Rensselaer Semi-Weekly Republican, Volume 34, Number 37, Rensselaer, Jasper County, 7 January 1902 — WOOL AND TARIFF. [ARTICLE]

WOOL AND TARIFF.

NO CHANGE IN DUTY SCHEDULES IS DESIRABLE. Unstable Conditions Are Injurious Alike to the Manufacturers and to the American Sbeep and Wool Growing Interests. Most opportune is the publication of the year’s domestic wool clip by Mr. S. N. D. North of the National Association off Wool Manufacturers. Reciprocity schemes and methods for the benefit of one industry at the expense of others have thrown upon Congress an avalanche of literature, and some of the recommendations indicate that selfish constituents are willing to sacrifice the sheep raisers if they can thereby secure personal profit. That no change is desirable in the tariff on wool will appear obvious after a little study of experiences in this industry under tbe last three revenue bills. Dur-* lng the wise operations of the McKinley law domestic ranches increased and the home production of wool rose to 348,538,138 pounds ih 1893, while imports were but 55,152,685 pounds. Immediately after the enactment of the Wilson bill foreign wool was thrown upon this market in such abundance that Imports rose to 350,852,020 pounds In one year, an increase of 530 per cent over the receipts from abroad under the protective tariff, and exceeding even the high record of domestic yield. Meanwhile the home grower found no profit in competing with Australian and other cheaply raised wool, so that sheep were sold for mutton, and investors in the industry lost large sums of money. The annual yield in the United States steadily decreased until only 259,153,251 pounds were clipped in 1897. With the resumption of a reasonable barrier against outside producers there came a renewal of domestic interest in this crop, and each year brought a larger total, until the report just issued shows a clip of 302,502,328 pounds. The question of prices has been the most remarkable feature of the situation, although less bewildering when studied in connection with the records of imports and general business*conditions. According to the circular of Coates Brothers, one hundred grades of domestic wool averaged 22.78 cents a pound on May 1, 1892, when the country was prosperous under a sound tariff law and woolen mills were actively engaged. By Sept. 1, 1890, the full effect of free trade was being felt, aud the same grades of wool averaged 12.22 cents a pound. This fall of 40 per cent In price was not only due to the competition of outside production, but also to the disastrous condition of all industries and business under low tariffs, whlcb rendered the wage earners unable to purchase freely of warm clothing. With the reversal of tariff policy and restoration of a duty on wool there came prompt recovery in this business, together with such confidence that the speculative Influence became prominent. Despite large stocks there was inflation of prices, and in December, 1899, the average price was 24.70 cents, nearly two cents higher than in 1892. That the advance was obtained too rapidly has since appeared in the reaction to 17.06 cents, July 1, 1901. Numerous and heavy failures were precipitated by these erratic fluctuations, not only among growers, but dealers and manufacturers. Misfortunes must of necessity follow unstable conditions, and these irregularities are directly traceable to tinkering with the tariff. It is not difficult to understand why the recovery In all departments of this industry has been slow, and only within the last few months have distinctly satisfactory conditions prevailed. In addition to the enormous quantity of woolen goods of all kinds that were accumulated by importers, the receipts of raw wool from abroad during the three years ending July 1, 1897, amounted to 787,797,405 pounds. No amount of prosperity could absorb, this enormous stock In a short time, and It was a short-sighted policy that permitted the violent advance of prices, which was naturally followed by severe reaction. Even after the flood of cheap foreign wool had subsided, home producers and holders of domestic wool made the mistake of Inflating quotations all out of proportion to the gains made in prices for the finished products. Consumptive demand, it Is true, was greatly increased by the healthy tone of all business, but the rise In price of woolen goods was slow. Manufacturers were compelled to resort to the usual method under the circumstances, which was a reduction In quality. Shoddy and cheap substitutes were used, while adulteration with cotton was general. Ultimately the lack of orders produced n SMutary effect on the wool market, and prices were brought down to a point where the mills could do business at a profit. Within a very short time the situation lias developed signs of an encouraging nature, and a slight recovery In prices Is recorded. Manufacturers have orders assuring full occupation of mills until well Into next year, and within a few weeks tlielr purchases of raw material In the Boston market established a new record for a single week’s transactions, while the resulting movement also produced the largest week’s shlpr ments. At the same time there Is every evidence that supplies will be ample for nil needs until tbe next clip be-North’s-report places tbe pounds, t l.'H'l* it must lie BBaraigb|§g., in 11,1 Kdu« changes,

even if special advantages might H| crue to some other industry by reciwlg cal arrangements. Every State Agf Territory In the Union bas a tbe raising of sheep. Even little Rhode Island is officially credited with over 10,000 head, while half a dozen States average about three million each. Struggling against greater ensadvantages than any other industry, at last wool and woolens appear to have attained a sound position, and capital no longer hesitates to lend Its aid to further expansion. At such times it is impossible to overestimate the harm that might be done by disturbing the situation in regard to customs duties. —American Economist. . This Nation’s Balance Sheet. The season Is at hand when a business man compares income and expenditure and strikes a balance. It is fitting now for the American people to do the same. In the last three and one-half years we have extended our national business. We have fought a foreign war and put down an insurrection. We have added Porto Rico, the Philippines, some smaller islands, and virtually Cuba to the area for which we are, financially responsible. Aside from any question of moral obligations thus incurred, what is our financial standing now as compared with three and one-half years ago? On April 1, 1898, our national debt was $847,366,680, and our cash on hand, or working balance, was The Spanish war increased our debt on Nov. 1, 1899, to $1,046,049,020, but on Nov. 15, 1901, we had reduced it by $92,021,870, or to $954,027,150. Nor was this all the saving, for we had also cut off $54,548,424 interest Which we would have paid in the next seven years bad we not reduced our debt. Our interest charge has been reduced from $40,347,884 to $28,471,228 annually. Our decrease of liabilities from Nov. 1, 1899, to Nov. 15, 1901, including Interest saved, was really $146,570,234, while our cash on hand, or working balance, was then $322,514,732. Nor -has this decrease of liabilities and increase of assets been obtained by placing heavy burdens on tbe people. In fact, no one to-day dreams of increasing taxes, notwithstanding the enlargement of our national business. Our Income is more than sufficient for our needs, and the only question is whether we shall reduce taxes and-thus reduce our debt more slowly, or keep up taxes and reduce our debt more rapidly. Furthermore, we are the only great nation that is not Increasing either debts or taxes or both. As the American people look at their national balance sheet and see their liabilities being reduced at the rate of $46,000,000 a year (nominal) and $73,000,000 a year (actual), counting interest saved, and note that this has been accomplished in the face of foreign war, insurrection, aud considerable extension of business, and compare their condition with that of other nations, they have every reason to be satisfied with the policies and the management that have produced these results.—Chicago Inter Ocean.