THE STATE OF THE AMERICAN WOOL INDUSTRY

After enjoying for nearly half a century a protection averaging

forty-five per cent. and amounting to from one hundred to five hundred

and fifty per cent. on the cheaper grades of wool, the American

wool-grower is not able to satisfy as great a part of the national

demand for his product as he was at the time of the Civil War. During

the sixties we had to depend upon imports to the extent of little over

one fourth (26.8 per cent.) of our total consumption of wool. To-day

nearly one half of our needs have to be covered by foreign wools (about

forty-five per cent. in 1910). When wool was placed on the free list

under the Wilson Bill in 1894, it was charged that the abolition of the

duty was responsible for the increase in our imports. But our growing

dependence on imported wool despite the restoration of the duty under

the Dingley Act, in 1897, goes to show that the tariff is no remedy for

the shortage.

The wool-grower argues, however, that wool can be produced so much

cheaper in Argentina and Australia that, if admitted free of duty

to the United States, it would bring about the total disappearance

of the American wool industry. The latest available figures given

in the report of the Tariff Board show a world production of about

2,500,000,000 pounds of wool, of which the United States produces

about one eighth. The world supply would furnish less than a pound of

clean wool per head of population, not enough to give each of us more

than one suit in three years. Of course the latter estimates are only

approximate, but they are not far from the truth. If it were not for

the plentiful admixture of cotton and shoddy to the annual stock of new

wool, there would not be enough wool to clothe the people of the earth.

Under these conditions, there is no danger of the world failing to make

use of American wool. Any considerable curtailment in the production

of American wool would have the tendency of raising the world’s price

of wool to such an extent as to offer renewed encouragement to the

American wool-grower. So much for that. But is it true that it costs so

much to raise wool in the United States?

The Tariff Board reported that the average cost of production of wool

in this country is about three times as high as in Australia and

about double that in South America. On that basis our present duty is

ridiculously low, and it is a wonder that our wool industry has not

long gone out of existence. What is the secret of its miraculous escape

from total extinction?

The Tariff Board average represents widely different conditions

of production. A large part of the wool grown in this country--no

less than eleven per cent. of the wool covered by the board’s

investigation--is raised without any cost whatever to the wool-grower;

in fact, he gets “a net credit,” to quote the board, or a premium,

with each pound of wool coming from his sheep’s back. This is true of

sheep-growers who are employing up-to-date methods in their business

and have substituted the cross-bred merino sheep for the old-type pure

merino. The cross-bred sheep is raised primarily to meet the enormous

and rapidly growing demand for mutton. The price realized from the sale

of mutton is sufficient not only to cover the entire expense of raising

the sheep, but leaves the farmer a net profit, before he has sold a

pound of his wool, which has become a by-product with him, and the

proceeds from which represent a clear gain. It will be easily seen that

the up-to-date mutton-sheep breeder can do very well without any duty

on wool.

The mutton-sheep has come to stay, because we are fast getting to be

a mutton-eating people. Despite the enormous increase in population,

fewer cattle and hogs are being slaughtered to-day than twenty years

ago, while the number of sheep killed has more than doubled in the

same period. In 1880, for every sheep slaughtered at the Chicago

stock-yards, four heads of cattle and twenty-one hogs were killed. In

1900 the number of sheep received at the stock-yards exceeded that of

cattle, and in 1911, for every sheep slaughtered, there was only one

half of a beef carcass and one and one quarter of a hog. The rapid

increase in the demand for and supply of sheep out of all proportion

to other animals is in itself the best refutation of the cry that

sheep-growing is unprofitable. In his recent book on “Sheep Breeding

in America,” Mr. Wing, one of the foremost authorities on the subject

in this country, who investigated the sheep-breeding industry for the

Tariff Board in every part of the country where it is carried on, as

well as abroad, says that sheep-breeding is profitable despite the

woefully neglectful manner in which it is conducted in the United

States. Unlike some United States senators who have grown rich in the

business of raising sheep, Mr. Wing remains cheerful at the prospect

of a reduction of wool duties, and even their total abolition has

no terrors for him. His attitude is very significant, when it is

considered that he is a practical sheep-grower, still engaged in that

business, in addition to writing on the subject, and that all his

interests, both business and literary, are intimately wound up with the

sheep industry.

Not all growers, it is true, have adopted modern methods. The report

of the board shows five additional groups of farmers whose cost of

production of wool varies from less than five cents a pound to more

than twenty. Accepting these figures at their face-value, although they

are only approximate, and assuming that a raw material like wool of

which we cannot produce enough to satisfy our needs is a proper object

of protection, the question still remains whether the tariff is to be

high enough to afford protection to every man in the business, even

when the results obtained by his neighbors show that he has his own

inefficiency or backwardness to blame for his high costs, or whether

the duty is to measure the difference between the cost of production

of our efficient producers and that of their foreign competitors. If

the former be taken as a standard, then the present duty on raw wool is

not sufficiently high, and should be greatly increased; if the latter

be accepted as a basis in tariff-making, then, there being no cost

in raising wool on up-to-date American ranches, there seems to be no

valid reason for any duty, except possibly one of a transitory nature,

to allow sufficient time to the sheep-growers who need it to adjust

themselves to modern conditions of business.

The Century Illustrated Monthly Magazine (May 1913) Vol. LXXXVI. New Series: Vol. LXIV. May to October, 1913 · 第 129 / 166 题