AMERICAN WOOL MARKET.

Auckland Star, Volume LIV, Issue 130, 2 June 1923, Page 11

AMERICAN WOOL MARKET.

SITUATION DANGEROUS.

(From Our Special Correspondent.)

SAN FRANCISCO, April 24.

Most of the American wool houses continue to proceed very cautiously in the matter of taking on the new-clip Territory wool, and it is noted that Western developments have been very peculiar this year, owing to the small 'number of buyers in the field, Reports are that some broadening in the buying lias just occurred, but particulars are lacking, and reported operations are often denied by those most interested. The American Woollen Company, however, still is operating, having taken over the Idaho Falls clip in Eastern Idaho. About 400,0001b of wool was involved, and the price paid was 43J cents.

Tlie season is opening slowly in other States, notably in Wyoming, where only j a few clips have been sold as yet, and in i-Montana, where practically nothing has | yet been bought. In Oregon, buying te j proceeding steadily but slowly. " Prices • paid in tlie States recently were 40 to 45 | cents, compared with 25 to 35 cents a jyear ago. Texas prices to Eastern . buyers range from 44 to 40 cents for eight-months' growth, and 48 to 50 cents for twelve-months* wool. President [Wood, of the American Woollen OomIpany, returning from a two-months' trip abroad, is credited with saying that, "financially, industrially and "politically, the whole country now is in the greatest period of prosperity, with the outlook for the future remarkably bright."' This opinion is reinforced by the statement just given out. authoritatively that the American Woollen Company, "for the first time in its history, is operating at absolute capacity, every spindle and loom being in operation." CONFIDENCE AXD CAUTION. Pressure for production is so great | that night shifts are contemplated in | some oi the mills. This is the way thatthe market looks to a manufacturer and seller of goods. Over against this may be set a recent cautionary note from Charles J. Webb, dean of the Philadelphia wool trade. His expressed attitude is that wool prices already are too high, and that grave danger to "the wool trade and to the wool manufacturing industry is involved in the way prices are beiti"<boosted in the West. " Mr. Webb's attifcnde, though recognised as having a personal leaning, fully is as marked as that of President Wood, and it has found an answering chord in the Boston wool trade, where many have been taking similar grounds for some weeks, though they have not voiced their opinions quite so loudly. According to a conservative view of the situation, the real strength of the Boston wool rfarket is found in the lack of fine and firie medium wools there. Not only is there| an extreme scarcity of domestic wools of that class, but similar foreign staple is disappearing, with no immediate prospect of stock being replenished. This is true in spite of the fact that receipts of foreign wool still are increasing, the arrivals for one particular week having been larger than ever in any previous week of the whole wool year to date, or over 19,000,0001b. The trend of the American market toward fine wools is still seen in the fact that the woreted mills are having a record business and a "capacity" production, and must come into the market very shortly for additional wool supplies. More or less buying of good Australian merinos has/been done recently in Boston, for account of worsted mills, on the basis of l.lodol. to 1.20d01. clean in bond for 64's to 70's, topmaking wools. LOOKING TO AUSTRALIA. This demand from manufacturers has led to renewed trading between dealers, some members of the trade professing to see more chance of a profit in such purchases than in buying the new-clip territory wools in Western America at prevailing prices. Comparatively few buying orders are being cabled from Boston to any of the Australian auctions, as it is still" possible ; to obtain some good lots of Australian wools in Boston at rates considerably i below the importing point. Therefore, i purchases at tlie going rates in Sydney j or Melbourne are not proving attractive to those who have a most 'bullish outlook upon the future of the market. Prodigious importations have reached Boston from Argentina, for in one week I under review over 18,000.00011) were • grown in that country and placed upon ! tlie American market, where it fetched ' exceptionally high prices. .„ that week i of the 20,135,5001b of wool received on ; the. Boston market, all but 530,0001b were grown abroad. For the corresponding week last Year ■ the receipts were 8,031,0001b, of which ' 1,445,2001b only were American grown.

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