end Of 1920.
The American consul at Sydney
places Australian production at g.
100000 bales. This estimate added
to government holdings sold. or to be
sold, gives a total of 2,770,O0O bales
| of Australian wool coming into the
market during the present year. An
nual production has ranged from L.
100000 to 100000 bales. Ship
ments in the wal period ranged from
| $1,000 to 100000 bales a year.
Evidently there Is no underproduc-
ton in wool for 1920.
A final effort is being made to hold
back part Of the big clip Of this ear
by a combination of all the growers.
1t is difficult to see how these nor
nous accumulations can be carried
much longer, however, after six lean
years of war marketing for Australia.
Uuless the commemorative $1,000
900 and more of sheep are slaught-
cred. they will keep on producing and
adding to the worlds supply of ma
terial.
The POPULARITY of recent sales of
clothing and shoes at cut prices show
the way out for Australia. Wool at
reasonable prices will enable factor
les everywhere to reduce the cost of
making cloth for mex years gar
ments, and to continue enormous
sales. Unless that is done, the pres
emit revolt against high prices will
leave both cloth and raw material in
the hands of their producers. Cot
ton garments and old clothes will en-
able the consumer to wait; while
plants and workmen are idle, and
wool growers and dealers are paying
interest on loans secured blythe stored
product.
The war will have worked Ill among
democracies If 1t Is prolific In price
raising combinations. The Austral.
ian wool grower should remember
that he is dependent on the producers
of other lands for many Of his com
forts. II the producers Of coffee, tea
cocoa. sugar. steel. copper and leather
should also combine he will find liv'
ing conditions In Australia far more
difficult than in the past. The Gold
en- Rule can be applied more readil,
before a world conflict Of producers
ensues and with less damage.
A FRIEND IN NEED