The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1872-04-19
THE PRICE OF WOOL.

growers find their profits largely
enhanced. The upward movement
has now been in progress without
interruption, both in Europe and
America, for more than year, and
the latest sales, instead of showing
that the agitation has ceased or egen
subsided, Indicate that the maxi
mum prices Saye not yet been reach
ed "A table of prices in London,
for twelve years past, on the lst of
JanuaIy, shows that there was q
general Improvement in prices DUR
ing the year 1871 on all classes of
| wool, in no case less than fifty per
cent, and on some grades nearly OF
quite seventy-fve per cent. The
average of prices in London On the
first day ofthe present year is quite
as high as the highest rate in the
past twelve years, not even except
ing the time when, during our war,
the failure of our cotton crops
stimulated enormously the wool in.
terest. The tabular statement of
the prices in the American market
show like results. For although
during the years of the war the
apparent prices were higher than
now, the gold price was lower.
The price of domestic fleece in New
York for January, 1871, ranged
from A to 90 cents; in December
the range was from so to 20 cents.
Pulled wool sold at from q to 80
cents in January In December at
from 40 to 70 cents. The latest
prices reported in the same market
were, tor fleece, 60 to so cents; for
pulled, 80 to 81 cents. Combing,
so to So cents.
1t is essential to proper under
standing of the case in hand to
know the amount OF stock in the
great markets at several periods
aud the new supplies received. At
the beginning of the year 1871, there
were great stocks of wool on hand
in London and Antwerp. The i'm
ports during the year were large,
but the exports were also very
heavy, and the amount retained of
foreign aud colonial wool in Eng
land, Tor home consumption, show
ed a very small increase over the
amount for 1870. But, as has been
stated, there was an excessive sup
ply a: the beginning of the year,
prices were low, the mills were very
| active, and the expectation OF
manufactures exceeded those of1S70
by nearly six million pounds ster-
ling in value. Accordingly, at the
fclOse of the year the stock on hand
III London was very small indeed,
and the high prices might almost
be accounted for by the scarcity OF
the article. In this country the
case was different. We began the
year 1871 with a shorter stock of
wool than the year before-our i'm
ports were 100000 lbs. against
2S,OO0,OOO lbs. the year before, and
the estimated decrease of the do
mestic clip, from 163, 100000 lbs. to
LAG, 100000 lbs, subtracting only
17,OOO,OO0 from the 100000 lbs.
We had gained otherwise. The con-
sumption was not very much great
er than usual, and we come TO the
close of the year with q visible
stock larger than that with which
we began it. The immediate
scarcitv is an element not to be
neglected in the consideration of
the causes of present high prices,
but IL by no means accounts wholly
for them. st.-.. s.-.r
The war of 1901 undoubtedly
had much to do with the movement
at the beginning, occasioning a very
large increase in the consumption
of manufactures of wool. The eff
feet was felt directly in Europe and
indirectly here. But the permanent
causes lie deeper than the tempo
rary increase of consumption. The
high price of cotton during our war
inRrnooaA lo~naIxy i,o
wooden goods, both in Europe and
America. The war was followed
by long period of low prices OF
wool, owing TO an abundant supply,
which gave a further impetus to
the tendency to substitute wooden
for cotton. But while the use Of
wooden goods has been increasing,
the production of the raw material
has been steadily declining in some
countries, and not keeping pace
with the demand in others. This
again was largely due to the low
prices induced by over-production
in years gone by. Thus: The pro-
duction of Australasian wool, as
measured by exports, TO England
Increased 4S per cent. in the period
of four years, 1868 inclusiVe, and
in the succeeding four years, 1888
Il, it increased only 10 per cent
OF Cape woods the supply actually
diminished between 1858 and 1871.
The domestic clip of Great Britain
decreased considerably in 1871, and
the estimated decrease in the clip of
the United States from 1868 to 1871
amounted to no less than 81. 100000
lbs, n decline of nearly 20 per cent.
The condition of affairs may there-
fore be briefly stared thus: A great
market for wooden goods was thus
| created, and the factories are in ex-
istencc TO supply It; but the pro-
duction of colonial wool to supply
the mills of England and the CONT
nent of Europe is too small, and at
the same time our own clip has fall
len so low that we compete with
EHrope for the production of the
colonies. How strong is the de-
mand for wool may be indicated by
a single fact. The Executive Com
nlittee of the National Association
of Wool Manufacturers addressed
to the Committee of the Wool
/ Growers Association, no longer ago
than last February, q letter, in
which the question, "WhY not i'm.
port directly from Australia 20 was
answered by the argument that
| wool can be obtained more advan-
tageously in England. American
manufacturers, it is said, desire to
purchase small lots, and there would
be great difficulty in Obtaining full
4 cargo. In one short year the case is
/ SO altered that what was then
thought to be uuwise and disadYan-
tageous, has been done. Last week
arrived the first vessel direct from
Melbourne to Boston with q cargo
4 Of wool, and two other vessels, each
of nearly double the size of the
I first, have long been on the way.
from tho same port to Boston. Il
is true that Australian wool. Inn
tpoFted from England, is subject to
an extra duty of 10 per cent. ad
4 yalorem, but the manufacturers .
year ago wrote that even with that
4 additional tax It was advantageous
TO buy IN London. The great ne
costly of the American market
must therefore be mainly answers
BILE for the opening Of this new
branch Of direct trade with Aus
trails. ESQ sss.sa3s f1HC9 1896
i The opinion Of these who are
most interested in aud therefore the
most observant OF the course of
trade in wool, is very decidedly
that ct least the present prices must
4 contiane for acme time to come.
The demand is largely in excess Of
| the supply, and the equalization Of
/ the two Is not the work OF single
8 ittta4A&lE u n eAs4sse - -