The morning call., 1893-07-29
THE WOOL MARKET
A Dealers Views on the
Situation.
WAITING ACTION OF CONGRESS
Fear of Tariff Legislation at the
Coming Session Makes the Manu-
facturers Very Cautious.

1--WE are inclined to attribute whatever
there may be- of stringency in the money
market to an entirely different source from
that generally indicated" said j. B. MIC
ClenneD, one of the prominent wool COM
mission men on Bluxome street yesterday.
The probability of some tariff legisla-
ton during the coming session of Congress
and the uncertainty as to what that legis-
lation might be. and how radical the
alterations will be which they may make
in the Customs laws. have fathered the
condition which now exists in commercial
circles. and the feeling of distrust will not
be removed until there is some expression
from Congress on the subject.
1--WE have had such a practical demon
stration of this in our own business that
we are forced to this conclusion.
ION May the best wool was worth in
this market 80 cents per secured pound.
and to-day it is gu oted al 81 cents, aud the
tendency is still downward. This is a
drop of 80 per cent in a few months, and
there is no reason that can be assigned ex-
cept fear of the duty on raw wool being
removed.
There is no over supply in the market,
nor has tie cost of production been de-
has fallen, and the cause have given you
is directly responsible for the reduction.
The wool which is now coming into
market VIII be used by the manufacturers
In making goods Tor next springs trade,
and the manufacturers are afraid and are
now placed in the position of making a
choice between closing their mills or get
Ting stock Of cloth On hand which they
will be compelled to sell at less than cost
II the tariff should be reduced.
Here is what one of our trade journals
has to say on the subject" and Mr.. Nc
Clennan produced the following clipping:
1t is time. though. for the manufacturer TO
decide upon plan of action; ii lie intends 10
be III the market his Is The lerlOd oil the sea-
sou when lie must begin the preparation OF
samples; if he intends 10 close his mill and
keep out of business until 4 new tallff Is deter
mined upon, enabling him 10 share his policy
With intelligence, lie will not need TO go 10 the
EXPENSE of getting up SAMPLES. This exuenSe
l. a severe lax uron manufacturers, aggregat-
ing;as high as $4,000 for the largest mills, and
Is ali item that must be considered. Hence IL
is thai at this moment The Prospective change
in the tariff obfIudes Itself aud forces recoeni-
lion, for there will not he ii yard of heavy goods
for the season OF 1S93-94 that Will not be
ahecied To greater Hr less extent by the tarif.
even though the change may not become opera
tive until January, 1888.
That explains how our line of business
is being effected" continued Mr. McClen-
men," and the instant the manufacturer is
pldcPu III nat pOStllOn TIE PRODUCER IetlS
1t, for he is accustomed to ask for advances
from US, and on account of the uncertainty
of the market we cannot give him an adj
vance.
Every one understands how the market
would be Influenced il the tariff on wool
were removed. TIE best quality Of Aus
traIian wool is now worth 81 cents in Lon
don. but the duty of So cents makes it cost
20 cents in Boston, and of course without
that duty 1t would be quoted the same in
both markets and our woods. unprotected,
would drop clear out OF sight
at is an imDossioiity for us to compete
with wonI-gr0werS in Australia or the Ar
gentlne Republic 1t is estimated that the
vast droVes of sheep in those countries do
not cost the owner more than cents IA
head per year, while it cost 20 cents IN this
country.
'They rent vast tracts of land from the
State at merely nominal rent, md they
can sell wool at tue present time in their
markets and make money. while our
growers would b. driven out of the bust
ness in single season.
The worlds SUPPLY of wool Is fully
equal to the demand; there is no scarcity
anywhere, and with the barriers thrown
down The foreign product would be- poured
in on as. This is surely the effect free
wool wonld have on The grower. and the
effect which the possibility has already
produced that 1 am speaking of. The
effect on the manufacturer is another
question entirely.
LAS | have said, the fear that such a
change might be made has forced the
price of vol down 80 per cent. with the
market still tending in the same direction.
and the only thing that will help the stu
alton is for Congress TO pass resolution
to tie effect that The duty on wool will not
be disturbed. Otherwise the outlook for
the wool business is anything but hope