, 1925-01-01
WOOL INDUSTRY
IN GOOD SHAPE
SAYS SECRETARY

The annual report on the secretary
of agriculture, which has been sub
mitted to the president, calls en-
phatic attention to the recovery OF
the sheep and wool industry and
makes some rather startling COM
PARSONS between conditions as they
exist among the growers of sheep
able occupations of raising cattle and
swine. The secretary discusses In
some detail the livestock industry,
saying in part:
"Sheepmen are in q much more
favorable position than cattle or hog
producers. Prices OF wool, sheep and
lambs made a quick recovery from
the 1921 slump n have since MAIN
tanned a level not only much above
those of other agricultural commod-
tiles. hut above the price level Of all
commodities.
To-day world stocks of both sheep
and wool are below normal. Wool
prices are advancing in world mar
kets and there is an excellent demand
for both fat and feeder sheep and
lambs. The price situation Is en-
couraging expansion in the produc-
tion of wool and lambs. Lamb prices
in August, 1924, were about 5S per
cent higher than during the low time
of 1921 and wool prices were about
104 per cent higher.
Satisfactory Prices
wool producers have enjoyed
prosperity in 1924. Present prices
for the bulk of the WOOL clip are al
most 100 per cent above the prices
paid in the second half of 1920 and
nearly 200 per cent above the prices
nf 1000 NVbi1a thaca nrnantauag of
increase are less than those of some
lower-priced farm commodities. they
probably represent a larger net gain
to the producer han that accruing
from improved prices in most other
agricultural activities.
Normally the United States is n
heavy importer of wool. When 1t Is
buying foreign wool in the usual
quantity. the domestic price is nat
urally about equal to the foreign
price plus the tariff. This condition
did not exist in October because in
1924 domestic consumption of wool
materially declined. In the persist
ence of an import price level above
the domestic price level. American
woolgrowers had a promise of still
higher prices for their commodity as
oon as the demand for It should
once more compel the resumption OF
normal imports.
Consumption Lowered
Consumption of wool in the Unit
ed States in the first seven months
OF 1924 was 25 per m less than
the corresponding period of 1928.
1mports in the same period showed
a decline of AT per cent. Yet in
spite of decreased mill consumption
a,y e1anlyn nod t-n vrt1..
for wool advanced. with an In
creasing population in this country
to be clothed and with world COM
petition for the available supply of
wool increasing. the American wool
grower has n good prospect of on
tinuing prosperity.
Cattle and Hogs
although 1924 was not a year OF
good profits for cattle and hog pro-
ducers. II is nevertheless true that
the livestock industry of the country
Is now or n firmer foundation than
at any time since the price collapse
of 1919 n 1920. Cattlemen have
had n harder time than n other
group OF livestock producers. Slow
but steady liquidation has been 60
ing on in the cattle industry for three
years. Today, however. many of the
wartime loans. with their high in
terest rates. have been paid. Money
Is available on more favorable terms
conditions in the cattle country are
improving, and the prospective reduc-
ton in hog raising should strength
en- the market for beef.
THE position of the beef cattle
producer has been hurt by expansion
In the numbers of dairy cattle. All
dairy cattle go to slaughter eventual
", and the growth OF the dairy in
dustry makes n substantial addition
to the meat supply. Heavy slaught-
er of hogs and the competition OF
cheap pork products have also been
n handicap to the beef-cattle pro-
Queer. With no export outlet for
beef products. our present annual
production of cattle seems to be
larger than can he marketed at prof
table prices. The best present pol
icy for cattle producers would seem
to be to raise fewer and better cat