The Coconino sun., 1920-08-06
AMERICAN ECONOMIST TELLSWHY AMERICAN WOOL
 MARKET IS DEMORALIZED

cue of the American woolen industry in an effort to finance the current years crop of wools against such a de- luge of cheap foreign production?
 After conference with representa- tives of the wool growers of the coun- try, the federal reserve board author ized the following statement with ref erence to the methods to be employed in financing this years crop:
 "A grower may ship his wool to one of the usual points of distribution, ob- taining from the railroad bill of lad ing for the shipment; the grower may then draw draft against his bank for such an amount as may be agreed upon by the grower and the bank, se- cured by the bill of lading. The fed eral reserve act authorizes any mem- Der bank to accept a draft secured in this manner at the time of acceptance, provided that the draft natures in not more than six months from the time of acceptance. After acceptance such draft, bearing the endorsement of a member bank, is eligible for redis- count or purchase by federal reserve bank, provided that it has maturity of not more than three months from the date of rediscount, or purchase"
 The federal reserve officials made no effort to conceal their fears concerning the future of the American wool in dustry. In their official statement concerning financial and industrial conditions of the country, they said:
 Adjustment of the wool market is now in progress and during the past month there has been a complete ces- sation of buying. No established price for raw wool exists. The situation is causing grave apprehension to man ufacturers."
 They reported, particularly from the textile industry in the Philadel- phia district, that there wac a general lack of confidence exhibited by poor collections and very unsatisfactory transportation. The report from the Boston district, however, was more comprehensive and to the point. This
 statement pointed out that after not ing that of the 674,000 000 pounds of wool purchased by the government at the time we entered the war, there was left at the date of the armistice | aboul Sot ,ObO,OOO puuIluS.
 "All the best grades have been sold"
 said the report, Out the government
 still has about 61,OO0,000 pounds
 graded from mediums to the lowcross-
 breds of which about 40,0OO,OOO
 pounds is stored in Boston and vicin-
 ity and the balance scattered through
 out the country, considerable
 amount of this being in New York
 Philadelphia and Chicago. At the last
 auction of the government wool, held June 10, when 100000 pounds were offered, only about per cent was sold at upset prices which practically amounted to the same prices as at the previous months sale. The dealers being well-stocked with medium anC lower grades, have not been in the market for several months past. Al the last sale of British wools, held 1T : Boston, the latter part of May, there
 were practically no bidders and wha . was sold is said to have been bough at from 15 to 30 per cent less thar ', previous sales, condition which alst prevailed in the London market.
 Boston dealers say there is evidenc, of the existence at this time of grea : quantities of wool in the world It il : estimated that Great Britain owns l,
 500,00O bales all paid for, and tha Australasia, including New Zealand 1, has considerable larger amount, in
 cluding this years clip. This condi . tion has been brought about by sucl countries as Germany, Austria an, Russia being out of the market for long time past, while France and Bel
 gium own no wool, buying as the. need it. The mills of the last tw, mentioned countries are said to be op erating at from 75 to 80 per cent O prewar times. It is claimed that Grea Britain is the only country extendinj any large amount of credit to Ger . many, last month granting at leas B S75,0OO,OOO.
 Many New England mills are now and for the past two or three week
 have been operating three days |; } week, some are shut down entirely anC it is said that others will close alto } gether or go on a three-day basis Nearly all, if not all, the mills hay, 5 had large cancellations of orders an, have not, therefore, been in the mar 5 ket for wool during the past tw, l months, and it may be some time t, l come before they will place orders
 Consequently the wool dealers are do ing no business and this condition pre- . yai1S thrOuphOut the coupfrvv