Evening star., 1925-05-11
CUT IN RAW WOOL
UNSETTlES TRADE
Clothing Declared Too High
to Make Sufficient De-
mand for Goods.
BY J. e. RoYLE.
Special Dispatch to The Star.


NEW YORK, May 11.-Wool grow
ers and ultimate consumers OF cloth.
ing are wondering at present just
what conditions are necessary TO bring
satisfaction to the manufacturers OF
woolen cloth. Word was received to-
day from New England that the mills
there felt they have sustained an
other blow. owing to the drop In raw
wool prices which have fallen from
l3 to 20 per cent on various grades
since the first of the year. Last Fall
the manufacturers complained OF the
high prices of raw wool, which, they
declared. made mill operations at a
profit impossible.
Trade Widely Upset.
Mill managers say that. while the
reduction in the cost of raw material
Is factor tending to reduce cost of
production for the time being, 1t is
tremendously disturbing element in
the business situation. They say a
smash in the price level upsets the
cutting-up trades and the retail stores
as well, and causes losses and havoc
To all of which growers dissent Wig
orously.
There is no doubt Of the substan-
tial decline which raw woods have
mestic wools. which last December
sold at S1.70 pound secured, now
may be had at Sl.25. Ohio fleece
woois. which commanded 72 cents a
pound in the grea Sc, have fallen to
AZ to 90 cents, and territory quarter
bloods, which were 81 80 clean in De-
cember, now are offered at So to 90
cents.
Fail Orders Unsatisfactory.
Some of the Australian auctions
have been called off because Of the
trend Indicated. and other world mar
kets have recorded similar price
movements. The London auctions
now in progress have been materially
curtailed. New England mills have
been running close TO the wind. ac-
cording to all reports. The Spring
demand was slack and the opening of
the lines of goods for next Fall has
been followed by a most unsatisfac-
tory volume of orders. The mills
have been buying sparingiy in the
open market for months, but just
how their inventories are is not
known.
Worsted mills are operating on a
part time basis. Few are working at
over 20 per cent of normal capacity
and some are closed entirely. There
has been a vigorous attempt to hold
goods prices up and to some extent
has been successful.
Clothing Held Too High.
Buying of clothing for some years
has been anything but satisfactory.
The cfearest heads in the industry
attribute this directly to the high
prices for clothing which have ex-
listed. The general average of cloth
prices today is about 1876 per cent
higher than in the middle of 1914.
This represents a much higher level
than other commodities.
The majority of buyers have ex-
pressed their opinion that these prices
were much too high by reducing their
purchases. Few believe, therefore,
that consumption of wooden and
worsted goods will show radical i'm
provement until prices have dropped
sufficiently to stimulate demand.
Wool Keeps Cloth Up.
While 1t Is true that raw wool
prices have fallen approximately Is
per cent since January. there is little
likelihood that prices for finished
cloth will show similar reductions
until the Spring lines of 1925 are
offered.
This is due to the fact that for
the manufacturers. Many makers of
cloths jumped into the market last
Fall and contracted for the still un-
grown clips of the flocknasters at
extremely high prices.
Certainly more than so per cent of
the wool produced was sold in this
manner before ii was clipped Whiie
the market levels now are lower. ma n.
ufacturers, nevertheless have to take
these high priced woods and use them.
IL they buy cheap Mools to avera ge