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 33 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 183 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

depressed the price of American wool during the thirty-five days that foreign wool has been free of duty. Our quotations of to-day are even higher than some of the other Eastern wool market reports would indicate, so that the average decline of more than 7 per cent in American wool since the duties were removed is less than half of the extreme decline on the merino qualities, which comprise three-fourths of the whole American wool product. It will be noticed that while the average decline in nineteen months has been over 37 per cent, the maximum decline on merino qualities has exceeded 40 per cent.

DECLINE IN FOREIGN WOOL MARKETS DURING MCKINLEY PERIOD.

[Justice, Bateman & Co.'s circular, August 1, 1892.]

THE DECLINE IN EUROPE AND AMERICA DURING THE PAST YEAR COMPARED.

According to the following table published by Messrs. Buxton, Ronald & Co., showing the percentage of decline on each grade of merino wool in London from June, 1891, to June, 1892, the average decline has been 16 per cent, and the maximum decline over 21 per cent, while the average decline in this market for the same quality of domestic wool for the same period was only 8 per cent, and the maximum decline less than 12 per cent. The decline in manufactures of wool in England for the same period was 26 per cent, while the decline in the United States was only 6 per cent.

[Justice, Bateman & Co., circular, August 10, 1892.]

Decline in price of wool in London.

[Buxton, Ronald & Co.'s colonial wool report, 24 Basinghall street, E. C., London July 14, 1892.]

Private advices from London report the European wool trade quiet, with buyers reserved, and with a downward tendency as to prices for the bulk of fine or merine wool offered, showing weakness which characterized the market for all qualities except those that are suitable for the United States. The American demand partially sustained values on the small stock of the light, open Australian fleeces. We give below a table published by Messrs. Buxton, Ronald & Co., of London, in which they give in separate columns the percentage of decline in price since September, 1891, and also since July, 1892. The heaviest decline was in the qualities that are about the same as the bulk of the American merino clip (exclusive of Ohio and Michigan fine delaine). We have classified the wools in two divisions. The first division represents the great bulk of the wools sold in London, which are similar to the bulk of the American clothing wools after the fine delaine has been taken out. The second division embraces wools that correspond with the best Ohio and Michigan selected fine delaine. The wools in the latter division were in very limited supply at the last London auction, and the American demand in addition to the European demand to a large extent sustained the values of the better qualities, while that which lacked the American support and was the bulk of the stock declined heavily. The specific

duties of the McKinley tariff law make it unprofitable to import anything but wools in high condition corresponding most nearly with the fine delaine fleeces of Ohio and Michigan. With free wool the American clip would be brought in competition with the great bulk of those foreign wools which have declined so heavily.

New South Wales, New England, fine bluish, fair condition. 0 8
Natal, fair staple, skirty...

06 to 0 6

A DECLINE OF OVER 55 PER CENT IN FOREIGN WOOL PRICES IN

THIRTY-FOUR YEARS.

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

FALL IN FOREIGN PRICES.

Free traders have been fond of drawing comparisons between the lower price of American wool under the McKinley law and prices current previous to 1860. It is true that previous to 1860 the clean scoured value of Ohio, XX was 80 cents and its clean scoured value under the McKinley law before it was menaced with repeal in the early part of 1893 was 70 cents, a decline of 12 per cent. This fact has been given great prominence, but the advocates of this view have been ominously silent as to the 16 per cent decline in London in wool of the same kind and quality during the same period. For some years previous to 1860 the London value of Australian clean scoured wool similar to XX Ohio was 65 cents, but in 1893 its value was only 35 cents, a decline in the free-trade markets of the world of over 46 per cent, as against a decline under protection in the United States for wool of the same quality and condition of only 12 per cent. Further evidence of this fact, but exhibiting a still greater decline in foreign markets, is shown in the publication of a table by Messrs. Geo. Wm. Bond & Co., of Boston, giving all kinds of colonial wools imported into England and America in 1860 and in 1894, showing a falling off in value in that period of over 55 per cent.