Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-10-30
THE WOOL SITUATION
BY STATE WOOL COOP

The following was issued in a re-
cent Draper & Co. circular concern
ing the wool market by the Minnesota
COOPERATIVE Wool Growers association
and was written by R. E. Jones. Pre-
Stunning it would be of interest
and contain worthwhile information
to the wool growers Of Pine county
and this section of Minnesota, we are
reprinting it:
Receipts of the National Wool Cor
peration, approximate 120,O0O,OO0 lbs.
about one-third of the production of
the country.
Wool market extremely dull and
slow throughout season so far Not
much Minnesota wool sold as yet.
Manufacturing demands have been
mostly for the finer grades. Re-
Gently the demand broadened and
sales by Draper & Co. reported in
substantial amounts but with no i'm
provement in prices. With great dis
appointment to the wool trade the
London and Australian auctions
turned to substantial declines-prices
declined to the level of American
markets, which of course is reflected
in the present American market.
However, stocks in mills are light;
stocks in cloths are light. Stocks of
foreign woods in bond were never so
low. In the next five months it is
estimated that over hundred mil
lion pounds of wool will be required
in this country over and above the
volume of domestic wool in sight.
Imports consequently light. Stocks
in foreign markets not burdensome.
With this picture before us it would
seem that the worst is over in wool.
One must not forget however that the
world has undergone a greater uni
versal depression in price values prob
ably than ever before in history. Sur
pluses have piled up as never before
surplus Of labor; surplus of money;
surplus in manufactured goods, and
from the mines and from the fields.
Wool Is about the only farm commod
ity that has not fallen in line with
the general slump this summer. The
policy of the National Corporation
with the control and handling of about
one-third of the production of this
country is conceded to have kept wool
from the general slump. Draper &
Co. have offered and sold only as mills
signified their requirements-"or orderly
marketing" Any other policy would
have broken the wool market and the
margins above advances to wool grow
ers would have been largely wiped out.
Wool not yet out of the "doldrums."
The depression in all businesses here
and abroad, carries wool in its wake
despite its strong statistical position
principally a state of mind. But the
offiing in U. S. business is brighten
ing.
With the requirements of the mills
for the next five months greater than
the stocks on hand in the U. s. it is
plain that continued orderly market
ing is the policy the National Corpora
ton should pursue until their large
holdings are sold. While this may
mean that final account sales to the
growers may be belated and with some
inconvenience to many of our men,
bers and patrons, it also means that
this orderly and gradual marketing is
the salvation of the wool market not
only for this year but also for next
year. Were it not for the organization
and policy of the National Corporation
the wool market this year with the
whole production of the country in the
hands Of merchants, each competing
with the other to "get from UNDER
when the general collapse began-the
wool market would also have collapsed