Alpaca is a similar fibre, obtained from an animal native to Bolivia and Peru. The fibre is finer than mohair, and a little more like wool. It comes in three natural colors; white, brown, and black, all of which are found on the same fleece. Alpaca is both light and soft, and therefore lends itself admirably to the manufacture of thin linings. 4. KNITTING AND FELT MANUFACTURE [Sidenote: _Stockinette Frame_] Whereas most wool yarn is woven into cloth, there is also the knitting process, in which the individual threads are interlaced into a regular fabric without warp and weft structure. The work is performed on a sort of loom, called the stockinette frame, upon which the yarns are arranged in parallel order and uniform distances apart. The actual knitting closely resembles hand knitting, and is done entirely by automatic mechanism. A machine of this sort is capable of turning out a great length of material in a short time, and the fabric has the fine ribbed character seen in ordinary knitted goods. The article is soft, full, and elastic, but lacks the strength and firmness of woven fabrics. Stockinette cloths, sweaters, some underwear, and hosiery are products of the knitting machine, and the knitting mills are important consumers of noils and low-grade wools. [Sidenote: _Felt_] Besides being made into yarn, and woven or knit into goods, wool is also compressed into felts of various kinds. Space unfortunately is lacking for the consideration of this subject here, although a considerable quantity of wool goes into felt manufacture. CHAPTER IV THE ECONOMIC ASPECT 1. FINANCIAL RISKS Bearing in mind the industrial structure we have just outlined, it might be well for us to glance briefly at its financial scaffolding. From the banker’s point of view there are many features which are distinctive of the wool trade, and which exercise an important bearing upon the judgment of a credit risk. [Sidenote: _Sheep Banks_] [Sidenote: _Sheep Risks_]