Show WO IV y N Nr Sri y r fl lOAN 0 N National ti al Officers Counsel J JJ 1 V r i er to Declare Assets y and to Secure v V it J V f Warehouse W R Receipts e c e i p t is isN s IN N r A FA statement Issued by F. F J J. 1 ti Jf Ha president resident and t IJ l la Marshall a lh secretary of the National association f tion lion i today advice is given to sr Y l ers who have had difficulty I of of f late in making loans for running expenses expenses expenses' ex expenses ex- ex as to how such loans can be negotiated The national officers council coun coon 7 cil the he to tp furnish statements of of their assets and liabilities s without reluctance to the banks and to present satisfactory collateral such as n able warehouse receipts when negotiating ing fn for tor- or loans t The col complete t statement which has II J be s sent nt to all members of the Naf NaS' Na- Na S' S f t tr t ass association is as follows ll MARKET i-MARKET AT STANDSTILL t During During the the past past two weeks the wool it market has been practically at a sand stand stand- I v still This has las affected seriously some who wish to raise money 1 for forerunning expenses or or for tor payment bf of loans We believe the plan lan herein described described will twill meet the needs in most leases cases ases and 1 if used will bring us through T this this readjustment from wartime condi- condi in good shape and will and will bring bringus us us back to safe market conditions The principal c causes uses of this condition condition condition condi condi- tion are three In number 1 The delay elay and uncertainty regarding regarding regarding re- re garding shipments of wool from the range states to the Eastern markets oThis This Is the result of the switchmen's f strike and consequent congestion at freight terminals The situation is Im- Im S p proving and we believe it will not be 1 1 Ai serious from now on 2 Price reduction and prosecution I of wool manufacturers caused feeling of f uncertainty in the manufacturing ct centers ers In the wool trade There was wasy considerable cancellation of orders t y v which have been placed with the mills and nd this consequently made mills very conservative In their p purchases of further further further fur fur- ther raw material 3 3 On account of temporary uncertainty as to the outcome of falling prices and p particularly In compliance with the undertaking to deflate credits credits cred cred- l its s Eastern banks curtailed their advances advances ad ad- van vances es of money to wool dealing conr con- con r cerns This was possible because the th theW i z W mills mi and wool markets usually have j r lr 4 S sufficient stocks to run for several C months The policy adopted made It itS it'S S 'S rt S l J possible to use all the financial ret reserves re re- t Uv Serves of those Eastern cities in their J 1 j own own business However It very seriously seri serf serl busly crippled the regular and normal spring movement of the wool crop WOOL SUPPLY As a matter of fact the supply of ot c wools In sight Is not very v-ery much above i j n normal The government report of I stocks on hand March 31 1920 lists 7 f pounds as composed compared to too o pounds on the same date u i in These figures and others other showing the supplies and demands for wool will appear in the June number number- 5 of the National Wool grower Unfortunately the financial readjustment readjustment read- read V- V under way also extended tot to toTy T Ty y a stopping of the money to be used s y by commission concerns in making ad ads ad's advances ad- ad s 's vances to their patrons A few banks vj that had promised credit to wool houses r later reversed themselves and refused c V to hon r dr drafts that had been given gien In the best best faith falth field of by rePresentatives J tives tives believe We-believe We- We believe that this action was w holly unnecessary It It must not be ber betaken betaken r y taken a taken to to- Indicate that that- the wool clip cUp Ji will no not be e properly financed and r. r i t 1 j i la The officers of the National WoolI Wool- Wool I r i gr association have lave been 1 4 In touch with the banking 1 1 js The plan outlined below shows 1 t how growers growers can secure money through Y t their h ir local banks to meet obligations tt and nd to carr carry r them the market is ti ag again agam ln norm normal 1 l 1 By By giving local bankers financial finan- finan cial statements of assets and I s. s Bankers state th that t many stockmen stock- stock men ep ar are reluctant to give stat statements ments of of their thel assets a sets and As a amater mete mater pt of fact the request for such a statement is not In any sense a reflection re- re on upon pon the standing of the apt apr ap- ap t r f for a loan All mercantile conc con- con c give such st statements when for loans and it is not reasonable as but very advisable that V stockmen inen should adopt the same polo pol- pol o Ic thereby and enable their bankers to to take ake full advantage of the tacit facil- 11 offered by the federal reserve reserve system m. m f- f No xo 2 By Ey presenting as collateral collateral a- a negotiable a warehouse y eg receipt Such r receipts c may ay not be required d by all banks lanks but they are good collateral and can an readily be obtained from regular f consignment houses tIt sIt It is an advantage If the warehouse receipt p Is one eJ issued by a con concern rn that I Is not s-not not engaged I In selling wool for tor its own account It to is-to Is to be expected that the amount of loans made by local banks will b be somewhat conservative WAREHOUSE RECEIPTS These negotiable warehouse re receipts receipts' receipts receipts' receipts receipts' re- re cannot be Issued until the wool woo covered has arrived at the warehouse This may be a warehouse in Boston Chicago Portland Philadelphia P Salt Lake Lale ake or any other point where proper facilities can be secured for tor handling and later for tor selling large quantities of wool After the grower receives s his warehouse receipt he himself takes it ito to o the bank and arranges for his loans It t is believed that such concerns as the he National Wool Warehouse and Storage company th the Portland commission commission commission com com- mission houses and any other wool concerns concerns concerns con con- cerns who who have hav have or or can make necessary necessary arrangements for negotiable warehouse receipts receipts' can do business under this plan pian The bank will of course insist that the wool covered by the receipt is properly Insured and Is in the th hands of a concern that can properly estimate estimate esti esti- mate Its value for tor the purpose of de determining determining de- de the size of loan ad advisable It is quite probable that under the above above- arrangement considerable amounts of wool may acc accumulate be fote fore selling again recovers its normal activity It should be expected that a quick sale can be made When selling does become normal normal nor nor- mal it may develop that prices in general general gen gen- gen gen- eral are on an a somewhat lower level This Is is by no means assured but must necessarily be considered In safe financing fin tin at this time There is no occasion for anything In the nature of a a. p panic By using available means n can protect pro protect pro pro- their interests and avoid avald forced I marke marketing and the serious consequences conse- conse conse conse- q mc s that would follow sUG suc such t I action |