Comparison of London prices for similar grades of foreign wools for the same period, viz, October 1, 1891, to September 1, 1895, from London wool circulars of Messrs. Windeler & Co. and Buxton, Ronald & Co.

PRICES OF AMERICAN WOOL ON MARCH 1, 1893, AUGUST 27, 1894, AND

OCTOBER 1, 1894.

Table showing in parallel columns the prices of the principal grades of American wool on March 1, 1893 (which was immediately before the protective influences of the McKinley law upon American values were nullified), and October 1, 1894, thirty-five days after the free-wool bill became a law; also showing an average decline of 37 per cent during the interval; also showing the difference between protected wool prices and free-wool prices in the United States at the above dates. Also showing in parallel columns the prices of the same grades on the 27th of August, 1894 (the date when the free-wool bill became a law), and October 1, thirty-five days thereafter, with an average decline of 7 per cent during that interval.

[Prepared by Justice, Bateman & Co., wool commission merchants, October 1, 1894.]

Per cent.

37.08 7.24

Average decline in the nineteen months from March 1, 1893 (before the McKinley law was assailed), to October 1, 1894

Average decline since the passage of the free-wool bill (thirty-five days)

NOTE.-American wools are to-day practically on a parity with wools of the same kind and quality in the London market, which have remained practically unchanged for over twelve months.

DECLINE IN AMERICAN PRICES AFTER PRESIDENT CLEVELAND'S INAUGURATION IN 1893.

[Justice, Bateman & Co.'s circular, May 1, 1893.]

FOREIGN PRICES.

The weakness in the wool market here and its firmness in Europe is attracting attention, as it implies a prospective loss of the home market for American woolen goods and a gain of the latter by foreigners. It is expected that wool sooner or later will be placed on the free list, and that foreign and domestic wool must then bring the same price. With that in view, some dealers who have heretofore operated mostly in domestic are now turning their attention to foreign wool as the safer article to deal in, as in leveling the prices it is believed that foreign wool will advance somewhat. The latter can be left in the custom-house with the duties unpaid until it is wanted; this gives the owner the option of reshipping it to London if it should be advisable to do so.

DIAGRAM.

The diagram (p. 215) giving the course of prices from March 1 to date for six grades of Ohio, Pennsylvania, and similar wools, reveals the fact that the decline since Mr. Cleveland's inauguration has been about 18 per cent on XX washed wools, about 27 per cent on medium washed, about 28 per cent on coarse washed, about 33 per cent on fine unwashed, about 244 per cent on medium unwashed, and about 284 per cent on coarse unwashed or quarter blood. Notwithstanding this phenomenal drop in prices, they are not yet in all cases near the free-wool level.

[Justice, Bateman & Co.'s circular, November 1, 1893.]

THE AVERAGE PRICE OF WOOL UNDER DIFFERENT TARIFF PERIODS.

The highest duties ever collected upon imported wool were under the tariff law of 1867, when prices for American wool averaged higher than at any subsequent period. From 1868 until 1883, under the tariff law of 1867, Ohio washed medium averaged over 50 cents per pound. In 1883, when duties were reduced over 30 per cent, Ohio medium averaged about 36 cents per pound as against 50 cents per pound under the higher tariff law of 1867. The McKinley tariff was passed in 1890, and although the duties were increased on wool only 1 cent per pound, the average price of Ohio medium from 1890 to March 1, 1893, still averaged 36 cents per pound, although wool of the same kind and quality in the free-trade markets of the world declined nearly 30 per cent. The American tariff from 1868 to March 1, 1893, caused American wools to average during all of that period double their scoured value in London and other free-trade markets of the world, and this difference of double the price of "free wool" was maintained until the present Administration commenced its attack on the American wool industry.

TABLE.

In the first column of figures in the following table will be found the value of some of the leading grades of American wool on the 1st of March, 1893, when President Harrison was still in office. In the second column is the market value of the same qualities on the 1st of November, 1893, eight months after the present free-wool administration was inaugurated. In the third column is the percentage of decline which has taken place since Mr. Cleveland took office, showing the progress that has been made toward free-wool prices. In the fourth column is the free-wool or London value of these same grades of American wool, which value has remained prac tically unchanged from March 1 to November 1. In the fifth column is shown the cents per pound which wool prices must yet fall in order to reach the present freewool or London value. This table shows that while the market has traveled a long way toward free-wool prices, there must still be a decline of from 24 to 8 cents per pound to reach free-wool value, unless there should be an advance in the outside markets of the world.

Table showing the percentage of decline in the principal grades of American wool during the eight months following March 1, 1893, with the free-wool value during the same period.

COMPARISON OF THE COURSE OF THE FOREIGN AND AMERICAN WOOL MARKETS AFTER PRESIDENT CLEVELAND'S INAUGURATION IN 1893.

[Justice, Bateman & Co.'s circular, January 1, 1894.]

DIAGRAM.

The prospect of the removal of the duty on wool comes at an unfortunate time, as wool, throughout the world, although already lower than ever before, has been steadily declining. Washed XX Ohio wool has fallen in price 21 per cent since March 1, in anticipation of free wool. Unwashed XX Ohio, as well as nearly all of the territorial wools, has declined within the same time 334 per cent. Port Philip (Australian) unwashed fleece, which is the foreign wool nearest in quality and shrinkage to fleece washed XX Ohio, has declined in the free-trade market of London only 9 per cent, as shown by the accompanying diagram:

[Justice, Bateman & Co.'s circular, October 1, 1894.]

DIAGRAM.

In order that the course of prices from March 1, 1893 (preceding the change of Administration), to the present time may be better understood we have prepared the above map or diagram showing the value of the standard grade of Ohio XX on the 1st of each month between these dates, which also shows a decline of 39 per cent in the nineteen months covering the transition from protected to free-wool prices. For comparison of London with American values we select a similar standard grade of Australian wool, commercially known as "Good Port Phillip," the value of which since August, 1893, with but temporary exceptions, has been about 18 cents in London. Under the duty of 11 cents per pound of the McKinley law, Ohio XX was worth 30 cents on March 1, 1893, and only 184 cents to-day, or thirty-five days after wool was put on the free list, and the intermediate prices in the interval indicated the anticipation or discounting of the free-wool prices. Wool of the same kind and quality as Ohio XX in the London market at this date is worth 18 cents, with the difference against it and in favor of the "Good Port Phillip;" that the latter is skirted wool, while Ohio XX is not. That is to say, the inferior and stained leg and belly pieces have been torn off the Australian fleece, so that it requires no further sorting, while the Ohio fleece, which contains these pieces, involves the cost of assorting in addition to some loss on these inferior parts.

WOOL PRICES MARCH 1, 1893, AND OCTOBER 1, 1894.

In response to almost daily requests for a comparison of prices of American wool on March 1, 1893, with October 1, 1894, and for a comparison of prices on August 27, 1894 (the day wool was put on the free list), with prices of to-day, we have prepared the table on the opposite page. Prices current on March 1, 1893, were those under the McKinley law before its protective influences were impaired by threatened repeal, which was the case almost immediately afterwards. The date of August 27 was selected for comparison with the present time in order to show how far free wool has