San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01
PROSPERITY IS
IN SIGHT FOR
WOOL INDUSTRY
Great Wartime Surplus Con-
sumed and Situation Is
More Near Normal.
MORE WOOL is USED
Textile and Clothing Trades
See Better Times
Ahead in 1923.
MORE WOOL Is USED
By HERBERT e. PEABODY.

D
During the past four years wool
: has unquestionably been consumed
more rapidly than it has been produced.
'S1t the end Of the war there was a
large surplus stock held by the govern
ment, which had Communicated the do
nestle clip and purchased such foreign
supplies as were obtainabls in order
to equip its military forces. Since the
armistice, BY a series Of auction sales
extending over a period of about two
years, the huge holdings by the War
Department have been gradually work
ed off into civilian hands. Meanwhile,
through consumption, deterioration, and
underproduction the great surplus OF
the worlds stock of post-armistice days
has been reduced to a moderate stock
composed mainly Of low-grade woods.
The sharp break in the prices of all
commodities during 1920 carried the
prices of wool and mutton considerably
below the cost of production, and this
so greatly discouraged wool growers oil
over the world that many of them
slaughtered their flocks TO avoid the
expense of upkeep and abandoned all
plans for raising more sheep. As re-
suit of this condition there has been
a decline in production in the majority
: of the wool-growing countries that is
much greater than has hitherto been
recognized.
Increased Consumption.
Not only has there been a substantial
decline in production, but consumption
has been increasing in several countries
in which before the war very little wool
was used. One interesting result OF the
world conflict was that it taught the
Japanese-and to some extent also the
Chinese-the virtues of wooden gar
ments, and since 1918 wool has been
imported into China and Japan in in
creasing quantities.
The clear inference, therefore, is that
with the present world production OF
wool not keeping pace with the increase
of population or of tn average per capt.
ia consumption the price of raw wool
must be high. It's striking Advance in
the world markets during the current
! wear is merely an illustration of the
--'w6SEing of the law Of supply and de-
Inand. Moreover, since it will require
time to restore the depleted flocks to
their former numbers, it is evident that
wool prices must remain high for some
time to come.
Small Stocks Of Cloth.
Along with the reduced supplies of
raw wool there has been curtailment
of supplies of wooden goods. Rarely,
if ever, have the stocks of cloth from
the mills to the cutter been so low as
at present The period of liquidation
following 1920 is largely responsible for
-
nine months Of this year the output
of the mills was subnOrmal, owing TO
the lack of demand.
Early in the year cloth prices were
very much below the cost of produc-
ton. The mills, however, were so
eager TO get into operation and to
maintain their organizations that they
chose production without profits as
the lesser of two evils. During the
course of the year demand has grad
ually become more active, and the
mills. having used up their old stocks
of raw materials obtained when prices
were lower, have had TO replace these
with more costly wool and yarns. Nat
lrally. this change in the situation has
been reflected in the prices of wool
clothes. In no case, however. have
cloth prices advanced to anything like
the basis indicated by the present quo
tations for raw materials.
Buyers Are Conservative.
While stocks of cloth and clothing |
are low and the necessity of further ad- |
vances in prices is obvious, the knocks |
and bruises in 1920, due TO the slump |
in the value of high-priced and abnorm- |
ally large inventories are till too recent |
IN be forgotten, and the cutter is there |
tnalF O FL
ter of commitments for future delivery. |
There is also the memory of the So |
called BUYERS strike" and this ever !
fvef Is not completely overcope. There !
his a well-defined fear that it may he |
|lresived if the price of raw materials !
land the costs Of manufacture drive |
cloth and clothing to levels which do not
ronform to the consumers views of what |
be can afford TO, or feels he should |
&pay.
Retailers have liquidated their stocks
Ito point where they are obliged TO re
penish in order to meet the increasing
|lemand. Backed by the ultimate con- /
sumer. they have steadily resisted price
ldvances, but they have recognized that
call is developing for better merchan-
Use and they are regulating their buy
ng accordingly.
Quality Versus Trice.
With the advent of deflation in 1920
Consumers were inclined f.. o consid-
rable period to make price the main
consideration. at tie expense of quality.
n order to meet the consumers views,
hitch were passed up through the re-
liler and the clothing manufacturer
the textile men. the mills turned
the manufacture of tweeds. and
ear ago cloth of this character was
irchased on an unprecedented scale.
lent itself readily to the Utilization
cheap raw and reworked woods and
I'd the advantage that it coulC be Of
rei to the pubnc at prices hich they
.emed satisfactory. But that is about
that can be said in favor of the big
ade that developed il, tweeds. 1t
presented an abandonment of quality
r the sake Of price. Consumers got
Dor service. and in the long run a
: or return for their money. 1t is one
the most hopeful signs for the future
tlA cloth and clothing trades that
great body Of consumers are coming
GO more TO take quality as well as
&C into consideration.
Copyright. 1922.