Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-31
WOOL EXPERT SEES
FOLLY IN ADVANCED
CONTRACTS ON CLIP
Practice Has Always Resulted
in Losses, Says Matt Staff;
Bright Future Looms.
Special to The Tribune.

II -PNNAt W ~
Helena. Dec. 30.-In 4 recent state-
ment issued to western wool growers
and bankers. reviewing the present
year and ~forecasting 1923 from the
growers standpoint, Matt Staff, for
merly of Helena, president and general
manager of the National Wool Ware
house & Storage company, Sid in
part:
"Chicago-Owing to the conditions
now prevailing in the wool markets of
the world, it is highly probable that an
active campaign will soon begin to con
tract next seasons clip. Indeed,
~ Iumors are now current that offers
are being made in certain early shear
ing sections Of the west around 30
cents.
The practice of contracting wool
months in advance of shearing time has
i been discontinued in practically all the
wool producing sections of the world,
/ the principal exceptions being certain
sections of the United States and
South America. The growers of
Il Australia and New Zealand have long
since come to see the folly or this
practice, and through the aid Of the
! British government, other wool pro-
ducing parts of the dominion have sue
ceeded in greatly improving their sys-
TEN of marketing.
"This practice resulted again this
year, as it nearly always does, in sub
stantial losseS to Iae wool growers of
the United States. 1t is a matter Of
common knowledge that clips in CON
siderable number were contracted dur
ing the early part of last winter and
early spring at from 20 to 35 cents,
which, if held until shearing time,
would have brought around 40 cents,
and if held for orderly distribution
to milling requirements would have
netted. later in the season, from Do
cents up.
Would Have Cut Losses
every much the same situation
existed in 1921. and had the growers
been in position during that year TO
adopt a policy with reference TO the
disposition of their clips as conditions
then prevailing seemed TO justify, the
additional returns would have gone far
to compensate for the losses sustained
in 1920. =.
This company tried to the best OF
its ability during many months prior
to shearing to convey to the wool
rover of the west such information
as would enable them intelligently to
estimats the future trend of the mar
ket. We are privileged at this time
to note how nicely the conditions have
developed in line with the forecasts
then made, resulting in handsome
profits to the many growers in Mon
tana. Wyoming, South Dakota anu
elsewhere who shipped to this growers
selling agency in the face of seemingly
tempting offers received at hone at a
time when cash was sorely needed by
themselves and their bankers. These
win receive several cents. and
many of them as much as 10 cents, IN
excess Of such offers. Thus they have
had the opportunity. without direct
loss or expense to themselves. to bene-
fit everyone engaged in the wool
growing industry, in that through the
orderly distribution of their wool, they
have helped to maintain price levels
at which the industry may hope to en-
JOY a reasonable degree Of prosperity.
Consumption Continuing
While news articles may appear
from week to week telling of tempo
rary advances or recesslons, the prices
now being paid and those that will be
paid for next seasons clip are and
will continue to be governed entirely
by world conditions which do not
change over nlgnt, says lne stale-
ment. continuing to the effect that as
consumption is continuing at a highly
satisfactory rate, it can readily be
seen that the entire domestic clip Of
1922 will be out of the way before the
1923 clip is ready for the market. All
offerings at British auctions this year
have been disposed of at steadily adj
~vancing prices principally to English,
French. German. Belgian, Swiss and
japanese buyers, and it will be some
time before the needs in those coun-
tries can be fully supplied. .
Prices Of commodities are, OF
course. largely governed by the pur-
chasing power Of the consuming pub
lie says Mr.. Staff. This purchas-
ing power is now at n high level in
practically every industry except that
of agriculture. where unsatisfactory
prices have retarded the return TO
prosperity. A healthy advance may.
however. now he noted in prices OF
most agricultural products which will
result in due course in establishing. a
more equitable balance between the
several branches of industry