The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1911-07-06
CAUSE OF DfPR[S-
sion IN MARKET

In their trade circular of July |
Justice, Bateman & Co., PHILADELPHIA
wool merchants, have the following TO
say regarding the market and causes
ieading up to the present depression:
Tone Of the Market.
wool is again dull, owing to one of
the most unexpected changes that ever
occurred in tht United States senate.
On the 22d ultimo, number of So
called Republican insurgent senators
joined with the Democrats. and in.
structed the finance committee to re-
port the Underwood wool bill to the
senate by July 10th, thus circumvent-
lns tie Plan :" save the sheep industry
from destruction by burying the I'm
derwood bill in committee
The wool trade have been quite con-
fdent that the wool bill would never
en- erge from the finance committee,
ana that the present Payne Aldrich
tariff act was certain to endure until
after another presidential election,
and as the markets of the world are
unchanged, believed that the 30 per
cent decline in domestic wool, since
schedule "K' was assaulted, would
all, or nearly all, be recovered soon af-
ter it was known that nothing would
be done with it at the extra session.
Those who were buying wool on the
sleeps back did so under the expecta-
tion of at least 90 per cent advance,
such as, for instance, a rise of from so
cents to go cents on fine secured ter
claimed that the causes which depress
ed wool prices in the United States
and nowhere else in the world, when
removed would be followed by a price
rebound which seemed to offer to wool
dealers such speculative opportunities
as rarely occur
The Tariff Situation.
The situation, however, has since
changed, for by uniting with the
Democrats Is Republican insurgents
transferred the senate from Republi
can to Democratic control and it now
looks as though the insurgents of the
senate would vote ON this destructive
wool bill very much as did their in
surgent brethren in the house; and if
the senate insurgents follow their snap
Judgment policy of the 22d of June
and again vote with the Democrats on
the wool bill, it will pass the senate
in some form, and thus will go to the
president.
The president has already announc-
ed his intention to veto even his fav-
orite reciprocity measure if it comes
to him carrying as riders other tariff
bills passed without having the bene
fit of the scientific information, and
the expert knowledge, now being col
lected by his tariff board. AS it is
quite certain that if the president
would veto his own reciprocity bill,
with obnoxious riders, he would also
veto other tariff ripping bills that
may come to him separately.
All admit that instead of having
the senate as well as the president s
veto interposed between the Demo
cratic house bill as before, the presi
dent S veto now is all that can be
counted on, in defense of the great
American industries built up under
schedule "K' since McKinley's time.
Future Prospects.
Those who are still buying wool in
the country consider that the wool bill
has so frightened the growers as to
offer opportunities to buy wool upon
which handsome profit may ulti-
mately be realized Those holding
these views still strongly maintain
that business for wool mills, enormous
in volume, will come as soon as the
tariff agitation is settled This will
be on account mainly of scarcity of
goods. first, owing to reduced mill pro-
luction Ior the past eighteen months
and. second, to the exhaustion to a
greater degree of the ordinary stocks
Insually carried by distributors. The
depletion of supplies below the nor
nal stock usually carried is estimated
Dy some at three times the decrease In
wool mill production, so that in any
went. as soon as the tariff matter is
settled, mills will receive orders for
yoods and run their machinery on fun
.ime, and that even toreign wool
which has not fallen, may advance
wing to more or less demand from the
United States for both wool and goods.
As European mills are now employed
% the limit of their capacity, any in
.reased demand from the United States
.ould not at once be met, and the eff
feet of this upon foreign wool prices
.an easily be imagined.
Those who hold these views, even
including those who have not bought
WOOL on the sleeps back, assert that
wool is now as cheap as it can be un-
Ter any conditions that are likely to
,ccur. 80
present Prices as Compared with
Foreign.
The menace of tariff reduction, for
he moment, has destroyed the price
ifting influence of the present rates
If duty, which for the first twelve
rears of their existence raised the
,rice of wool (Ohio medium as the
,tandard) more than IL cents PEI
,ound in the United States, above the
yalue of wool of like kind and qualit
n London.
1t is now believed that this previ
l;fference would be re-estabilshed II
vas positively known that the preseh
ariff rates would continue, as 1t Is be.
;eved they must, when the tarii1
,oard is heard from, as it Will snow
hat the cost of growing wool today