Evening star., 1925-02-10
PRICE WAR STARTS
IN WOOL TRADE
Growers and Consumers in
Annual CIash-Demand to
Determine Rates.
ny j. c. ROYLE.
Special Dispatch to The Star.

Speclai Dlspatch to Jhe star.
BOSTON, February 10.-The annual
tug of war now is on in the wool
trade. Growers and consumers of
raw wool are straining vigorously in
opposite direction over the matter of
prices. Neither has shown signs OF
weakening. and present indications
are that the weight OF demand as
compared to supply will be thrown
on the side of the grower for some
time to come. Stocks in the hands
of manufacturers are comparatively
small, and consumption. in domestic
mills is proceeding at a rate well
above 100000 pounds month.
Foreign Markets Soft. .~.:~
On the other side Of the scale rs
the softening tendency In the for
eign markets. notably those Of New
Zealand. This has been followed by
a slight falling off in prices Of some
grades here. The response which fol-
of the American Woolen Co. has
been excellent so far. il is understood,
but 1t has not yet been sufficient to
determine just what the manufactur-
Ing trend must be during the Sum-
mer. Recorders must come before
that can be indicated satisfactorily. !
Prices Held Reasonable.
1t is sure that there IL not going
to be an excess supply of domestic
wool If manufacturing operations
proceed at a normal and satisfactory
rate. 1t also Is sure that II wool
prices rise to sufficient heights. de-
mand will be choked off, neoessitat-
ing a smaller supply. The prices
named by the American Woolen Com
pany are considered TO have been re-
material costs. but they are subject
to advances and consumers of goods
have set their faces resolutely against
paying higher figures for finished
products. ...
Little Worry Over Cuts.
Little Importance Is attached to the
easing tendency of the market here.
Those who predict higher wool prices
say that the trading has been, OF ex-
ceedingly small proportions and that
some of 1t has represented sacrifice"
sales made with intent to drag the
price level down to lower figures be.
fore the arrival of the 1925 clips,
thus allowing more profitable han
ding of the new woels from the
West. Whether this is true or not.
1t has not affected the attitude Of
growers in the slightest. ..s-
The price ideas or nockmasters
have been advancing steadily. A New
England manufacturing concern. 1t 10
estimated. has bought in the last few
weeks approximately 100000 pounds
of Montana woods for future delivery
at prices ranging from 80 to 51is
cents pound. Twelve months wool
in Texas have been contracted for on a
60-cent basis, the highest figure
reached since 1921.
Sharp Changes Unlikely.
The very fact that contracting for
unclipped woods has been 50 heavy
and at such high prices, is expected
to mitigate strongly against a still
further big advance. Many mills have
secured their requirements well
through the Summer by this means,
and are out of the market.
The reduction of 10 per cent in
wages, now effective in many New
England mills, is enabling producers
of cloth to absorb some Of the in-
creased cost of materials, and good
prices appear fairly stable. All In all,
therefore, there seems . likelihood
that the raw wool market will not
show wide fluctuations either way In
the near future, although the impulse
for a time probably will be upward. ,