UNIVERSITY OF CALIFORNIA AT LOS ANGELES UNITED STATES TARIFF COMMISSION WASHINGTON REPORT ON THE EMERGENCY TARIFF ACT OF MAY 27, 1921 REVISED EDITION 4 9 (3 ,^ 4 WASHINGTON GOVERNMENT PRINTING OFFICE 1922 UNITED STATES TARIFF COMMISSION WASHINGTON REPORT ON THE EMERGENCY TARIFF ACT OF MAY 27, 1921 REVISED EDITION WASHINGTON (iOVERNMKNT PRINTING OFFICH 1922 UNITED STATES TARIFF COMMISSION. Ufflor: Old Land Office, Eighth and K Streets \\V., Washington, D. C. COM.MI.S8IONER.S. Thomas O. Marvin, Chainnan. William S. Colbertson, Vice Chairman. David J. Lewis. Edward P. Costigax. Thomas Walker Paoe. William Burgess. John F. Bethune, Secretary. ADDITIONAL COPIES OF THUS PUBLICATION MAY BE PROCURED FROM THK SUPERINTE\DE.VT OK DOCUMET.S GOVER.NMENT PRIMTING OFFICE WASmNGTU.V, D. C. AT 10 CKNTS PER COPY Y g CONTENTS. Introductiou 1 The emergency tariff and tlie deflation of prices ] Wheat and wheat flour 4 Flaxseed 1*> Corn 19 Beans 2?, Peanuts 26 Potatoes -33 Onions 40 Rice 44 Lemons 48 Citric acid 49 Vegetable oils 51 Peanut oil 54 Cottonseed oil 56 Coconut oil 59 Soya bean oil 63 Olive oil 65 Cattle, beef, and veal. 68 Sheep, mutton, and lamb. 77 Pork 81 Meats, prepared or preserved 82 Cotton 86 Wool 98 Sugar and molasses , . .^ 108 Dairy products ..7'.. U5 Butter : ." 115 Butter substitutes 120 Cheese 121 Milk 123 Cream 124 Preserved milk 126 Tobacco 129 Apples 135 Cherries 138 Olives 138 Duties collected under the emergency tariff 142 lU 190190 REPORT ON THE EMERGENCY TARIFF ACT OF MAY 27, 1921. INTRODUCTION. The emergency tariff act of May 27, 1921, levied substantially increased duties on the following articles: Wheat: wheat flour and semolina; flaxseed: corn; beans; peanuts or ground beans; potatoes, onions, rice, rice flour, and rice meal; lemons; peanut, cottonseed, coconut, soya bean, and olive oil; cattle, sheep, fresh and frozen beef, veal, mutton, lamb, and pork; meats of all kinds prepared or pre- served, not specially provided for; cotton having a staple of one and three-eighths inches or more in length; manufactures of such cotton: wool, other than carpet wool : such wool when advanced in manufac- ture; sugars and molasses; butter and substitutes therefor; cheese and substitutes therefor; fresh, preserved, and condensed milk; sugar of milk; cream; wrapper tobacco; apples; cherries; and olives. The effects of the emergency duties have been obscured by the gpeat change in prices of all commodities in the past 18 months. / When the emergency law became effective the United States, as well/ as the rest of the world, was in the midst of the greatest price decline/ that has occurred in many years. Agricultural prices in particular were falling precipitously in the face of great surpluses which came upon the market after the war. In the fall and winter of 1921 a revival set in, and at the present time the price index for farm products is about 20 points higher than in July, 1921. In studying the effect of the emergency tariff, therefore, this decline and recent recovery of the price of all agricultural products, whether on the emer- gency list or not, should be borne in mind. ! Only by a study of partic- ular cases can the direct effects of the duty~-be determined, and even in these cases the issue is often confused by offsetting causes. | The statistics for wheat, cotton, sugar, and wool, for example, eadr tell a different story, and it is only by direct reference to such details that safe conclusions can be drawn. It may, however, be stated that in practically no case did prices rise immediately after the passage of the act, although the downward swing was checked in the fall and winter of 1921. It will also be noted that in some cases a decrease of imports, as well as a continued decline in agricultural prices in this country, preceded the enactment of the emergency law. This was particularly true with respect to beans, corn, and certain meat products. THE EMERGENCY TARIFF AND THE DEFLATION OF TRICES. The emergency tariff was passed in the midst of the greatest decline^ of prices thatJias occurred in many years. Not only were prices fallmg in the United States, but a similar movem entwas going on all 1 UKroHT ON INK l.MKKt.KNTN TAltlKK ACT. ovfi the world. Ill fact tlio dcintuuls for the oinorj^oncv duties Inriioly ^row tuit of tlir (Icinoinli/.ntioii of world markets. How wide- .e judi^ed by the following: tahh' (»f index nundxMs of w hohvsnle prices in (his and other countries; 'r\iii.i; 1. -W'/iolfKalv price ituiex numbers.^ Ihtte. Stat&x. PfTCi. 1«13 . ino isao: Januarv 24S Febniarv. . . . 249 Muroh %'a April av. May 272 Iun«> 269 Jiilv 262 Aiipisl 2.W Sei'toml.t-f... 242 OtlOl.iHT 22.i Noveml.cr. . . 2(17 Oeeembw . . . 1S9 1921: January 177 February 167 laiiu. Kraiice. Canada. Ptrct. Peret. Per ct. 100 100 100 2SS 4S7 348 :«» 523 254 S07 .5,50 2.5S ■.m .iS,S 261 •Mh o-W 26.3 300 493 25K 1 299 496 2.56 29S .501 244 1 292 .526 241 •2X2 502 234 26.1 460 22,5 243 435 214 232 407 208 215 377 199 Date. 1921— Con. March April May June July August .Sept(iinl)f>r. Octol-,er . . . Novemler. Det«)mher . 1922: January. .. Feliruary. . March April United States. Per ct. Eng- land. Per ct. France. Per a. 162 20S 360 1.54 199 347 1.51 191 329 14S 183 325 14H 186 330 1.52 182 331 1.52 176 344 1.51) 163 3:11 149 161 332 149 157 326 14S 1.56 314 151 156 306 152 1.57 .307 152 159 814 194 l.><7 i8;{ 179 176 174 172 169 16S 170 ir,.s ' Data oblaiiu-d from the monthly bulletin of the Federal Reserve Board. :inu lakeii ilireclly from the Statist beginning with .September, 1921. Index numbers for Eng- The <»utstanding feature of this table is the synchronous movement of the indices. For all four countries they move downward sinmlta- iKiously . as if actuated by a common cause. Another important point is the stability of prices attained in the countries represented. The index for the United States in May. 1P21. for example, was 151. In April, 1922. it was 152. England, France, and Canada show a similar, though not so close, equilibrium during the past year. Quotations for France are still high as compared with other countries, largely because French paper prices are much further from a gold basis than those of the countries given. Of more importance for present purposes than the general price 5 decline is the fall in values of agricultural products as compared with other commodities. Table II presents this comparison both for agri- cultural products as a group, and for some specific items such as corn, wheat, and cotton. ^ REPORT OX THE EMERGENCY TARIFF ACT. ' Table II. — Index of prices for specific agricultural products as compared with the all- commodity index in the United States. Date, 1913 1920: January . . . February.. March ..... April May .Tune July August September. October. . . November. December . J921: January . . . February.. March April May June July August September. October November. December. . 1922: January February.. March April „ o to 60 a En .^ s S 6C Hi o 3 3 11 = S o die "O Z^_ tl o O. d '"O !<-d . s ft 03 Z 3 fe ^r=^.:i ^-» o O a a < c" o O O ffi o O OS'S a>.3 Per Per Per Per Per Per Per cent. cent. cent. cent. cent. cent. cent. 100 100 100 100 100 100 100 248 291 213 240 318 336 267 249 278 206 229 311 308 252 253 288 200 252 320 315 253 265 304 196 275 326 344 281 272 314 179 322 318 352 302 269 301 186 299 317 332 294 262 287 184 250 311 324 284 250 259 181 249 266 292 251 242 232 186 210 213 285 253 225 191 172 143 164 241 224 207 170 159 130 140 201 209 189 155 132 119 114 192 204 177 155 119 106 114 205 199 167 145 114 103 104 191 195 162 136 116 100 87 185 170 154 126 106 90 88 161 141 151 131 104 99 93 171 159 14S 125 102 99 87 172 146 14S 122 109 98 90 166 125 152 123 112 91 102 160 125 152 142 104 87 155 170 129 150 134 105 76 151 151 121 149 129 103 77 138 144 119 149 129 102 75 135 144 119 148 129 107 77 130 149 121 151 139 117 91 130 174 140 152 141 118 91 143 172 138 152 M<3 i TS-M S^. « 9i 2>' 03 » b :§•= X2 a ■sii S^ cents per barrel, and semolina at 10 per cent ad valorem imposing a duly on these articles. Canada removed its duty on these pro(hicts in April, Sr.MMAUY AND CONCLUSION. Tho Tnitod States prodiicos from 600,000,000 to 800,000,000 bushels of wheat annually, exports from 150,000,000 to 300,000,000 bushels, and imports from 1,000,000 to 50,000,000 bushels. The ([uantity imported, however, should not be compared with either the total protluction or total exports of all wheat, because practically all imports are of Canadian hard spring wheat which comes into direct competition with the same variety produced in the upper Mississippi Valley. The production of this American variety, exclusive of durum, was about 100,000,000 bushels in 1921. Normally imports from Canada are less than 5.000,000 bushels, but in the past two or three years more than the usual pioportion of its exportable surplus came to the United States. Before the war England took about 85 per cent of all Canadian exports and the United States about 5 per cent. For the year ending in March, 1921, however, England took 27 per cent and the United States 30 per cent of the Canadian ex- portable surplus. After the passage of the emergency act about 11 per cent of Canada's exports for the fiscal year ending March 31, 1922, came to the United States and 67 per cent went to England. The efiect of these changes in the Canadian and American wheat trade are limited largely to hard spring wheat in the two countries. The trade in the great bulk of the domestic wheat does not seem to have been appreciably affected by the duty. Soft wheats were not afTected because of a difference in demand and because of a domestic exportable surplus. Pacific coast wheats were not within the sphere of influence of Canadian imports for geographical reasons, and the /trade in hard winter wheats was not much affected because the \ United States is regularly on an export basis for this class. Almost "^Nthe full effect of the duty therefore was concentrated upon northern /spring varieties produced in the upper Mississippi and Missouri / Valleys. ^ Under conditions of free trade between the United States and Canada, Winnipeg prices of No. 1 Manitoba wheat normally exceeded the Minnesota prices of No. 1 Northern Spring by 5 or 6 cents pei bushel. After the passage of the emergency act, however, Minnesota /-prices gradually came to exceed Winnipeg prices by 25 to 27 cents per J) Dushel. Therefore, after allowance is madefor the liigher quality of the ^Canadian wheat the differential between the prices in the two mar- / kets is now almost equal to the duty. REPORT OX THE EMERGENCY TARIFF ACT. 5 It is significant, however, that this increase in the differential after the passage of the emergency act is not due to an increase in American prices but rather to a relatively greater decrease in Cana- dian prices. Minneapolis prices gradually declined throughout the whole of 1921, but Winnipeg quotations went dowTi still more pre- cipitously, with the result that the differential was about equal to the duty by the time the Canadian crop reached the market in the fall, 1921. That there was a fall in prices of Canadian wheat rather than an increase in American prices following the enactment of the emergency tariff is no proof that American spring wheat prices may not have been affected by the tariff; whether they would have been lower in the absence of the duty, and by how much, can not be estimated, WHEAT. Wheat is grown all over the United States, but there are areas of surplus and of deficiency which have an important influence upon the trade in the product. "Generally speaking the whole area east of the Mississippi River is a deficiency region with the excess of demand over supply growing more and more pronounced as the Atlantic and Gulf seaboards are approached. The Gulf and Atlantic States depend almost entirely upon the Central States for their supply of wheat. The western and northern parts of the Mississippi Valley are the great surplus area of the country; a secondary surplus region is Found in the Pacific northwest. In considering the surplus regions a distinction must be made between local and national surpluses. The winter wheat areas of the central valley and the Pacific northwest produce national surpluses in the sense that large quantities are exported from these regions to foreign countries. On the other hand, the hard spring wheat area of the upper valley, Minnesota and the Dakotas chiefly, produces a local surplus which is largely ab- sorbed in the form of flour in the Northern and Eastern States. Closely related to the geographical distribution of the wheat areas are the different varieties of wheat produced in this country. The main classes are hard and soft wheat, both of which may be of the winter or spring varieties. Roughly speaking, Kansas is the center of the hard winter wheat section and the Dakotas are the center of the hard spring wheat area of the United States. Most of the wheat grown east of the Mississippi, as well as a portion of the west central wheat, is of the soft winter type. The Pacific northwest grows both winter and spring wheat of the soft and semihard »varieties. In addition to these grades a «pecial variety called durum is grown in the hard spring wheat region of the upper valley. This wheat is used largely in the manufacture of macaroni in the United States and Europe. The above-mentioned varieties of wheat each have their special uses and, because of the established habits of consumers, one kind may be substituted for another only to a limited extent. Hard wheat, both winter and spring, is the great bread wheat. Hard spring wheat is especially favored for blending with weaker kinds because it is "strong," i.' e., its high protein content causes () KKi'our ON nil-; k.mkuckncv iai;iii" act. t\w tlour inmlr tioiii il to ahsorh iclalivcly larij;(' (|Uiiritities of water, and to make a lij^lit Knif of fine toxtiiH'. Soft wlu'ats. on llio otlior hand, niak(> tlic hcst pastry flour. In many casrs tlu> luud and soft vari('ti(>s arc l)l(Mult'd for an all-piirposo llour widt'ly usfd in domestic l)akin acreage suitahle foi- the fjjrowtii of hard sjjring wi\i>at and many niillions of bushels {jioduced there annually must find a mark<'t either in the United States or Europe. Another eliinent of tlie situation is the dominance in normal times of the Liverpool market over Cana(lian and, to a lessor extent, over Amer- ican wheat prices. Xormally JOnijland absorbs so larfje a portion of the Canadian exportal^Ie surplus of wheat that Winnipeg may be considered a |)urchasin«x station for Liverpool. vSo louiT. therefore, as Eufjlish })rices of wheat are higher than American j)rices. after allowance is made for transportation expenses, the Canadian surj)lus will ihels. 69,311,760 79. 689. 404 Bushels. 1, 146, 558 3,413,626 1,282,039 2,383,537 715,369 7,187,650 24,924,985 31,215,213 11, 288, .591 5, 495, 516 .57,324,288 3 13,847,740 Bushels. 1, 139, 151 3,38.5,337 1,242,960 2,291,7.50 652,086 7. 1.56, 179 24. .500, 210 26,738,392 4,871,826 4,637,571 56, 919, .337 Per cent. 10.9 12.8 19.6 Per cent. 0.2 1912-13 730,267,000 112.879.596 .2 1913-14 763, 3S^0, 000 891,017,000 1,025.801,000 636,318,000 636,655,000 921,438,000 967,979,000 833, 027, (X)0 145, 590, 349 332, 464, 975 243,117,026 203,573,928 132, .578, 633 287,401,579 219,861,398 365, 960, .599 246,703,496 19.1 .3 1914-15 37. 3 . 08 1915-16 1916-17.. 23. 7 .7 32. 3. 9 1917-18 1918-19 20.8 31.2 22.7 43.9 4.9 1.2 1919-20 .5 1920-21 6.8 10 months ending April, 1922 ' Flour is included in the wheat statistics at the rate of 4J bushels per barrel of flour. 2 Production figures are for crop years. Import and export figures, 1910-1918, are for fiscal year; 1919- 1922, for calendar year.s. » Practically all from Canada. Exact imports of flour from Canada are not reported. From this table it will be seen that this country produces from 600,000,000 to 800,000,000 bushels of wheat, exports 150,000,000 to 300,000,000 bushels, and imports from 1,000,000 to 50,000,000 bushels. Exports run 20 to 30 per cent of production and imports are from 1 to 5 per cent of production. The season of 1920-21 was exceptional in that we exported 365,000,000 bushels, or 44 per cent of the crop, and imported nearly 60,000,000 bushels, or the ec[uivalent of about 7^ per cent of production. The two war years 1916-1918 were also abnormal. The 10 months ending with April, 1922, show a great decline from the previous exceptional year in imports under the emergency tariff, but imports remained much higher than they were before the war. Practically all imports, as shown by this table, are from Canada. Table II gives the destination of wheat exports. Europe takes most of them, with England first and Italy second in the order of demand. Exports to Canada, mainly for reexport to Europe, have been substantial. Table II. — Wheat andjluur — Itomestic exports to 'principal countries. Year.i 1910. 1911. 1912. 1913. 1914. Total. Bwheh. 87,3(14,317 69,311,7.59 79,689,403 142, 879, .596 145,590,349 1915 1 332, 464, 975 1916 1 243, 117, 025 1917 203, 573, 928 1918 132,578,632 1919 i 267, 110, 934 1920 1 307,630, 298 1921 1 355,661, 223 England. Bushels. 20,038,686 16,818,872 18,278,830 33,675,065 'i9, .567, 1.53 67,820,697 .53,(K)8,048 66,218,6.54 ,52, 478, 063 78, 283, 488 76.407,056 64,928,036 Italy Bushels. 2,000,679 315,937 .549,204 7,268,800 1,924,943 47,626,249 36,276,102 i 18,191,099 21,812,160 ,51, 795, .595 38, 456, 143 61,095,006 France. Bushels. 8,58, 881 3,667,995 6(), 275 4,974,1X8 .5, .596, 801 .59, 549, 294 34,793,224 22,684,33S 25,642,038 48, 822,. 564 27,677,264 9,056,250 Belgium. Bushels. 6,036,639 2,520,246 4,077,148 10,69.5,073 12,930,630 8, ,579, 207 3,126,431 2,698,044 8, 366, 002 28,379,943 24,647,671 211,349,731 ' Fiscal years, 1910-1918; calendar yeiirs, 1919-1921. 8 iM'.i'iutr ON riii; K.MKiuii.xcv TAnii'K act, Taiii K 11. W'hriil and flour -Ifoiiifstic exports l> i>rinci pal countries — Continued. Year.' JUt.iheln. /, hti.i i,'j«.">. i;n is, 701. mU 4,r.77,{VS.-> '.M.'-tid, \\»s '.tt, i(.:«,sy.'i :i\),:i\s, 1910 (>,47l,(>4<» TZ,MtH, l'>17 1 5,t«»,X53 ' 21,7S7, l<.tl> I 627,543] 4«7, \\n\).. 1,454,335 1 6,H3'2, 19-Ji U,fl25.207 15,201. IWi... 20,3I7,31S 30,047, nils. (Ii-riiiiiiiy. liunhelK. Cuba. All other. '. Bushels. fimhels. 510 (•..419,s7n 3,593,325 31,54.s,97r, 741 1,739,201 3,S21,997 34,184, 634 S74 2, 175, 142 3,812,956 43.317, X14 U4l 12,s7K,775 4, 130, 926 49, 259, 637 Sin 11,777,242 4,070,487 50,785,201) 123 2, tW9, 20>i 4,21f.,054 82, 502,24s 733 5,311,029 4,625,435 82,071,815 994 62,306,511 IHK 3,084,614 6,362,254 19,920,9(14 ISO 190,458 44,962,017 905 13,005,750 6,283,590 90,935,622 065 44.697,635 4,810,030 90,760.147 ' Kiscjil yiMr, 1910 191S; cileiulnr year, 1919-1921. « Tilt' biilk of thi- appari-nt exports to Ciinada represents merely a transit tnule. Tablo III shows the import:- and exports of wheat by months since January, 1920. Ta»lk III. — Wheat anil flunr — Imports and exports by vionlhs. DaU. 1920. Imports. Exports. Busl»cls. Jaiuiarv : .886, 777 Febriiarv I 657. 821 Mareh..". ; 707,012 April • 326,482 Mav ' 5(i9, 157 Juiie ! 4.59. 7S3 July I 219,120 A ugiist ; 445, 24<) Sei'tember 1, 907, 899 Oct ()t)er 10, .■);J7, 120 November 10, 430, 079 December 12, 255, 703 1921. January i 5,496,849 February ' 5, 314, 170 BuBlieli. 12, 273, 653 10,581,486 16, 8S0, 893 13,721,573 25,8H7,664 21,753.623 34, 654, 740 32,674.163 34,994,181 43, 033, 442 30, 9S8, 720 30, 186, 158 27,104,625 23,075,208 Date. 1921 March April May Jiiiie .luly August September October November December 1922 .January February .March . .". Imports. Exports Busfiels. 3, 4.56, 131 4,986,552 2,117,990 118,098 723, 88 1 2.56, 195 %,806 1,084,017 1,. 556, 498 2,312,522 3,648,643 487, 426 2,923,683 BustieU. 20, 763, 041 24,801,351 31, 623, 973 32, 192, 279 30,413.379 66,963,407 38,950,108 25, 366, 408 19,452,714 15,014,437 14,981,738 10,990,776 14,371,395 The first month after the passage of the emergency tariff shows a falling off of imports from 2,118,000 bushels in May, 1921, to only 1 18,000 bushels in June. There was an increase during the latter part of the year, but imports were'small as compared with the same season of the preceding year, running from 10,000,000 to 12,000,000 bushels monthly in the last quarter of 1920 as compared with 1,000,000 or 2,000.000 bushels for the same months in 1921. The foregoing statistics represent the American trade in wheat and flour as a whole, regardless of varieties or areas of production. Inas- much as the tariff affects certain regions and varieties more directly than others, tables which localize the problem more definitely than can be 'done by general statistics are given below. Table IV shows the annual production of winter and spring wheat since 1910. T.\BLE IV. — Winter and spring wheat — Domestic production. Y.-iii. Winter wheat. Buttielt. 1910 4H1'*2,000 1911 4.«), 6.5*;, OOf) 1912 399,919,f«X) 19I.S 52 (,.561,000 1914 684,990,000 1915 67.1,947,000 Spring wheat Year. -Winter wheat. Buslieh. 1916 ! 480, 55.S, 000 1917 ; 412,901,000 I9I8 j 565, 099, 000 1919 760, .■i77, 000 1920 610, h9T, 000 1921 587,0'.2.000 Spring wheat . BMhdt. 1.5.5, 765, 000 223, IH, OOO 356, 339, 000 207, 602, 000 222,4^0,000 207,861,000 REPORT ON THE EMERGENCY TARIFF ACT. 9 It will be seen that winter wlieat constitutes approximately two- thirds of our total crop and sprmg wheat, incliidinoj durum, about one-third. If we assume that a duty will not seriously affect the winter wheat market because we are heavy exporters of these classes, the tariff problem is confined to not more than one-sixth of the crop. For, although spring wheat constitutes about one-third of the har- vest, a considerable portion of it must be excluded from considera- tion because, either on account of varieties or of geographical location, Canadian spring wheat does not compete with our total spring- wheat production. This point is brought out in the following table, which shows the distribution of winter and spring wheat among the several States : Table V. — Winter and spring wheat— Production by States, 1921. state. Winter wheat. Spring wheat. State. Winter wheat. Spring wheat. Bushels. Bushels. 187,000 12''^000 3i:-2, 000 Bushels. 128,564,000 0,340,000 4,500,000 210, 000 84,000 20.810,000 47; 32.5, 000 958, 000 4,228,000 738, 000 16,1,52,000 2,142,000 840,000 2, 9S.5, 000 61,000 10,279,000 37,457,(X)0 20,125,000 8,355,000 Btishcls. 131 000 Vermont Kentucky New York 8,385,000 1,539,000 23,i25,000 1 , 300, 000 7, P52. 0(M) 8,301,000 3,125,000 4, 500, 000 1 , 298, 000 1,449,000 28, 272, 000 24,144,000 42,(;38,(X)0 13,712,000 1,424,000 1.288,000 8,928,000 34,390,000 Tennessee New Jersev Pennsylvania 225.000 Alabama Mi-ssissippi Belaware Texas Maryland Oklahoma Virginia.. .. . Arkansas West N'irginia North Carolina Montana. . . 23 940 0(X) Wyoming 2, 680! 000 7 087 000 South Carolina Colorado Georgia New Mexico 94(i 000 Ohio . . . 425,000 48, ( 00 2, .596, (X)0 300,000 1,388,000 23, ^55, 000 1, 174, 000 72,000 73,2r-4,000 24,930,000 2,316,000 ! : Arizona Utah . . Indiana lUinoi'i 3,314,m)0 432,000 l(i, 800, 000 17,205,000 Michigan Nevada Idaho Wisconsin Minnesota Iowa 4, 192, 0(X) Missouri United State* . . North Dakota 587, 032, 000 South Dakota Nebraska 1,050,000 1 57, .559, 000 1 It is the States of the upper Mississippi Valley that are directly affected by the tariff. The chief of these are Minnesota, North and South Dakota, and Montana. Most of the other spring wheat areas — • Maine, Vermont, and New York in the Northeast, and Idaho, Wash- ington, and Oregon in the Northwest— are outside the influence of Canadian wheat either by reason of a difference in variety or by geographical location. Indeed, the quantity of spring wheat affected directly by Canadian competition, and therefore by the tariff, may be further reduced by the exclusion of durum wheat from the crop of hard spring varieties grown in the Northwest. Such exclusion is shown in Table VI. 10 itKi'oiM" ON nil". iMi:u(ii:N( V r.\i;ii !• act. Taiuk \ 1. Sjiriini iiliiiil I'nxhirtinn in /)iiiirii>lht<,0<>8,(KX) 72, OtX), (XX) .■{.3, 040, 0(X) 25, 217,(KX) 21, 7.39, (KK) 71,203,000 .32,01 l.mK) tl,832,(KXI 7»,Sl(i.(KK) 41, 0.50, (KK) 5!,0,t,5,0(K) 39,928,000 23. 870, 000 19.051,000 34,459,(XK) 48, 397, 0(K) •Si, 320, (KK) l,s,3(9,0(X) 14, 300, (XX) 9, .520, 000 10, 784, 000 (), 14S,(XK) 19, ,539, 000 20,229,0(X) 134, 479, 000 212,0.S7,0(X) 10:5,,57(),0(XI 114, 130, (XX) 96, 2.56, 000 Total all vurit'licrs. Rtuiheh. 42.000,000 25, 5(X), 000 .".0,22.5,000 74,. 5.50, 000 34,5.31,000 20, 000, 000 23, 0.55, 000 81,. 592, 000 39, 325, (KX) .50, 0(X), (XK) 105, 072, (KX) 02, 770, 000 .SO, 244, 000 73,264,000 30, ()00, 000 22, 050, 000 43, 400, (WO 00, .S(X), (KX) 30,108,000 25, 470, 000 24.930,000 10,980,(K)() 21,:?(K).(KKI 7,01I1,(KMI 23, 770, (UK) 23,940,(XK) KiO, 00.5, 000 202,322,000 134, .500,000 1.50, (),S4, 000 14.5,789,000 Ratio ofdurum to total. Minnesota: 1914 Pn cent. 2 Ittltt 2 1917 3 1018 3 1919 . 4 1920 .""i 1921 8 North Pakota: 19H 13 1916 .' 19 1917 25 1918 20 1919 3.5 lyjO .to 1921 4.''. South OakoU*: 22 1916 14 21 191S 20 •2.3 1920 28 +2 i;: 1918 Ji 'A 1920 IS 15 Four States: 1917 10 191,S 19 23 1920 27 .34 Durum wlicat has shown a steadv^ increases in production both abso- lutely and rehitivel}^ as compared with otlier varieties of spring wheat. From 26,000,000 bushels in the four states— Minnesota, Montana, and the two Dakotas — in 1917, this variety increased to a total of about 50,000,000 for the season 1920-21, or an increase from 16 to 34 percent of the total spring wheat crop in the four States. For comparative purposes, especially with respect to the American production of about 100,000,000 bushels of hard spring wheat, the Canadian production and trade for the same variety is given below. Table VII. — Canadian wheat andfioxir — Production and exforts} V«ir (Midrd Mar 31. l'ro Winnipi'irinarkot in store at Port Arthur or Fort William, ami No. 1 (lark nortluMn snrinj; on tlic Minnrapolis market. The MLTurt's ^ivtMi ari' tho niontiily av(M-ajj:os of (hilly (juotation.s for these "•raih's. Frii't's are also shown for N»). 2 hard winter wheat in Kansas T.\iii K IX. — Prices of wheal. Diite. \920. .<^cptPintH>r < trtolwr November Deccmhor 1921 January Fcbruarj- March .Vpril May June July August September October November December 1922 January Febmarj" MarcJi April Mlnne- aoolLs: No. 1 dark nortliern, S2.62 2.20 1.77 1.72 1. SI 1.71 1.69 1..t4 1.B4 1.69 1.74 l.:~A i.ra 1.36 1.30 1.31 1.35 1.55 1.58 1.64 Winni- peg: No. 1 nortli- ern Man- itoba (current 8X- cliange). S2.47 2.10 1.S2 1.65 1.70 1.65 1.67 1.57 1.67 1.68 1.61 1.62 1.32 1.09 1.01 1.05 1.08 1.28 1.3R 1.39 Excess of Kansas Minne- City: apolis No. 2 over hard 1 Winui- winter. i peg- so. 15 i »2. 45 : 1 .10 2.07 ! -.05 1.77 1 .07 1.69 .11 1.72 .06 1.62 .01 1.54 -.03 1.33 -.03 1.47 .01 1.4(i .13 1.21 -.08 1.15 .21 1.22 .27 1.11 .29 1.08 .26 1.10 .27 1.14 .27 1.29 .22 1.34 .25 1.36 I 1 E.xce.ss of Kansas City over Winni- peg. -»0.02 -.03 .04 A wide difference between Minneapolis prices and Winnipeg prices may be noted. The differential did not rise immediately after the passage of the emergency act because quotations of Canadian wheat are largely nominal during the summer months, but in September the result of the duty seems to be reflected in the price of the new crop. .fVs a matter of fact the difference in values in the two markets dur- ing the fall and winter of 1921 is probably nearer the tariff rate of 35 cents per bushel than these figures indicate, because Manitoba No. 1 Northern wheat usually sells at a premium of 5 or 6 cents per bushel above the price of the nearest comparable grade of American wheat. It is significant that the differential is not caused by the increase in American spring wheat prices but rather by a decline in Canadian prices. Minneapolis quotations rose slightly during June and July, then fell and remained relatively low until the spring of 1922, but Winnipeg prices declined even in the autumn of 1921. Quotations were" as low as .?1.01 per bushel in November, 1921, as compared with $1.82 in November, 1920. The price of No. 2 hard winter wheat in Kansas City does not reflect any certain effects of the tariff because the differential between its price and that of Canadian wheat is erratic. It is true that the dis- count of hard winter wheat, under Manitoba spring wheat in the summer of 1921 changed to a premium in the fall, but that this REPORT OX THE EMERGEXCY TARIFF ACT. 13 change was caused by the imposition of the duty is a matter of con- jecture. That the change is not permanent is shown by the fact that the differential in December for both 1920 and 1921 is about the same — 6 cents in one case and 4 cents in the other. If the difference in price between Canadian spring wheat and Kan- sas winter wheat has not, during the period studied, reflected the duty in any consistent manner, the further question arises whether a duty does or can have any effect upon the price of winter wheat. The answer to this question depends upon (l) whether hard winter wheat will be substituted for the Canadian spring wheat which is shut out by the tariff; (2) whether such substitution is merely a diversion of some of the domestic surplus which would normally be exported; and (3) whether Kansas City prices move sufficiently independent of Liv- erpool to permit the tariff to affect American prices regardless of Liv- erpool quotations. It is doubtless true that some portion of the supply of spring wheat cut off by the duty will be replaced by hard winter wheat which normally would go abroad. It is equally certain that there will not be a complete substitution in the sense that millers will produce the same quantity and quality of flour both before and after the imposi- tion of the duty. The third question — the relation of Kansas City and Liverpool prices — can not be settled with certainty from the data available. Some price statistics are given, however, in Tables X, XI, and XII. Table X. — Wheat prices in Liverpool {parcels afloat).^ [Current exchange.] Date. No. 1 northern Manitoba . No. 2 hard winter. No. 1 northern spring. Excess of No. 1 northern Manitoba over No. 2 hard winter. Excess of No. 1 northern Manitoba over No. 1 northern spring. 1921 January' February 2 March 2 April May June July August September October November December 1922 January February March April May S2.33 2.16 2.15 2.14 2.05 1.99 1.90 1.86 1.64 1.32 1.28 1. 35 1.39 1.69 1.66 1.65 1.65 $2.26 2.00 1.96 1.80 $2.26 2.10 2.09 1.75 1.70 1.58 1.51 1.47 1.24 1.22 1.33 1.33 1.59 1.51 1.41 1.43 ' Broomhall's Com Trade News — average of weekly quotations. 'Controlled prices; open market quotations after March 15, 1921. 598—22 2 $0.07 .16 .19 .34 .30 .29 .32 .35 .17 .OS .06 .02 .06 .10 .15 .24 .22 $0.07 .06 .06 14 KKl'ttlJT ON rilK K.Nir.lUiKNCV IWIM I'K ACT. T.MU.K .\ I -W'hait priits — Spread between .\o. 1 Narthtrn Mmilloha ami Xo. 2 Iiard winter. li.M'lVSS of Excos.s of Ex "Ofs of No. 1 ! Kxcoss of No. 1 No. 1 Norlhorn • 1 No. 1 Northern 2 Norlhorii " Mniiiioliii, Norllioni ' .Vliiiiiloba, Mniiilobn. I,iv<>nio<)l. Maiiiloba, I/ivprnool, Kill.'. \\ illlli|>^•^:, ovi'r No. 2 Uuto. WiiiiiiiieK. ov«r No. 2 over No. 2 hard will- oviT N 0. 2 hard wiii- hard win- tor, Liver- hard win- ler, Liver- ter, ICaiiso.'^ pool Ipr, Kaiisa.-; pool Cily. (ciirroiit (Mly. (current cxchaiiKc). 1 exchange). 1»21 1921. Jannarv -10.02 10.07 ! Novpmhpr -to. 07 SO. 00 .03 .14 .24 .16 .19 .34 -.05 .02 M arch iy22. April Mav .20 .22 .30 .29 -.06 -.01 .06 .10 July .40 .47 .32 .3.5 .02 .03 .15 Aiipii.st Ai)ril .24 .10 .17 Mav Uctolicr -.02 .08 ' Northwestern Miller, monthly average of daily prices. > Broomhall's Corn Trade News, monthly average of wecicly prices. Table XII. — Difference in price bettceen Canadian and American wheat in dovH'stic and Liverpool markets. Date. I92I January February March April May June July August September No. 1 1 northern ! Manitoba, excess of Liverpool over Winnipeg. JO. 63 .51 .48 .57 .38 .31 .29 .24 .32 No. 2 hard winter, excess of Liverpool over Kansas City. , $0.54 .38 .42 .47 .28 .24 .37 .36 .25 Date. 1921— Continued. October Noveml)er December January . February. March April 1922. No. 1 northern Manitoba, excess of Liverpool over Winnipeg. SO. 21 .27 .30 No. 2 hard winter, excess of Liverpool over Kansas City. SO. 13 .14 .23 .19 .30 .17 . Of) The figures in these tables show no direct and constant relation between American and Liverpool prices. Variation in the difi^erentials not only of different wheats but of the same wheat in different markets seems to follow no law. This lack of consistency, however, is signifi- cant in that, for the time being at least, the American wheat market seems to move relatively independent of Liverpool. The w^heat trade is not yet flow^ing in its pre-war channels, and therefore an American duty on wheat may change our price levels to a considerable degree so long as Liverpool is not dominating the American market. WHEAT FLOUR. The statistics of imports and exports of flour have been included with the statistics on w^heat, but there are some problems peculiar to the flour trade which may be briefly outlined. REPOET ON THE EMERGENCY TARIFF ACT. 15 The emergency tariff does not accurately proportion the duties upon wheat and wheat flour. With a duty of 35 cents per bushel upon wheat, and 20 per cent ad valorem upon flour, the advantage of snip- ping grain from Canada in the form of flour becomes progressively greater as wheat prices decline, for the price of flour declines or rises in direct proportion to that of the grain. The conversion cost is relatively small, and keen competition in the flour trade keeps down the margin of profit. The raw material of the Ontario miller, for instance, is lower in price than that of his competitor across the border by reason of the 35-cent duty; he has an advantage over the Minne- apolis mills in the low cargo rates upon grain moving over the lakes, compared with the eastern flour or milling-in-transit rates; and he has some advantage in nearness to the great eastern markets. Al- though Buffalo mills are equally well placed with regard to the last two conditions, the Minneapolis district produces the great bulk of •the spring flours. Although the result of these conditions was a considerable increase in the imports of flour from Canada, the effect was not very serious because the spring flours are sold under widely advertised brands, and also because the Canadians were not familiar with the demands of the American market. Their export trade has consisted largely of "straight" flours, while the American market demands "patents." Extremely strong wheats, moreover, do not produce the best bread flours, and the Canadian has not so wide a range of wheats to blend as has his American competitor. The latter, moreover, usually obtains higher prices for his by-products. That the Canadian miller is making substantial progress in the market across the border is indicated by the record of imports. In the calendar year 1919 the American imports of flour were 17,523 barrels. Toward the close of the war-control of the trade the Cana- dian Wheat Board established offices in the United States w'ith a view to an aggressive selling campaign. In 1920, therefore, our flour im- forts rose to 800,788 barrels, equivalent to 3,603,546 bushels of wheat, n both years flour was free of duty when from Cauda. In 1921, with the control removed, the imports rose to 965,950 barrels, equiv- alent to around 4,346,776 bushels of wheat. Of this amount 767,805 barrels entered during the first five months of free trade, and 198,145 under the seven months of the emergency tariff. In the first three months of 1922 the imports were 170,511 barrels, and in April, 1922, the general imports were 61,140 barrels. Another question of some importance is whether or not the prices of flour increased after the imposition of the emergency duty of 20 per cent. Some data upon this subject are shown in Table XIII in which there is a comparison of flour prices and spring wheat {)rices in Minneapolis since September, 1920, to date. ]{\ m.iMtitr (.)N nil. i..mki{»;k\»'\' tauikk ut. Taiii K \ 1 1 1. W'liidl mill ilmir -Averatfe monthly prices. Septembiftr.* October — Novomher. IVcember. , ll:it. 1930. JiUHiuty . . Kebruiin'. March . .". . \pril May June. 1021. I'lfuir (JXT IW |><)UIllls), sliuidnrd ' patent. 112. 3r> 10 90 U I'J S. 79 9.36 9.04 S.41 7.79 8.73 8.75 I Wlioil, No. 1 (Itirk norl horn. 13.62! •.Iiilv. 2 2t) W .\iiEiist 1 77 ' .S'i»(i>mljer. 1.7-' ' octolxir. .. ji Novpmher. I. SI 1.71 l.t)9 1.54 1.64 1.60 Jiinimry. . Kohruary. March April lO'.'l. 1922. l-'loMr (p.T liw I pounds). slandBrfJ ! (Htlcnt. Wheal, No. 1 (lark northern. 52 ' H4 I 09 I i« ! 96 , 60 ^1.74 1.54 1 . 5:; I. It, I.SO i.:ti 1.3.-. 1..V. 1.5.S l.f.4 FLAXSEED. Article. Emergency tariff act. Senate bill. Act of 191,3. Act of 1909. Flaxseed. 30 cents per bushel. 40 cents per bushel. 20 cents per bushel. 25 cents per bushel. Under the emero;ency tariff the duty on flaxseed was increasjed from 20 to 30 cents per hushel of 56 pounds. The production of flaxseed, as shown bek)w in Table 1, has steadily declined from an average of over 18.000.000 bu.shels per year from 1910 to 1914 to about 8,000,000 bushels in 1921. The' flax plant has been essentially a frontier crop, thriving best on new land and moving with it. The decrease in acreage of new land, the competition of more profitable crops, and the disease known as flax wilt have been the main factors responsible for the decline. The Dakotas, Minnesota, and Montana, produce nearly all of the output of the United States. T.^BLE I. — FlaxMed — SumiMirii table. Production. Bvuhrls. 1910-1914 (average) 1\ 3-.2, (i(K) 191.7 14, 0,iO,iX)() 1S16 14,2yf),0(Ki 1917 !i, 104,000 191S l.{,.W!t,(XX) 1919 7, 2.V>, (JOO 1930. 10, 774, (XX) 1921 s, 112,000 Imports. Imports, linseed oil. Gallons. 2 367, 749 .535, 491 .V), 148 110,808 50,827 2, 152, 378 4, 093, 360 8,012,095 Domestic exports. Bushels. 78, .')8(i 4,145 2,614 1,017 21, 481 16,595 1.5,753 347 1 Fiscal vears, 1910-19IS: calendar years, 1919-1921. » .Vverage 1912-1914. Quantity not shown prior to 1912. As domestic production has declined imports of flaxseed have increased. For the period 1910-1914 this country produced annually about 72 per cent of the flaxseed refjuired for domestic needs. In 1921 we produced only 40 per cent of domestic requirements. Nearly all of the crop goes to the crushers, whose product is linseed oil (ex- tensively used in paints, varnishes, watcr-proofings, etc.) and oilcake, REPORT ON VH\. KM KhOKNC Y T.Ull|-F ACT, IT a feedstuff. Formerly Canada's crop supplemented the deficient American supply, but her contribution is now insufficient and the great bulk of the imported seed comes from Argentina. There is, in fact, a world shortage of flaxseed, and the use of substitutes and adulterants has been rapidly increasing. Among these are perilla, China wood, tung, rape, and soya bean oils. The emergency tariff did not provide for a compensatory duty on linseed oil, with the result that while imports of flaxseed showed a marked decline in 1921, imports of the oil increased to nearly double the volume of 1920 imports, and to nearly four times the imports in 1919. The imported oil, of course, competes with the domestic flaxseed just as the imported seed does. A bushel of flaxseed yields on an average about 2.5 gallons of oil. The duty on flaxseed under the emergency tariff is 80 cents per bushel of 56 pounds. This is equivalent to a duty of 1.6 c«nts per pound (7^ pounds per gallon) on the oil content as against 1.33 cents per pound on linseed oil under the tariff act of 1913. This gives a differential of 0.27 cent per pound of oil in favor of the importer of linseed oil. Table II. — Flaxseed — Impoils hij countries. Year.' )91f>-1914 (average' 1915 1916 1917 1918 1919 1920 1921 Tola) imporl,'!. Bushels. 7,2,58,212 10,66fi,215 14,679,2.33 12,393,988 13,366,529 14,036,184 24,641,190 12,326,244 Imported from Argentina. Canada. Bushels. 1,974,021 3,927,542 11,468,039 5,009,441 7,432,421 12,353,932 22.778,359 8,S85,411 Bushels. 4,110,369 6, 629, 860 3,094,735 7,014; 573 5,-501,391 1,279,132 1,637,813 3.094,627 All other coun- tries. Btishels. 1.173,822 108,813 116,4.59 :i69.974 432,717 403,120 J25,01> (46, 206 ' Fiscal years. 1910-1.91S; calendar years, 191»-1921. Table HI. — flaxseed — Imports by months. Month. 1920 Bushels. Jaiiuarv ' 2,186,287 Febnia'rv 1,082,736 .Vf arch ' 2, 263, .5:j3 April 1,703,611 -Mav I 4,2.53,319 June I 2,312,742 July I 1,796,954 Bushels. 386, 638 341, 180 903,070 1 , 09! , 584 1,728,398 880, SKi 776,036 Bushels. 1.034,125 i; 112,622 1,048,8.51 473, 161 Month. 1920 J 021 i.e.' Bushels. 1,695, .510 2,0(f,210 2,202,447 1,466.098 1,670,713 Bushels. Bushels. 1 896, .590 ."September 598,805 648, 038 , November Dec-ember Toliil ( 1,576,195 ' 1.499,127 24,041. 1!K) 12,326.244 3,668,7.i» Table 1Y. — Lirtseed oil — Imports by mont/n .Month. OaUnns. .Taiiuarv 1.114,784 February ' s«if., om .MariTh.." (KKi 179 April 332 803 May 20, 8.'i5 .September 45, 105 October 129,293 November 49,449 Decemlier 1 103, H.53 Total |4,693,:W0 1921 Oalloim. 6t>l,60;{ l,3N4..5:t8 1,. 578, 60(1 2,078.309 1 , 2:18, 489 1922 Gatliin.s. 8,012,095 ; 8,954,9.>'« l^ itr.i'oKT ON I'm: mmkuckncv lAinrK m"\\ Fort'ujii product'ton. -Tlu^ principal ('(Miiitrics in which tho fhix phiiit is i;n)\vn for th(» s(»(m1 nn^ .\rij;(Mi( inn, iii'itisli India, tho United States, Canada, and Ivussia. Proihiction ft^r c>ach of these count rics (except Kussia^ in 1!)'2() follows: llushels. .\r-:.Mii ilia 42, 0;W, (K)0 British India ](>, 7(iO, 00(1 liiiU'd Statt-s 10,774.000 Caruida 7, 998, 000 The oils e.xpressed from the Russian and Indian seed are superior to those obtained from the American and Arj^entine seeds. How- ever, seed ijrown in C^inada from impoi'ted Russian fhixseed yields an oil e(|ual in (juality to the Russian oil. Pricfs. -Table \' shows avera<^e monthly prices of llaxseed in Duluth. Minneapolis, Winnipeg, Buenos Aires, and Hull (England). Table \ 1 slu)ws monthly prices received by American producers since Januarw 1920. T.^BLE V. — Flaxseed— (.'o III pnratire prices m Duluth, MiimeapoUs, Winnipeq, Bufncs Aires, and Hull. [S. H — In PoiiipuriiiK those prices, iillowance should be made for dilTerences in (juality. Argentine- :irni Canadian (lax-seed are (juoted in the same markets at higher prices than American seed.] [Wholesale prices, cash fla.xseed.l October..-.. November. December. January . . Febni-ary. March April May Date. 1921. Duluth.i No. 1 N. W. (Ameri- can). $2.85 2.29 2.04 1.95 1.80 1.74 1.54 1.79 Minne- Winni- apolis,' No. 1 PCg.3 Buenos No. 1 Aires, < N. W. N. W. La Plata (Ameri- (Cana- flaxseed. can). dan). 1 $2.83 $2.77 $2.15 2.27 2.16 1.80 2.06 1.77 1.56 1.96 1.78 1.42 1.82 1.62 1.31 1.78 1.55 1.32 1.58 1.39 1.15 1.84 1.54 1.28 Hull* (KUL'- land). La Plata flaxseed. $2.86 2. 4(15 1.96 1.72 1.665 1.535 1.375 1.56 EMERGENCY TARIFF EFFECTIVE MAY 28, 1921. June July August September. October.. . November. DecemlK'r. January . . Febniary. March — -Vpril May $1,885 $1.86 $1.64 $1.44 $1. 75 1.93 1.89 1.57 1.63 1.86 2.055 2.01 1.82 1.74 1.96 2.04 2.03 1.81 1.65 1.87 1.83 1.81 1.71 1.36 1.52 1.86 1.79 1.60 1.35 1.54 1.925 L91 L61 1.46 1.76 2.10 2.66 1.09 1..53 1.795 2.54 2.46 2.16 1.98 2.205 2.57 2.57 2. 29 1.95 2.145 2.62 2.67 2.35 1.91 2.18 2.76 2.79 2.46 1 The Northwestern Miller. » Annual reports of .Minneapolis Ohaml er of Commerce and the D^ly Market Record. » Winnipeg Farmers Advocate and Home Journal. * Oil, Paint, and Drug Reporter. REPORT ON THE EMERGEXCY TARIFF ACT. Table VI. — Flaxseed — Monthly price per bushel received by producers. 1921 i 1922 19 Date. January 1 . February 1 March 1 ... April 1 . . . . May 1 Juiie 1 1920 W.34 4.57 4.73 4.56 4.48 4.21 1921 J1.64 1.56 1.50 1.43 1.26 1.46 1922 81.51 1.73 2.16 2.19 2.31 2.37 Date. July 1 August 1 September 1 October 1. . . November 1 December 1 . 1920 $3.60 3.04 2.90 2.80 2.40 1.77 $1.46 1.62 1.65 1.63 1.45 1.45 CORN. Article. Emergency^tariff g^^^j^ ^-^ Act of 1913. ! Act of 1909. Corn 15 cents per bushel. 15 cents per bushel. Free 15 cents per bushel. The tariff act of 1913 placed corn on the free list; the emergency tariff restored the 15-cent duty in force under the act of 1909. The domestic production normally amounts to around 2,800,000,000 bushels, or three times the combined production of all other countries. Less than 20 per cent of the crop is shipped out of the producing counties, the great bulk of it being consumed on the farm. Of the total harvest, about 85 per cent is fed to live stock, chiefly to hogs, beef, and dairy cattle; about 5 per cent is used for human food; 2 per cent in the manufacture of industrial products such as glucose, starch, grape sugar, and corn oil; and the remainder is consumed in minor uses. It is the market for live stock and live-stock products, therefore, that dominates the price of corn. Domestic uses absorb about 98 per cent of the crop, and only 2 per cent is ordinarily exported in the form of OTain. But an additional 7 to 12 per cent is shipped in the form of animal products, chiefly pork and lard; therefore the export market for these products in- fluences the price of American corn. Exports for the five years 1910-1914 averaged 40,000,000 bushels; and of the harvest of 1921-22 over 135,000,000 bushels were exported. Table I gives the production of the principal exporting nations; Table II, comparative figures of production, imports, and exports; and Table III shows the destina- tion of the exports. Imports prior to 1913, annually averaged less than 100,000 bushels; they came largely from Mexico at border points. In 1913 they were 865,276 bushels and in 1914, the first year of free trade in corn, they rose to the record figure of 12,290,000 bushels. Our crop of that year, however, was 700,000,000 bushels short of that of the preceding year, and average prices of corn were higher than at any time during the past 30 years. For the period 1915-1920 (fiscal years) imports averaged 5,212,000 bushels. War conditions necessitated a large part of these shipments — the need of feedstuffs to maintain the enor- mous increase in our production and exports of meat and dairy prod- ucts, and the disturbed conditions of rail transportation incident to war priorities, which prevented domestic corn from reaching sea- board points. Shipments came in at New York, and were largely used by manufacturers of corn products. It will be noted from Table IV that during the seven months preceding the emergency tariff imports had nearly ceased, while during the 11 months following that measure they were nominal. 20 i:i:i'(;iii" t hulk of (he world's cxjxu'ts of corn. ,\r«;cntiiu' corn is of the hard liini \ariety, \vhil(» nearly all of the American crop consists (»f softer dent coin. The Ar«;entino <'orn has superior shippin<; (|ualities. a lart^tM- oil and t^luten content, and is pre- ferred foi- certain us(>s. That each class has somewhat distinct uses is iutlicatcMJ hy the fact that in the woi'ld mark(>t prices of the two vary 1,'reatly, accordinjx '*' their respective sup|)l\- of each. it will he noted frtun Tahle I that the .Vrj^entine crop of 1921-22 was unusually short, hein<; nearly half that of the preeedinji; year. In eoiise(|uenee. althouj^h Arj;entine corn usually sells for less in Liv- erpool than American corn, durinir the current year it is heing quoted at around 20 cents more per bushel (.see Tahle VI). Furthermore, a com[)aiison of New York and Buenos Aires prices (Table V) shows that the two are now (May. 1922) at approximately the same level, i^ven without the tariff, therefoic. it wotdd not have been profitable to pay the ocean freit^ht and handling charges from Argentina to New York City, where nearly all of the imports are receiv(>d. The ocean freight alone is around 13 cents per bushel. Finally, so far as concerns the effect of Argentine imports, it will be noted that the American corn consumption varies according to harvests, and that domestic markets adjust themselves to annual vari- ations in supply ranging from 100,000,000 to 700,000,000 bushels, an amount far larger than the entire Argentine crop. Table I. — Com—I'roduction in leading exporting countries. [Millions of bushels.] Year. L'nitwl I Argen- , Statpi?. tina. I I 1909-1913 (a vcraRc) 2, 708 ! 17.5 1914 2,67.3 1 263 191.5 2,99.'-. 338 191« 1 2,.'i67 I 161 1917 1 3,065 .'59 Ru- mania. Year. i United States. 101 I 1918 i 2,50? 103 I 1919 2,859 86 1920 3,232 1921 3,080 1922 Argon- 1 Rii- tina. i mania 171 240 » 137 2.59 5 93 »230 I <155 ' Former kingdom, Bessarabia, and Biikowina. * Former kingdom and Bessarabia. ' Special consular report. * PrcUminarv estimate. Table II. — Corn — Production, exports, and imporl.s 101(» II. 1911-12. 1912-13. 1913-14. 1914-15. 191.5-16. 1916-17. 1917-lS. 1918^19. 1919-20. 1920-21. 1921-22. Ycir. Domestic production (calendar years). I Domestic i Import.sfor \ Imports from exports ' consumption ; Argentina I (fiscal years). | (fiscal j-oars). (fiscal years). Biuhels. 2.HK6,2f.0.00() 2,.5:n,4HS.()0(l 3, 124,740,(KKI 2,44r.,9SN.IHM) 2,t>72..s()4.(HKl 2.991,79:5.000 2..V;H.927,(KXI 3,(H).5.2:«,(K)0 2..5()2,Pfi."),(KK) 2,917, 4.50. 0(X) 3.20X,.5'<4,U00 3, 0«0, 372,000 BmheU. 6.5.61.5,000 41,797,000 .')(», 7S(), 000 10.72f>,000 .V),66S.0O0 :<9.S9fi,000 Wi. 7.53, (WO 49,073,(K)0 2:i. 021,000 10.707,f)00 (;6,911,fl93 ' 135, IXO, 2H4 Bushels .52, 53, .Sfi5, 12,290, 9.h94, •5,212, 2.269. :5.197, 3.34.5, 10. 2M. '5.743, «91, Bushels. 23, 879, 11,623, 7,447. 4,741, 2,17f., 2,396, 3,001, 9,064, 822 913 513 H71 54K 252 143 6.5X 110 ' General imports, 16,s6-t bushels dutiable, balance free. ' Imports for calendar year 1921 . This 5,1 10 bushels camef rom Argentina aft ertheimposition of the duty. '' E.xporLs for 9 months ending .Mar. 31, 1922. * (ieiierjil imports for 9 months ending Mar. 31. 1922. REPORT OX rin-; K.MKRGKXt'V TAHIFl:' ACT. Tablk II I. —Corn — Exports, by countries. 21 Year.' Total. England. Canada. Sr Germany. Cuba. Denmark. 1910 1911 1912 Btisheh. 36,802,009 63,761,000 40, 039, 000 49, 065, 000 9,381,tK)0 48, 786, 000 38, 217, 000 6-1,721,000 40, 998, 000 11,193,000 17,761,000 128,97.5,000 Bushels. 7,677,000 13,268,000 ,s, 3 It), 000 11,423,(K)0 83,000 1 , 696, t)00 3, S07, 000 1.5,511,000 is, 19,5,000 269, 000 1,797,000 11,121,000 Biishels. 6,179,000 13,410,000 9. .569, 000 \ 098, 0(X) 4, 642, (K)0 8, 23S, 001) 6, .568, 0(K) 15, 725, 000 7, 896, 000 6, .542, 000 10,065,003 58, .58:}, 000 BuJihels. Busheli. 5, 185. 000 4, .537, 000 7,147,000 7,971,000 .5,6.58.000 6. SOI. 000 Bushels: 2,377,000 2, 225, 000 2. IIS, 000 2,373.000 2,410,000 2,267,000 3,231,000 2, 819, (KX) 1,142,000 1,9()5,000 1,894,000 2,309,(X)0 Bushels. 2.451,(X)0 3,0S:i(H)l) 1 , 546, (X)0 1913 1914 7,192,000 374,000 1.5,S76,000 5, 706, t)00 7,921,000 246, 000 100,000 424,000 17, 843, 000 6, ,546, 000 303,000 16,000 .5,390,000 1915 11,170,000 9, .527, 000 7 075 (XX) 1916 1917 1918 1919 335, IKK) 1920 1921 1, 324, 000 12,729,000 173, 000 5, 965, 000 ' Fiscal years, 1910-1918; calendar years, 1919-1921. Table IV. — Com — General imjiorts by months. Month. Bushels. January 12, 554, 813 Februairv 1 1 . 341 , .596 March ..'..... \ 482, 427 April : 110.063 Mav 11,308,639 June |1,. 596. 309 1920 1921 Bushels. 408, 293 156,945 1.39, 429 291,465 238, 045 Bushels. 8,226 3,256 7, .379 41,707 ' .52,100 1 17,615 937, 204 1922 I Mouth. 3,263 27, 9.50 26,375 20. 425 1914 Bushels. .Tiilv !l, 764, ,575 2, 050, 034 1,5.33, .550 1, 613, 851 799, 754 665, 566 August . September.. October November.. December.. 1921 1922 Bushels. 2, 343. 445 1.300,418 1.036,449 608, 064 128,600 166,12.5 Bushels, 17,671 5,366 3,137 472 1,086 6,082 Bushels 1 The emergency tariff act became effective May 28, 1921. Table V. — Corn — Price per bushel in the United Slates and in Argentina. Date. Monthly av.^rage, Chicago, No. 3 yellow. Nearest first of month, Buenos Aires, fair average quality. Nearest first of month. New York, No. 2 yellow. Excess, Chi- cago over Buoios Ain-^. Excess, New York over Buenos Aires. 1913. January SO. 479 .489 . 494 SO. 602 .605 .593 Febniarv to. 5,58 . .553 -.«(). 069 -.0.59 so. 047 March . ." .040 April . .548 .576 .624 -.028 .(Ms Mav ..569 ..571 .659 -. 002 .079 June .607 .605 .688 .002 . 083 Jtilv . 615 . .569 .701 .046 . 132 August .7.39 .577 .814 .162 . 2.37 September .747 .642 .842 . 105 . 200 October . . 695 .618 .647 .613 .785 .804 . 048 . 138 November .191 .()65 .611 .824 . 054 .213 1919. .Ian nary 1.43 1.27 1.53 1.62 1.74 1.78 1.92 1.95 1. .55 1.41 ..567 . 555 .450 .512 ..544 . 523 .817 1. 176 1 . (M)2 .8(x; 1. .566 1.495 1.679 1.814 1.898 I. 943 2.110 2. 140 1.696 1..570 . 8()3 .715 1.080 1.108 1.196 1.257 1.103 .774 ..548 .601 .iH)9 February . 940 March . .' 1.229 April 1.302 Mav 1. 35t Juiie 1.420 Jiily 1.293 Aiieust .964 September .694 October .764 November 1.46 . 773 1.7(K) . 687 . 927 December 1. (7 .719 1.815 .751 1.096 "I'l REPORT OX THE EMERGENCY TARIFF ACT. T.MU.K \'.—('orn I'ru'f /irr bushel in the I'nUed SHuUs and in Argentina — Continued. Monthly aveniKP,' ChlcaK.), No. 3 yollow. Nearest first of month, Hueiios Aires, fair avoraKO quality. Nearest first of nionlli, New York, No. 2 yellow Kxcess.rhi- ciii; ) over Buenos Aires. Excess, New York over Buenos Aires. i9:ii Janiiiirv J1..M l.4(i 1.58 jn. 737 .090 .76t> n.nR9 1.002 1.791 $0,773 .770 ..HI 4 JO. 9.V.' . 97.> Marrh . .' 1. 0-J5 April 1.(59 .970 1.928 .720 . 9.'.s Mav 2.02 1.170 2. 15t .850 .".ISl June 1.89 1..58 1.58 1.109 1.0.5S . S93 2.082 1.765 1.762 .781 .522 .687 . '.17:{ July .707 A URllSt . sr/.i September 1.31 .919 1..565 .391 .Otr, October .91 .77 .74 .864 .814 .813 1. 1.55 1.0^enate bill. i cent per pound.. 2 cents per pound. Act of 1913. 25 cents per bushel 45 cents per bushel. Under the act of 1913 the import duty upon beans was 25 cents per bushel of 60 pounds. The emergency tariff is 2 cents per pound. It is only in dried edible beans that there is a substantial foreign trade. In other types, whether harvested as green or string beans, or grown for forage, food, or seed, the import trade is of no impor- tance.' Table I gives the production, imports for consumption, and exports of dried edible beans. Table I. — Dried edible beans — Summary table. Fiscal year. Production. Imports for consump- tion.' Domestic exports. 2 1910-1914 Caveragel 1915-16 Biishfls. 3 11,145,000 10,321,000 10,715,000 18,719,710 20, 818, 000 13, 349, 000 9, 077, 000 < 9, 118, 000 Bushels. 1,147,965 390, fioO 2,541,676 2,467,849 1,213,2.54 3,042,469 1.797,996 134,915 Bushels. i,'766,'383 2, 164, 943 1910-17 1917-18 . ... 1 517 458 1918-19 4,489,078 1 992 813 1919-20 1920-21 1,215,527 1921-22 971 922 ' Includes beans and lentils prior to Jiuie 1, 1921. Imports of lentils do not exceed 100,000 bushels an- nually. ■ Includes "beans and dried peas" prior to 1918. ■' Figures of production for 1909 only. < For 1910-1918 includes six States:" 1919-1922, seven States; substantially the commercial crop. Five States — California, Michigan, New York, Colorado, and New Mexico — produce nearly all of the domestic commercial supply. Most of it consists of small whites (navy or pea beans), large whites, Limas, and colored beans (chiefly red kidney, pintos, and pinks). Each of these varieties has somewhat different uses and a somewhat distinct demand, and in consequence prices of the various kinds fluctuate more or less independently. In the years immediately pre- ceding the World War annual production was around 11, ()()(), 000 bush- els, imports 1,000,000 bushels, and exports around 300,000 bushels. Exports of domestic varieties moved to North American markets, and an additional 150,000 to 200,000 bushels went to Porto Rico; the imports, largely from Europe, consisted mainly of varieties not gen- erally produced in the United States, brought in for the foreign popu- lation, and presented no important tariff problem. The World War changed the situation. Beans are a major army food, and there was a large increase in the demand. San Francisco prices of small whites, the principal domestic type and the one most in demand, rose from around 4 cents per pound in July, 1914, to between 12 and 10 cents for the season 1917-18. Under the I Kxcluding from consideration soya beans, free of duty under the act of 1913 and not included In the emergency larifl. 24 KKi'our ON nil: kmi-.ik.km v iakii k act. • stimulus of hi*;!! pri('(»s domestio prodtiction rose from 11, 000, 000 (101 I) to noarfv 'J 1.000. 000 bushels (lOlS). IWcauso of these high prices aiul also because of tii«' sliipping situation, irupoi'ts greatly nu-reaseil. Thev came not from iMiropehut from llokUaido (flapan). from Korea. Manchuria. ('hih\ Bra/il. and Madagascar. It should be noted, iiowever, tiiat for the war period our exports excxu'ded imports (.see Tabh' I). 'Vhc record imports. .'i.O-l'J. KiO bu.shcis, occurred in the fiscal vear 1920. In aihhtion. there was a large reexport or transit trade. The chief compi'titive tvix's were the oriental Koten- ashi and Otenashi (snndl and large wnites), and Kintoki, cc^lored beans. These varieties were raised largely for export. From Madagascar came a bean similar to the domestic dried Limjis. The close of the World War found the markets ijjluttcd and large stocks in the hands of growers. In consecpience. tlu' price deflation in b<>ans long jireceded the drop in other agricultuiai products. vSan Francisco ^^holesale prices of small whites dropped from around 12 cents per i)ound in tiie fall of lOls to around 7 cents throughout 1019. The downward movement was renewed early in 1920, prices falling to less than 4 cents at the end of the year, and to '.i^ cents im- mediat(>ly prior to the jiassage of the emergency tarifi'act. Through- out this period growers greatly reduced their acreage. Since the enactment of the emergency tariff prices have gradually moved ujnvard, reachiuir 7 cents per |)ound in June, 1922 (shippers' C(Uotation f. o. b. California points i. The tarifi", though doubtless u substantial factor, was aj)j)arently n(»t the only cause of this up- entiy n(»t the only cause of this up- I ward movement. Improved conditions were in part caus(>d by a re- I f)ur jjroduction and by a gradual dis- posal of surplus stocks. Thus the domestic crop dropped from duction of over 50 per cent in 20.S18,0(X) bushels in 1918 to 13,349,(J00 in 1919, 9,077,000 in 1920, and to 9,118,000 in 1921. Exports for the 10 months endhig April 30, 1922, were 971,923, compared with 1,017,298 for the correspond- ing period of the preceding year, and with 4,489,078 in the fiscal year 1920. ft is true that imports for the nine months after the enactment of the emergency tariff, i. e., July 1, 1921, to Marcli 31, 1922, were only 134,915 bushels, ccmipared wnth 1,797,996 bushels during the same period of the preceding year. J^ut w^hen account is taken of the steady rise in prices since June 1, 1921, and of the de- cline in ocean freights and handling charges, it is apparent that the net return to foreign shijjpers, despite the higher duty, was probably as large, or larger, than during 1920 and 1921, when substantial im- ports took place. The importation of foreign beans is an extremely speculative busi- ness. Foi'eign producers and shippers w^ho had sent their crop to the United States during several seasons «)f rapidly falling prices evidently found that the new trade which had developed during the war was not a profitable one. Tlie emergency tarifi seems to have been the final check. Even the substantial shipments which formerly went through American cjiannels for reexport virtually ceased. Table IV shows that eiglit months befcu-e the emergenc}^ tariff b(^- came efl'ective imports greatly fell of!' — 334,709 bushels compared wnth 1,513,181 the preceding eight months. And the fact that im- ports for consumption during the first period were larger than gen- eral imports indicates that foreign beans, finding no mai'ket. had been warehoused for a long period. IIHPORT OX THF. K.MilROKXCY TARIFF ACT, 25 Table II. — Eeans — General imports, by coiintnes. [Includes beans subsequently reexported.] Ye^r.' Total. France. Italy. Mexico. 1 Japan. Other. 1910-1914 (avenicf) Bu!>h(U. 1, 147,965 'J05, 647 662,759 3,747,993 4,145,625 4,972,456 2,094,646 274,058 BvshfU. 182, 275 21,788 8. 192 1,435 404 eo, 410 19,257 17,256 Bvshils. 99,952 33,776 952 433 Bushels. 1 155,134 442,184 i 57,930 i 182,147 1 20,470 3,047 28.702 2,109 Bushds. 159,6.54 335,056 305,531 1,651,139 3,232,983 3,625,965 1,006,218 60,924 Bu.^hfh. 550 9.50 1916 72 843 1916 290, 154 1,912,839 891 768 1917 1918 1919. 1,469 75 29,218 1 281 565 1920 1 040 394 ]921 164 551 1 Fiscal yeans, 1910-1918; calendar years, 1919-1921. Table III. — Beans — Imports for consumption.^ Period. First quarter (.Tan. I-Mar. 31). . . Second quarter (Apr. l-.lune30). Third quarter (July 1-Sept. 30).. Fourth quarter (Oct. 1-Dec. 31) . 9 niontiis ending Mar. 31 1920 Busheh. 716,786 637, 510 474,611 213,364 1921 Bushels. 500,653 609,368 39,285 51,153 1,188,628 Bushels. 44,477 134,915 ^ The excess of imports for consumption during 1921-22 over general imports is probably due to the large stocks in (iovcrnmcnt warehouses. Table IV. — Beavs — Imports by months. Date. Imports. Date. Imports. Date. Imports. 1920: Busheh. 492, 191 213, 340 264,069 139,64s 79,942 265.311 219,644 148,260 ' 109,952 53 308 1920—tontintied. November December Bushels. 70,371 38,610 36, 958 30, 812 52, 114 19,430 33,166 11,212 13, .369 1921— continued. Busheh. 4, .536 Februarv September October 8,810 1921: January 15, 736 April November December 1922: j January 24,661 May February 23, 254 March July April 13, 393 May ; February 33,662 ■September June March 31.799 .Tulv .. AprO 62, 150 T/BLE Y. — Beans — Shipper's quotations {per bushel)/, o. h. California points. Date. Small white. Large white. Lima, Henderson Bush. Lima f. 0.1] . Southern California. Red kidney. 1920. Oct. 1 Oct. 15 . . Cents. 5. 25-5. .50 4. 2.5-4. .50 4. 3.5^. .50 4. 2.5-4. .50 4. 2,5-4. .50 4.25 3. 75 3. 7.5-4. 00 3. 7.5^. 00 3. 7.5-4. (X) 3. .50-4. 00 Cents. 5. 2.5-5. 50 4. 2.5-4. ,50 4. 2,V4. .50 4. .50-4. 75 4. .504. 75 4. ,50 4.25 4. 25 4.25 4. 25 3. 7,5-4. 25 3. 7.5-4. 25 3. 75-3. 90 3. 40-3. 60 3. 30-3. 35 3. 30-3, ,50 Cents. 8.50 7. 00-7. 75 6.20-6.35 6.40 6.40 6.00 5. 2.5-5. 35 5. 40-5. .50 .5.60 5. 00 5.4,5-,5.60 .5.45 5.30 5. 25 5. 00-5. 10 4.75-4.85 Cents. 8. 50-9. 25 7. 00-7. 25 6. .50-6. 75 6. ,50-6. 75 a. ,50-6. 75 6. 50 5. 60-5. 75 ,5.60-.5.75 6.00 5.90-6.00 5. 8.5-5. 90 5. 85 .5.80 5. 65 5. .50 5.40 Cents. 11.2.5-11.50 11. 2.5-11. .50 Nov. 1 10. .50 Nov. 15 10. .50 Dec. 1 10. 50 Deo. 15. 10. .50 1921. Jan. 3 8..5»9.00 Jan. 15 Feb. 1 Feb. 15 Mar. 1 ... . 8. .50-9. 00 H. ,50- 9. 00 8. .50- 9. 00 8. .50 9.00 Mar. 15 3. .50-3. 60 3. .50-3. 65 3. 40-:!. .50 H.OO Apr. 1 Apr 15 7.7.5 8. .50 8.00-8.. 50 Mt!y2 May 16 -. 3. 30-3. 45 3. 40-3. .50 8. 25- 8. .50 8.50-8.75 20 UEPOHT ON nil. i.Mi:ut;r..\(\ rAi;ii'F WT. Tablr V. — Beam — Shipper's (juotatious ( per bushel)/, o. b. California points — Contd. naif. .^iinall white. 1 arpe white. I.iiim, Henderson Hush. Cfnlt. 4. 7.5-1. 85 4.7.5-4.85 4.7.5-4.85 4. 25-t. .50 4.00-4.25 4. 25-4. .50 4.2.V4.40 4. KO-,5. 00 ,5.00 5. 00-5. 25 5. 25-,5. 40 ,5.60 6. ,55 6.50 6.50 6. 25 6.40 7.25 8.25 8.50 9.25 9.25 9.25 9.50 9.25 I.iniaf. o.l>. .Southern Caliromia. Fe-3. 60 3. 75-t. 00 3. 7,5-;i. 80 4.00-4.25 4. 40-4. 6.5 4. 40-4. 65 4. .50-4. 75 4. .50-4. 75 4. .50-4. 75 4.90 4. 60-4. 90 4.75 4. 75 4.75 .5.20 .5.20 .5. 75 5.80 6. .50 6.50 6.50 6.50 7.00 Crnt.". 3. 25-3. 60 3. 25-3. 60 3. 60-:l. SO 3. 90-t. 00 4. 25-4. 40 4. 25-4. .50 4. 7.5-.5. 00 5. 00-.5. 25 4. SO-,5. 00 4. 7,5-4. 90 4. 85-.5. 00 ,5. 15 .5. 05 5.00 ,5.00 5.00 5.25 5.25 5.65 5.85 6.35 6.35 6.35 6. .50 7.25 Centn. .5. ,50-5. 60 5. ,50-5. 60 5. 40-5. 65 .5.40-.5.65 5. (K)-,5. 25 5. 25-5. .50 5. 25-5. 6) 5. 80-6. 00 .5. 65 .5. 65 .5. 7.5-5. 90 6.00 6. ,50 6. 25 6. 00-6. 25 6. 00-6. 25 6. 00-6. 25 6. 00-6. 25 Cmlt. 9. 00-9. .50 Jniir 1,5 Jiilv 1 Julv 15 .\UR 1 AUR. 15 9. 00-9. ,50 9. 00-9. ,50 9. 00-9. .50 10. 00-10. 25 10 00-10 25 Sept. 1 K 00-H. .50 Sept. 15 8. 00-H. .50 Oct . 1 7. ,50 7, 75 Oct. 15. 7 40 7 ,50 Nov. 1 7. 00-7. 15 Nov. 15. . 6 85 Pec. 1 6.65 Dec. 15 . ... 6 60 1922. Jan. 3 6.40 Jan. 15 Feb. 1 6.40 6.40 6.20 Mar. 1 7. ,50 8. OO Apr. 1.5 9. 10 8. .50 Mav 1 8.50 8.00 June 1 a25. PEANUTS. Article. Emergencj- tariff 'rate. Senate bill. Act of 1913 Act of 1909. Peanuts I 3 cents per pound. Unshelled | cent per pound. . | cent per pound..' J cent per pound. Shelled 1 U cents per pound.' | cent per pound .. ^ 1 cent per pound. I ! , I , Table I. — Peanuts — Summary table. Year.i Production. Imports, Exports. Not shelled. Shelled. 1910-1914 (average) 1915. Pounds. *44f.,,5n4,000 Pounds. 14,228,2.58 14, .540, 9,82 9, 020, 848 7,806,012 3,1,50,747 5,667,354 8,703,119 4,523,841 Pounds. . 12, 168, (i82 9,f,4.3,691 19,392,832 27,180,748 73, 2 -,2, 215 24,179,(587 110,810,31(1 35,640,121 Pounds. 6,241,741 5 875,076 1916 1917 1918 1919 79i,97i,666 1, 207, fi 1.5, 000 1,0.58,230,000 783, 273, 000 841,474,000 816,465,000 8,669,430 22,413,297 12,488,209 19,778,490 9,366,4.34 14,492,6.52 1920 1921 » Fiscal years, 1910-1918; calendar years, 1919-1921. s Production for 1909. 1909-1918, bushels converted to pounds at the average rate of 23 pounds per bushri Production is for calendar years. The production of, and trade in, peanuts are summarized in Table I. Production in recent years has greatly increased as compared with the average for the period 1910-1914/ In 1917 and 1918 the crop passed the billion pound mark, largely because of the war demand for vegetable oils, in which peanut oil shared. There has also been an increased and more diversified consumption of peanuts in confections REPORT ON THE EMERGENCY TARIFF ACT. 27 and foodstuffs which has absorbed the continued large production in 1920 and 1921. Imports of unshelled nuts dechned in the period 1910 to 1921, while the more important trade in shelled peanuts largely increased. Exports, whicli had reached considerable pro- portions in the years 1917-1919, fell off in 1920. Production. — In many sections of the South Atlantic and Gulf States the peanut is an important money crop, second only to cotton and corn. However, even in the States of heaviest production — Alabama, Georgia, North Carolina, Texas, and Virgina — the value of the peanut crop is relatively small compared w^ith the total value of all crops. (See Table Ha). Peanuts have been found a profitable substitute for cotton in regions affected by the boll weevil. In ad- dition to the area harvested for nuts, 1,212,000 acres in 1921, about as much more is "hogged off, " chiefly in the Gulf States. The tariff significance of this fact is that a considerable additional supply is available when the price of peanuts is high enough in relation to their value for feed. In the South, however, there is a shortage of hay and forage crops, which is met in part b}' peanut forage. Table IIa. — Peanuts — Production in 1909 and 1919 and relative importance of the crop in 1919.^ Production of peanuts. Percentage of total' of all crops in 1919 made up by- state. 1919 1909 Peanuts. Cotton and cotton seed. Corn. Bushels. 6,288,594 5, 865, 127 5, 854, 689 3, 838, 505 2,731,632 27,449,930 Bushels. 1,573,796 4,284,340 5,980,919 ' 2,569,787 1,074,998 19,415,816 4.3 4.5 2.7 1.8 .6 .50.1 1.8 35. 4 66.0 .55.6 26.6 26.6 North Carolina 18. S 16.6 Texas 13.6 > Compiled from summary and State bulletins on agriculture, U. S. Census, 1920. Table IIb. — Peanuts — Acreage and yield, 1919-1921.^ State. Acreage (000 omitted). v:„i J , „„,„ Production Yield per acre. (OOO omitted). 1921 1920 1919 1921 1920 1919 1921 1920 1919 Acres. 149 141 38 202 80 9 330 19 18 195 15 16 Acres 133 126 31 224 90 6 334 17 18 174 12 16 Acres. 133 126 15 202 77 8 334 18 18 165 14 22 Lbs. 732 919 875 660 675 943 550 650 487 635 720 720 Lbs. 830 1,011 950 718 625 851 550 600 600 720 840 750 Lbs. Lbs. 1,058 1109.068 Lbs. 110,390 127. 3S6 Lbs. 140,714 1,124 900 574 750 759 450 625 550 129, .579 141,624 South Carolina 33,250 29,4.'',0 133,320 'l(iO,Ki2 54,(H)0 .56, 2.^.0 8,487 5,1011 181,500 1 183, 700 12,350 \ 10,200 8.766 ' lO.MKt 13,500 Georgia Florida Tennessee 115,948 57, 7.50 6,072 1.50,300 11,250 9,900 Texas 675 '123,82.'. ;i2.^,2S() 690 : 10,800 10, (ISO 690 : 11,520 12. OU) 111,375 Oklahoma 9, 660 15,180 1 United States 1,212 1,181 1-1.S2 »673.7 »712.5 '691.9 1816.465 841,474 783,273 ' ^____ ' Monthly Crop Reporter, December, 1921. » Average per acre. llN UKPOKT ON 1MII-: i:.M KIJCl'.NCV lAItll'l" ATT. T.Mii K llf. ' I'tdinits Fdiiii rahif in n'lntinn la prirf, in 1919-19it . Stillr. I' 1V2I rl.'i' D.T. I. lUlU Tolrtl farm valiio, Inisis !)(v. I price (000 omUtcd). 1921 1920 1919 $1,5,479 14, 162 1,4,S5 11,595 4,909 607 12,024 900 .S91 1 8,910 918 1,214 \ irKiiiiii . Nonh I'ftruiiii I CtlU» Itrr lb. 5. .s 5. 6 4.0 2.5 3.2 5.0 2.x 6.0 6.0 3.4 7.0 .5.0 Ci iih /iir lb. 5. 5 .5.6 S .'..0 11.0 7.0 3.5 7.0 5. 5 6.0 7.0 8.0 Cnitu Iter lb. 11.0 10.0 11.0 10.0 8.5 10.0 8.0 8.0 9.0 ,S.O 9.6 8.0 ' 1 1 $6,236 $0,071 7,2.50 7.134 1,330 1 2,356 3,333 1 S,042 1.728 1 3,375 424 357 .5,0.S2 6,430 741 714 526 1 .594 4,210 [ 7,517 7.56 1 7ai 576 £60 .Soiilli Ciiniliiiii „.... Kl ( iri J 11. . . . rrllllfxMf » \lal»;iinii. . I.otiisiikiia T.'\;l.v okliihoina Vrkiiiisrts . ..'. United States 4.0 .5.3 9.3 32,28K 44.2,56 1 73.094 Whilt" sonic dozon varieties of peanuts are grown in the United vStates. thev may be grouped in two general classes — the Spanish or oil type and the \'irginia or confectionery type. The Spanish pea- nut is a smaller nut than the \'irginia and contains when shelled about ."^O j)cr cent of oil. The two types ha\'e fairly distinctive uses. The Spanisii type is used largely in peanut brittle, for salted pea- nuts, in peanut butter, and is crushed lor oil. The larger and higher priced \ irginia types are mostly sold in the shell as roasted peanuts and arc also shelled and sold as blanched peanuts and in candy, espe- cially in chocolate-coated candy. It is said that the })est peanut butter is made by blending the two varieties. Only the culls of the \'Li-ginia type are crushed for oil because of their higher price and the fact that their oil content (shelled) is only about 42 per cent. The great bulk of the imported oriental ])eanuts has oeen of the \'irginia type. These have come in mostly on the Pacific coast, far distant from the domestic source of supply, to satisfy the demand for roasting peanuts, blanched ])eanuts, and for confectionery and ])eanut-buttcr manufacture. Table IIIa. — Peanuts, not shelled — Imports by countries Total. Spain. Japan. founds. I Pounds. Pounrls. Pounds Dutch East Indies. I»l;j-iyi4 (averaRp)=. 14,228,258 2,631,459 9,172,190 1915 14,540,9H2 2, 696, .567 7,640,.58.5 1»16 * 9,020, H4S 1,40.5,.J10 6, 71X, 948 . 1917 7, XOti, 01 2 6 (loint»stir supply, '''his had a cousidcrahlc inlluonce in the continuanci' of heavy imports tlirou;^hout the fiscal year 1921. The sniallrr si/od itn|)ort('d shi'llcil luits aic used as salted peanuts and in the manufacture of peanut butter. It has heen found on the west const that the most satisfactory j)(MUUit i)utt('r is made bv blendinjj; the oriental nuts of the \'irj;inia type with tiie domestic S|)anish oil nuts, and this practice lias developi'd a demand for the domestic nuts in the Far \V«'-ar.« 1910-19U ^averagc•^. 1915 1916 1917 1918 1919 1920 1921 Total. (>,24l,741 .■). H7.'i. 07ti S. 669,430 22.413,297 12. 4SS, 2()9 19,778,490 9, 366, 4.34 14,492.6.")2 Canada. Pnnnd.i. 4, 8.30. .")S(". 4.499, 41S 7, iV.*, 040 12,4:)9,970 10, Fiscal years, 1910-1918; calendar years, 1919-1921. Domestic exports of peanuts hy countries. — In the period 1910-1914, exports averaged 6,242,000 pounds. Since tlicn they have ranged from 5,875.000 pountls to 22.413.000 pounds annually. They have gone mostly to Canada. In the 3-ear ending March 31, 1921, 87 per cent of the Canadian imports of unshelled peanuts and 53 per cent of the .shelled nuts came from the United States. It has been possible for domestic producers to maintain exports to Canada in the face of oriental competition largely because of the advantage in freights from the Southern States to eastern Canada, which is the principal center of consumption. Table Va. — Peanuts, shelled — General imports by )no}iths. Month. Inly Aiiinist SopiPinber f)ctoljer. . . November. Dwrmber. Januar.v. .. Fetinjan'. . Xfarrli .."... AjiriJ -May Jiiric 1919-20 Pounds . 4,014,027 5, .509, 004 4,146,3.31 2.313,786 757, 075 2X3,916 s, 324, .542 16,276,079 26,361,065 27,042,490 18,38.5,786 6,930,324 1920-21 Pounds. 1, 8,59, 085 4,825,263 130. 720 6.52, 8.5.5 21,327 780 1,230,145 2, 4(«, 065 4,386,220 15, 177, 797 •10,257,514 U, 683, 263 Pounds 361. .55, 10, 4. 14, .55, 1,062, 2, 112, 1,050, 1.078, 76(1 437 707 468 069 667 154 24(1 74.5 89.5- ' The emergency tariff became effective May 28, 1921. ];ei'()RT on thk kaikkgkxcv tariit act. Table Vb. — Teanuts, not shelled — General imports by iiionlhu. 31 Month. July Aujriist September. October November. December. , January... Februarj-. . March April May June 1919-20 Poundx. 1,310,971 7«0, SSS 4S7, 726 900,380 708.602 .553, 781 158, !v44 760, 7S1 1,062,1.53 2,794,879 1,094,887 1,468,136 1920-21 Pounds. 797,933 260, .561 165, 599 32,610 27,010 79,726 3.54,951 S4; 656 361,916 818,783 11,582,460 1794.991 1 The emergency tariff act became effective May 28, 1921. Trade in peanuts after tlie passage of the einergency tariff act. — In April and May, 1921, just prior to the passage of the emergency tariff act, several shiploads of peanuts were rushed in at the lower rate of duty. Imports amounted to 15,000,000 pounds in April and 10,000,000 pounds in May. Thereafter there was a considerable falling off in receipts of shelled peanuts as compared with those during the same months of the previous year. During the 10 months ending March, 1922, during which the 3-cent rate was in force, imports of shelled peanuts were 6,410,000 pounds, valued at •1296,000, as compared with 22,440,000 pounds, valued at SI, 626,000, during the same period in the previous year. According to trade reports the imports of large-sized nuts continued, the reduction being largely in the smaller-sized nuts. The 3-cent duty apparently had little effect upon the less important trade in nuts in the shell. Dur- ing the 10 months ending March, 1922, 3,204,000 pounds came in, as against 3,633,000 pounds in the previous year. Most of these were used to supply the demand on the Pacific coast for roasted peanuts and apparently the duty of 3 cents was not high enough to lessen the specialized demand for these nuts. DECLINE IN DOMESTIC PRICES. T.VBLE VI. — Peanuts — Average/, o. b. market price per pound of Virginia and Spanish types, November, 1919, to April, 1922.'^ Date. Virginia and North Carolina . Southeast Spanish No. 1 (shelled). Southwest Jumbo (unshelled) Fancy (unshelled). Extra large (shelled). No. 1 Virginia (shelled). Spanish No. 1 (shelled ). November. 1919. 1920. Ccnlx. 15 14? 1.5i 14j 14 133 ants. 113 Hi 121 Hi 11 lOJ Ccniii. 17J l"i 17 lOJ 161 1.5i Cents. I4J m 131 1.5 J 14) 14* CV nts. 16? 16.i 17 18 iej" 111 13 Cents. December.. 17i 17 February . . . ■ m 18i lilarch April .May.... 174 .July 1 m ' 91 November i 13 , n 12J : 6J 12J 121 7J 6i '4 December. . 1 ^Compiled from reports of the Bureau of .Markets and (^rop Kstimatcs, I'nited Stales Departiueiit of Agriculture. 82 HKroitr ON rill': i:.\iKi{(ii:xcv iauiii' act Tabik VI. -/V«i;i'/fj» -Airraf/f f. a. b. murLrl price per pound «/ \'irgini(i (iikI S})(tnitth Ijtpis, A'oirHi/irr, n>l'.>, to April, 1922 — Contimii'd. Jnimnry Kchniarv March..: April May June July Aiifrti-ii ScptoinU'r ()cl(>l»or N'ovomlx'r D(X>eiiil>cr 1022 J.'tiuiary Fobniiiry March..! AR'il \ rKiiiut ikiitl N ortli Ciiroliiia. Southeast Spitriish SJo. I (.shPllod). Jumbo (unshollcdV Fancy (UI)Kholl(Hl). Cents. Extra lafRO (shelled). Centn. No. 1 Virginia (sboTled). Crnts. Cc 111.1. lOJ ft 12 * 5J 6J 111 12 12 r It loi 12 45 ^ lOJ 12 ;i 12i 12; 12 11 ii i;f h !l 11 12 lit ■'I lU ((< IH 71 fi-l 11 7J 'Jl 4 7i n 8« -I ■'>! n H ^ 5J Si i ^ 8i 8i! i Southwest Spiinish No. 1 (shellpil). Cents. ( )f ij:i<';vtor iiiiportanco than the import duty, in restricting imports, WHS tho progR'ssivo tloclino in tlie price of domestic peanuts in 1921- 22. The price of extra large Virginia shelled nuts declined from about 17 cents per pound in January, 1920, to 8^ cents in March, 1922. Of special importance is the iact that the premium on extra large shelled nuts which amounted to nearly S cents In the spring of 1921 on account of the shortage of large nuts in the 1920 crop, was cut down to 3 cents in the spring of 1922. The proportion of larger nuts was greater in the 1921 crop so that the special demand for large oriental nuts which had stimulated imports in 1920 was largely eliminated. There was a corresponding decline in the prices of Virginia Jumbo and Spanish shelled peanuts. These price declines had a largo part in causing the decrease in imports in 1921. The persistence of imports to supply the demand on the Pacific coast is explained in part by a comparison of freight rates from China and Japan to Seattle and San Francisco with rates from Norfolk and Sulfolk, the principal peanut marketing center in the United States. This advantage of the Orient amounts to something less than a cent per pound. The comparison given in Table VII shows how the oriental products are favored by the cheapness of the ocean rates as compared with rates from Suffolk to the West coast. Un- shelled peanuts could be shipped from Kobe, Japan or from Shanghai, China for 47 ^ cents per hundred pounds while the rail and water rate from Suffolk was SI .24^. The differential infavorof the imported shelled peanuts was even more marked — 32^ cents per hundred pounds fi-om the Orient as against $1.25^ from Suffolk. On the other nand, it is noteworthy that in the principal consuming centers east of the Rockies, domestic producers have a great advantage in freight rates. The rate from the Orient to Chicago, for example, is some- thing less than SI. 50 per hundred pounds as compared with 70 cents from Norfolk. The rate from Shanghai to New York is 78 cents as apainst about 40 from Virginia points. The domestic rates to eastern Canada offer a similar advantage to American peanut growers. REPORT ON THE EMERGENCY TARIFF ACT. 33 Table V^II. — Peanuts — Comparison of freight rales from Norfolk and Suffolk, Va., uith rates from Shanghai, China, and Kobe, Japan, to competing points in the United States.^ Per 100 pounds. From- Shanghai or Kobe I Seattle, Wash Norfolk ' do Suffolk ' do Shanghai or Kobe i San Francisco, Calif. Norfolk ' do Suffolk do. Unshelled, raw, in Shelled, raw, in bags. bags. All rail. $2. 75i 2.75i Shanghai or Kobe . Norfolk Suffolk Shanghai or Kobe . Norfolk Suffolk Shanghai or Kobe . Norfolk Suffolk Shanghai or Kobe. Norfolk Suffolk Shanghai or Kobe . Denver, Colo. .do .do Chicago, 111 , do do St. Louis, Mo do do New York, N. V. ....do ....do Norfolk, Va 2.75J 2.75i 2 1.9H .70 .70 2.74i =.74i 82. 75h 2. 75i 2. 7.5J 2. 7oJ All water or water All rail. and rail. $0. 474 1.15 2I.24i .47j 1.1.5 2 1. 24i 2. 22i •-'1.91^ 2 1.91i 3 1.48 a. .34 .70 .70 i-3 1.53i "1.43i 2.74* 2. 74i .7s .38 .45 .78 1.98 1.98 .82J .S2J .45 .45 All water or water and rail. $0. 32i 1. 15 1. 25^ .32* 1.15' 1.2.5^ 2. 07 J 1.98 1.98 3 1.48 U.34 .70 .70 8 1. 60 f' 1. 43J .82J .821 .78 .38 .45 .78 ' Ocean rates include an estimate for marine insurance. Ocean rates are from quotations given by the United States Shipping Board, May, 1922. Inland rates from tariils of carriers on file with the Interstate Commerce Commission . 2 Expires June 30, 1922; effective July 1, 1921. The same rate as shown on shelled peanuts will apply. 3 Via water and rail. * \'ia all water to St. Louis, Mo., rail beyond. ^ Via all water. In summarizing the effects of the emergency tariff upon the trade in peanuts distinction should be made between the trade in shelled and unshelled nuts. Imports of unshelled peanuts, which have been relatively unimportant in recent years, were not materially reduced after the increase in duty. Imports of shelled nuts, however, after the increase in duty from three-fourths of 1 cent to 1 cent per pound, in the 10 months following the change declined to 6,410,000 pounds, as compared with 22,440,000 pounds, which came in during the same period of the previous year. Precisely what part of this decline was caused by the increase in duty and what part by the unusually large domestic supply and conse- quent falling prices it is impossible to say. Probably the latter cause was the more important. However, a study of the downward move- ment of domestic prices in 1921 leads to the conclusion that the re- striction of imports, large as it was, was not a sudiciont fa(;tor in the domestic market to halt the decline in prices. Finally, the persist- ence of imports to supply the demand on the Pacific coast is ex- plained in large part by the cheaper freight rates from the Orient. POTATOES. Article. Emergency tariff rate. Senate bill. Act of 1913. Act o( 1909. Potatoes 25 cents per bushel of 60 pounds. 58 cents per 100 pounds. Free 25 cents per bushel. > 34 i;i:i'i)i! I' tiN rill', km i.kckncv taimi'k act. I'iuKt tlir art t)f WHY.) potntocs wimt ilutijiMr at 2") ccMits per l)iishol of (U) pounds. Tlu'V \V(Mo |)iit on the five list in tho act of \9lli with tilt' provision of a duty of 10 prr ('(Mit ad valorrni on imports from fount rics lovvin^ a duty on ox|)orts of |)otatoes from tlio United States. 'V\w rnu'r<;iMU-y tariff rostor(>d the \\H)\) rate. Tahlo I is a sununary of the production and trade since 1910. In the rj-year pcM'iod. witli the exception of annual fluctuations, there has l)i>en i)ut little chan<,;e in the si/-e of the cioj). The production in \\)'2\ was ;i2.). ()()(), 000 hushels as compared with an averaj^e of 2(51 ,000.000 hushels in the period 19101914. In the last three years imports liave averajxed 1.3 per cent of domestic ,>roduction, and exjiorts have amounted on the avera«2:e to 1.05 per cent. T.\BLK I. — Potatoes — Summary table. Year.' Production. Imports. Exports. 1910-1914 ( aver:»>:o ) 1915 Bushels. 3(>0, 772, 400 3.59,721,000 286, Om, 000 442, lOH, 000 411,860.000 346, 823, OCX) 403.296,000 322,867,000 Bushels. 3, 654, 022 270,942 209. 532 3, 079, 025 1,180,480 5, 543, 686 6,061,743 2,017.921 Bushels. 1,68S,5<»I 3, 135 474 1916 4, 017, 760 1917 2, 4K9, CK)1 191S 3, 4.'')3. 307 1919 . . 3 642,322 1920 4, 1.53, 565 1921 3, 499, 8.38 Fiscal vears. 1910-1918: calendar vears, 1919-1921. Production. — Maine is the leading State in the production of pota- toes because of the suitability of its climate and soil and its proximity to the large eastern cities. The States of New York, Pennsylvania, and New Jersey constitute another important producing section, and Michigan, Wisconsin, and Minnesota, a third. In 1921 these seven States produced 51 per cent of the crop, and furnished 55 per cent of the sliipments to foreign countries. Tahlk II. -Potnlo-crop .'itatistic.s for the principal producing States and for the United States, 1919-1921.^ .Maine .\ew York New Jersey Pennsylvania Virginia Ohio..' Illinois Michigan Wisconsin Minnesota North Dakota Nebraska Montana Colorado.... Idaho Washin^on California United States Acreage (000 omitted). 1921 1920 1919 129 3;J0 95 251 136 116 121 340 315 367 120 102 44 90 57 oh 74 3.813 Acres. 123 325 90 246 154 116 122 345 308 319 83 85 40 73 45 53 70 3,657 Acres. Ill 310 83 234 121 125 100 300 302 332 83 i04 38 77 43 55 66 3,542 Yield per acre. Bush. 288 103 95 86 108 58 53 80 68 75 96 80 115 123 185 135 136 1920 1919 Production (000 omitted). 2 90.9 Bush. 177 125 156 115 120 100 65 105 108 99 79 99 110 130 180 155 140 « 110. 3 Bush. 2:50 109 96 100 114 61 52 90 94 87 63 55 60 115 155 125 130 «91.2 Bush. 37, 152 33,990 9,025 21,586 14,688 6,728 6,413 27,200 21,420 27,525 11,520 8,160 5,060 11,070 10, 545 7,425 1Q,064 Bvsh. 21, 771 40, 625 14,040 28,290 18, 480 11,600 7,930 36, 225 33, 264 31, 581 6, 557 8,415 4,400 9,490 8, 1(X) 8, 215 9,800 346,823 403,296 1919 Bush. 25, .^)30 33,790 7, 968 23,4*X) 13, 794 7, 625 5,200 27,000 28,388 28, 884 5,229 5,7-20 2,280 8,855 6,685 6,875 8,580 322,867 'Monthly Crop Reporter, December, 1921, U. S. Department of Agriculture. Average. TtEPORT OX THE EMKRGKXCY TARIFF ACT. 35 Table II. — I'otnto-crnp sfnti'tics for the principal producing States and for the United States, 1919-1921— Continued. Maine New York New Jersey Pennsylvania Virginia Ohio Illinois Michigan Wisconsin Minnesota North Dakota Nebraska Montana Colorado Idaho Washington California United States Price Dec. 1. Cents per bushel. 85 lOcS 142 133 110 1.55 140 95 95 90 70 120 80 73 77 99 130 Mll.l Cents per bushel. 125 lis 125 124 95 135 145 92 86 80 98 120 105 80 68 95 150 1919 Cents per bushel. 140 145 169 154 157 192 196 1.35 140 1.53 160 190 160 170 151 145 171 2 159.5 Total farm value, basis Dee. 1 price (000 omitted). $;31,.579 36,709 12,816 28,709 16, 157 10.428 8.978 25. 840 20,349 24.772 8.064 9,792 4.048 8.081 8, 120 7,351 13,083 385,192 S27,214 47.938 17,550 35,080 17.556 15.660 11,498 33.327 28.607 25.265 6.426 10,098 4,620 7,592 5,508 7,804 14,700 $35, 742 48,996 13,466 .36,036 21,657 14,640 10, 192 36,450 39, 743 44,193 8,366 10,868 3,648 15,054 10,064 9,969 14,672 461,778 514,855 -Averag*. In the discussion of the tariff problem, the figures of shipments are even more important than production figures, because they relate solely to the commercial crop that comes to the market. It is pos- sible to have large shipments in years when comparatively small pro- duction is reported. This is what actually happened in 1921-22, as a result of the disproportionately large crop in commercial pro- ducing centers. Estimated shipments for 11 months of the season amounted to 222,000 cars as compared with 197,000 cars during the previous year; but the total production in 1921 was only 347,000,000 bushels as against 403,000,000 bushels in 1920. There are also important sections in the Southern States which Eroduce early potatoes. \'\Tiile October is usually the month of eaviest shipment, domestic production is so arranged as to afford a fairly even distribution of marketing throughout the whole year. The season for early potatoes begins in April or May with the arrival of shipments from Florida. These compete with old-crop potatoes from the Northern States. In June and July the heaviest shipments come in from Virginia, North and South Carolina, New Jersey, and Maryland. Beginning with September the northern crop commences to come in in heavy volume and continues to supply the market until the following April or May. Imports from Bermuda compete with the early potatoes, while Canadian potatoes come in at the same time as our northern crop. 3{\ jJKPoKr (IN niK i;.\ii:k(;kN(V iakii f act, Tmii K 111 ( 1'.I1R-19 1910-20 1920-21 1921-22 Total Cum. lt>0,027 (Mm. Itl7, 147 Carx. KWl, ISl Cars. 197,141 Cars. « 221,808 JlllV 14,S«4 12,K70 14,120 23,442 13. .11 4 7,024 9,4S9 10,»4:i 12,.5.VS 11,.52S 12,720 1(.,«75 14,l-)f. 1 1 , sor. 1»,S41 24,IKI2 1.5,442 S,S91 12,7,'>3 S,998 13,744 13,42i» 9,«S3 13,303 13, S.^.^ 13, .Wl 21,4.<<.) 30, CiSK ir.,377 9,(«2 12, 1.32 8, 12:j 11,!W>2 7,731 (■,,7.59 14,802 1.5,928 12,774 10, .530 30, 171 23,490 9,031 13,871 11,884 10, 107 14,847 14, Sill 17,047 17,034 Aiiini'^t 11-,, lie, St'ptonilw 2f.,n2i ()cr 43,209 Novpinlicr l Dcuftulx'r 10,4H2 January in,(iS8 Koliriiarv 13,. 590 Manh 22, 134 April 20,2(« May 19,795 June > Bureau of Markets and Crop £stimates, U. S. Department of Agriculture. > Eleven moDtha Trade in pototof.S6,775 I 6 195.195 , 225,745 I , 159,9fi:j 1812,090 14.3,759 180,689 United King- dom. Busheh. 2,529,248 1,609 10 9,310 64 Nether-; Bel- lands, gium. Bush. Bush. 193,951 301,329 5,370 5 Mexico. Bush. 11,965 44, .544 14,214 24, 888 540 10,083 10,935 931 AU other. Bush. 158,674 X, 443 6,467 22,992 7,012 131 17, 233 14,783 » Fiscal years, 1910-1918; calendar years, 1919-1921. ' Table V. — Potatoes — Exports by countries. Year." Total Cuba. Canada. Panama. Mexico. All other BusheU. Busheh. Busheh. 1910-1914 f average) 1, 688, 594 i 973, .54fj 313, 877 1915 3, 1.35, 474 1 , 878, 3>S 488, .587 191>'. 4,017,7»;0 2,-324,882 I 230,115 1917 2,489,001 ,1,278,148 ] 574,190 1918 3, 4.53, .307 1,. 887,999 ] 8^5,482 1919 .3,042,-322 2,32.5,097 , (;10,(:22 1920 4,1.5.3,.5<« i2,(i79,(!ai 856,430 1921 3,499,838 ;2,391,576 453,614 Bushels. 145,89:i 104,208 280, 72.5 154,2^8 99, 427 (0,1,47 77, 247 154,704 Bushels. 98,882 64,247 104,776 179,731 352, (H8 315, 52S 287, 181 294,811 Busheh. 1.56,402 530,074 1,077,2(32 302,664 287, 751 330,433 2,53,023 205, 13;} ' Fiscal years, 1910-1918; calendar years, 1919-1921. BEPORT ON THE EMERGENCY TARIPF ACT. 37 The movement of potatoes between Canada and the United States under free trade has, to some extent, been in the nature of a border trade, potatoes moving from surplus sections in Canada to deficiency sections in the United States and vice versa. But most of our exports to Canada have been early potatoes from the Southern States, which went upon its markets before the Canadian new potatoes were ready, while Canadian exports to this country are of late-crop potatoes. Table VI shows that the great bulk of Canadian production is in the eastern Provinces, comparatively near to our large eastern con- suming centers. Canadian producers in the eastern Provinces are favored by lower labor costs than in the competing States south of the border, and their yields per acre are considerably larger, with the exception of those of Maine. Table VI. — Comparison of production and cost of potatoes in the United States and Canada. 1921} Production. BuslieU. United States 346, 823, 000 Canada \ 107, 246, 000 New York j 33, 990, 000 Quebec i Maine New Brunswick. • Ohio Michigan Ontario I 15^ 400^ 000 Minnesota I 27, 525, 000 North Dakota i n, 520, 000 36,089,000 37,152,000 16,192,000 6,728,000 27,200,000 Yield per acre. Manitoba. Montana , Saskatchewan Alberta Washington British Columbia. 5, 858, 000 5,060,000 10,344,000 », 143,000 7,425,000 2,940,000 Bushels. 91 153 103 163 288 216 58 80 94 75 96 153 115 177 159 135 176 Farm price per bushel. Dollars.^ 1.11 .86 1.08 .90 .85 1.01 1.55 .95 1.12 .90 .70 .51 .80 .56 ..56 .99 1.01 Average wages per month (without board). Dollars.^, ' 43. 30 62.50 58.50 52.00 59.00 53.70 46.00 50.50 56.90 ,53.10 60.20 74.50 63. 00 74.30 69.70 68.00 79.90 1 United States figures from Monthly Crop Reporter, December, 1921, p. 159, U. S. Dept. of Agr. Ca- nadian source, Monthly Bulletin of Agricultural Statistics, January, 1922, p. 5; February, 1922, p. 51. 2 Converted to United States money at avera je rate of $0,892. 3 Canadian figures are money wages plus the estimated value of board; United States figures are money wages of regular farm itclp, not boarded. Trade in potatoes since the passage of the emergency act. — Table VII shows how imports declined after the passage of the emergency act. In the 11 months ending April, 1922, 1,799,000 bushels were imported as compared with 3,626,000 bushels in the same period during the previous year. 190190 88 IJKroUJ" ON rilK K.MKIU^KN'CV TAIMKF ACT, T.\ui.B VII. — PotOtoet — lienfral imiinrls bij imoiihs, I'JIi, 1920-1922. Month. Janimrv: 1914 liii.'ihiU. 318,729 61,392 7.492 10,491 U.0.16 26, 97s 216. 172 .-I, (Ml .V..13S 5,709 17,0.56 2,619 2,ra2 5,537 1020 493, H47 685 293.710 1,044 624,001 157 1,179,284 313 1,113,141 4,867 387,697 11,940 56, (542 8,758 267, 109 1,73S 236,510 186 442,631 539 615,500 112 321,275 59 1921 BuMitlx. 384,090 77 219,834 38 35!), 999 1922 Bwheh. DiUiiit.U" 305,084 Krl>rn!iry: Krw. ... .,.,..... Putiablo" March: Kr»««> . , 343,949 DutlftlilP' " 382,032 April; Kri>c 317,596 42 = 172,556 87 6,968 16,837 5 5,117 Diltii)lile> 201,058 May: PtitinMi'' June: Kroo Dutiable ' J Illy: Kroo Dut iahU' > Aiipiist: Diit iahle > 6,486 13 6,626 12 6,139 3,371 7,458 13.957 4,029 55,214 Dutiable ' 116,249 Octol Excess of Montreal price. RP:P()RT ().\ THK K.MKHUKXCV T.VRTFF .\C'T. 39 Table VIII. — Prices of potatoes at Montreal. Canada, compared nith prices at Boston, Mass. (per 100 pounds) — Continued. 1920 1921 1922 Date. Mon- treal. Bos- ton. 1 Excess of Boston over ; Mon- ' treal i ■"=^- Mon- treal . Bos- ton. Excess of Boston over Mon- treal price. Mon- treal. Bos- ton. Excess of Boston over Mon- treal price. Feb. 2 S4.37 3.69 3.69 3.49 3.62 3.37 3. 37 3.37 3.86 4.39 4.39 4.39 5.13 5.43 5.43 5.43 5. 53 6.59 6.12 6.12 6.12 5.18 5.29 4.81 4.81 4.81 $4.. 50 4.32 4.37 4.85 4.57 5.37 5.00 5.37 5.67 6.25 6.52 6.52 6.95 7.00 6.87 7.12 7.62 7.87 13; 00 12.50 12.87 11.62 12.75 8.75 9.25 5.73 5.37 1.92 2.05 2.80 2. .57 2.15 1.95 2.00 1.80 2.17 2.17 2.45 2.32 2.45 2.45 2. .32 2.30 2.30 2.12 1.87 1.82 1.87 $013 .63 .68 1.36 .95 2.00 1.63 2.00 1.81 1.86 2.13 2.13 1.82 1.57 1.44 1.69 2.09 1.28 6.88 6.38 6.75 6.44 7.46 3.94 4.44 .94 "Vi.'ee' 3.10 .65 1.19 .02 .50 ..30 .35 .69 .69 .97 .84 .99 .81 .86 .42 .42 .31 .06 ».20 3.15 $1.83 1.S3 1.15 1.15 1.14 1.14 1.14 1.14 1.14 1.16 1.16 1.16 1.16 1.17 1.17 1.17 1.17 1.17 .1.17 1.17 .94 .94 .93 .93 .93 <2.68 2.75 2.75 3.50 3.00 2.75 2.73 1.68 1.68 1.68 1..30 1.30 1.30 1.30 1.29 1.29 1.29 1.29 1.29 1.54 1..54 1.54 1.54 $1.62 1.57 1.42 1.32 1.32 1.45 1.72 1.32 1.32 1..30 1.05 1.05 1.00 .95 .92 1.05 .87 .85 4.12 3.87 3.37 4.00 4.12 3.37 4.75 5.37 3.25 3.07 3.37 2.50 2.00 2.57 2.07 2.00 1.80 1.95 1.95 1.92 2.12 2.00 2.05 1.95 1.90 1.90 1.95 1.92 1.95 2.20 'SO. 21 3.26 .27 .17 .18 .31 .58 .18 .18 .14 3.11 ».ll 3.16 3.22 3.25 3.12 ^.30 3.32 2.95 $1.65 1.65 1.65 1.65 1.66 1.66 1.66 1.61 1.31 1.57 1.30 1.30 1.30 1.32 1.32 1.35 $2.20 2.20 2.00 1.92 1.92 1.95 195 1.80 1.80 1.70 «0.55 9 .55 16 .35 23 .27 Mar. 2 .26 9 .26 16 .26 23 30 .•\pr. 6 13 .19 .49 .13 20. .. . 1.27 1..57 1..57 1.35 3 .03 27 .27 Mav 4 .25 11 .03 IS. . . . 25 June 1 8 15 2. 70 2.43 3.06 3.19 2.44 3.82 2.69 .50 .32 3.13 3.50 3.75 3.16 .39 .32 .12 .65 .65 .62 .82 .71 .76 .66 .61 .61 .41 .38 .41 .66 22 29 July 6 13 20 27 . Aug. 5 10 3.58 2.15 2.15 1.38 2.13 1.45 1.70 1.45 1.48 1.48 1.48 1.48 1.46 1.64 1.46 ' 1.8S 1.88 1.81 1.81 2.02 2.02 17 24 ::::"■ '::;::::: 31 Sept. 7 14 21 .:.:.::: 28 Oct. 6 12 19 [ 26 Nov. 2 9 16 23 30 Dec. 7 14 21 28 3 Excess of Montreal price. <'nuctin<>n( of tli<> (Mu?rb, of which 31,899 consisted of late varieties and 18,777 of early oni(ms. Of the 15,576 cars ^500 bushels each) of late onions shipped in 1921, 19 per cent originated in New York. 17A per cent in California, 14 per cent in Ma.ssachusetts, 12 per cent in Indiana, and 11 per cent in Ohio. Of the 4.904 cars of domestic Bermuda onions shipped, nearly all — 84 per cent — came from Texas. P\)urteen and one half per cent originated in California and the rest in Louisiana. REPORT O^J THE EAIERGEXCY TARIFF ACT. 41 T.A.BLE II. — Cnr-Int shipments of onions. MAIN CROP ONIONS. State. Season of— 1917-18 1918-19 1919-20 1920-21 1921-22 Cars. 3, 005 239 1,204 708 2,766 253 626 .567 2,104 1,475 196 315 240 874 Cars. 3,665 230 1,817 968 2,88:i 590 822 597 2,784 2,008 238 477 309 1,153 Cars. 1 5,071 1 207 1 1,005 488 1 2,835 : 224 ' 439 634 2,702 1,913 202 596 95 863 Curs. ■i,m 135 3,448 870 3,834 795 276 035 3, 082 3,212 19 790 406 1,165 Cars. 2,700 443 Indiana 1,'841 412 2,227 Michigan.. 117 176 New Jersey 427 2,927 Ohio 1,735 .351 649 Wisconsin 95 Other .states 1,176 Total 14,572 18,541 17,274 \ 21,894 15. 756 DOMESTIC BERMUDA ONIONS. State. 1916 1917 1918 1919 1920 1921 253 381 4,5.50 493 161 5, 815 362 140 .3,506 338 101 2,836 1,168 106 5,086 720 67 Texas 4,117 Total 5,184 6,469 4,008 3,275 6,260 4,904 Production and distribution of domestic onions is so regulated that nearly an even supply is coming on the market throughout the 3'ear. From the new crop of late onions shipments commence in June and July and these northern white, yellow, and red varieties supply the demand during the fall. The surplus of these hardier northern varieties goes into storage and continues to come into market until spring. Growers aim to dispose of the northern crop by March, when the southern Bermuda onions begin to move. The milder types from Texas, California, and Louisiana are not as well adapted to storage as the northern onions and must be disposed of cjuickly. The bulk of them are marketed in the period from March through June. Because of the perishability of their product the Southern growers are at a disadvantage compared with Northern producers in meeting the com- petition of imports. But the great bulk of the imports, coming from Spain, arrive during the period from October to March and compete with the late or main crop. Growers have found that the demand for onions is inelastic; that it does not readily respond to changes in price. In consequence prices fall sharply when crops are large. For this reason the growers nave endeavored to regulate shipments, and when unusually large crops are harvested (considerable portions may not reach the markets. The southern growers regulate the acreage they plant by the size of the preceding northern crop and a committee of grow(>rs determines the number of cars to go to market. The inelasticity of the demand for onions has had considerable infhience on our foreign trade in ihem. In years of short crop prices have been high, and our imports have 4 J i;i:i'i>i;r on nil. kmi K(;i:ni v r.\i;iii" act. foiisi»ltMal>ly iiuimsod; when cnips huvo hocii lai>^c prices have tln»j>pt'il, imports have jKhtimi^oiI. and exports liav(> boon j];roater. Tnidf in onions s-lncc l!H(f prior to tin jKissdtfc of the enun/i no/ act. — In tlu« (locadc 1«)1() to 1«>1M exports avoraj^od 4S4.()()0 Inishols. In I'.fJO and l'»L'l. UlC. ()()() and S()7.00() hushoTs. rc'spoctivoly, were ex- p«iittMl, lar«X(>ly to ('iil)!i, Canada, Panama, and ^loxi(•o. wShipments to Cnha rocrivo a JO |)t>r cent prcfcrcncr in import dntios. With tlu> ('\((M)tion of \\H\K wIumi imports were rostrictod by the \N ar Trade lioard, (hn'injj; the ih'cade 11(10 to 1919 they i-an<;e(l from 7()9,00() t»> 1,7'JS,000 bushels. These wide annual Ihictuations were hir«:ely caused by variations in the size of the (h>mestic crop. wSonie of the imports come in to satisfy a spen(Htions. T.\Bi-i5 111. — Uiuons—Iiiiporls by counlries. rcrioil. Fiscal year. 1910-1914 (aver- age) 191") 1916 1917 1918 1919' 1920 > 1921 1 .\fonth. 1920. Januaiy FpbniaVv... March..'.... April May June July .\»kust September.. October November. . Decemljcr.. 1921. January... February. . March.."... April May June July August Septeml)er. October. . . November. December.. 192^. January February. . March ..'..., April 'Calendar year. Total. Biuilifls. 1,175.900 .S29, 177 S1.^,H72 1,7.57,948 1,313,402 740.686 1,819,158 1.976.0.83 :«5,.569 214, 1.5;< :i69.262 143.371 .S.»i, 4.52 104,942 95,009 35.224 59. 743 177,742 119.396 46,295 30.733 63. 732 41,405 7, 243 13,016 9,036 32, 181 125.029 261,965 :«X), 447 652,883 442,413 38. 978 20.307 181,. 520 241,. 505 21) 63 I U 8, 215 35,036 36, 7(Hi 23,866 6,0J«5 15. 990 42, 878 REPORT ON THE EMEKGKXCV TARIFF ACT. 43 Table IV. — Onions — Exports by countries. Year.i Total. Canada. Panama. Mexico. Cuba. All other. 1910-1914 (average) Busheh. 524,307 727,983 563, 739 409,301 534, 192 816,959 945, 778 867,342 Bushfln. 244,295 352,823 257,632 207,852 184,844 218,129 264, 262 171,273 Bushels. > Buxhfl.1. 49,717 32,987 48,182 26,236 60,890 21,898 43,237 1 36,893 40,665 ' 50,241 31,649 1 46,207 41,003 I 52,133 57,248 1 59,599 Bu.fhcls. 94,174 97,518 106,163 77,012 179,949 400,560 485, 266 473, 203 Bushels. 103, 134 1915 203,224 1916 117,156 1917 44,307 1918 78, 493 1919 120,414 1920 103,114 1921 106,019 1 Fiscal years, 1910-1918; calendar years, 1919-1921. Trade in onions since the passage of the emergency act. — The seasonal character of the importation of onions is shown in Table III. The movement resembles very closely that of domestic onions. Onions from Bermuda, Egypt, and the Canary Islands come to the domes- tic markets from April through May during precisely the same sea- son that the perishable early domestic crop of the same type is ar- riving from Texas. However, the larger part of the imports from Spain, as well as the reexports of Spanish and Egyptian onions from England, arrive during the fall, winter, and spring when the main crop of domestic onions is being marketed. Thus, in determining the effect of the duty, the early and late crop should be separately considered. The emergency tariff took effect as the early crop was being marketed and tne imports from Bermuda were coming in. From April tlirough July, 1921, only 20,000 bushels of onions were received from Bermuda as compared with 74,000 bushels in the previous season. While 189,000 bushels had been received from Egypt during these months in 1920, none were imported from there during 1921. Imports from the Canary Islands were reduced from 28,000 to 12,000 bushels. Some of these reductions occurred after the increase from 20 to 40 cents per bushel, effective May 29. In 1920 June was the month of heaviest imports from Bermuda, while very few came from there in the corresponding month in 1921. The situation in the domestic market, however, also had a large influence on imports of this type of onions. The previous season's shipments of main crop onions had been extraordinarily large and prices had declined before the passage of the emergency tariff. Then the domestic shipments of Bermuda type oniony in 1921 amounted to 4,904 cars, which just about c({ualed the average shipments for the previous five years. But' prices of domestic Bermudas for the season March to June, 1921, ranged from $0.65 to SO. 90 as compared with $1.50 to S4.25 during 1920. In other words, the price situation in the early summer did not encourage large imports of Bermuda onions in the face of an increase in duty. Table V. — Prices of eastern yellow onions at New York, }9 19-20 through 1921-22.'^ Month. 1920-21 Augiist September i $3. 00-$4. 00 Ocloher. Novemlxsr. Dcromber. January. .. February. . March \pril .3.00- 4.(K) 3. %'y- 5. 65 5. no- 6. ."iO .5. 50- 6. .50 i>. 2.')- 0. 25 5.50- 6.75 5. 00- 7. 00 $1.7.5-$2. 1. 25- 2. l.OO- 1. 1.00- 1. 1.00- 1. .75- I. ..JO- 1. .m- 1. 2,5-M. 00 00- 4.(K» 2.'>- 6.00 25- 5. 75 2.5- ,').tW 7.5- H.2.-. 00- 8. «) Z5 12.00 50-12. iJO » Wefttber, Crops, and Markets, U. S. Department of Agriculture, May 6, 1922, p. 383. 1 1 KKPOirr ON TllK K.MKlUiKNCV TAHIFI-' Al'T. 'Tahlk VI. — Pricfs 0/ Tccas limnniln oniniis, 19Ui lU.'O i>rici\'i/. o. h. shippiiuf points. Ilipli for sriison ! Low for : ini 1930 19W IttlS 1917 1916 Date. AprU4.. April 12. May 2ti. . April 20. April 16. Mav 22. . Price. $1. l.VJl.60 Mav 10.... 4.00-1.2.5 Mav 2-1. 3. -20- .i.M ! April 211.. l.;«V- I. 10 i Mav 20... 2.00- 2.7.') I May 2S. .. 1. 50- 1. 60 May 18. . . SO. 65-10. 90 1. m 2. 00- 2. or. .so 1.25- i.:jo 1.10- 1.20 Closing for season. Date. Mav 16.... Mav 24.... Mav 20.... .Mav 27.... .May 2S. . . . May 22.... Prico. $0. 65-$0. 90 1.50 X2(V 3.50 .sr»- 1.00 1.2;)- 1.30 1.50- 1.60 ' Tlu> Market Reportor, V . S. Depart incnt of A.i^ric ijturo. .Inly 2, 1921, p. ». It was (|iiito (lifrrront with main crop onions durin. 0908 '.0826 1921 London. New Or- leans. Burma 2 Star. $0.0400 80.04S2 . 0375 . 0303 .0253 .0252 .0337 .0324 .0212 .0310 .0275 . 0305 .OWS .0278 . 0388 . 03'J3 . 0101 . 0519 .0391 . 04.50 .0319 .0160 .a356 Siam. ' $0. 0797 1. 0751 . 0443 .0156 . 0434 .(M51 .0414 ' Japan polished. 4S i;i:rt)i!r on imik K.MKiuiKxrv iaiukf act. LEMONS. i iiiiTKi'iify iiirill r:Ui>. s.MiMl.' l.ill Act Of 1013. Act of 1909. ■ : • 'mhI . 1 . l^,l 1,;- pcrpackago ^ ti> 7it (viils per pui'kapc; \ coiit per pound in bulk. U cpnts per pound. ■ ' .' — • i-l I'lulcT th(^ net of lOlli tlio duty upon lomons avus equivalent to one-half cent per pound. The emergency tarifl" increased the duty to 2 cents per pound. Pr(kluction and /(. -Domestic production of lemons now supplies the normal consumption of the fresh fruit in the United States. The commercial crop is produced almost entirely in Cali- fornia. Durinji; the year (>nded Auiijust 81, 1921, that State shipped a total of 4,()();i,0()() boxes of lemons. The average annual shipments for the last live years have been well over 3,000,000 boxes. During the calendar year 1921 the total supply of foreign and domestic lemons in this country was "), 129,2 15 boxes. In addition, approximately 4.000,000 boxes are consumed annually in the form of citric acid. Taiu.k I. Lentous — Sumnmry table. Year.' Total California shipments. Imports for pon- sumption.3 Exports. I911-19I4 faverasc i Boxes. 1,070, 2 -.4 2. 133, 290 2,7(14,840 3.12o,o24 2,242,8.51 3,934,374 3,015,870 3 4,6(i3,000 Bortx. 1, 230, 2(« 2, 2 4, 005 1,44.3,040 l,2';5,ir.2 1,248,720 1,007,270 1,548,692 709,928 Boxes. 70, 012 191.5. 122 914 1916 175,070 1917 174,938 1918 138, Of3 1919 300,916 1920 293,050 1921 304,313 I Imports for consumption and exports are shown for fiscal year from 191 1-1918; calendar years 1919-1921, - Lemon.s were entered in paekace.s of varying ."^ize under the ait of 1913, but most of the imports were ret'eived in bo\c< the contents of whi^'h exceede.l II l)ui dil not exceed 2\ cubic feet. 3 Shiipments from i'alif 1910 3,947 1917 4,55.H 1918 6.3,496 1919 3, 52.'-. 1920 . 5,os:5 1921 13,299 » FLscal yo.irs. 1910-1918; calendar years. 1919-1921. Table III. — Lemons — General imports by months. Month. January Februarj... March April May June July August September. October November . December.. Total. Quantity.i Value, $1.56,229 82,251 343,526 305,747 357,870 537, 102 337,543 456,387 67, 754 131,635 44,142 84,343 1921 1922 Quantity. ! Value, j Quantity. 5,652,664 13,918,639 9. 5.59, 305 3,445,48X 4,, 346., 506 2,484,790 1,008,274 .'?67,232 32.369 V5.76^ ■.i^,.517 '.M,ti:i0 :',04,l).5S L'!2.440 UK), 116 105.639 •54,669 24,491 Pounds. 2,269,215 4,011. 63.S 10,523.672 8,880,499 Value. 129,339 .)3,5(M> 167,280 142,496 2,904, .529 : 1,229,671 1 Quantities not reported. The present bearing acreage in California is about 33,000 acres, with approximately 17,000 acres of nonbearing trees, which in a short time will increase the supply of fresh fruit to an amount in excess of present demands. Exports of the domestic crop dming the calendar year, 1921, amounted to 304,313 boxes. They went chiefly to Canada. CITRIC ACID. The cliief by-product of lemons is citric acid, and the citric acid industry, in which both foreign and domestic fruit and imported citrate of lime are used, has been developed in this country largely since 1915. In 1919, a total of 3,163,700 pounds of citric acid was manufactured in the United States.^ Only about 000,000 pounds, or approximately 20 per cent of this amount, was produced from do- mestic grown lemons. The average annual consumption of citric acid in the United States nrevious to 1920 is estimated to have been about 6,000,000 pounds.'' Imports for consumption of citric acid, and imports of citrate of lime, from which citric acid is manufactured, are shown in the follow- ing table: Tablk l\. — Citric arid and ritnttr of lilitf- — Imports for consumption. Fiscal year. Citric acid. Pounds. 193.613 722, 4;i4 171,877 157. 5:8 Citrate of lime. Pounds. 4, 776, we 6,242,214 1 8,127,304 6,361, 4.')S 191 s '"iscal year. Citric acid. Citrate of lime. 11I10-1914 Pounds. 106,390 1,224,591 1.317, 467 Poundn. 4,013,600 1915 191911. . 191' 1916. 1920 « 1917 1921 ".. ',)SS, I16'.> o Calendar year. ' Census tiKiircs. •Brief fileKi' ON nil'. K.\ii:ii(ii,Ncv takii'k aci'. A ton of lemons will |>r(ulu(V n|)pr()\iinjit<>ly -10 pounds of ritric luul jind () pounds of lemon oil. Two pounds of citrute of lime jiie re(|uired to produce 1 pound (»f citi'ic acid. Culiforniu is now nhl*^ to p''oduee all tho fiH'sli fruit i<'(piired for domestic use if none of tho erop is converted into hv-products, hut H.ssuming thnt donie-^tif iY(inirements of citric ncid will in tlu> futui-e jiv(>ra<^e uhont 6,00(),()(M) piumds nnnuully, it will he neccssnry to douhlo our ])rescnt produc- tion of U'nions. F(>ni(jii production. — Except for Culifornia's production, Italy piiU'ticnlly supplies the world with lemons. In 1913 the total pi<>- duction of lemons in Italy was estimated at 474,000 tons iind in l'.)I4, 471, ()()() tons. .Vllowinijj 75 pounds of fruit to the hox, tlui production of lemons for the.se two years was equivalent to 12,051,000 Doxes and 12,549,000 hoxes, respectively.^ Approximately St per cent of the crop was grown in Sicily. Italy's average annual production at the present time is estimated by the California Citrus League at 18.000,000 hoxes. Of this total', the league estimates that about 7.000,000 boxes are exported as fresli fruit and that an ecpial amount is utilized in the manufacture of lemon hy-})roducts. Spain is the next most important lemon-producing country, the chief producing district being the Malaga district. Pro- duction of lemons in this distri(;t in 1920 amounted to between 200,000 and 210,000 boxes of approximately 60 kilograms (132 pounds) each. Frright and ocean rates. — The present rail rate on lemons from California to all points in the United States east of the Rocky Moun- tains is a uniform blanket rate of SI. 50 per 100 pounds in carload lots or the equivalent of SI. 26 per box. Lemon growers are more con- cerned with freight rates than any other group of producers in Cali- fornia for the reason that the tonnage per acre of the lemon crop is much greater than for any other fruit. i\ji acre of lemons yields between one-third and one-half more tonnage than an acre of oranges. The ocean rate on lemons from Italy to New York varies as west- bound ships are in need of cargo, but is at present around 55 cents per box of about 70 pounds. To this must be added other charges, such as lighterage, insurance, wharfage, cooperage, and other small fees. As the importer ships his lemons west, he has to pay a pro- gressively higher freight rate. Following are the current freight rates per hundredweight and per box (84 pounds) from the port of New York to several points in tne Middle West: Rate per ^ . hundred- ^TfJ'*"^ wei^t. i '^"-^• New York to Pittsburgh I $0,565 »0. 47 New Vork to Chicago .76 ! .64 New Ydrk to .St. Louis ; . »9 | .75 Upon a standard California box of 75 pounds, therefore, the im- ported lemon would pay around $2.25 for duty, freight, and other expenses, without allowing anything to the foreign grower. The do- mestic lemon usually commands a price premium of around 75 cents to $1 per box (see Table V). 1 United .States Department of Agriculture Bulletin No. 483, Statistics of Fruits in Principal Countries, by H. D. Ruddiman. REPORT ON THE EMERGEiSTCY TARIFF ACT. 51 Imported lemons do not usually penetrate farther west than the Mississippi River, at which line the advantages of the Italian fruit in cheaper transportation and costs of production are met by the California product. Competitive conditions are keenest in the big consuming markets near the eastern seaboard. The California shipper has a steadier market in the West and can dispose of his higher grade lemons there to better advantage; his second and third grades are kept for the more highly competitive markets in the East. The imported lemons are sold at auction, and the business is an extremely speculative one, dependmg on weather and other conditions. Prices. — Prices of California lemons reached an unprecedented high mark during the summer of 1921, selling as high as $15 per box, while $10 and $12 a box were not unusual prices. Imported lemons also sold higher than ever before, ranging from S7 to $12 per box. Consumers paid from $0.75 to $1.25 per dozen for lemons. This unusual situation, therefore, rather upset expected results of the increased tariff so far as amount of imports was concerned. Table V shows the average monthly price at all auction sales of California lemons and foreign lemons at New York. It will be ob- served that these averages, by months are considerably lower than the peak Drices mentioned in the preceding paragraph. Table V. — Lemons— Average monthly prices {auction sales, per box). 1920 1921 1922 Month. Cali- fornia lemons at New York. Foreign lemons at New York. Cali- fornia lemons at New York. Foreign lemons at New York. Cali- fornia lemons at New York. Foreign lemons at New York. January $1.31 4.79 2.66 2.22 1.91 2.64 1.93 3.26 2.41 4.93 2.81 3.12 $2.85 4.45 2.37 2.07 2.14 2.27 1.74 1.98 1.70 2.69 1.24 2.03 83.49 3.53 3.11 2.61 4.15 7.23 8.63 3.79 6.01 4.86 3.42 4.20 $2.44 2.68 1.73 2.20 2.94 7.42 6.67 3.45 4.60 2.63 2.19 3.63 $4.38 4.72 4.19 3.85 $4 23 4 41 March 2 97 April 2 95 May June July August September October November December VEGETABLE OILS. Article. Emergency tariff rate. Senate bill. Act of 1913. Act of 1909. OUs: Peanut Cottonseed Coconut Hova bean Olive— In bulk In containers of less than .*) gallons. Weighing with the container less than 44 pounds. 26 cents per gallon . 20 cents pcir gallon. 20 cents per gallon. 20 cents per gallon. 40 cents per gallon. .50 cents per gallon. 4 cents per pound.. 3 cents per pound.. 4 cents per poinid.. 3 cents per pound.. 40 cents per gallon. 50 cents per gallon , 6 cents per gallon. Free Free Free 20 cents per gallon. 30 cents per gallon. Free. Free. Free. Free. 40 cents per gallon. 50 cents per gallon. 52 itKPDiM' (»N rm: imi:i{(;i;n('\ iaiiii'k m"\\ (iENKKAI. DISCISSION. In tlioir \ ill ions iist«s ('(H-diiut. cotliMisood, poiiniit, mikI soya-boan oils aiT all inoro or loss iiit(M"chati{xt'al)K\ osfiocinlly since t\\o extonsivo dovolopnitMit of tho process of luirdoninjj; oils hv liydi'osjcnation. The same intcirc^liition is true to a hvsscr extent with respect to the coin- petilion i^f tiiese oils. l>oth as raw niateriids nnd as linished pioducts, with nninial fats as in the case of soap stock, lard, and butter. In nianv instances, however, these oils have preferential uses. Durinj:: the war there was an acute shortaije of fats in Europe. To suj>ply this demand tiie Ignited States imported huge cjuantities of oil seeds and oils, which were crushed or relined in domestic mills, and exported to Europe as oils, soaps, foodstuff's, or glycerin. With the decline in trade following the signing of the armistice this condition of alfairs changed and the domestic industry suffered a severe setback, which was furiher accentuated by the return to peace-time activities of European nations. These countries have taken steps to develop the immense vegetal)le oil resources of their colonial possessions. Europe is almost wholly dependent upon foreign sources for its requirements of oil-bearing materials; it has been estimated tliat before the war it took So per cent of the total quantities entering foreign trade, and our domestic industry must meet the competition not atone in secur- ing raw materiaJs, but also in marketing tlie finished product. Tabi.k l.— Vegetuhle oils- — Imports, hji months. [000 omitted.] .lauuiiry.. Fel)ruar\- March..:. April May June July Augu.st Sept<>mbcr. Octoljer November. Dccemlx;r. . .lauuar}'.. Febniary March..".. April .May Juiie July August .SeptemVjer. Oclolier November. December. . January... February . March Date. Cocoimt. Cottonseed. Peanut Poimds. 22.942 .30. S9.^ 11.329 35.915 1 1. 6.37 12. 949 26. 20.5 12, 776 11,5.54 16. 7.59 S,442 11,917 22 .52.5 24! 100 32, 998 Potmds. 1,768 493 1,4.55 1.297 1.1K)5 2, 789 438 48' 91 35 32 111 271 .52 145 28 .56 Potindn. 4,887 9,196 21,022 21 , 348 H, 953 13,984 3, 747 5, 282 t). 5.59 410 76(1 205 1H2 167 220 3,57 205 2.58 •258 129 182 91 S74 213 167 Soya bean. Pounds. 8,371 14, 102 18,451 14,990 12'. sas 10,841 10,646 10.376 7,1,S4 226 2. 01 1 2,113 1,000 2,116 7, 032 5, 073 1,,544 .509 1,014 REPOirr ox rnK emergency taiuff act. 53 Table II.— V'tijetable oib — Erports. by months (()(« omit ted. I Date. Coconut. 1920. January , I- ebruary M arch , April , May June July August September October November December 1921. Januar y February March . ." April May June .' July August September October November December 1922. January February March April Pounds. 003 :ns ;«3 501 014 098 985 ! .527 492 556 ;isi 27S Cotton seed. 1,374 . 1,010 I 866 1,0.36 Pounds. 17,030 20,318 22,022 19, 475 11,6.55 11,272 3.681 2.663 4, S49 7,499 22, 869 41,421 191 70, UK) 462 i ;i9,6S9 307 36,389 559 I 20,997 643 1 18,948 960 14, 162 945 7,290 407 ! 5, 155 988 7,544 123 1 10,0.'J5 320 1 10, .342 •294 11.919 Peanut. Soya bean. 11,127 9,097 9,6.55 4. 135 268 27 1.30 8-1 1.50 91 103 246 155 •292 25 137 260 26 3.54 82 . 274 62 27 8 211 91 i>2 3 3 181 63 Table III. — Animal fats and oils — Domestic exports, by months. [000 omitted.] Date. 1920 JaiHiary Feliriiairv March..". .\pril May June July August September Octol er Novemler ])ecemljer 1921 , January February March Aiiril May Jurie July August Se|)t,einber , October , November December 1922, January February March April Neutral lard. Pounds. .595 525 3.572 2;93S 4,598 2, 104 1,883 1,177 1 , S72 1,672 1,093 1 , •20S 3,6-24 2,844 1,067 1,16:} 2,703 2,237 1,471 2,616 2,789 1,184 738 1,513 1,279 ■2,571 1,2.56 1,270 Pounds. .38,824 36,645 69,430 40,758 55,544 45,070 47,061 31,021 46,326 .54,174 .57,316 90,080 76, 185 91,841 82,617 .53,275 48,604 67,6.56 ^<3,329 87,411 104,741 .56, 886 .51,8.55 64,.5;{.3 73, 194 75,520 (>4,377 42,459 Oleooil. < Butler. Pounds. I Pounds. 1,136 1,885 2,082 613 1,007 1,968 2, .327 1,960 947 1,912 1 , 6,59 3,197 1,326 i S33 1,020 459 426 < 779 1 1,2.39 ; 1,349 I .3,.3'20 , 1,601 1 751 I 697 I l,S7S 1,774 4,278 2.497 3,816 .3,2;)8 6,551 7,704 10,593 4,0.36 3,Si3 3, 743 .5,819 10, .580 7,492 6, 943 1.5,088 9,2.50 8,348 12,220 13,145 9,9.52 13,091 13, 190 11,685 8, .328 6,. 529 6,970 4,7.89 s,04S 10,159 8, 895 Pounds. 1,.VJ9 4,294 6,397 779 H.H7 (iiOi 436 327 384 306 .505 .576 969 1,3,55 1,107 647 641 rm 435 376 164 ISO ■i:t!i .5.39 .5(K) 673 U'22 54 KKPoK'r (>.\ riii: kmi:iu;i:n« v iauiif act, Tal)los 1,11, !in«l 111 show (hat siiico tUo passage of tho onicrgeucy tariir act tluMM^ ha-; luvn. wiiii the exception of coconut, oil, a t!;cncral fallini; oil' of iinpiu'ts of vci^ctahlc oils with, ho\vcv(>r, a sli(j:ht imnrovo- nu'nl i!i 1'.>"J"J, except in the case of cottonseetl oil. Similarly, altliono;h less proiuninctHl. there has occurred a (lecrease in lh(> (loniestic expiM'ts of vei^etahle oils: and the domestic (>xj)or(s of animal fats aiul oils have increased since the passa<;e oi this tarill" act by appro.xinuitely as much as the vej^etahle oil exports lup'e decreased. The chief in- crease in the shipments of animal fats has been to (Jermany since the resumption of commerv ial relations with that country, which prior to the war, was the larjj:ost buver of domestic fats. in 1021, Spain, P>anoe, and Italy increased tlieir duties on im- ports of veo;etal)lo oils, the duties iii the case of Franco applying to cottonseed and soya hean oil oriirinatin;; in the United States. PEAXIT OIL. Peanut oil is similar in properties and uses to cottonseed oil, but owins; to its superior Cjuality and taste it crenerally commands a hijzher price. AVith the exception of the " off " grades and foots, which enter into soap makino;, it is used chiefly for edible purposes, such as salad oils, oleomargarine and lard substitutes, for which it commands a distinctive market, competing with olive oil, the higher grades of cottonseed oil, and coconut oil, and as finished products, with lard and butter. In the United States peanuts are grown primarily for food and confectionery purposes. Only the culls and small sizes of Virginia peanuts and a small proportion of the Spanish or oil peanuts else- where grown are crushed for oil. The great bulk of the Spanish crop is used for forage purposes. \Mien the price of peanut oil is suffi- ciently high some of the Spanish peanuts are diverted to the oil trade. Table IV shows the ratio of production to exports and to consump- tion, and the ratio of imports to consumption. The outstanding fea- ture of the table is the large decrease in the ratio of imports to con- sumption in 1921, and the corresponding increase in the ratio of roduction to consumption. Table IV. — Peanut oil — Summanj table. [OOD omitted.] Domes- tic ex- Imports.- ports. H alio of— Year. Domestic production.' Domestic con- sumption. Produc- tion to exports. Imports to con- sump- tion. Pro- duction to con- sump- tion. 1915 Pound-r Pounds. Poundx. fi 47.5 Pounds. Pounds. Per cent. Per cent. Per cent- 1916 2S..5.34 1 ll/ilO .50,499 22,998 9.5. 934 62. 989 1917 191X 1919 1920 1921 Crude. 87,607 13,085 33,234 Refined. 184,604 73,460 34,200 » 4, 342 1.50, 104 1,425 !>0,.391 1,708 3,062 Crude. 212,3.53 85,068 42,543 Refined. 190,176 79,291 34,686 1.6 1.6 2.5 39 59 4 6'< 53 87 ' Largely from imported peanuts. « Converted at rate of 7.6 pounds to the gallon. •July l-Dec.31. REPORT OX THE EMERGENCY TARIFF ACT. 55 linp'^rts (if peanut oil ai'o nejirly nil from China and Japan (Table W). The volume ol the ihiport trade declined very much in the latter hall' of 1920. There was no immediate further decrease until two months after the passao'e of the emergency tariff act (Table VI). l^ecember, 1921, however, had the largest imports since September. 1920. Total imports in 1921 were, approximately, 3 p>?r cent of those for 1920. Among the factors mfkiencmg this decreased trade were famine con- ditions in ( hina during 1921, a larger domestic production in 1921 than in 1920, the vrorld-wide business depression, and the low prices of cottonseed oil and lard during 1921. Of the imports of p 'aiuits, no distirction is made between those for confectionery and for oil- cru-hing purposes. The ultimate channel of trade into whicii they enter is inlluenced by the prevailing prices. Most of the oil nuts are imported from Spain. Exports of peanut oil (Tables II and lY) have not shown any material <'hange since the emergency tariff went into effect. The price of crude peanut oil (Table VII) follows the general trend of that of crude cottonseed oil. While normally exceeding tlie latter, the converse situation prevailed during a large part of 1921. Prices of rehned peanut oil have constantly remained above those of refined cotton.see(i oil. T.w. -I'eanal oil — Inpoiis' by cowrilritf. [000 omit ted. I Year. Toial. France. Cerniany. Netlier- lands. China. .Tapan. 1912-1014 (avera':;e) - Pom;? (is. S 'W7 '•|,475 1!.'210 22.y9K >i2,9H9 ).'.''..104 .^•■■,301 3, 0.->5 Pounds. 3,'iS(> 2,S42 1.77S - 1,330 Pounds. 1,940 304 Pounds. 1,938 ■ l,.ioO 1211 S Pounds. 251 1.094 2,098 4,492 2.5,262 4S,237 10,S19 30 Pound*. 1915 JPlli 5,373 1917 14,470 IfiLS 3.'>, 188 i;»19 93,890 3920. . 30 S4 HI 70,308 1921 8 ' Ciallorij; con verted to pound.s by iactor 7.6. ' Part (iiitiaVle: fart .roe Table V'l. — Pfanul. oil — General bnQorta^ by months. liKAi omitted I .January.. February March April May ■luiie .Inly Pounds.\Pounds, 824 I 4,892 626 818 794 fi.09 592 499 9,197 21,024 21,340 8, 9.56 13,980 a. 748 1921 1922 1 Pov/nds. 1S4 172 227 361 •ao 262 264 Pounds. 185 1 42 ; 1 Month. August Septomber. October November. December. . Total Pounds. 409 491 .507 Sio 647 7,387 Pounds. 4,9S6 6,.5atc I f. <). 1). mills. 1921: Ciitx. .Iaiiiiar\ /. Kcbniarv f(. 4 March «. April .-..7 May .■>. 9 June (i. 1 July 6.1 August 7. ;{ September 7.7 f )ptober .■<. 4 November 7.7 Hcember 7.8 1922: .lamiary 7. 7 Februarv 8.5 Marcli 10.2 April 10.2 J:jMii:»ry I'obninrv Manh April Mav .1(1110 riiiv Aliens I September i)i-t,ihor .\o\ ember, Dec-ember Renm-d doineslii-. New York. Crnm. 12. :. 12..". 11. i» 10. .1 lU 5 10.1 10.1) 10.2 10.7 11.2 U.I) 11... 11..^ 11.4 12.1 13.0 ■ Nominal COTTONSEED OIL TIh' I'nitod .States pi-oduces approximately M) per cent of the world'.-^ cottonseed oil. and by virtue of this comrnanding position domiaiates the international markets for this commodity. The oil prodiic«»d in the United States is derived wholly from domestic cotton- -seed. Small amounts of oil and of cottonseed liave been imported in the past. Cottonseed oil is used in the manufacture of lard substitutes, oleo- margarine, soaps, and table oils. The process of hydrogenating cot- tonseed oil. by which a solid fat is obtained, brings it into (competi- tion with lard, butter, oleostearin, ajid tallow. High quality cot- tonseed oil competes with olive, corn, and peanut oils, while the '"off" grades compete with other low-grade vegetable oils and soap- making fats and fish oils. T \ r.i.K VIII. — I 'ottoriseed oil — Sanvaoiries- lic C'X- porl -. Jinporl^. Ratio of— . . ! 'onii' t if TiT(>- ' ^"' .liiftion. Con-unipiion. Pro- i Im- duc- 1 ports lion to ; to con- e.x- vump- ports. 1 tion. Pro- du.-- tion to COIl- sumjv lion. 1910-1914 (W- 1 Pitunls. erauej ■ iH.5.03.) Pmtniit. 271. 42« :<1S.:)';..512 1.''S.911 100.779 19:i. i:« im.7.t:{ 2.->2. .-.91 is! 1917 l.34:j,.S49 12 191S l.2J«.S2:{ 8 Crude.; Itcfinwl. 1919 1.429.»4!5;l,ie9.«01 1920 1,142,671, 979.742 1921 Il, 277.0291. 191. 79« Crude. I,:tl7,7is 1,13.3,777 l,302,69fi Refined. 900.008 676,902 895.033 7! 1 9i i 10 u: 117 Hi • 1912-1914, inclu'^ive. Source, .SurA-ey and C. 4 N. REPORT ON THE EMERGENCY TARIFF ACT, 57 Table VIII indicates the commanding position of the United States with respect to cottonseed oil. Domestic production has been in excess of 1,000,000,000 pounds annually since 1916. Except during the war years, when every effort was made to ship large quantities of oils to Europe, domestic consumption has almost equaled produc- tion, leaving an exportable surplus of 7 to 8 per cent. The ratio of imports to consumption has never exceeded 1 or 2 per cent. Im- ports of cottonseed oil have never exceeded a small fraction of domestic production or exports. Since the emergency tariff was enacted, imports of cottonseed oil have ceased entu-ely. Formerly imports were chiefly from China, Japan, and England, as shown in Table IX. There have been imports of cottonseed, chiefly from Mexico, but they were insignificant compared with domestic production. The United States maintams an export basis with respect to this com- modity. Quarantines prevent imports from other sources. Table IX.^ — Cottonseed oil — Imports by countries. [000 omitted.] Year." Total. Englajad. China. •Tapan. 1912-1914 (average) Pounds. 7, 396 15, 162 17, 180 13,703 14, 291 27,805 9,457 668 Pounds. 2,182 771 31 Pounds. 4,513 10, 870 13, 288 9, 156 9,063 15, 676 3, 155 Pounds. 1915 50 1916 1 784 1917 2;251 1 837 1918 1919 4 779 1920 4' i25 1921 1 Fiscal years, 1912-19IS; calendar years, 1919-1921. Table X. — Cottonseed oil — Imports by months. [000 omitted.) Month. January... February . March April May June July August September October. . . November, December. Pounds. 1, 518 823 1,.504 1.084 1,442 1,.544 2,891 1,023 1,067 1,974 1,229 727 1920 1921 1922 Pounds. 1,768 Pounds. 114 271 52 145 28 .50 Pounds. 493 1,4.55 1,297 1,005 2, 789 438 48 91 35 32 Exports of cottonseed oil have been chiefly to the Netherlands, United Kingdom, and Canada. After the emergency tariff went itito effect exports dechned materially. It should be noted, however, tluit this followed an unusually short cotton crop. 58 HKJ'OUT (IN" riir. KMKKCr.XCY T.MllI r ACT, Tadle XI, — Cottonseed oil — Ea parts liy countries. |()(K)5 June 11,272 July 3,081 Aupust 2, (i63 September | 4,849 October 7,499 November ! 22,S69 December 41,421 1921. Januarj' 70,100 February ;.;»,689 March iib, 3S9 April 20,997 Mav IS, 948 Juiie 11, 102 July 7,290 Aujaist 5,155 September 7,544 October 10,055 November 10,342 December 11,919 1922. January 11 , 427 February | 9, 097 March . .". i 9, 6.55 April ! 4,135 Bel- gium. Den- mark. France. Pounds. 1, 195 4 1,080 Pounds. 36 |. 190 1.52 504 519 344 129 151 78 181 37 1,709 380 37 419 36 19 250 1,237 ?,.399 1,687 943 1,.327 362 1.53 37 1,117 977 1,126 717 896 1,131 943 715 209 Ponnds. 1,921 3,379 1,683 249 513 242 41 344 270 75 76 1,238 1,235 51 2, 7oS 1,999 135 328 436 119 284 124 Italy. Nether- lands. Pounds. 215 4,141 7,466 745 4,639 138 Pounds. 1,578 1,586 2 1,726 1,486 1,018 1,402 9, 120 8,185 I 2,421 902 805 977 104 I 199 . 3.59 I 57 i 57 I 101 107 8,051 23,280 35, 210 18,059 17,024 9,355 4,669 3,364 2.087 98 118 722 813 Nor- way. Ponnds. 2, 7.55 2,441 1,171 1,770 1,175 .574 387 327 627 890 1,413 1,256 .590 774 214 United King- dom. Pounds. 35 39 389 213 828 4 384 1,151 5,430 4,443 8,846 52 1,4.57 663 1,319 1,096 30 11 1,207 1,189 Canada. 20 Poun'Is. 5, 367 8,466 7.075 5,478 3, 221 3,603 1,248 154 704 1,150 4,637 3, 9.5C 3,64i; 4,36H 8,250 4,277 4,002 2,195 903 467 1,191 3,916 4,997 6,865 6,176 5,382 5,463 2,138 The price of cottonseed oil is influenced chiefly by the price of lard, of whif-h the United States is the largest exporter. When the price of lard exceeds that of cottonseed oil by a certain amount, the market for lard substitutes, which consumes 80 per cent of our cotton- seed oil production, is improved and the price of the oil advances. Table XlII .shows the price tcend of cottonseed oil since 1914. It will be noted that minimum prices for recent vears prevailed in April, 1921. The subsequent rise in prices, while possibly due in some measure to the effect of the emergency tariff, was influenced by at least four other factors: (1) The shortest cotton crop in two decades. EEPORT ON THE EMERGENCY TARIFF ACT. 59 (2) The large increase in lard exports in 1921, which advanced the price of lard and, consequently, of cottonseed oil. (3) A world shortage of vegetable fats. The Mediterranean olive- oil crop, normally in excess of 2,000,000,000 pounds, was 44 per cent short, and the Manchurian soya-bean-oil crop was 20 per cent short. (4) A gradual relaxation of business deflation with resultant stiffen- ing of prices of nearly all commodities. Table XIII. — Cottonseed oil — Average price per pound. Date. 1914 January April July October 1919 January April.." July October 1920, January February March April May June July Au^st September October Crude, f. o. b. southern mills. 6.1 6.6 6.4 4.7 17.5 17.5 17.0 17.5 19.7 18.5 19.2 18.7 18.2 17.9 14.5 12.2 13.3 10.3 Prime sum- mer yellow spot, New York. Cents. 20.2 21.7 26.7 23.0 22.0 20.2 19.2 18.7 18.2 17.9 14.5 12.2 13.3 10.3 Date. 1920— Continued. November December January. February.. March April May June , July I August I September. ! October November. December . . 1921. January. . February. March April Crude, f. o. b. souiheru mills. Cent?. 10.5 9.0 6.7 5.7 7.1 7.3 8.1 8.5 9.2 9.0 8.4 8.3 7.0 8.1 10.2 Prime sum- mer yellow spot, New York. Cents. 10.5 9.0 8.2 7.5 6.7 5.7 7.1 7.3 8.1 8.5 9.2 9.0 8.4 8.3 8.6 9.4 11.8 11.4 COCONUT OIL. The coconut-oil industry in the United States is divided into two parts — (1) the crushing of imported copra and (2) the refining of im- ported crude oil. The chief uses of coconut oil in the order of their importance are in the making of soap, oleomargarine, lard substitutes, filled milk, and toilet preparations. Because it is a solid fat at or- dinary temperatures coconut oil is specially desirable for margarines and nut butters. Soaps made from coconut oil possess marked lathering properties. These special characteristics of coconut oil five it certain distinctive uses, and hence in many cases it can scarcely e said that it is directly competitive with other vegetable oils. It is rather used in conjunction with or supplementary to other oils and does not compete directly with oil crushed from domestic raw materials. Because of objectionable physical characteiistics when this oil is heated it can not be used extensively in making lard sub- stitutes, the principal use for domestic cottonseed oil. The outstanding feature in connection with coconut oil is the posi- tion of the Philippines in the trade in this oil. About 75 per cent of our imports is obtained from this source and enters the United States duty free. The Phihppines in 1916 contained about 56,000,000 coconut trees, of which about half were then bearing. Therefore the supply of oil from this source may be greatly increased if wat-ranted by future market conditions. Moreover the American tariff j)er- GO ItKl'ttKT ON rilK K.MKlUiKXCY TAPJl F ACT. luits tho froo I'litrv from tlio Philippines of coconut oil in tlio manu- racturo of which 20 per cent of forci<]:n material is permitted to be used. (\)i)ra. the dried meat of the coconut, is the raw material from wliicli coconut oil is pressed, and contains ahout ^A) per cent of oil. The suj)ply of copra from the Philippines has varied greatly raimin<: from (» |)(>r cent of our imports of this product in 19PJ to (34 pi'r cent in PU") and to 14 percent in PJ21. The (pnilitv of the oil «)l)tained from this s()urce is often inferior to that made from South Sea Island and C\)chin copra, because the jj;rades from those coun- tries are sun cured, whereas in the Philippines resort is had to arti- ficial dryinj;, a metliod wliich gives the oil a less desirable color. As most of our coconut oil is imported duty free from the Philip- nines, the tMiiorgoncy tariff has had no groat effect on total imports. Sloroover no duty was imposed on copra, the chief form of imports from other countries. Tables XIV. XV. and XVI show that imports of coconut oil, both as (»il and as coi)ra.. reached their peak in 1918-19, and have since de- creased annually, but still exceed three times the pre-war imports. Table XVI 1 . giving imports of copra, indicates that there has been no great tendency to bring in the oil in this form in order to avoid pay- ment of duty. The ratio of Philippine oil imports to total oil im- ports increased from 46 per cent in 1916 to 87 per cent in 1921 (Table XIV). Dutiable imports of coconut oil showed a marked decrease in November, 1920, and declined still further in May, 1921, while free imports of the oil from the Philippine Islands have tended to in- crease since the emergency tariff went into effect. The import trade in coconut oil and copra, with especial reference to countries of origin, is shown in Tables XIV and XVI, as follows: Table XIV. — Coconut oil and copra — Imports bji countries. [000 omitted.] Year.' 1910-1914 (average).. 1915 1916 1917 1918 1919..., 1920 1921 (free)... 1921 (duti- able) Total. Coco- nut oil. Pounds. h\, 145 t>i. i:i5 m. 007 79, 2n 259, 194 2S1,06:J 216,:i27 188.694 1,022 Oilln copra, 50 per cent basis. Pounds. 20,241 45,273 55, 039 123, .518 243, .500 129,458 107, 594 94,660 401 East Indies. Japan. Philippine Islands. Coco- nut oil. Pounds. 27,692 24,259 22,887 2*3,692 39, .572 .58,008 57, 184 23.626 Oilin copra, .50 per cent basis. I Oilln Coco- I ?«P^«' nut oil. Pounds. 529 271 871 22, .501 32,935 11,174 19,910 11,882 Pounds. 143 435 5,038 5,257 .59, 256 14,902 2,351 Oilin , Coco- ! ^"P""^' •^»Pf nutoTl. 50 Pf cent i cent basis. I basis. Pounds. 112 1,679 3,698 12, 135 1,103 503 Pounds. Pounds. 10,220 ■ 13,079 31,971 30,074 44,254 154,704 201,310 153, 181 163,966 29, 128 17, 339 4.3,529 109, 777 8,197 11,359 41,398 R atio of oil im- ports from Philip- pine Islands to total oil im- ports. I Ratio of oilin I copra imports from Philip- pine Islands to total copra imports. Per cent. 19 51 46 56 60 72 71 87 Per cent. 65 64 32 35 45 6 11 44 ' FLscal years, 1910-1918; calendar yeans, 1919-1921, EEPORT ON THE EMERGENCY TARIFF ACT, 61 Table XV. — Coconut oil — Imports by months. 1000 omitted.] January February . . ♦March April May .June July August Sepiember. October. . . November., December. . January... . February. . March April , May , June July August September. October. . .. November. . December. . January.. I'ebruary. March April Date. 12,767 27,072 4,202 10, 228 2,817 8,620 19,041 9,407 21,422 8,929 23,539 20, 393 22,443 23,994 33, 159 18,759 Table XVI. — Coconut oil and copra {calculated as 50 per cent oil) — Combined imports. [000 omitted.] Date. 1910-1914 (average) 1915 1916 1917 lOlS 1919 1920 i 1921 Imports, coconut oU.i Pounds. 74, 386 108,408 121,046 202,741 502,694 410, 521 323,921 284, 376 I^P^t^ i Exports, PhiUppine «°c9r^ Islands. 1 ' °"- Pounds. 23,299 61, 099 47,413 87,783 264, 481 209, 507 164, 540 205,364 Pounds. » 118,612 25, 695 7,498 Ratio of Philippine Islands imports to total imports. Per cent. 31 56 39 43 53 51 .50 72 Ratio of exports to imports. Per cent. ' Refined and crade coconut oil plus imports of copra calculated as 50 per ceat oil. [Illy I-Dcc. 31. fiOS— 22 5 &2 i;i:riii:i i».\ nii, i.Aii.iaii. .\r\ TAKii'F ACT. Taiu.i: W'H. -Copra — Imports Ini vionlhs. ' [UOO omitted.) Phlllp- I "\.\\. IlillO 'isl'.uuts. iHiiimrv 'JI,n5S IVt.riisiVv i 16,745 Manli , 16,267 April ' 17,958 Mav 10,446 Juiic 13,279 Jiilv ; 14,276 AUKMst 36,0M s<'ptoralier 20,010 Octol'or 16,106 November 16,777 Dw-oniber 15,275 1921. Jaiumrv 16,535 February l 6,096 Pound*. 5,764 ""885' 5,2.^7 8,949 1,108 735 4,273 Patch F.iisl Indies, Poundi, 5, WO 5,540 1,40.'< .00 5,298 1,118 3,278 65:{ 6,396 165 Japan. Pounds. 26 140 825 942 62 216 1,006 l)i>tf. 1921. March April Muy June July Au'insl Seploinher. Oclo'ier. . . No.einlier., December. , 1 Philip- 1 Total. nine ! I Islands. 1922. January. .. February. . March Pounds.' Pouncs. 10,268 I I2,7()9 1.5,264 2), 225 •_'J,:WJ 2i),241 5,967 12,661 4,865 41,391 4,144 4,897 6,721 14,6(0 4,670 4,227 4,3.'>2 33,382 I 25, U2 22,194 14,279 20,468 10,707 Dutch East [Japan. Indies, i Pounds. 4,409 1,442 2,4.^ 3,807 3,270 1 Pounds 36 1,.')98 1,780 T.\BLE XVI II. — Coconut oil. (000 omitted.] Domestic production. Pounds. 1915 1916 104,727 1917 1S^;,4S8 J918 341,23.5 1919 »215,542 |<277,093 1920 '131,218 < 1N'>,944 1921 '113,194 < 122,075 Domes- tin exports, i P°rts.' Im- pound*. 108,408 121,046 202,741 502,694 2 118,612 !-410,521 25,69.5 .323,921 7,498 J2S4,376 Pounds. Consumption. Ratio of— Pounds. '422,257 M 212,217 '294,099 I < 236, 103 '235,090 I < 139, 418 Produc- tion to ports. Per ct. to con- 1 ''„""■" Per ct. Per ct 1 ReOned plus crude plus copra (50 per cent oil). «July 1-Dec.31. • Crude. * Refined. Table XVIII shows the relation between domestic production, domestic exports, imports, and consumption of coconut oil. These have nearly all decreased since 1919. The ratio of production to exports decreased from 24 per cent in 1919 to 3 per cent in 1921, while the ratio of imports to consumption increased shghtly, and the ratio of production to consumption decreased shghtly in the same period. A\1iile both imports and exports have declined since the peak year of 1918, the ratio of exports to imports has declined from 53 per cent in 1918 to 3 per cent in 1921, which is doubtless due to the stabiliza- tion of the European trade (Table XVIIl). In connection with the decrease in exports of coconut oil there should be considered the increase in exports of animal fats and oils (see Table III) ; since coconut oil can be substituted, to a limited extent, for animal fats and oils, such interchangeabihty has a direct bearing on the vegetable oil situation. The price of coconut oil is largel}^ influenced by the prices of other vegetable oils, particularly cottonseed oil, and by the price of tallow KEPORT ON THE EMERGENCY TARIFF ACT. 63 and lard: tho extent to which it is affected depends upon the specific use for which the oil is desired. Table XIX gives the average prices of coconut oil since 1914. Cochin is the commercial name for the highest quality oil; the next best are Ceylon and Manila grades. These names are used regardless of source. Table XIX. — Coconut oil — Average price per pound in New York. Date. 1914. January... April July October... 1919. January... April July October.. . 1920. January 20.7 February. March..".... April May June July August September. October Cocbin. Cents. 12.5 10.5 10.5 16 18.7 17.8 22 19.6 20.2 10.7 19.4 19.7 19.1 17.7 16.7 17 16.6 Oeylon. Cents. 10.7 9.6 15 14.8 19.5 18.5 Manila. Cents. 15.3 14.8 19.5 18.2 Excess Cochin over Manila. Cents. 3.4 3 2.5 1.4 19.2 19.2 1.6 18.5 18.5 1.7 18.3 18.3 1.4 18.6 18.4 1 18.4 18.4 1.3 18 18 1.1 16.2 16.2 1.5 15.1 15.2 1.5 15.2 15.1 1.9 15.7 15.7 .9 Date. 1920— Cont'd. November December 1921. January February March April May June , July August September October November December , 1922. January February March April Cochin. 13 11.6 10.2 9.9 11.1 11,2 10.5 11.2 11 10.7 10.2 10 10.1 9.7 Oylon. Cents. Cents. 15. 5 15. 2 13.6 I 12.7 Manila. 9.2 10 I 10.2 j 10.2 1 10 j 10 ! 9.8 I 9.5 1 9.3 9.1 8.8 9.3 Cents. 15.2 12.7 11.9 10.5 9 9.2 10 10.2 10.2 10 10 9.5 9.5 9.2 9.1 9 Excess Cochin over Manila. Cents. 1.1 1.1 1.2 l!l 1 .3 1.2 1 1.2 .7 SOYA-BEAN OIL. Soya-bean oil, derived from the soya bean, which is extensively cultivated in Manchuria, China, and Japan, first became an important article of commerce in about 1912, as a cheap and satisfactory sub- stitute for cottonseed oil in soap making and, to a varying extent, for linseed oil. Manchuria, the soya-bean center of the world, is the chief source of supply for the oil, the movement of which is controlled by the Japanese. Large quantities of soya beans are grown in the United States for forage purposes only. Imports of soya beans are small. No beans, either of domestic or foreign origin, have been crushed for oil in the United States since the years 1918 to 1921. The oil is imported in the crude form and refined in the United States. The soap industry is the largest consumer of soya-bean oil, approximating, in normal times, the consumption of cottonseed oil in this industry. Next in order of importance comes the lard-substitute industry, but for this purpose soya-bean oil is not a complete substitute for any other oil, because it can not be used in large proportion on account of the difficulty of bleaching and of wholly eliminating its taste by refining or deodorizing. A considerable quantity of the oil is also used as a partial substitute or as an adulterant for linseed oil. Competition witli domestic materials is chiefly with cottonseed oil and soap-making fats and greases, and is dependent upon the price relationship existing between these commodities. A differential of approximateh^ 3 cents per pound on the Pacific coast in favor of soya- bean oil in comparison with crude cottonseed oil is usually necessary to make the former an attractive purchase for the soap maker. 64 r.Ki'our i)N riiK K.MKiaiKNCv taiuik act. T\\v pri»(lu('ti(in of refined sova-lx-an oil (Tnhle XX) has decreased as a result of the diminished sup{)ly of the imported crude oil. E.xports of the oil have decreased for the same reason. Domestic consump- tion since »hme. HKJl, has been from stocks already on hand. With the cessation of imports, ratios of imports to consumption, and production to exports and consumption liave little value. T.\m,K ?CX. — Soi/a-bean oil — Sianmanj table. [000 omitted.] 1 >omestic produc- tion.' Domestic e.xports. Imports (on -11 Foi ni]->tion. Ratio of— Yo;ir. Produc- tion to exports. Im- ports to con- sump- tion. Produc- tion to con- sump- tion. 1910-1914 (average).. Founds. Pounds. Piiuiidi. 1V/M17 'IS, ll'l :;:;i'.,s.'i ia-.,,sns U2,213 Dutiable. Free. 997 16,286 mds. Per ct. Per ct. Per et. 1915 1916 2,249 1,268 409 5 149,048 » 64, 625 »5,656 1917 1918 1919 1920 3 27,715 43,512 1,944 '224,635 n20,085 «28,822 n06,7Sl 2 36,525 no, 527 19 67 34 59 72 44 45 41 1921 14 » Largely from imported soj-a beans, s Refined. 'July 1-Dec. 31. 4 Cn^de. With the passage of the emergency tariff imports of soya-bean oil (Tables XXI and XXII) ceased completely until March, 1922. It should not be assumed that the increased tariff vras wholly responsible for this situation, as the low prices of cottonseed oil prevailing since then have made purchases of soya-bean oil unnecessary, and, further- more, there has been increased competition from European nations in the oriental oil market. Year.i Table XXI. — Soya-bean oil — Imports by countries. [000 omitted.] 1912-1914 (average).. 1915 1916 1917 Totalim- ports. Imports from— China. Poundt. [PouTids. 18,907 t 1,327 19,206 I 3,072 98,119 . 14,685 162,690 i 12,911 Japan and Kwan- tung. Pounds. 11,449 1.5, 146 83,171 149,489 Year.i 1918 1919 1920 1921 (dutiable and free) Total im- ports. PouTids. 336,824 195, 808 112,213 17,282 I Fiscal years, 1912-1918; calendar years, 1919-1921. Imports from— China. Pounds. 12,470 11,230 2,484 1,944 Pounds. 324,273 183,260 109,727 15.295 REPORT ON THE EMERGENCY TARIFF ACT, 65 Table XXII. — Soya-bean oil — General imports by months. [000 omitted.] May. June July Au^ist September. October November. December. . Month. January February M«-h {g;-,^i3: April /Free "IDutiable. Quantity. 1914 Pounds. 667 264 3,cS43 1920 1921 312 817 498 700 3,791 486 547 634 141 Pounds. 8,371 14,102 18, 451 Pounds. 5 1,000 2,116 1922 Pounds . 14, 990 12, 898 10,841 10,646 10, 376 7,184 226 2,011 2,113 7,032 5,073 1 1. 057 4.87 509 « 1, 014 * Reported too late for May statistics. s Only 1,023 pounds entered for consumption in first quarter of 1922. As with peanut oil, the price of soya-bean oil follows the trend of the cottonseed oil market (Table XXtll). Normall}^, crude soya-bean oil is I to 2 cents per pound less than crude cottonseed oil in the eastern markets, but during the severe deflation of prices in 1920-21 soya-bean oil was slightly higher in price until the latter part of 1921, when the normal relationship again prevailed. Table XXIII. — Soya-bean oil — Average price per pound in New York. January . AprQ..'. . July October. 1914. Cents. . (i.4 . 0.4 . 6.2 . Co January IS. AprU 14. 6 July 20. October 17. 9 1920. January IS. 7 February I*-'. 2 March IS. 7 IS. 1 17. 3 10.8 ]o.5 April. May. . June. July. August 14. 1 September 13. 6 October 13. 6 1920. OenU November 11. December 9. 1921. January -S. February (>. March 6. April 7. May 7. June 7. July , 8. August 8. September 8. October 9. November 8. December 9. 1922. January 10. Februarv 10. March . .'. 12. April n. OLIVE OIL. The emergency tariff act increased the duty on olive oil from 20 cents per gallon in bulk and 30 cents per gallon in containers of less than 5 gallons to 40 cents per gallon in bulk and 50 cents per gallon in containers of less than 5 gallons. It should be noted that two sets of producing interest are concerned with the import duties, i. c., the domestic olive industry and the eastern packers, who import olive oil in bulk (in casks) and repack it in small containers under varying trade brands for the retail trade. The product of the packers competes with the foreign packed olive oil, and the elfective duty is the higher rate upon the oil in small containers. In addition to the (U) iiKPciM' ON Till': r..Mi;i{<;KN(V rAUiiF \cr. tarifY ratos. doinostic producers havo the indirect protection of foreign expiM't diitios. The olivos jjirown in Californui aiul Arizona are used nialaly in the manufacture of the ripe pickled ohve. It is only the iniperifect or inferior grade of fruit tiiat is made into oil. Tahi.k XXIV. — Olive nil, alible — Summnry table. Year. l<»l(V19Hv;l\il;.mM... 191.S 1916 1917 191K 1919; Cnide and virgin. Refined Production.' Pounds.' Gallons.' ("nide and virgin . Refined Crude and virgin. Refined , 4f)2, 000 9r>3,000 618,000 4.1S,694 101, 796 643,116 8,300 974, 42.5 74, 412 192, 126, 81, 57, 13, 84, 1, 128, Imports. Oallons. 4,876,623 6,710,967 7,224,431 7, 533, 149 2,537,512 I 9,024,136 4,078,811 6,628,099 • Ciilcndar years. » Bulletin No. 769, The Production and Conservation of Fats and Oils in the United States, by the U. S. Department of Agriculture. Census figures for 1919, 1920, and 1921. '' .\ gallon of olive oil weighs 7.61 pounds. ■< Fiscal years, 1910-1918; calendar years, 1919-1921. The domestic production of crude and virgin olive oil in 1921 amounted to 128,045 gallons. In the same year the imports, mostly from Italy and Spain, amounted to 6,628,099 gallons. Approxi- mately 55 per cent of the imports for consumption in 1921 was received in bulk and packed in tnis country, while the remainder was in packages containing less than 5 gallons each. Table XXV. — Olive oil, edible — -Imports by countries. Year.i Total. 1910-1914 (averase 4, 876, 623 1915 6,710,967 1916 7,224,4:31 1917 1 7,53.3,149 1918 ! 2, 537, 512 1919 9, 024, 136 1920 4,078,811 1921 6,628,099 Spain. Gallons. 292,432 490,920 1,.'!.")4,015 3,776,581 2,091,400 8,-557,416 2,420,592 1,230,942 Italy. I- France. I All other. Gallons. 3,2M,220 4,864,388 4,700,412 2,882,535 200,403 251,902 1,124,041 3,108,749 Gallons. 864,796 802,092 891,769 726,771 227,617 18:3, 124 382,040 626,570 Gallons. 426, 175 .55 i, 567 278,2i.5 147,262 18,092 31,694 152,138 1,661,838 1 Fiscal years, 1910-1918; calendar years, 1919-1921. Diiring the last year of the war imports were materially reduced because of the short foreign supply and the export restrictions en- forced bv foreign producing countries. The emergency tariff appears not to liave decreased imports. Neither is it likely to have this effect since domestic production is so small as to be almost negligible j in the country's normal consumption. California does not produce a sufficient supply of oil for consumption by the lish-packino; industry in that wState. Substitutes for olive oil, which are produced domesti- cally in large quantities and the use of which is increasing, are cotton- seed oil, peanut oil, and corn oil. REPOKT OX THE EMERGENCY TAEIEF ACT. Table XXVI. — Olive oil, edible — General imports, by months. 67 Month. 1920 1921 Gallons. January | 249, 194 February ' 153, 705 March , 494, 033 April I 454,032 May 339,621 June 304, 381 July I 275,437 August ; 443, 797 September \ 530, 859 October 394, 457 November i 263, 299 December | 175, 996 Total I 4,078,811 Gallons. 170, 592 114,181 220, 326 574, 298 549, 282 730, 883 944, 890 949,935 650,180 552, 757 481,690 689,085 6,628,099 1922 GalloTis. 539,047 304, 262 595,481 539,911 1,978,701 Table XXVII. — Olive oil, fit only for manufacturing or mechanical purposes — General imports, by months (free). Month. 1920 1921 1922 January Gallons. Gallons . Gallons. 31 983 Febniary 2,486 39, 804 42, 822 22,985 135, 776 44,697 76, 2S0 48, 345 50, 272 43,024 49,582 129 504 March 11, 788 18,923 15,098 2,524 4,432 4,964 500 190 868 April 255' 225 May June July August September October November 5,022 2,898 December Total 66, 149 556, 073 607,585 Foreign production. — The olive-oil crop in tlie Mediterranean coun- tries for the season 1920-21 was estimated at 597,000 metric tons, or about 174,000,000 gallons.^ Production of individual countries was as follows: Spain, 200,000 tons; Portugal, 35,000 tons; Italy, 150,000 tons; France, 10,000 tons; Algeria, 15,000 tons; Tunis, 15,000 tons; Morocco, 12,000 tons; New Greece, 70,000 tons; other countries, 80,000 tons. Table XXVIII. — Olive oil, edible (in barrels) — Price per gallon.^- Month. 1920 1921 1922 High. Low. High. Low. $2.60 2.20 1.80 ].60 J.60 1.95 1.95 1.50 1.50 1.65 1.85 1.85 High. Low. January 13.70 3.25 3.50 3.45 3.80 4.25 4.50 4.00 3.80 3.80 3.40 3.20 $2.90 3.10 2.90 3.05 3.05 3.30 3.40 3.40 2.75 3.40 3.00 3.00 $3.50 3.00 2.50 2.25 2.25 2.60 2.25 2.25 1.75 1.85 1.85 2.00 $2.00 2.00 2.00 2.50 2.50 $1.80 February 1.80 M arch 1.80 April 1.80 May 2.00 June July September October December o Oil, Taint and Drug Reporter. ' Statistics pubUshed by New York Journal of Oonimorco. (>S iiKroKT ox rill'. l'..MKl!(;K^•(•^■ TAitii'i' act. Pricift. — Tabli' XX'S'lII shows, bv months, the \n^h and low prices of oiiibh^ oHvo oil at Now "^ork. l)i(roroncos in quaUty, tho Hmitod quantity of tho domestic product, and the ditfcrcnt methods in sell- ing: ilo not permit a suHiciently cU)se comparison of price quotations to deteruiinc the elfect of the emeri];encv tariff. CATTLE, BEEF, AND VEAL. Cattle ' Emorgoncy tariff rate. Senate bill. Act of 1913. Act of 1909. Free $2 per head. One yo;ir old or more Viilm-d at not more than $14 per head. $3.75 per head. 27 J per cent. $U per head. Fresh or frozen beef and veal 2centsperpound.. 3i cents per pound. Free li cents per pound > Cattle and sheep and other stock imported for breeding purposes, free. Tlie position of the United States amon^ the leading agricultural nations of the world with respect to cattle, beef, and veal is shown in the following table of production and export of these products; Table T. — Cattle a7id becf^Production and export of leading countries. Country. Year. Cattle raised. Kxport'-" of beef. Arjcntina 1918 A u'^tralia 1917 Canada j 1920 New Zealand 1919 United State.-; I 1920 Number. 27,0.=10,000 11,950,024 9,477,000 3,035,478 68,232,000 Pnumb. 1,352 Off) 000 180,249,301 110,047,800 80,451,200 '217,110,962 > Imports of rattle into the United States, expressed in terms of beef, more than offset these exports in 1920. See Table II, p. 09. From this table it will be seen that the United States is by far the largest cattle producing country in the world and that it is a large exporter of beef and veal. The figure for exports in 1920 is some- what misleading, however, if exports are considered without refer- ence to imports of beef either in the form of meat or cattle on the hoof.^ That the United States has recently changed from a net export- ing country of these products to a net importing country is brought out in the following table of imports and exports since 1900. I iiccau^c of their interrelation it is necessary to con<;ider cattle, beef and veal together in studying the effect of the emergency tariff on them. In sorne cases however, they are treated separately in tlie accora- fanying tables. EEPORT ON THE EMERGEXCY TARIFF ACT. 69 Table II. — Beef and cattle — Imports and exports {cattle expressedin beef equivalent). [000 omitted.] Year. Imports. Exports. Excess of exports. Excess of imports. 1900 Pounds. 66, 051 55, 174 38, 169 25, 191 6,233 10, 515 10,917 12,257 34,854 52,748 74, 290 Pound-'!. 672, 630 736, 827 653, 652 626, 337 770,947 699,930 764, 409 614,990 481, 953 307, 162 211,064 183,679 127, 682 54,888 44,151 280, 027 329, 712 328,791 530, 040 504, 786 258, 979 120, 882 Pounds. 606,579 681,653 615,482 601, 146 764, 714 689, 415 753, 492 602, 733 447, 099 254,414 136, 774 114,681 7,380 Pounds. 1901 1902 1903 • 1904 1905 1906 1907 1908 1909 1910 1911 68. 998 1912 ! 120; 302 1913 i 163. 659 lOS, 771 1914 505, 422 427, 232 272, 111 183,380 158,093 234, 895 301, 334 190, 456 461 271 1915 147,205 1916 57, 601 145, 411 371, 947 269, 891 1917 1918 1919 1920 42,355 69, 574 1921 It appears from the above table that about the year 1912 this coun- try changed from a net exporting to a net importing basis for beef and veal. During the war there was a shift back for four years, but since 1919 there has been a return to the importing basis. So long as the United States was a heavy exporter of beef a duty could do but little more than steady the market against occasional upsets, but the balance of advantage as between producers and con- sumers is more uncertain when imports normally exceed exports. In the foregoing tables cattle, beef, and veal have been considered together for purposes of a general view of the industry ; but in the fol- lowing tables they will receive separate treatment for the most part. Table III following shows the production, imports, and exports of cattle by years since 1915 as compared with the pre-war five-year average. Table III. — Cattle — Domestic production, imports, and exports. Year. 1900-1904 (average! 1910-1914 (average) 1915 1910 1917 1918 1919 1920 1921 On farms in United States.i Number. 58,095,000 58, G7(), 773 58,329,000 61,920,000 f)4,5S;^,000 07,422,000 68, 560, 000 68,309,000 66,191,000 Slaughtered in public stock- yards.2 ' Calendar year. 2 Department of Agriculture Yearbook, 1921, p. 758. « FLscal years, 1900-1918; calendar years, 1919-1921. Number. 10, 457, 889 13,275,168 14,874,199 13,033,087 12,194,251 Imports into United States.3 Number. 101,057 397,450 538, 167 439, 1,S5 374,826 293,719 (;42,395 379,114 194,871 Domestic exports.3 Niiviber. 448,995 87,625 5,484 21,287 13,387 18,213 69,859 85,302 VM\,S3i 70 r.KPOHr ox TIIH K.MKUr.KNCV I AIM FF ACT. The outstanding feature of Tal)lc> 111 is the negli«;ible quantity of imports and exports of cattle as conipared with the total number on farms or the number slauj^litered. It should be remembered, however, that much of the trade in cattle products is often in the form of beef rather than in cattle as such. Statistics for the trade in beef and veal are presented in Table IV following: TvniE IV. — Froih Ixrf and veal — Production, imports, and exports. [000 omitted.] Produc- tion.! Imports.* Exports.* Year. Quantity. Per cent of produc- tion. Quantity. Per cent of produc- tion. 1900 Pnundx. 8,962,805 9,545,343 7,177,981 7,384,045 7,859,854 8,670,651 9.876.410 8,737.029 3 7,399,000 7,082,000 Pounds. Per cent. Pounds. 329,079 122,953 6,394 170,440 231,214 197,177 370,033 174,427 89,649 10,413 Per cent. 3.67 1909 1.29 1914 1915 1916 1917 1918 1919 1920 1921 m,i37 184,491 71,102 15,217 25,4.52 38,462 50,182 32,378 2.51 2.50 .90 .18 .26 .44 .68 .46 .09 2.31 2.94 2.27 3.75 2.00 1.21 .15 ' Calendar year. Figures taken from the Agricultural Yearbook, 1920. » Fiscal yeaVs, 1910-1918; calendar years, 191;)-1921. 5 Prior to 1920 production figures include edible offal. The hnports and exports of cattle are small as compared with the total production in the United States. It should not be as- sumed, however, that a duty on these products will be negligible in its effect on prices merely because the imports are a small per- centage of the total production. The trade of the United States in cattle, beef, and veal is further analyzed in the follomng table of imports and exports by countries: Table V. — Cattle — Imports and exports by countries Year,! Total. Canada. Mexico. Imports. 1 Exports. 1 Imports. Exports. Imports. Exports. 1910-1914 (average) Number. ' Number. 397,450 ' 87,625 538,167 ; 5,484 4.39,185 1 21,287 374,826 13,387 293,719 i 18,?13 642,395 1 69,8.59 379,114 85,302 194,871 196,533 Number. | Number. .56,096 ' 9,105 191, ,540 751 238,025 4,511 189, 285 6, 382 185,089 7,286 .550,004 11,192 316,559 4.624 Number. 339,616 346,004 Number. 7,341 1915 829 1916 1917 197,788 3,990 183,827 4,324 1918 105,470 7,777 1919 90, 541 23, 923 1920 58,926 27.758 1921 179,408 7,823 Hingdom. 13,874 All other 138, 239 Ycar.i Cuba. United I countries. Impoits* Exports. Imports. Exports. Imports. Exports. 1910-1914 (average) Number. Number. 329 Number. 1,732 623 1,161 1,714 Number. m,432 Number. Number. 6 4.428 1915 1S6 3,718 11, 145 1,205 1,524 20.801 1916 191 7 is : 826 1.476 815 2,198 191^ 191'j 1,607 13,943 20,766 15, 182 1,063 806 19 2,097 1,044 1920 2,113 973 100 31,324 1,516 32' 054 1921 616 3.965 1 Fiscal years, 1910-1918; calendar years, 1919-1921. EEPORT OX THE EMERGENCY TARIFF ACT. Table VI. — Fresh beef and veal — General imports by countries. 71 Year.' Total Pounds. ,4^ ; ISO, 137, 18.3 •I.-, ;i84, 490,759 iHir. I 71,101,7.i6 United Kingdom. Pounds. 57,5.39,975 8,070,776 Canada. Argentina. Uruguay. 1917 igi.*^. 1919. IfiSCl . 1921 . 15,217,118 I I 9,435,742 25,451,655 ! j 20,708,107 38,461,7.58 1 31,124,474 50, 182, 105 i 19, 655 37, 488, 425 32,377,922 | 26,469,120 Pounds. Pounds 15,919,799 , 59,774,937 15,305,264 j 130, 080, 021 9,918,326 .52,680,4.33 2,295,690 431,041 261,001 2,428,393 1,050,962 Pounds. 25,902,732 13,802,565 192, 229 86,662 13, 120 94,426 1,090,284 455, 819 Australia. Pounds. 19,858,520 10, 482, 128 201,641 .569,053 1,528,138 2,444,431 1,192,758 ' Fiscal years, 1914-1918; calendar years, 1919-1921. • Included in "All other meats" prior to 1914. Table VIa. Fresh beef — Domestic exports by countries. All other. Pounds. 1,141,214 5,544,0a5 8,310,765 3,197,373 3,670,274 5,4.53,719 0,710,917 3,209,263 : ,iiii-!914 (average) !915 1916 1917 1918 1919 1920 fi2j __ Total. United Kingdom. Pounds. I 29, 452, 302j 170, 440, 934! 231, 214, OOOi 197,177,1011 370, 032, 900; 174, 426, 999I 89, 649, 14S| 10, 412, 7901 Canada. Pounds. 23, 410, 437, 54, 497, 192 117,409,488 125, 687, 523 28.5, 789, 315 73, 073, 602 .5,699,488 2, 180, 902 Pounds. 372, 614 545, 356 3, 192, 196 17, 771, 159 37, 349, 521 2,621,011 2, 330, 963 228,624 Panama, Pounds. 5,026,662 3, 706, 596 1, 504, 583 235, 034 144, 442 51, 950 86,537 317, 522 France. 99, 620, 095 49, 100, 444 38, 042, 276 38, 926, 941 Italy. Pounds. Pounds 20,279 10, 472, 425 47, 887, 945 13, 066, 277 8,566,613 21, 375, 475 730,2171 211,447 All other. Pounds. 622, 310 1, 599, 270 12, 119, 344 2, 374, 832 1, 256, 068 77, 304, 961 80, 590, 496 7, 685, 742 ' Fiscal years, 1914-1918; calendar years, 1919-1921. From Table V it appears that Canada and Mexico account for a large part of our imports and exports of cattle on the hoof. This is not merely a border trade, however, because the heavy imports from the two coimtries indicate that our markets are regularly used as an outlet for their surplus. It is significant that the cattle imported from these countries do not, as a rule, go directly to the slaughter- house in the United States. For the most part the imports are stockers and feeders which are kept on farms or in feed pens in the United States from three months to two years before being sold for slaughter. In 1920 and 1921, for example, about 65 per cent of the imports of cattle from Canada, exclusive of calves, were stockers and feeders. In a sense, therefore, a large proportion of the cattle im- ports are raw material for the American farmers and feeders to be turned into a finished product by the consumption of domestic grain and forage. Table VI shows Canada to be the chief source of imports and the United Kingdom the chief destination of exports, although in recent vears exports have been relatively small. The heavy imports in 1914 from the United Kingdom were largely reexports from England of colonial and Argentine beef. In 1915 imports from Argentina ran up to the abnormal figure of 130,000,000 pounds, but in recent years they are negligible. Canadian imports, however, persist after the war and, as in the case of cattle, the producers regularly depend upon the American market to absorb a large volume of their exportable surplus of beef. I 'J. llKPOUr ox rilK KMHUlilCNCY TAIUIK ACT, How j^ront is this dependonco on our inaiki't is shown in the follow- ing tubli' of (\inniiiiiii tnido in those products. T A n I. !■; \' 1 1 . - Catth — -K.r ports from ( 'a nuda . ' !Ki-'i ^' Kxporloil to - 1920 J 1921 2 192J Number. 479 2,930 415.95fi 11.733 Numlitr. 131 1,733 221, 27S 541 Nurnbrr. 3r>, 41'< Newfoundland (') Unitivl States 172,. 317 T), oh:: All ot tier Total 431, 128 223,689 212,817 ' Cattle over 1 yo;ir old. '•' Fipires taken' from tlio Annunl Uoport of the Trade of Canada. Fiscal year ends Mar. 31. Included in all other. Table VIIa. — Fresh beef — Exports from Canada.' [Fiscal years. I Exported to— 1921 1921 1922 United Kingdom PouTids. 28,730,500 13,026,200 21,571,900 34,418,000 6,1.52,900 Pounds. 8,883,800 Pounds. 5 797 30l> Italy United States • 35,838,300 7,277,300 21,647,80« All other - -- - 911 .50'J Total 103,899,500 51,999,400 28,358,60» 1 Figure? taken from the Annual Report of the Trade of Canada. Fiscal year ends Mar. 31. Out of a total export of about 430,000 head of cattle in 1920, over 415,000 came to the United States. Owing partly to the cost of ocean freight, an even larger proportion of exports came to this country in 1921 ill spite of the tariff of 30 per cent. The Canadians are less dependent upon our markets for beef than for cattle, j'-et in 1921, out of a total export of about 52,000,000 pounds, nearly 36,000,000 came to the United States. The foregoing statistics have been by yearly totals, no attempt be- mg made to segregate them in 1921 for the periods before and after the enactment of the emergency law of May 27. In the following table, however, is shown the trade of the United States in cattle and beef by months since January, 1920. REPORT ON THE EMERGENCY TARIFF ACT. 73 Table VIII. — Cattle and beef — Domestic exports and imports by months.^ 192U. January , February March April Way June July August September C etober November December 1921. January February March. . " April May June July August September C etober November December 1922 January February March Cattle. Imports. Exports \'umbcr. 26,971 24,590 16, 766 19, 874 16,094 24,381 18,333 32,071 43,055 48,680 62,049 46,250 17,468 8,066 11,677 23, 674 14,498 4,152 5,057 10,948 18,814 28.534 37,9.55 1 ", 793 2,876 2,482 2,431 NumbeT. 3,056 2,687 3,247 11,494 11,873 13,332 9,740 2,804 4,174 5,252 10,080 7,563 6,004 7,498 11,886 23,066 28, 076 29,530 20,345 20,662 14,541 11,108 12,536 11,281 10,275 10,219 11,107 Beef and veal. Imports. Exports. Pounds. 2,717,414 2,276,408 2,981,915 5,19 ,400 4,138,798 5,819,305 2,778,844 5, 618, S96 5,808,068 5,251,153 5,437,271 2,158,633 4,273,228 1,167,706 1,741,384 2.571.947 3,293,252 1,855,874 1,922,534 3,141,482 2,065,569 3,561,848 3,361,417 3,421,081 866,991 536, 269 1,003,643 Pounds. 23,122,739 13,010,793 6,023,338 17,687,306 4,304,038 12,526,669 5,505,062 343,352 1,964,543 485, 979 3,091,895 1,583,434 ,078,550 979,081 508,230 214, 193 191,366 167,318 918,476 292,663 239,039 310, 179 268,245 274,250 522,601 320,430 293,092 1 Figures taken from the Agriculture Yearbook, 1920. The effect of the tariff upon the imports of cattle is somewhat obscured by the seasonal marketing period. In the autumn of 1921, for example, imports increased as compared with the first part of the year, but as compared with the same period in 1920 there was a decided slump. October, 1921, shows imports of about 28,000 head as against 48,000 in October, 1920; November imports in 1921 ran 38,000 as compared with 62,000 a year earlier. The imports of beef show roughly the same decline after the im- position of the duties. They ran about 3,500,000 pounds per month m the autumn of 1921 as compared with 5,000,000 to 6,000,000 pounds in 1920. If the emergency tariff has substantially restricted the imports of cattle and beef in comparison with the domestic supply, we should expect some effect upon the prices of them in the American market, although in some cases many other factors bearing on prices may obscure the results of the duty. In the tables below there are pre- sented prices of cattle and beef in Winnipeg and Toronto as compared with prices in the Chicago market. None of the grades for which prices are given are precisely comparable in the sense that all the products used in the comparison would sell for the same price in the same market, but they are comparable in the sense that there is a fairly constant price differential oetween them because of the differ- ence in quality. If this differential changes, therefore, with the imposition of the duty on imports to the United States, the presump- tion is that the duty is effective. 74 rvKTouT ON rm: KMKiuii-'.xcVT.vriiFF act. 'r.Mti.K IXa. — Cnltlr — l'i-ice of fat shrrs. IPcr lot) pounds.] Date. Winnl- Excess qnr.o- Chicago.. r«-;,>»::-r' S exchuHKC. Winnipeg, "'"j- isao: Januftry.. . Kt-... February.. Sir.. 72 i:';56 l.i.08 ' U.U • 12.67 I 15.49 15.62 15.74 15.97 16.04 14.07 , 11.94 I $10.41 9. 91 9. NO 11. :u 12. 7 i 12.69 10.11 9.24 9.39 8.01 7.79 6.67 9.90 6.41 9.47 6.69 9.62 6.99 , 8.46 7.25 8.51 7.21 8.24 6.16 K60 4.85 9.07 4.38 8.59 4.24 9.17 3.97 8.96 4.07 S.o8 4.22 8.59 5.25 8.69 5.36 U-Sl 3. 63 .3.28 1.78 -.06 2.80 5. 51 0.50 6.58 8.03 6.28 5.27 3.49 2.78 2. 63 1.21 1.30 2.08 3.75 4.69 4.35 5.20 4.89 4.36 3.34 3.33 Toronto,! ^hi^^t 30 p.- c»'-^'>"< ' Chicago 1 ^^P, o^^'"»"e« Toronto.! d"'' SI. 85 1.46 1.31 1.27 1.19 1.22 1.27 1.58 1.61 ■ $11.79 «.93 ' 1 1. 13 2.43 1 11.16 1.92 12.35 .76 13.07 -.40 12.99 2.50 12.60 3.02 11.28 4.4(i 11.11 4.86 1 9.73 6.31 ' 9.09 4.98 8.56 3.38 8.21 1.69 1 7.79 1.68 1 8.41 1.21 1 .18 8.28 8.08 .43 7.07 1.17 6.00 2.60 6.12 2.95 5.78 2.81 5.39 3.78 5.17 3.79 5.63 2.95 6.48 2.11 6.75 1.94 Steers, good. 2 Steers, 1,000-1,200 pounds, good. Domestic prices taken from the Market Reporter. Canadian prices taken from the Monthly Bulletin of Agricultural Statistics, Ottawa, Canada. Table IXb. — Cattle — Price of stackers . [Per 100 pounds.] Date. Chicago.! Winni- peg,* current exchange. 1 Excess Chicago over Winnipeg.' 1 30 per cent duty. Toronto,! current exchange. Excess Chicago over Toronto. 30 per cent duty. 1920: January' . . S8.91 S.70 9.23 9.32 9.44 9.53 8.33 7.91 8.28 0.98 0. 53 e.23 6.58 0.71 7.34 6.80 6.84 5. SO 5.44 5.34 5.34 5. 33 5.00 5.27 5.54 5.96 $7.02 7.28 7.90 7.85 7.79 7. SO 6.38 5.51 5.67 5.36 5.09 4.50 4.93 4.87 5.37 5.17 .5.10 3.90 2. S3 2.81 2.87 2.77 2.76 2.93 3.18 3.18 $1. 89 1 1.42 1.33 1.47 1.65 1.73 1 1.95 I 2.40 2.61 1.62 1.44 1.73 1.65 1.84 1.97 1.63 ! 1.74 1 1.90 2.61 2.53 2.47 2.56 2.24 2.34 1 2.36 2.78 $8.79 8.19 8.42 9.42 10.22 10.12 8.47 7.87 8.06 7.67 7.36 7.03 6.77 6.08 6.57 50.12 .51 .81 -.10 -.78 -.59 -.14 .04 .22 -.69 -.83 -.80 -.19 .03 .77 March.. Mav .Tune. . July August . November. . 1921: January Fcbriiarv. March . ." May 51.17 .85 .84 .86 .83 .82 .88 .95 .95 July 4.08 4.06 3.60 ■3.58 3.68 3.70 i.36 1.28 1.74 1.75 1.32 1.57 .$1. 22 . -1. 21 September October 1.0^ 1. n: November !. i» December j.. 1922: January .,.t. . ,, February. ..'..'...;.... ' steers, common choice. 2 Stockers, 450-800 pounds; good. Domestic prices taken from the Markoi, Reporter Canadian prices taken from Month) ■■ iiiiUetin of Agricultural Statistics, Ottawa, Canada. REPORT ON THE EMERGEXCY TATJFF ACT. 75 Table IXc. — Cattle — Price of feeders. [Per 100 pounds.) Date. Chicago.! Winni- peg,2 current exchange. Excess Chicago over Winnipeg. 30 per cent duty. Toronto,' current exchange. Excess Chicago over Toronto. 30 per cent duty. 1920: January $10.01 9.01 10. 35 10.34 10. 41 10.89 10. 18 9.78 9.81 9.50 8.60 7.69 7.56 7.53 8.22 7.5o 7.59 6.77 6.24 6.34 6.04 5.87 5.89 5.72 5.99 6.22 «9.35 9.13 9.01 9.67 10.78 9.07 8.21 7.47 7.74 7.24 6.82 6.08 5.59 5.39 0.37 6.14 6.18 4.46 3.24 3.56 3.54 3.55 3.65 3.55 3.90 3.88 $0.66 .48 1.34 .67 - .37 1.82 1.97 2.31 2.07 2.26 1.84 1.61 1.97 2.14 1.85 1.42 1.41 2.31 3.00 2.78 2.50 2.32 2.24 2.17 2.09 2.34 $10.01 9.31 9.53 10.57 11.33 11.30 10.02 10.16 9.91 9.48 8.82 9.23 7.91 7.10 7.39 7.90 7.42 $6.30 .82 - .23 - .92 - .41 .16 - .38 - .10 .02 - .16 -1.54 - .35 .43 .83 - .34 .17 March. April . .... May June July August September October November December 1921: February March April May ""si." 34" .97 1.07 1.06 1.07 1.10 1.07 1.17 1.16 June... . . July August 5.32 5.14 4.70 4.87 4.85 5.31 6.45 1.02 .90 1.17 1.02 .87 .68 - .23 $1. 60 September 1.54 October 1.41 November 1.4C 1.45 1922: 1.59 February 1.94 1 Feeders, 750-1,000 pounds; common choice. 2 Feeders, 800-1,000 pounds; good. Domestic prices taken from the Market Reporter. Canadian prices taken from Monthly Bulletin of Agricultural Statistics, Ottawa, Canada. Prices from April to Juli^, 1921, are important, especially when the change in the price differential among the several markets is con- sidered for these months. It will be seen that in most cases the ex- cess of the Chicago price over Canadian prices has increased in June or July by about the amount of the duty. Other factors, of course, were present, but comparing the average for January to May, 1921, with June to December, it is significant that the spread widened sharply after May 28. Thus the average price of fat cattle in Win- nipeg was $2.28 cheaper per 100 pounds than in Chicago from Janu- ary to May, and S4.20 cheaper from June to December. Tlie amount of the duty averaged $1.37. There is no particular signi- ficance in comparing 1920 with 1921 spreads, owing to the erratic character of the 1920 market and the great fall in prices in both markets. The latter factor greatly decreased the spreads necessary to handle the cattle. Then, too, Canadian rail freights were lowerecl considerably in 1921 to facilitate export to England, and a substan- tial number of Canadian cattle, over 30,000 head, were shipped to England in 1921. This had much more effect on prices than the mere number would suggest. Another point of some importance brought out in tlie tables is that whereas Canadian prices declined precipitately after the enfict- ment of the emergency tariff, American cattle prices held fairly steady at the rates prevailing for several months before the act took effect. From 7.21 cents per pound in May, for example, fat steers in 76 nKPoirr ox THE emi:kgency tariff act. \Viniimt\^ ft>ll to 1.24 coiits in SoptoinlxM- and slockors in that market wiMit IrDin a.U) ('(Mits in (lu> fornior month to 2.77 conts in October. The American prices for similar j^raih's reniaintMl fairly constant (hir- injj the year. It seems therefore, that if the tarilf has been elVective it has driven ih)wn the (^ina(Han market rather than increased American prices, or. to be more exact, Canadian prices followed the declining: world market, while American pritcs steadied at a level con- siderably above the international level. The prices of beef in Chicago as compared with Winnipeg and To- ronto (Table X) show about the same changes before and after the enactment of the emergency law as did the changes in cattle prices. Table X. — Fresh beef— Prices.^ [Per 100 pounds.] Date. Chicago.* Winni- peg cur- rent ex- change.' Excess Chicago over Winni- peg. Toronto current ex- change.' Excess Chicago over Toronto. 1920 Januarv $21.75 19.70 20.31 20.69 19. 80 23. 56 23.90 24.62 2.5.2.5 23.50 23. .50 19.40 IS. 10 15.00 17.44 16.65 15.69 15.25 15.20 15. 75 16.25 16.60 16.45 16.50 15.00 13.69 $18.07 15.43 16.05 21.16 18.63 24.50 18.06 19.22 17.90 18.05 16.27 15.82 15.48 13.31 , 14. 02 ' 14. 18 14.08 12.26 11.84 12.05 11.72 10. 68 9.21 10.07 11.43 12.43 $3.68 4.27 4.26 -.47 1.17 -.94 5.84 5.40 7.35 5.45 7.23 3.58 2.62 1.69 3.42 2.47 1.61 2.99 3.36 3.70 4. ,53 5.92 7.24 6.43 3.57 1.26 $22. 88 20.13 18.70 21.84 22.58 22.75 24.08 24.47 24.17 23.47 21.69 21.09 20. 04 19.53 17.53 19.50 17.88 16.93 14.91 14.73 13.97 13.63 13.82 13.05 15. 24 15. 30 -$1. 13 — . 4:i March 1.1) I April -1.15 -2. 7S .SI July -.IS August .1.". l.OS .():; November l.Sl -1.69 1921 -2.51 February -4. M — . m AprD -2. >.:, —2. 1'.t — l.O'.l Julv . '29 1. 02 2. 2H 2.97 2.(« 3. Li 1922 — . 2f -1.61 1 Emergency duty 2 cents per pound aft er May 27. 1921. Domestic prices taken from the Marljet Reporter . Canadian prices taken from Monthly Bulletin "of Agricultural Statistics, Ottawa, Canada. 2 Good steers. ' Carcass, fresh, No. 1. From this table it will be seen that Chicago prices remain fairly constant throughout the year 1921, whereas Winnipeg and Toronto show a steady decline. This decline caused a pronounced spread in the quotations for the two countries in the summer and fall of 1921. In June, for example, the Toronto price was 1.69 cents above Chicago for No. 1 carcass beef, but in Jul}^ it was 29 cents under Chicago, a net change of 1.98 cents as compared with the duty of 2 cents. It should be noted that prices in Canada, London, and Buenos Aires averaged more than 20 per cent lower after June 1, 1921, than before, while prices in the United States averaged only 8 per cent lower. In other words, Canadian beef prices followed the world level, while American beef kept at a considerably higher level after June 1. This will be noted from Table II. REPORT ON THE EMERGENCY TARIFF ACT. 77 Table XI .—Beef—Comparative prices of domestic and foreign. [Average price per 100 pounds, 1921.] Jan. 1 to June 1 to May 31. Dec. 31. Decline. ! .\mount. New York, good steer beef I ?17.00 $15.61 Toronto, carcass No. 1 ' 19.02 14.65 Winnipeg, carcass No. 1 i 14.22 11.27 London, English beef | 27. 29 I 19! 54 London, Argentine chilled bind quarters 17.54 | 14.81 Buenos Aires, good frigorifico steer ! 9. TO 6.90 SI. 39 4.37 2.95 8.25 2.73 2.80 Percent. 8.2 23.0 20.7 29.7 15.6 28.9 SHEEP, MUTTON, AND LAMB. Article. Emergency tariff rate. Senate bill. Act of 1913. Act of 1909. Sheep: 1 One year old or over . . J S2 per head . $1 per head . 2 cents per pound . .1 2 cents per pound. $2 per head S2 per head Fi-ee $1.50 per head. $0.75 per head. Less than 1 year old. . . Mutton 2J cents per poimd. 5 cants per poimd. Lamb 1 Cattle and sheep and other stock imported for breeding purposes, free. Imports and exports of sheep and mutton have been of small con- sequence compared with the number on farms and ranches in the the United States, or the number slaughtered each year. The domestic market for mutton and lamb is limited and will absorb little but cliilled meats. Hence, with the exception of one year, little dressed mutton or lamb has ever been imported, except chilled meat from Canada, and only very small amounts from that source. Foreign frozen mutton has almost no outlet in the United States, as was discovered by those who attempted to market heavy stocks of such meats in this country dm-ing the fiscal year ended June 30, 1921. Table I shows the minor importance of imports and exports of live animals. Table II shows the slight importance of imports and exports of fresh lamb and mutton. Table III gives imports and ex- ports of live animals from and to the various countries, and suggests that this is primarily a border trade with Canada and Mexico. Table IV shows imports and exports of dressed lamb and mutton by countries. It will be noted that the only year when imports were of much importance was 1920, when, in an eliort to move heavy war- time accumulations in the hands of the British Government, unprece- dented amounts were shipped to the United States. Domestic consumers refused after a brief interval to take these imports and more than 60 per cent were reexported. The second part of Table IV gives details of our export trade in mutton and lamb. Table V gives imports of these meats by months during 1920 and 1921. , The great bulk of the arrivals from April, 1920, to February, 1921, were of Australasian and Argentine origin. Table VI, contrasts Chicago, Winnipeg, and Toronto prices for lambs during 1920 and 1921. The spreads between Chicago and Canadian markets in 1920 and 1921 were affected by the same factors which were present in the case of cattle, but, in addition, heavy li(|uidation of American flocks continued throughout 1921. The limited domestic 598—22 6 78 i;Ki'i>i;r <»\ nil': k.mi'.iuiiixcv iaimi r act. niarkot was thus \vi>ll sii|)plio(l, and prices did not rise. Comparing tljo lirst live months of l'.»_'l ^vith the hist seven months, however, it will ho notoil that the Chii-a^o i)roiniinn widens. Tahle VII, which (•()iiii>ares prii'os for dr<>ssod nuittou ami laml) in (^hica^o and Toronto, is aihUnl for its u;enoral interest. It is apj)arent tiiat the lamh market in Chicago, comi)ared with Toronto, str<>ngtliened considerahly after June 1, a suhstantial Toronto premium prior to Juno 1 being changed to a substantial Chicago premium thereafter. Tahi.k I. — Sheep — Summary table. On farms in United States.' Imports.) Domestic exports.* N'umbrr. 1900-1901 (average). 1910-1914 (average) . 1915 1910 1917 1918 1919 1920 1921 8m, 000 882,000 956,000 625, CO) 616,000 603,000 866,000 114,000 067,000 Number. 303,990 88,468 15.3, 317 235, 659 160, 422 177,681 > 163,28:} 1 191), 549 1 161, 292 Number. 252,138 132, 601 47, 213 52,278 58,811 7,959 116,117 1 59, 155 1 80, 72? 1 Calciiihu your. « Fiscal years, 1900-1918; calendar years, 1919-1921. T.VBLE II. — Fresh mutton — Summary table. [000 wuitted.) Y ear. Imports.2 Exports.2 Produc- tion.! 1900 616,385 1909 646, 277 1914 773, 804 1915 672, 880 1916 663, 724 1917 513, 997 1918 562, 214 1919 664, 431 Pounds. 12,711 15,. 529 20,258 4,684 2,008 1S.209 Per cent of produc- tion. 1.64 2.31 3.05 .91 .36 1.24 Pounds. 774 1,499 4,685 3,877 5,553 3,196 2,098 1 3.009 Per cent; of produ' - tion. 0.13 .23 .61 .58 .84 .62 .37 .45 ' Calendar year. - Fiscal year. T.\BLE III. — Sheep — Imports and exports by countries. Total. Year.' Im- I Ex- ports, ports. Xo. No. 1910-1914 (average).. 88,468 132,601 1915 153,317 1916 23.5,6.59 1917 160,422 1918 177,681 1919 163,283 1920 199, 549 1921 161,292 47, 213 52, 278 58, 811 Canada. Im- I Ex- ports. ! ports. No. No. 41,004 111,626 46, 021 4.5, 500 96, 552 62, .566 7,9.59: 136,2.39 16,1171 124,644 59, 1.55[ ISl, 166 80,723 158,540 48, 149 56, 648 6,534 1.5, 151 25, 698 18, 192 Mexico. Im- ports. No. 46, 660 106, 526 138, 743 97, 202 39, 879 37, .592 17, 073 2,357 United Kingdom. Ex- ports. No. 5, 1701 4211 436' 760 964 501 32, 2941 49,018 Im- ports. No. 778 719 205 249 1,128 964 1,007 380, All other. Ex- Im- ports. I ports. No. 12, 196 No. 8,629 26l 51 159 4051 4351 83 303 15 Ex- ports No. 3,609 1, 292 3,692 1,387 461 465 1,163 4,884 > Fiscal years, 1910-1918; calendar years, 1919-1921. REPORT OX THE EMERGENCY TARIFF ACT. 79 Table IV. — Fresh mutton and lamb. GENERAL IMPORTS BY COUNTRIBS. Year.' Total. I United Kingdom. Canada. Argentina. ] Uruguay. New Zealand. Pounds. I Pounds. 19142 12,710,905 j 1,305,438 1915 : 15,528,855 ( 137,005 191G I 20,257,999 \ 98 1917 ! 4,684,131 89 1918 2,007,601 I 1919 ! 8, 209, 182 1920 101, 168, 319 |ll, 698, 687 1921 i 25,394,988 i 2,696,944 I Pound.t. I Pounds. I Pounds. Pounds. 112,804 I 5,081,580 12,231,329 i 638,735 479,522 '12,049,024 ; 790,445 1,548,397 40,979 119,077,394 1,139,468 118,330 3,798,9.32 34,700 496,882 I 1,497,491 i 6,791,9.39 1,307,224 I ' 43,126 9,208,600 9,010,007 14,638,890 65,183,343 5,960,277 1,650,760 | 57,063 |l4,095,827 AU other. Pounds. 3,341,019 524,462 60 732,080 13,228 66, 893 1,428,792 -934,117 > Fiscal years. 1914-1918; calendar year.s, 1919-1921. 2 Included in ''AU other meats" prior to 1914. DOMESTIC EXPORTS. Year.i Total. : United I Kingdom. Canada. Ber- muda. Panama.! Cuba. Ml other. Pounds. Pounds. Pounds. 1910-1914 (average) 3, 539, 358 ^ 650, 682 2, 392, 086 1915 3,877,413 i 898,2:i5 [ 2,545,320 1916 5,552,918 2,109,031 i 2,925,0.52 1917 3,195,576 177,443 , 2,449,497 1918 2,098,423 i 77,895 1 l,78;i,382 1919. I 3,009,164 ; 24,122 2,594,402 1920 3,575,409 I 176,326 1 1,818,988 1921 7,515,438 i 3,609,156 3,215,426 Pounds. 115,253 162,275 174,238 192,172 25, 736 80,257 165,403 212, 935 Pounds. 327,902 214,227 ! 232,943 I 294,804 i 105,982 t 176,745 308,6.39 264,570 Pounds. 35,450 47,593 22,005 45,753 61,881 35, 278 127,033 92,904 Pounds. 17,985 9,763 89,649 35,907 43,547 98,360 979,020 120,447 » Fiscal years, 1910-1918; calendar years, 1919-1921. Table Y.~— Sheep and mutton, imports and exports bij rtbonths. January Feljruary.. March April May June July August September . October November . December. . January February. . March April May Jutiu July ! Au'.;nst I September. October November. December. . January... February . March Date. 1920. Sheep Imports MuttoB and lamb. Domestic exports. Imports. Number. 8,611 3, 263 5, 247 1, 763 1,114 1,863 1,633 l,i,8.35 37, .534 39, 687 36, 689 19,666 .5, 232 261 1,241 1,2.34 416 1,864 856 10,075 3I,9:!8 18,610 11,437 1,.575 7, .538 3,499 5,537 Xumber. 149 13,320 4, 034 147 426 14, 9.58 890 246 3, 407 2, 558 1,806 6,937 Pounds. 864, 561 850, 243 744, 174 2, 3.58, 858 5, 253, 962 2, 033, 200 5,181,526 13,9.56,578 18,460,700 27, 024, 972 1.3,791,198 10, 648, 347 4,0.59 8, 486 4,00.5 I 14,749 10,098 ' 23, 482 1 1.5,744 I 16,605 I 8,094 • 13,864,205 4,980,140 415,9.55 .53, ;;so 47, 387 103, 826 113,801 617,243 1 , 237, 402 Domestic exports. 6,244 I 1,. 301,. 338 3,0(1 ] 1,244,103 2,1.56 1,416,208 174 1,9.52 770 .568, 767 901,724 940,665 Pounds. ■286,043 318, 104 .538, 462 217,328 S61, 495 122,065 242,305 175,169 14.5, 163 1.35, .521 108, 726 425, 028 562, 624 371,, 574 430, 679 1 . 959, 709 996, 1 86 1,071, s:w 39.5, 37S 410,765 261, 446 99, .597 176,218 146,424 19.5,089 111,641 81, 369 80 KKiNMiT OX 'I'lii; i:Mr:i{(JKNi'v T.Mtii'i'' .\(vr, Tamlk \l. — Lamb — /Vnr ]>ir 100 pounds. Date. Chicago.' Wiiiiiipog curront ex- chniiRO.' Excess Chicago over Wiiuii- POR. Toronto current ox- change.' Excess Chicago over Toronto. 1920. IftiMiftrv $18.78 19.34 15. 48 18.62 16. SO 15. 53 14.34 12.86 13.05 11.96 11.46 10.95 10.30 9. 12 9.59 10.04 10.86 10.44 9.68 9.04 8.44 8.52 9.04 10.58 12.58 14.21 $12.97 12.58 12.78 13.65 14.13 14.00 15.45 10. 95 10. 39 S.60 7.96 10.11 9.20 9.74 10.18 10.19 10.31 9.53 9.76 8.34 7.67 7.36 7.22 7.97 S.07 s.ii2 $5.81 6.76 5.70 4.97 2.67 1.53 -1.11 1.91 2.66 3.36 3.50 .84 1.10 —.62 -.59 -.15 .55 .91 -.08 .70 .77 1.16 1.82 2.61 4.51 5. 59 $16. 89 17.20 16. 8S 10. 97 15. 14 16.77 14.84 12.99 12.26 11.46 11.32 11.22 10.67 l6.34 11.72 11.98 11.46 12.92 9.91 8.09 7.55 7.59 8.02 10.26 11.82 12.80 S1.S9 Kcbniary 2.14 March 1.60 April 1.65 Mav 1.66 - 1. 24 .1 ul y -.50 y\ UpiSt -.13 .79 ..'■>o Novembor. . . 11 I'ccombcr 1921. -.27 -.37 February March AprU May - I. 22 -2. i:i -1.91 -.00 -2.4^ Augui^t < )ctober .95 . S'.» .93 1.02 December 1922. .70 i.n > Lambs, 84 pounds down, mediimi choice. ' Lambs, good. Table VII. — Mutton and lamb ' — Price per 100 pounds. Mutton. fS IliLS 3,9(«, HH I 2,8i2,(««» 1916 IO;f,U).'),.-iLM 20,4;il»,0(lS 1917 '.'i(),4l.'i,(il,1 21,7S7,.V)0 115,057 2l,Si2,,5:il piiis.lUid 1918 |2I,;«)0,2SS 8.2U,!tfi2 9,04» ll,:i<.)5,().)l It, 721 1919 !26,776,97S 1,197,244 ' " ' H97,517 52l,ti21 4fi, 144 :i70, 125 i(12,2i)»l :'.Si»,4li4 :M,'.I24 21, ISLIOO P00 '.)7.i,925 01,910 All other. Pmi/nds. lis, 120 :iO".l,0!0 2, 7iH), .S77 1,0.57,008 !,2,S7,7.{6 2,,S.S.S,657 5,0:il,0!0 l:i,41I,329 » Fiscal years, 1910-1918; calendar years, 1919-1921. Table I\'. — Fresh pork — Importu and exports, by months. Dale. 1920, .lanuary February Mareh April May June July August September October November December Imports, i Exports. Pounds. 127. 1.55 234,013 45, 249 69,011 148,410 50,896 33,877 47,959 50,560 539,355 68, 810 125,114 Pounds. 2,271,7,51 .5,981,508 2,967.189 1,0.">4,2S5 1,010.923 4,091,083 2, 000, 390 390, 993 .547, 3:>(i .5, 102, 42S 2, 515, 373 9, 759, 357 January. February.. March April , May June July .\ugusl September. October November., December.. 1921. January.. February. March Impuris. Pounds. 37, 492 33, 183 138,539 39,341 30,207 68, 058 11,916 20,410 56,047 226,180 46,873 107, 847 149,093 111,044 56,811 Exports. Pounds. 18,091,971 5,914,797 2,904,420 3, 937, ,597 3, 173, 520 2,039,244 7,378,783 3, 807, 102 1,. 559, 081 2,4.58,333 2,716,310 1,410,099 1,063,800 879, 227 910,504 MEATS, PREPARED OR PRESERVED. Article. Emergency tariff rate. 1 .Senate biU. Act of 1913. Act of 1909. Meats of all kinds, pre- pared or pre.>!ervcd, n. s. p. f. 25 per cent. . Free 2 cents per pound. 20 Dor cent 4 cent.s per pound Ml olhcr 25 per cent (aver- age). Imports of prepared and preserved meats into the United States have never been of more than neghgible importance. Tables I and II show this (juite clearly. On the other liand, excluding bacon, hams, and other pork products, exports of prepared and preserved meats have far exceeded imports. They increased greatly during the war years, and have since returned nearly to pre--war figures. The pre-war export total not only was far larger than imports, but was shipped to all parts of the world to supply a special trade for these somewhat specialized products. Imports of bacon, hams, and other pork products, have come mainly from Canada in the form of English type of meats. Our exports to Canada have far exceeded REPORT OX THE EMERGENCY TARIFF ACT. 83 imports, while the export total fs about equal to that of all other countries. Our exports increased greatly during the war years, and in the case of bacon and hams, remain far above the pre-war figure. Tables III and IV show this export trade. Table I. — Meals, prepared or preserved — Imports. Year.i Bacon and bams. ileats, pre- pared or preserved .3 Sausage, ^'^^^,^' ^<"«S°a- proXts.3 ^ aimed meats.* 1914 . Pounds. 2,008,960 7, .542, 446 667,667 190, 293 260,031 2, 646, 235 754, 735 166,245 Pounds. Pounds. 730,326 209,484 47, 287 682 15, 056 71,7^2 15o, 735 56,790 Pounds. Pounds. 1915 1916 1917 . 1918 1919 21,189,854 7, 199, 037 2,981,254 1920 1921 . . . . . 189 298 ' Fiscal years, 1914-1918; calendar years, 1919-1921 ■^ Quantity not given. 3 Quantity not given prior to 1919. * No imports listed prior to 1921 . T.'i.BLE II. — Meats, prepared or preserved — Imports by months. January... February. . Marcb April May June July — ».. .\ugust September. October Xovember. December. . January February. . -March April May June , July August September. October November. . December . . January.. February. March Date. 1920. 1921. Bacon and ham. Pounds. 80,550 23,772 47,483 113,580 38,401 Meats, pre- pared or preserved. 16, 782 59,100 29,041 49,317 8.754 1,382,287 869,774 608, 643 1,720,121 437, 753 674,511 Sausage, bologna. I All other meat . products. Pounds. 15,004 7,339 3,034 10,450 1,508 18,099 3,845 18,940 5,983 8,106 Pounds. 198, 998 64,232 144,451 658,593 821,228 188, 795 338, 885 192,217 267,027 144,658 249,066 242, 731 236,254 224,442 296,016 99, 795 230, 715 331,944 318,404 566, .562 486,860 Canned meats. Pounds. 7,779 6,335 89,242 7,502 57,712 S,431 12,297 9,59 7,718 891 84 i;ki'('I 2 •^ri^3i^^»o'^^ s es " « i2 : » t^ w -^ tc I p» (^ « N ■*■.)< N N Sc^ 55 r* N OS r* i.'s N t^ C5 ■* •* O -^ S t^ ^H o I--? 05 cs r- o f?oo-*t-'Or-o»cc — re TO c^ r^ O -?* '— C'l t^t^?0005r^»-t»c ^ M -H a:: X -^ c^ I--; -^ iZ~i5-ii S cc N »■■'?« ac i~ o j? t-i S -i o> ■".'5 ci fell O C d -ft** "S 5° liiiiiiillii: §;::::;:::;:: ft, ::::::;::;: ; cci-"r~opQ — O00 — C0C2Q0 4S es to" (N IMOCDi(CCSMCC05r*— **v • -H tiO O) 00 00 — < (MIOOOOOOS'O-,— (OC^N 803^r^ooi^t^<-^o?co»M f-H TP ^ CO 00 CO 00 lO t^ CO CO .2 .-h'— Tn tocfo'c^" N -Too'-H -r" i:OC550»0— 'COCSCOt^COCOOO ^lC00OC0"»ri^iOC0C00005C^ c t^^o^wf "^ o o ^- co^^ci r^cc^ gt^c-iocio^-vc^t^ci^eo »oo5ccrroio:/)»ccoooi 42c<3iOr^-CCCO',rCfliO»^OOCO Sr^oiOTric'^r^^Hioc3ir^»o ^OtOC^IC^OOOSi-UCClCOO O 'h'^'cs'iNCO of i-T^T—Ji-H i-Tco a. oo«ot~cot-eo.- -^'lOCC'lOr-T U. 03 NeOK;-"!- wcoScSN ofTc'ioaTcj" a>Q— (i 00»O 3i N -^ N ^- CO 05 CiCO ^ CO 00 r^ o ^ lO ^ , CO »o Oi 'f* »o rt -I -H-H-HIN.-. sr; CS '^ CO 00 -^ "«t* ro fc CO — ,-,,-,Mr-. -H Tj« o O O C*l Sococcsa-ss g- o o a *- 2 ^ . Q'S C3 C.C d ^ h- m -i oc »o o »o eo -^ — ' ;^ «0 1— f CO --^ oi c^ j-r,-rc'oo''o'cNror — I h* -^ F-< r^ -(f. o C 1-H CO I-- »0 :0 fO lO cr"*o"'i<'co'*ic'.-r CO -^ '^ ■«* C-'*CCCO"H^l^ OW*^ CO y:' ^ OS >o t- c-j 1-^ — < u5 CO CO cs OS 00 CO o r- oc OS co'co*co"w"cs''c^C'r co'oTw*' 00 >— » t^ CO *0 CO o OS r* c< *-* r^ f-* t^ ooN io:c coo o CO t^ c^4 r^ w '-C »o rt CS CO ^ f-i r-C ^ ^CO*^ •-HOC c^'c'c C^OSCO C^'C'co' — I d •O IN 00 ->Ci C^ 00 -.o CO ^ OS r* 0) c^ ic -H Oi iO o w r>- o o »-i to >i5 r^ o C'l O Tt< I>- OO OS CO CO •^osr^ -.o CCOS t^ot^ t* O OC lO (N Ol O "^ S i-H O I- fH >*« CO lO ^ 00 CO t^ CO 00 lO .-H 00 ^ OC HO .-HOCO o — -^ uTco^cT lOOS GO <-i-<(N » ^ SjS o ?; a< §■=■3 £-0 C o 86 ijKPoHT ON riiK k.mi;iu;i;n('n 'iai;ii r .\ci\ COTTON. Article. EiiierKency turilT rate. Cotton having a staple 1 7 cents per pound. of 11 im-ht« or more | in loncth. Miuimiu'tiiros of long : 7 oeut.^ piT poiiiul, slu; If I'otion. ioinMi'ii-;;il(ii\ ." Senate I. ill. Act „f 1913. Act of 1909. 7 ccjits per pound. Free. lOcenKspcr pound Free. Tho oin(M-«!;onov tnriH" (tf 7 cents per pound on cotton havino; a staple of \l inches or more ailects a relativelv small portion of the cotton trade of the United States. Out of a total production of 12,000,000 hales annually only ahout 100.000 hales in 1920 were of a staple of If inches or more. Exact import statistics of this staple are not availahle, hut reckoning such imports to he 50 per cent of the total imports from Egypt it is founN TIIK K MKKUKXl'Y TAIIil I ACT. It i.s siixtiilicant tliiit whilo tlio avtMi nliuiti'd to Sak. cotton hns l)oiMi «^nulually iiu'ri'a.siiii^ .siiici> \\)\l, the total cottoii acreage in Kgvpt luis not. increa.>out 1,700.01)0 Icdilaius (a feddan is rouglilv 1 acre) in 1011. as com|)arcd \vitli l,2i)0,000 in 1921. Table 1 nives imports of l^gy|)lian cotton l)y years only. A mon^ detailed stattMiient hv months is shown in the following; table: Tmu k III V /Vv -/■ ('/..v MoiiUi of crop yc!ir. Total im- norts of hR>-ptian cotton. Duti- able im- ports. Bala. total (lutiablo cotton to total KRVp- tian Im- ported. Per cent. Month of crop yciir. i~ 1 1921. ' January Febmarv Total ira- norts of hgyplian cotton. Bales. 7,055 7,908 13,587 15,190 6,369 .'«,202 2,452 4,728 3,396 18,974 27,126 41,224 25,929 36,242 47,636 Duti- able im- ports. Bales. liaitoi.i total dutiablt^ cotton to totrt ; Esyp- tianlni- portP'l. 1919. AtiKUst Baltx. 11,279 45,82 Februarv September 44. i: March October 22. Ot- April November is. 31 Mav Derfimlw , . 9. •).'■) June 1922. Januarv Julv Aupist 5. Oi- September February 22.87 October March 19.87 Average December 18. n« ! Table IIIb. — Dutiable cotton — Imports and stocks in bonded warehouse. Period. General imports. 1921 Second quarter (June only) Third quarter Fourth quarter 1922 First quarter Bales of BOO pounds. 2,274 4,373 12,077 19,231 Imports for con- sump- tion. Bales of 600 pounds. 2,030 3,978 10,123 15,638 Stocks ui ware- bouse at end of quarter. Bales m SCO pounds. 24t 9; l,.17i J, 96."} Two significant points are brought out by this table, (1) the alter- n-ate prosperity and depression in the cotton manufacturing industry in this country since August, 1919, as shown by the variation in ini- ports, and (2), the fact that relatively little of the cotton imports since May, 1921, have been of the dutiable variety. Imports during the earlier part of 1920 w^ere nearly 100,000 bales a month, but by the end of the year they had fallen to 2,000 or 3,000 bales monthly. The depression continued well into 1921, but with the marketing of the new Egyptian cotton crop imports increased REPORT OX THE EMERGENCY TARIFF ACT, 89 M.ntii during the past winter they wore well up to the monthly totals iku the fall of 1919. Over 40,000 bales in December, 1921, and nearly 50,000 in March, 1922, show a revival in the cotton trade. The dutiable imports, however, are relatively low. Normally Sak. cotton would run about 50 per cent of the total monthly imports, but since May, 1921, dutiable imports (chiefly Sak.) have averaged kss than 20 per cent of the total Egyptian imports. Dutiable im- forts for consumption were still less than general imports (see Table IIb) . The difference in figures returned for the two classes of im- ports is accounted for by the stocks in customs bonded warehouses. SEA-ISLAND COTTOX AND THE TARIFF. The possible effect of the emergency sea-island cotton in the United States is a large part of the sea-island crop is or over in length, and, therefore, would be duty. At the present time, however, eluninated from the American market b boll weevil. The following table shows m recent vears : tariff on the production of of some importance because was of a staple If inches or protected by the emergency sea-island cotton is almost ecause of the ravages of the the decline of the industry Table IV. — American sea-island cotton crop. [From Federal Census.) Season. Total crop. American consump- tion. Total exports. ! Season. Total crop. American consump- tion. Total exports. lOO-Ve 1906-7 1907-8 1908-9 1909-10 1910-11 1911-12 1912-13 Running bales. 112,539 57^550 86,895 93,858 94,791 90, 368 119,293 73, 777 Running bales. 72,801 59,632 44, 147 67, 749 75, 605 64, 237 94,856 54.778 Running bales. 41,111 20, 222 33, 286 26, 141 1 29, 700 22,600 2.5,200 13, 100 1 1913-14 1914-15 191.5-16 1916-17 1917-18 I 1918-19 1919-20 1920-21 Running bales. 77,563 81,6.54 91,844 117,5,59 92,619 52, 208 6,916 1,868 Running bales. 81, 673 79,394 82, 645 94,291 85,939 51, 183 42, 971 18,799 Running bales. 18,000 7,400 4,600 2,300 2,900 4,850 5,400 > Calculated from the 500-pound bales on the average gross weight per bale for the year ,for the remain- ing years. From a total production of nearly 120,000 bales in the season of 1917-18 the output fell to less than 2,000 bales in 1920-21. It is probable that by clearing the fields of the weevil there will be a con- siderable future production, but because of the special uses to which this cotton is put and the absence of any comparable variety else- where in the world it is doubtful whether a tariff would have an}'- great effect on its revival. The producers of sea-island cotton face a biological rather than an economic problem. CONSUMPTION OF LONG-STAPLE COTTON. Inasmuch as long-staple cotton is used for special purposes, it is important to ascertain its consumption in the industries affected by the tariff. Unfortunately no figures are available for consumption by industries for the dutiable imports, but the following tabic shows the distribution of consumption for Egyptian cotton as a whole and for American-Egyptian in the same inciusti'ies. 90 r.KPoHT ox Tin: KMKm;i:Ni'Y taihi f act. Table \' . ■ ( 'onsunt i>tinn nf Kgiiptian «»». hiiiiiiluslr'us. I'l.'o 'I. 10.' i >J. l•.^;yI>Il!»Il coiion ni .'i()i)-prtiiii(l bales. n.ilo. Ti.lnl '^'■■<' Sowing Kino Mnth« Other it;- S«>pttMiibor. t)otober.. . Novpinl»er. December. . \:\, sr.:; :.,' 201 I. lU'iU .!, I'.i:; •1, 2SC. 4, ()7.S .% 719 3, 2L»0 •J, 435 .!, 1 H •-', 743 ■2, 572 1,404 .i, Om> 2, 8.VJ 1, 37.' 94:> 72'> January.. February. March.... April May June July Twelve months . 1921, AURUSt September. Oetober. . . November. , DccenilKT. . 1922. January. . Febniary. March Eight months. Date. 7, <;m) 7, UK) <>, 7o:, 12, ^.»^ 11,7';.") 15,44t> 15,717 I. 30S 3.117 1, 42S II, 'JIK) y, 1137 9, 4(K) 10,420 2,06S 2, 4.')7 3, (m 3,(144 3,511 3,983 3,273 911 903 976 751 857 985 1,006 159,196 84,505 40,938 17,411 20,263 I.S.S9.1 1SS9I •22. 292 21), 7»3 19,908 20, 379 159, 189 13, 821 s, 723 in,(is(i ).{, '2KS 12, (-.11 13, 702 12, 357 11,561 3,906 4,137 4, 988 .5, 542 .-., 52« 4,483 4,599 6,003 3y;: iV2:< 1,07- 4,0l.>- 16,342 96,752 39,184 1,329 ^ l,.-)79 1 1, 143 1,160 .V41 1,064 1,543 1,584 10,243 1,201 1,4.5!'. 2,074 2,301 l,S0l 1,5.34 1, 401' 1,231 13,010 1920. Aueust .September October November December 1921. January February .March April .May June July Twelvemonths 1921. .^ueru.st September. . ^ October November December 1922. January February March Eight months American-Egyptian cotton in running bales. » Total. Tire fabrics. 1,6S7 Sewing thread. Fine cloths. Other in- dustries. ' 2,.>49 319 208 33.1 > 1,590 1,236 225 61 as 1.194 83S 212 66 78 771 421 183 .■)0 117 NS7 583 183 32 ^'^ 3s9 ls2 96 8.5 <% H57 32 102 4." 947 779 45 87 3'. l,a37 ],14.s 4 1.53 :5-2 1, 838 1,469 .59 259 51 1,902 1,380 1.58 .327 !17 2,471 1,93S 134 248 151 10,771 12,298 1,650 1,678 1,145 2,239 1,729 65 347 98 2, 1.58 1,213 322 445 178 2,277 1,035 004 542 95 2, 5.57 1,305 608 425 219 3,240 1,708 598 558 376 4,030 2,394 795 653 1>H 3,7.59 2,259 787 614 OH 4,286 , 2,066 872 1,191 l.iT 24,546 13, 710 4,6.51 4,775 1. 42H EEPORT ON THE EMERGENCY TARIFF ACT. 91 Attention is called to the fact that the total consumption of Egyp- tian cotton for the eight months ending with March, 1922, was al- most exactly the same as for the whole year ending July, 1921, that is about 159,000 bales. This figure is to be compared with the consumption of Pima cotton, which was about 16,000 bales for the full-year period and about 24,000 bales in the recent eight-months period. It may appear that this increase in the consumption of Pima is not significant in view of the fact that it is equal to only about one-seventh of the consumption of Egyptian imports in the last eight months. As a mattter of fact, however, only about one-fifth of the Egyptian imports are comparable with the Pima grade. It is safe to say, therefore, that since the date of the emergency tariff the con- sumption of Pima in the United States has increased as compared with the consumption of dutiable Sak. Another interesting point brought out in this table is the consump- tion of cotton, both Egyptian and American, by the motor-tire industry. Tire fabrics absorbed about 100,000 bales of the two varie- ties during the fiscal year 1920 and about 110,000 bales for the recent eight months' period, but inasmuch as only a small portion of the EgjTptian imports were dutiable in the last period, it appears that only 40,000 to 50,000 bales of a staple If inches or over were used in tire fabrics. These figures are to be compared with an estimated annual consumption of 420,000 to 480,000 bales of all cotton used in motor tires, according to the Rubbei* Association of America.^ It is certain, therefore, that the tire manufacturers are not using a large portion of dutiable cotton in their product,- nor are they shifting to the use of American-Egyptian under the emergency tariff to any great extent. The mcreased use of Pima in thread and fine cloths is notable as compared with the use of Egyptian in these products. The use of the latter declined in the eight months as compared with the full previous year, but the use of the former increased from about 3,300 bales in the nscal year 1920-21 to about 9,500 bales in the eight months ending with March, 1922. STOCKS ox HAND. Another table of some significance is that of the stocks of Pima and Egyptian cotton on hand in the United States for recent months. 1 statement in " Proposed Tariff on I^ong Staple Cotton," by the Rubber Association of America. (Ac- cording to the brief the association represents about 90 per cent of the tire production in the United States.) 2 The brief referred to above states that normally 80 to 90 per cent of their consumption of imported cotton is of the upper Egyptian varie) y and only 10 to 20 per cent of Sak. 92 liKPOUT ON TIIK KMKlUiKNCV T.MMI'F ACT. T.Mii.K VI. — Storks of Aiiiciiain Inuij-xtaple cation. |Kron> Fodorul Census.) Month. Aiisn.^t September. Oct olH Crop years ending July 31. Stocks of Egyptian have increased recently as compared with the autumn of 1921, but they are no higher than they were a year ago. Stocks of Pima, on the other hand, have increased steadily since October, 1920; from about 13,000 bales in that month they have accumulated until nearly 93,000 bales were reported in March, 1922. This latter figure is especially significant when it is recalled that the total crop for 1921 was 37,000 bales and that the maximum annual production (1920) was about 92,000 bales. The foregoing tables of production, consumption, and importations of long staple cotton are cniefly significant for tariff purposes in their effect on relative prices of imported and domestic cotton. In the fol- lowing tables, therefore, will be presented prices of Sak. cotton, both in Boston and Liverpool, and of comparable grades of Pima in Boston. Table VIIa. — Cotton — Prices, Liverpool and Boston,^ spot quotations.^ Egyptian Sakellarides. American Difference in price. Fully good, Boston, over average flne to good, Liver- pool. Pima No 2 FuUy Date. Liver- pool, averag'ie fine to good. Boston, fullv good. Egyptian; Boston, Pima No. 2. Boston, over average flne to good, Liver- pool. good, over Boston, over Pima No. 2, Boston. 1921. 8 S0.3G .40 .49 .38 .35 15 $0.45 .43 .42 .41 $0.37 .33 .32 .33 $0.05 .03 .04 .06 -$0.03 - .07 - .06 - .02 $0.08 22 .10 29 .10 Feb. 5 .08 19...... .31 .37 .28 .06 - .03 .09 26 .27 .32 :i? .05 - .03 .08 Mar. 5 .26 .36 .10 - .01 .09 12 IP 26 .27 .29 .32 .39 .32 .07 .00 .07 Apr. 2 .32 .41 .32 .09 .00 .09 9 .32 .33 .33 .39 .29 .07 - .03 .10 16::: :.: 23 .41 .32 .08 - .01 .09 .30 7 .33 .33 .40 .42 .07 .09 Mav ..32 - .01 .10 14 .33 .36 .34 .03 .01 .02 28 .32 .37 .35 .05 ,03 .02 ' Liverpool quotations from the Manchester Guardian. Boston quotations from Market Reporter. ' Liverpool prices converted into American money at the rates of exchange current on the dates of quotations. REPORT ON THE EMERGENCY TARIFF ACT. 93 TabIe VIIa. — Cotton — Prices, Liverpool and Boston, spot quotations — Continued. EMERGENCY TARIFF, 7 CENTS PER POUND. Egyptian Sakellarides. American Egyptian; Boston, Pima No. 2. Difference in price. Date. Liver- pool, average fine to good. Boston, fully good. Fully, good, Boston, over average fine to good, Liver- pool. Pima No. 2, Boston, over average fine to good, Liver- pool. FuUy good, over Boston, over Pima No. 2, Boston. 1921. June 4 80.31 .30 .30 .29 .29 .29 .29 .29 .28 .29 .30 .30 .31 .40 .40 47 .50 .52 .50 .47 .46 .46 .43 .41 .42 .42 .46 .46 .45 .41 .39 .40 .40 .41 .42 .41 .42 .43 .42 .42 .41 .41 .41 .41 .41 .41 $0.42 .42 .41 .40 .42 .41 .41 .42 .42 .44 .44 .45 .49 .54 .54 .56 .71 $0.35 .33 .33 .31 .32 .33 .34 .33 .33 .33 .34 .32 .35 .36 .40 .42 .40 $0.11 .12 .11 .11 .13 .12 .12 .13 .14 .15 .14 .15 .18 .14 .14 .09 .21 $0.04 .03 .03 .02 .03 .04 .05 .04 .05 .04 .04 .02 .04 -.04 .00 -.05 -.10 $0.07 11 .08 18 .08 25 .09 July 2 .10 9 . . .08 16 .07 23 .09 30 .09 Aug 6 .11 13 10 20 .13 27 .14 Sept 10 .18 17 14 24 .14 Oct. 1 .31 8 15 .63 .64 .59 .59 .56 .54 .56 .59 .59 .60 .58 .57 .57 .53 .46 .41 .41 .41 .40 .37 .39 .34 .37 .39 .39 .39 .37 .36 .13 .17 .13 .13 .13 .13 .14 .17 .13 .14 .13 .16 .18 .13 -.04 -.06 -.05 -.05 -.03 -.04 -.03 -.08 -.09 -.07 -.06 -.02 -.02 -.04 .17 22 23 29 . 18 Nov. 5 18 12 .16 19 . 17 26.. . . 17 Dec. 3 .25 31 .22 1922. ''1 . 19 21 18 20 Feb. 4 17 11 18 .56 .56 .36 .36 .15 .14 -.05 -.06 .20 20 Mar. 4 .55 .56 .33 .33 .33 .33 .33 .31 .31 .32 .34 .13 .13 -.09 -.10 -.09 -.09 -.08 -.10 -.10 -.09 -.07 22 18 23 24 31 Apr. 7 .54 .53 .52 .54 .54 .55 .13 .12 .11 .13 .13 .14 21 ^ 14 22 21 21 28 ■2'> May 6 ■'0 12 59&— 22- 94 UEPORT ON Till". K^^K!{(;KN('V T.MUIF .\(T, Taim.k VIIh. -Cotton — Pricrx, lAnrpool (iiul liosto)i,^ spot fjiiotdtiotisy Egyptian Sokolla- rides. Amorl- caii- Dillerenco in price. SakcUa- Pima No. tlood fair Divlo. Uver- pool Rood fair. Boston Keyptian; Boston, rides, pood frtir, 3, Boston over pood Sakclla- ridps, (!0<)d I'ima Boston fair Sa- Boston • fair. No. 3. over lccllaride.s, over Liver- Liver- Pima pool. pool. No. 3. 1921. Jan. 8 .. S0.?» 15 .33 .31 ..10 .27 .23 .19 .18 .21 .21 10.37 ..34 ..34 .;« .28 .24 .27 $0. 36 »0.04 .03 .04 .06 .05 .05 .09 to. 03 SO. 01 22 29.. . . . . Fph 5 .32 .27 .23 .26 .05 .04 .04 .08 .01 19 .01 26 .III Mar. 5 .01 12 19 26 .26 .32 .31 .06 .05 .01 Apr. 2 .26 .32 .31 .06 .05 .01 9 .25 .29 .28 .04 .a3 .01 16 23 .26 .26 .31 .31 .05 .05 .00 30 7 .26 .26 .30 .32 .04 .06 Mav .31 .05 .01 14 . 25 .27 .33 .02 .08 -.06 EMERGENCY TARIFF, 7 CENTS PER POUND. 1921. May 28 $0.24 .23 .23 .23 .22 .22 .22 .22 .22 .21 .Zi .23 .22 .23 .32 .32 .39 .42 .44 .41 .38 ..37 .36 .33 .31 .36 .32 .36 .36 ..34 .30 .27 .27 .27 .30 .31 .31 .32 .31 .31 .30 .30 .30 .30 .31 ..31 $0..34 .:« .34 .33 .31 .32 .32 .31 .33 .33 .32 .32 .33 .38 .41 .41 .44 .57 $0.34 ..34 .32 .32 $0.10 .10 .11 .10 .09 .10 .10 .09 .11 .12 .09 .09 .11 .15 .09 .OC .05 .15 $0.10 .11 .09 .09 »). 00 June 4 -.01 11 .02 18 .01 25 July 2 .31 .33 .34 ..33 .33 .33 .34 .32 ..35 ..34 .37 .39 .37 .09 .11 .12 .11 .12 .10 .11 .10 . 12 .02 .05 .00 -.05 .01 ^ 9.. .:.:. -.01 16 -.03 23 30 Aug. 6 13 20 27 .1)0 .00 -.01 -.02 .01 .03 Sept. 10 .07 17 .01 24 Oct. 1 8 .05 .20 15 .50 .50 .46 .46 .45 .44 .44 .46 .46 .47 .45 .43 .43 .38 .44 .38 .38 .38 .37 .35 .36 .32 .35 ..37 .37 .37 .35 .24 .09 .12 .09 .10 .12 .13 .08 .14 .10 .11 .11 .13 .16 .11 .03 .00 .01 .02 .04 .04 ,00 .00 -.01 .01 .03 .07 .08 .07 .06 22 .12 29 .08 Nov. 5 12 19 26 Dec. 3 .08 .08 .09 .08 .14 31 .11 1922. Jan. 7 .10 14 .08 21 .06 28 .as Feb. 4 .04 11 ^ 18 .43 .43 .42 .43 .34 .34 .31 .31 .31 .31 .31 .29 .29 .29 .32 .32 .13 .12 .11 .11 .04 .03 .00 -.01 .00 .00 .01 -.01 -.01 -.01 .01 .01 .09 25 .09 Mar. 11 .11 IS .12 24 31 . Anr. 7 .42 .41 .40 .42 .43 .43 .12 .11 .10 .12 .12 .12 .11 ^ u::::::::::::::;::::. :;:::::::.:.;.; .12 21 .11 28 .12 Mav 6 .11 ^ li.:::..... : .11 ' Liverpool quotations from the Manchester Guardian. Boston quotation from Marlcet Reporter. ' Liverpool prices converted into Ameru-an money at the rates of exchange current on the dates of quotations. KEPOET ON THE EMERGENCY TARIFF ACT. 95 Table VIIc. — Cotton — Prices of Sakellarides, Liverpool and Boston. [Egyptian: Spot trading values for Liverpool standards. Converted at current rates exchange to American doUars, value per pound.] Liverpool quotations. Boston quotations. Date. Fine. Good. Fully good fair. Good fair. Good fair. Without duty. With duty. 1921. Jan. 8 $0.38 .42 .41 .40 .37 .33 .29 .28 .29 .30 .33 .33 .33 .35 .35 .35 .34 .34 $0.33 .37 .36 .35 .32 .28 .24 .23 .26 .28 .31 .31 .30 .31 .31 .31 .31 .31 $0.32 .33 .35 .34 .30 .26 .23 .21 .24 .25 .29 .29 .28 .29 .29 .29 .28 .27 $0.2S .33 .31 .30 .27 .23 .19 .18 .21 .21 .26 .'26 .25 .26 .26 .26 .26 .25 15 $0.36i .331 .33? .32J .28J :i| 22 29 Feb. 5 19 26 Mar. 5 12 19 26 .32 .32 .291 Apr. 2 9 le 23 .3ii .30J .32J .261 30 May 7 14 : EMERGENCY TARIFF, 7 CENTS PER POUND. 1921 May 28 June 4 11 18 25 Julv 2 9 16 23 30 Aug. 6 13 20 27 Sept. 10 17 24 Oct. 1 8 15 22 29 Nov. 5 12 19 26 Dec. 3 31 1922, Jan. 7 14 21 28 Feb 4 11 18 25 Mar. 4 11 18 24 31 Apr. 7 14 21 28 May 6 12 .33 $0.32 .31 .32 .30 .30 .31 .31 .30 .29 .30 .33 .32 .33 .42 .43 .49 .52 .54 .52 .50 .49 .49 .46 .44 .45 .45 .50 .49 .48 .44 .40 .41 .41 .44 .45 .44 .45 .46 .45 .4.5 .44 .44 .44 .44 .44 .44 .26J $0. 25i .26| .25i .24' .241 .25i .24i .26i .251 .27 .271 .26} .37i .34 .331 . .36=. .43 .42| .385 .38J .38i .363 .37* .38i .39 .39i .37} .35? .351 .328 .36i| .36 .36 .3.5i .35? .343 .33? ..32} .35 .351 .36i $0. 33i .32J .33i .32J .31 .311 .32} .31} .33i .32J .32 .325 .33} ■ HI .41 .40i .43^ .568 .50 .451 :l .434 .43i .45} .46 .46^ .44} .42J • 422 ■ 38i .43J .43 .413 .40} ..39} .42 .42} .43J 1K> I'.KPOItr ON' THK KMKIUJKXCY TARIFF ACT. Tho pi-Ci'ctliiio; prico tables show tlinl t ho 7-cont duty has increased tlu> price of 8ak. rotton in Boston by about the full amount of the duty as compared with Liverpool prices. The last quotation in May shows a premium of ") C(>nts for SaK. No. 2 in Boston over Liverpool, and a week later, after the tariff went into effect, the premium was 11 cents — a dilferenco. of G cents. Practically the same premium prevails throughout the shipping season of 1921-22. This increase in Boston prices of Sak. over Liverpool by the amount of the duty follows as a matter of arithmetic for similar grades of cotton when the market is free in both places. A more diflicult com- parison, however, and one more significant, is the change in prices, if uny, of Pima in Boston brought about by the emergency duty. The general impression obtained from column 3 of Table VIIa is that the f»rice of Pima has been fairly constant for the past 18 months except or a rise toward the end of 1921. On May 7, 1921, for example, the price was 32 cents per pound, and on May 6, 1922, it w^as 34 cents. Comparable Sak. cotton in Liverpool, however, gradually rose in price during that period from around 32 cents in the spring of 1921 to about 41 cents in 1922. This situation obviously confuses the w^hole problem of the cfifect of the emergency duty. Pima, which was meant to be protected, shows little or no permanent increase in price, and Sak., against which protection w^as sought, Shows a steady strengthening of the market. Column 5 of Table VIIa represents the same conditions by showing the difference in price between Pima No. 2 in Boston and Sak. in Liver- pool. In this column, however, there is some indication that the duty was effective immediately after the passage of the act. Prior to June, 1921, Pima sold for 1 or 2 cents less in Boston than Sak. in Liverpool, but from June to September Pima was worth 4 to 5 cents more than Sak., a total change of 6 or 7 cents, about the amount of the duty. In these months, however, June, July, and August, the cotton market is sluggish and quotations are largely nominal. In the fall of 1921 prices of Pima strengthened, running up as high as 46 cents in October. Tliis rise, however, probably was not due to the tariff because Sak. prices in Liverpool increased more rapidly; 52 cents per pound was touched in October 8. The net result was that the new crop of Pima in Boston sold for considerably less than Sak. in Liverpool. Although Pima was at a premium of 4 to 5 cents during the summer, it was discounted by a like amount as com- pared with Sak. in the autumn of 1921. In the spring of 1922 this discount was 8 to 9 cents per pound \vith small indication of a re- vival. In this discussion attention has been focused on the price differ- ential of only two comparable grades of foreign and domestic cotton in Boston and Liverpool, without detailed reference to other columns in the tables. Practically the same condition, how^ever, prevailed for other grades show-n as has been outlined for Pima No. 2 as com- pared with Sak. fair to good. For further details attention is directed to column 6 of Table VIIa and columns 4, 5, and 6 of Table VIIb. In Table VIIc are given the prices of various grades of Sak. cot- ton in Liverpool for the purpose of showing the price fluctuations in that market. REPORT OIT THE EMERGENCY TARIFF ACT. 97 Table VIII is a compilation of prices for American upland cotton in Liverpool and New Orleans. This table is inserted for the purpose of showing that for comparable grades of cotton in Liverpool and America the prices in a free market run closely together. There must therefore be special reasons why the Pima cotton does not approximate the price of Sak. in Liverpool closer than the price tables show. Table VIII. — Cotton — Spot prices of American niiddlivg, Liverpool, monthly averages. Date. Liver- pool. Con- verted to Ameri- can money at cur- rent rate of ex- I change. Spot cotton quota- tions. Middling New Orleans. January . . . February. . March April May June July August Sejitember. October November. December . , January . . February. 1921. Cents per pound. 46 43 45 44 43 46 43 36 34 26 19 15 Cents per pound.'^ Date. Liver- pool. 1921. March April May Juiie July August September October November December 1922. January February March Con- verted to Ameri- can money at cur- rent rate of ex- change. Cents per pound. 15 13 13 13 12 15 23 21 20 2 21 Spot cotton quota- tions. MiddUng New 0rlean.s. Cents per pound.^ 11 11 12 11 11 12 18 19 17 17 1 Spot quotations New Orleans monthlv average, the Market Reporter. * Liverpool quotations, January, 1920, through December, 1921, from Official Report of the World Cotton Conference. "Cotton statistics" by John A. Todd. Data January to March, 1922, inclusive, the Textile Mercury. No attempt will be made here to interpret or explain in detail the anomalies presented in the price tables given above. About the only thing that may be said with certainty is that world prices of Sak. cotton have gone up and the prices of American-Egyptian cotton have remained fairly constant since the passage of the emergency tariff. Attention is directed to some underlying factors, however, which may throw some light upon the figures. In the first place there have been attempts by the Egyptian Government to support the price of Sak. cotton, by limiting the acreage planted, by encouraguig marketing syndicates, and by buying in the open market at strategic times. Usually the purchases have been but 4,000 or 5,000 bales at a time but the effect on the market has been more than proportional to the amount of the purchase.^ Another factor on the other side is the sluggish market for Pima in this country. With almost a year's supply on hand, either at home ' Of. United States Commerce Reports, Aug. 5, 1921, and Daily News Record, May 31, 1922. 08 KErORT OX TnE EMERGENCY TARIFF ACT. ov Dii c'i)nsiij;niuont in liostmi, the plnntcM's of the Southwest are fared with a ilillicnilt situation. Added to this effect on the mar- ket, there is a slow (hMuand for I'inui anu)n<:j the eastern mills. This reluctance to substitute Anierican-K^yptian for Sak. is probably due to a number of causes, amonji; them beinjij the fact that many niills are not adjusted to the use of Pima or the management does not realize tliat they have a type of cotton requiring special adjust- ments of machinery and treatment of the staple in order to get satis- factory results. Other mills perhaj)s are merely reluctant to change from the use of Egyptian cotton for which tliere is an estabhshed reputation to a less well-known variety of liber. In acUlition to these more or less temporary handicaps against Pima many spinners of line yarn, particularly thread manufacturers, allege that notwithstanding its extra length the American products have not the character or strength of Sak. and therefore can not be substi- tuted in the manufacture of the finest counts of yarn. There seems also to be a differential in favor of Sak. in the mercerizing qualities of the yarn. Many of these objections may be due to a relative un- familiarity with tlie domestic product, but at any rate it seems an established fact that manufacturers of fine fabrics -will pay a premium of 10 to 15 cents for Sak. as compared with Pima. Tire manufac- turers seem to have avoided the additional expense imposed by the emergency tariff by using cotton not affected by the duty. Medium staple uppers from Egypt and American upland of the better grades are now used for 80 or 90 per cent of tire labrics. In brief, the emergency duty has probably stabilized the Pima market somewhat, inasmuch as it has reduced the proportion of Sak. as compared with the imports of ordinary Egyptian cotton, and has encouraged the use of Pima in some industries, especially in the pro- duction of thread and fine cloths; but because of the great surplus of Pima in the face of a reluctant demand and because of the shift of the tire manufacturers to medium staple cottons rather than to Pima, the emergency tariff has only partially relieved the cotton situation in the Southwest. WOOL. Article. Emergency tariff rate. Senate bill. Act of 1913. Wool: Classes I and II— Unwashed 15 cents per pound. Waslied 30 cents per pound Scoured ' 4.5 cents per pound Manufactures of wool: | Compensatory duly i 4.5 cents per pound. According to value . . ' Duty on grease basis, calculat- ing 33 rents per pound. Free. Tops, 36 cents per pound. Yams, 26 to 39 cents per pound. Cloths, 26 to 49 cents per pound. Dress goods Cotton warp, | cent per square yard. Wool, 11 cents per square yard. Act of 1909. Class 1, 11 cents per pound; class 2, 12 cents per pound. Class 1, 22 cents per pound; class 2, 24 cents per pound Class I,. 33 cents per pound; class 2, 36 cents per pound. Tops, 24^ to 44 cents per pound. Ya.-ns, 27J to 38i cents per pound. Cloths, 33 to 44 cents per pound. Dress goods. Cotton warp, 39 cents per pound. Wool, 40 to 49 cents per pound. REPORT ON THE EMERGENCY TAR.IFr ACT. 99 SUMMARY AND CONCLUSION. When the emergency tariff act was passed, in the spring of 1921, there were large stocks of wool on hand in the United States, Ameri- can woolen mills were operating on short time because of industrial depression and labor troubles, and the world, especially the British colonies, possessed great stores of wool ready to be marketed at any reasonable price. Imports were heavy in the first quarter of 1921 in anticipation of the duty; woolgrowers had almost a full clip on hand, produced at high cost with almost no market, and their credits were stretched almost to the point of collapse. In short, the whole woolgrowing industry, including the financial institutions supporting it, was faced with financial ruin. Under these conditions the emer- gency tariff act gave immediate relief, especially to the strained credit situation. Bankers were no longer afraid of wool paper when foreign wools were practically embargoed. Imports of wool for consumption almost ceased in June, 1921. General imports revived in the winter and spring of 1922, but they went largely into bonded warehouses in anticipation of a lower duty on wool in the permanent tariff bill. Prices, as was to be expected in view of the great stocks of wool on hand, did not immediately respond to the emergency duty but remained fairly steady all through the year 1921. By January, 1922, however, a decided revival had set in, and it has continued to the present time. Boston prices of standard grades of scoured wool exceeded London prices of comparable grades by 10 to 25 cents per Eound prior to the passage of the emergency act. In recent months, owever, the differential has increased, and it now stands from 25 to 35 cents per pound. As stocks of domestic wool are still further depleted a closer approximation may be expected of the premium of Boston over London to the amount of the duty. The compensatory duty of 45 cents per pound on manufactures of wool seems to have restricted the imports of wool tops and of dress goods to a considerable extent, but the imports of wool yarn and of woolen and worsted cloth show only a slight decline immediately after the passage of the act. In all cases it is probable that a large part of the decline in imports during the summer of 1921 was due to the fact that imports were heavy immediately preceding the enact- ment of the law. PRODUCTION AND CONSUMPTION. In recent years, owing to unusual war-time needs, the United States has consumed from 600,000,000 to 800,000,000 pounds of wool an- nually. Of this amount about 300,000,000 pounds were produced in the United States and 400,000,000 pounds imported. For a series of years before the war, out of a total consumption of about 525,000,000 pounds per year, 300,000,000 were grown in the United States. The details of our annual production, consumption, and importation of all wool for many years past are shown in Tabic I. 100 REPORT ON THE EMERGENCY TARIFF ACT. Table I. — Wool — Summari) table.' Years ondeil June 30— Production. Pounds. 35,802,114 .52, .516, 959 (W, 264, 913 142, 8.88. 889 186.275.000 280, 700. 000 297,991,676 271,83.5,319 298.712.966 298, 915. 130 298,294,750 311, 138. .321 328,110,749 321.362,750 318,547,900 304, 013, 400 296,175,300 290,192,000 285,726,000 288,490,000 281,892,000 298,870,000 313,638,000 308, 507, 000 273,064,000 lia|i<>rl>. Pound*. 9, 898, 740 18,695,294 26,282,955 .53, 138, 12G 6S. 930, 280 93, 194, 903 142.318,925 1S9. 444,673 174.03.5.309 201,688,668 203. 847, 545 12.5, 980, .524 266,409,304 203,928,232 137,fri7,641- 193,400.713 195. 293. 2.55 247, 64,S, 869 308,083,429 .534, 828, 022 372,372,218 379. 129, 934 422,414.983 427, 578, 038 318, 137, 858 Total con- sumption. Per cent of foreign wool con- sumed. IS40 Pound*. 45,615,328 71,176,3.55 85, 334, 876 194,600,624 250, 214, 361 369, 485, .532 435, 596, 522 4.52.020,701 469, 493. 460 494,900,939 498,695,547 431, 252. 030 590,996,078 581,235,509 447,989,842 495,724,243 486,265,680 536,300,686 578,391,195 817,095,537 650,285,494 675,959,925 734,901,948 715,821,028 580,361,775 21.5 1850 26.3 1860 30.6 18B2-1S70 26.8 1871-1880 25.6 1881-1S90 1891-1895 •24.1 31 84 1896-1900 40.58 1901-1905 36.4 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 » 39.6 40.0 27.9 «.5 44.7 •28.9 3S.7 39.3 46.0 .52. 6.5.2 57.0 .55.9 57.4 57.9 53.9 I statistical Abstract, 1920, p. 556. ' Production, Department of Agriculture; trade, Department of Commerce, Monthly Summary. Domestic production of wool has not substantially increased in 40 years. The annual average in the decade of 1881-1890 was about 280,000,000 pounds as compared with about 273,000,000 pounds for the year 1921. Since 1884 annual production has rarely varied much from 300,000,000 pounds. Apparently the peak of our production was reached about 12 years ago — nearly 330,000,000 pounds was produced in 1909. On the other hand our imports have gradually mcreased. Twenty years ago we were importing about 175,000,000 pounds as comparecl with nearly 200,000,000 pounds from 1908 to 1913, inclusive, and an average of 375,000,000 pounds from 1914 to 1921, inclusive. Expressed in terms of percentages, imports 20 years ago were 36 per cent of consumption, whereas during the great de- mand of the war and postwar years the}' have averaged 56 per cent of consumption. Tables IIa and IIb show the imports of Classes I, II, and III wool in the United States from the various countries of the world. Argen- tina and Australasia are the chief sources of imports. England ex- ports considerable wool to this country, but it is largely reexports of colonial products. REPORT ON THE EMERGENCY TARIFF ACT. 101 <» ? i C-l C^ t^ 3C to X, rj" O CO a> CO M o ,^ lO t^ roi-4ococcooi^0ic^ o 3*- — C^CCC^OtOi iO iC X- iO iC »—• re cc o >—<-?* ^ "^ "^ '-' S ^ ^ iO»-'CCccr^»C'^ccc^r^O- OO i^ CcDOIM I-Oi-hOX— ^Cl'^CD'^iO'— f 43 cD'l^f o'cc'crcc*"irroc''<-r-*"crr--'' ^a:cciootDr--cxji-Gcirj^aj SiO'^'^cDCiCCOOOSCOOS'-t o cc'cc^'-'^c^rcT'O crr-'"^oc"i-< c/T rrcJt- Ci X cc I- 1^ '^ U-: >c oii-c (r< cc ^ (M'''^'"cc"oc"x*"r-"--"^'"oo"or^f CD*" ^CiOOcccX'-HMcr: cDOiOicD KirDi-HC«c^oo-H-}-a:'Occoc a ^^„^_*^^^^^^ o .-4 c ^ I ~ o c^ cc ci cc - c,s- C -< N cc ■* IfS CD I O O OiOiOiOiOiOiOiOiOiOiOiOi I So ■-I o ■a .3 oo'a S.2 r-. P< •3 3 f^<: fi, £f i:i5 r o OlQCO'fCCiNas-HC^'^r-tD Oi— t--c:cci--aiOCO> « e;=4 >O«-i00W5C«CD€ 3tr'5iO'^0-^(MO:icDXoasc 3 00 o o ;D '^ i— " re c^ c; ■-< 1 - t-- L -;D'-iuCGC CO 1-H <-t CO »c -^ -^ o 00 cc -H , Ol Oi «C 00 lO CC —I t» lO !-■ O CD - Cs O COC »0 CD »0 ■" (^occocoiOOt-r-oi-^c^QO C^iO^OCOCCt^C'^CC'^OcC ^Ol-'C^Oi'— "cD'-hOcC05C^»0CS ^Or-CCT''^giCCQC'-*rfCD^ KcDO':DfN*OOOlOC".Oj^ 0« 0>0>00>0>0>0>0>0>Q>0>(S_fcj 102 KKrour ON I'liK i;.\ii'.K(;i:\("v lAitii-i'' act. In TnMi's 111a, 111», niul Uh' aro shown Iho imports of llio vaii- lUis classes of wool by months sinco flannarv, 1020. The montlily imports for li)ll are also includeii for comparative purposes. The outstandini; feature of Tables 111a and IIIh is the fact that the cmeri^encv tariff almost shut olf the imports of wt)ol of Classes I and II. Fn>m an importation of over SO. ()(}(), 000 pounds in March, 1921, receipts fell olf to less than 900.000 in -lune. Imports of Class II wool fell from nearly 1,000,000 pounds in March, 1921. to 20.000 pounds in .lune. It will he observed that there has been a revival of imports for the three months of 1922 for both kinds of wool. Class I runs from 4.000.000 to 7.000.000 pounds per month, and Class II showed \mports for March. 1922, of over 17,000,000 pounds. These heavy imports are not as immediately si^nilicant as they may appear, however, because, as is shown in a later table, practically all of the imports of dutiable wool are ji;oin^ into bonded warehouses rather than into consumption, doubtless on account of some uncertainty as to the pendino; tariff legislation. Table Illc, in which are showm the imports of Class III wool, is sig- nificant in that imports have been especially heavy in this grade of wool in recent months. It can not be assumed, however, that these heavy imports are due solely to a substitution of Class III wool, which is Tree, for wools in Classes I and II, which are dutiable. Perhaps some substitution is taking place, but many of the imports probably are in anticipation of duty on this class of wool. Table IIIa. — Wool, Class I — General imports by months. Month. January... February. March April May June July August September October. . . November. December. 1914 Pounds. 14,217,699 18,404,021 21, 872, 566 26,925,2.30 16,580,562 14,031,885 10,134,506 9,051,093 6, 832, 421 5,499,785 2,113,276 652, 034 1920 Pounds. 35, 503, 138 20,900,406 26,377,249 48,621,087 9,762,257 16,073,230 7,325,635 11,063,635 10, 155, 913 5,864,358 10,025,369 10,750,166 1921 Pounds. 15,993,109 36, 209, 858 80, 794, 265 52,074,805 s 10, 123, 845 2 868,215 656,111 3, 947, .376 293, 857 585,369 12,727,225 13,592.480 1922 ' Recent imports are stored largely in customs bonded warehouses. » The emergency tariff act became elTective May 28, 1921. Table IIIb. — Wool, Class II — General imports by months. Month. Jaiiiiary February March ..'. April ! 1,673,' May \ 2,137,436 Pounds. 2,047,118 2,7.33,720 2,506,018 June. July August September . October November . December.. 2,007,768 3,546,082 2,739,887 2,263,784 2,043,694 805.984 1,955; 252 Pounds. 159,917 524,904 1,052,984 854,219 875,771 264,286 250,804 891,495 5.52,138 117,. 501 234, 140 864,264 1921 Pounds. 1,858,574 1,387,360 3,862,496 2,637,019 2 245,804 2 28,365 80,008 24,114 373,737 273,754 1922 Pounds. 83,886 1 6,981,887 1 17,695,447 ' Recent imports are stored lartjely in customs bonded warehouses, t The emergency tariff became effective May 28, 1921. REPORT OX THE EMERGENCY TARIFF ACT. 103 Table IIIc. — Wool, Class III — Generalimports by months. Month. 1921 1922 Pounds. January 7, S4fi, 187 ! February 9, 643, 028 March 12,063,190 | April 10,382,074 May I 11,378,152 j June 8, 221 , 888 July fi, 1.50, 565 i August 4, 777, 041 September ; 4, 705, 674 ' October ' 3,942,256 1 November i 2, 541, 724 December 310,185 Pounds. 5,576,332 3, 877, 276 4, 945, .531 3,774,654 2, 363, 066 4,248,677 1, 450, 042 2,411,412 885,964 2,651,788 1,937,466 1,747,399 Pounds. Pounds. 3,2'}6,306 ! 14,452,297 5,135,156 I 15,856,705 11,775,761 I 21,625,446 10,308,086 13,324,161 1 4,165,820 J4,642,305 8, 660, 745 11,844,309 I 14,135,380 I 7,893,690 ; 7,492,294 8,580,644 Free under emergency tariff act of May 28, 1921. The foregoing tables have shown the general imports of wool rather than the imports of wool for consumption. As a matter of fact little wool is being imported for consumption, as is shown in Table IV below. Table IV. — Wool — Imports for consumption and stocks in bonded icarehouse. Class 1. Class II. Class III. Quarter and year. Oencral imports. Imports for con- sump- tion. Stocks in bonded ware- house eud of quarter. C, eneral imports. Imports Stocks hi for con- bonded sump- 1 ware- tion. liouse. C! eneral imports. Imports for con- sumT>- tion. 1921. Kir^t quarter ^^econd quarter Third quarter Fourth quarter 1922. l-'irst quarter Pounds. 132,997,332 63.066. S65 4.897,344 r,,90.-i,074 15,9.58,827 Povnis. 132.997,332 62, 2.50, S4S 80.114 330,399 3,020,610 Pounds. '"ihi'.ioi 5,192,963 11.370,679 23,778,989 Pounds. 7.10.S,4:-!O 2.977.778 104.122 647,491 21,761,220 Pound.i. Pounds. 6,738,309 2,.>, \V2\ Total wool- l total. groase oquivalent. Pounds. Pounds. 651,:U6,2S7 .1.80, 7:)3, 743 .TO, 181,(X)0 •191,397,000 rieT.ou.ooo ■187, 106, 000 .117,827,000 413, as7, 000 589,713,000 .114,791,000 Tops. Pounds. 42, 805, 488 00,934,000 .13,890,000 .10,2(in.000 51,378,000 Noils Pottnd.s-. 27, 757, 0.K. .30,S.10,00(l, (Hill 20,511,0011 > Quarterly bulletin of National Wool Manufacturers' Association, from statistics compiled by the Depart- ment of Agriculture. Includes stocks of dealers and manufacturers and Government wool. Kecont figures for wool stocks on hand are not available, nor is it possible to make estimates. The figure of about 590,000,000 pounds for September 30, 1921, is somewiiat above normal and undoubtedly exceeds the present stocks, but by how much it is impossible to state at this time. It is generally known to the trade, how^ever, that all dealers' and manufacturers' stocks are low, especially the fine wools, and that the Government has entirely disposed of its surplus. In the face of a declining supply American mill consumption is constantly increasing, as is indicated by Table Va, following. T.\BLE Va. — Wool — Consumption, bij months.^ [Grease pound equivalent.! Date. September . October November. December. . 1921. January.. February . March April May rounds. 36,297,220 38,443,687 28,096,047 24,292,000 29,807,000 36,204,(X)0 47,181,000 53,071,000 56,929,000 Date. Poimds. June July August September. October November , December. . January... February . 591,000 176,000 260,000 130,000 287,000 326,000 459,000 417,000 487,000 1 Statistics co'npiled by t!ic Department of .\sriculture. The foregoing statistics have been concerned with the trade in raw wool onl}". In the following tables are presented some data shomng the effect of the emergency duty on the manufactures of wool. Table VI. — Wool, tops and yarns — Imports by months.^ Date. Tops. Yams. 1920. Januarj-. . . February. , March AprU May June July August September. October. ... November. December . Pounds. 17, OM 119,052 31,041 122,771 71,713 73,322 22, 125 26,751 :«),272 115, .556 .104,990 40,4.56 1921. January , .171,580 February 2,825,786 Pounds. 120,7.57 183,494 329,330 3.39.961 374.045 342,912 402, 319 393,782 312,613 349,360 292, 1.10 229,651 126,6.58 388,379 Date. ! March i April May I June ; July ■■ August I September. October. . . November. ! December . , January. February. March April 1922. 13'). 737 l-i2,27b 312. .Vil 276,622 ' .Monthly summary. Bureau of Statistics, Department of Commerce. REPORT ON THE EMERGENCY TARTEE ACT. 105 Table VII. — Manufactures of wool — Imports by montlis.^ i Date. Woolen and worsted cloths. Dress goods. PO""^- 'yS' Poimds. Square yards. 1920. J anuary February 437,899 667,461 .550,303 897,453 816,477 1.255.565 98,571 151,920 147,471 144, .822 15.3, 893 132, 185 250,533 173,087 159, 715 149,480 92,983 72,493 124, 781 131,812 108,007 151, 600 150,810 82,211 26, 674 58,551 45, 162 74, 524 58,532 57, 392 49, 572 I 60, 759 62, 131 47,790 363,893 426,934 457,429 April May June July August September 615,003 600,516 53.3,367 569.397 429,257 318, 599 376,967 309,773 135,899 170,044 305,047 547, 162 1,106,982 674, 233 481, 227 456, S66 394, 028 461,978 467, 157 399, 488 478, .554 438, .342 523, 386 672,931 479, 008 934,226 974,873 862, 242 8;38, 932 670,512 457, 830 555,067 45:3,652 227,332 274,686 459,529 837,373 1,494,980 958, 487 662, 0.^ 621, 298 576, 521 724, 862 76,i, 524 677, 105 894, 570 730, 455 881, 198 1, 023, 053 658,315 470, 450 488, 343 410,297 770, 514 604,994 515, 095 475, 018 327, 568 267, 120 1921. January February 405,270 396,298 410,755 April .199,047 433, 322 302, .552 Julv 98,418 191,852 173,023 262, 035 224,869 264,963 1922. 178, 732 218, 319 238,943 April 184,924 I Monthly Summary, Bureau of Statistics, Department of Commerce. From Tables VI and VII it is seen that the importations of wool tops and of dress goods fell off sharply in June, 1921, the fu'st month after the enactment of the emergency law, whereas the imports of wool yarn and woolen and worsted cloth were little affected by the duty. It is true there was a decline in the imports of yarn and cloth in the summer of 1921 as compared with the hi^h figures in April of that year, but April imports were abnormally high, probably in an- ticipation of the emergency duty. As a. rule the monthly imports of these products in 1921 w^ere above those for the same period in 1920. It is probable that the precipitous fall in the imports of wool tops after the enactment of the duty was also due largely to the abnormal imports in the months immediately preceding the passage of the bill. Inasmuch as the duty on manufactures of wool is a compensatory duty, i. e., it is intended to offset the duty upon imported raw ma- terial, the question may be raised as to how the duty can have any effect on wool manufactures. Temporarily at least there are a number of reasons why imports would be affected by the duty. In the fu-st place, when importers are certain of a high duty upon imported products tliey stock heavily prior to the enactment of the law and import relatively little for some weeks or months afterwards. In the second place the higher price of imports caused bv the duty may restrict consumption to some extent. In the third place, domestic wool manufacturers were tem- porarily protected by the compensatory duties because of the surplus of wools in the United States at the time of the passage of the act. So long as they could buy domestic wools for less than the London 106 iiKi'oiir ON rnK k.\ii:iu;kn"('V iakhf .\('T, prifo of .^^iinihir wot^ls, |)lus tlu> duty, thov woiv protected by the eoinpeiisutorv riites on wool ful>ries. To wluit extent Bo.ston prices have actually risen »)\ er London prices since the imposition of the duty is shown in the followinj; price tahles for coinpurjitivc o;ra(h's of wool in the two markets. 'i'.MU.io \' 1 1 r. — Wool — /'rice jwr poimd, scoured bcms. Boston. London. I)i\t0. Fine territory staple. 70's,siipor- fleeces; 60/64's, Rood medium fleeces.' Excess of Hoston over London. 1914. Jiilv $0.6300 .82.50 .9000 .9000 . 8750 . 8750 . 8250 . 82" . 8250 . 8250 .8250 .8450 .8650 .9750 1.0650 1. 1250 1.0750 1.2000 1.2550 $0. 6463 .8126 .7878 . 6593 . 5392 . 5991 . 6330 .5137 . 6395 . 7465 .7784 .6862 .7127 .8424 .8412 .8943 . 8923 .9687 .9824 $0,016'. 1921. Jan 15. . .0124 Jan. 27 .1122 .\{ar.5 .2407 \])r. 15 . .3358 \lav 15 . . . 2759 June 15 .1920 July 30 .3113 .1855 Oct . 15 .0785 Oct 30 .0466 Nov .25 — .1588 Dec .8 . 1523 1922. Jan .12 .1326 Feb. 2 .22:58 Mar .10 .2307 .\I a r . 30 .1827 Mav 8 . 2313 M ay 19 .2726 ' Current exchange. Boston prices, Commercial Bulletin; London prices, Wool Record and Textile AVorld, colonial wool sales. Table VII I a. — Wool — Price per pound, scoured basis. July. Jan. 15. . Jan. 27.. .Mar. 5.. .\pr. 15. May 15. June 15. July 30.. Sep"t. 15. Oct. 15.. Oct. 30.. Nov. 25. Dec. 8.. Jan. 12. Feb. 2.. Mar. 10. .Mar. 30. May 8.. May 19. Date. 1914. 1922. Boston. London. E.xcess of Territory 58/60's, Boston one-half good over blood medium London combing. fleece.i $0.5900 $0. 5879 $0.0021 .7000 . 5598 .1402 .7750 .5656 .2094 .7750 .4884 .2866 .72.50 .4738 .2512 .77.50 .4992 .2758 .7100 .4.590 .2510 .7000 .4020 . 29.S0 .7000 .4932 . 2088 .7000 .551H .1482 .7000 .5900 .1100 .72.50 . 5160 .2090 .7650 .5294 .2356 .87.50 . 6351 .2399 .9900 . 6622 .3278 1. 0000 .6719 .3281 .9750 .6920 .2830 1.0250 .7417 .2833 1.1000 .7417 .3583 * Current exchange. Boston prices, Commercial Bulletin; London prices, Wool Record and Textile World, colonial wool sales. REPORT OX THE EMERGENCY TARIFF ACT. Table VIIIb. — Wool — Pnce per pound, scoured basis. 107 Date. 1914. July 1921. Jan. 15 Jan. 27 , Mar. 5 Apr. 15 May 15 June 15 July 30 Sept .15 Oct. 15 Oct. 30 Nov. 25 Dec. 8 1922. Jan 12 , Feb. 2 Mar. 10 Mar. 30 Mays May 19 Boston. Territory, one-fourth blood combing. $0. 4550 .3750 .4250 .4650 . 4<50 .4350 .4000 .3900 .3750 .4000 .4000 .4550 .4650 .5400 .6400 .6750 .6350 .6700 .6900 London. 46/50's, crossbred fleece.' Excess of Boston over London. $0.3649 0.0901 .3265 .0485 .3230 .1020 .2280 . 2,^70 .2124 .2226 .2500 .1850 .2216 .1784 .1787 .2113 .2158 .1592 .2435 .1565 .2459 .1541 .2330 .2220 .2561 .2089 .3000 .2400 .2864 .3536 .3087 .3663 .3096 .3254 .3524 .3176 .3337 .3563 1 Current exchange. Boston prices, Commercial Bulletin; London prices. Wool Record and Textile World, colonial wool sales. Table VIIIc. — Wool — Price per pound, scoured basis. Boston. London. Date. Territory, three- eighths blood combing. 50/56's, fine cross-bred fleece.i Excess of Boston over Loudon. 1914. July JO. 5250 .5250 .5450 .5550 .5400 .5100 . ,5000 .5100 . 5250 .5250 . 52.50 .5500 ..5600 .62;50 .7250 . 77.50 .7,500 .7700 .8150 $0. 4763 .38S8 .3878 .2767 . 2151 .2996 . 2690 . 2233 .3083 .3570 .3606 . 3328 .3115 .3881 .3938 .3995 .4370 .5006 .4820 $0.0487 1921. . 1362 Jan. 27 . 1572 Mar. 5 . 2783 .2949 May 15 .2404 .2:110 July 30 . 2867 Sept. 15 .2167 Oct. 15.. . .1680 Oct. 30 . ... .1644 Nov. 25 . 2172 Dec. 8 . . . . .2185 1922. Ian. 12 .2369 Feb. 2 .3312 Mar. 10 .37.55 Mar. ,30. .3130 May8 . 2694 May 19... . 3330 I Current exchange. Boston prices, Commercial Bulletin; London prices, Wool Record and Textile World, colonial wool sales. 108 REPORT ON THE EMERGENCY TARIIF ACT, From tho four sets of wool prices given in these, tubles it npi)ears that Boston prieos are from 25 to 3") cents per poimd hi";her than L«>iuK)i\ prices in the early part of 1922. Tliis dillerential is to be l1oi\ prices m tii pared with the compared wuh me j>reinmin of 10 to 25 ('(Mils in Boston for the snnnner and fall of 1921. In the early j)nrt of 1921 ix-fore the enact menl of the emergency law, Boston prices were likewise at a jiremium of 25 or 30 cents per pounil over London. This is j)rol)al)lv due to the disorganization of the wool market throughout the world. Heavy stocks were on hand especially in Australia and New Zealand and sale to the consumers was slow. The American market was disturbed all through the sum- mer and fall of 1921, and it was only toward the close of 1921 that the emergency duty began to be reflected in the Boston market. As stocks of domestic wool are still further depleted, a closer approxima- tion of the premium of Boston over London to the rate of duty may be expected. One factor which renders the price situation somewhat uncertain is the proposed rate of duty in the permanent tariff bill now pending. It is believed by the trade that there will be a reduction in the scoured duty below the present emergency rate of 45 cents per pound. SUGAR AND MOLASSES. Article. Sugar: Full duty on 96° sugar. Culmn duty on 90° sugar. Molasses: Testing not above 40°. Testing above 40° and not above 56° Testing above 56°.. Testing not ab.ove 4S [ler cent total sugars. Testing above 48 per cent total sugars. Emergency tariff rate. 2 cents per pound. . 1 .6 cents per pound 24 per cent 3J cents per gallon. 7 cents per gallon.. Senate bill. 2 cents per pound.. 1 .6 cents per pound 0.25 of 1 cent per gallon. 0.275 of 1 cent ad- ditional for each per cent of total sugars. Act of 1913. 1.256 cents per pound. 1 .005 cents per pound. 15 per cent 21 cents per gallon 4* cents per gallon 1.685 cents per pound. 1 .348 cents per pound. 20 per cent. 3 cents per gallon. 6 cents per gaUon. In the following table is shown, for the years 1914-1921, the pro- duction, consumption, imports, and exports of sugar, together with the proportion which the dutiable imports bear to the total consumption. REPORT ON THE EMERGENCY TARIFF ACT. 109 Table I. — Sugar — Summary table. [000 omitted.] Year. 1910-1914 (average) 1915 1916 1917 1918 1919 1920 , 1921 , Total Ameri- can consump- tion (reflned). Pounds. 7,897,306 8,626,973 7,960,362 8,467,488 8,086,229 8,773,463 9,733,449 < 9,200,414 Total Ameri- can produc- tion, beet and cane (raw,i including Hawaii and Porto Rico, but excluding Philippine Islands). Total imports. Dutiable (beet and cane). Pounds. 3,617,574 3,807,133 4,012,603 4, 40!, 096 3,752,035 < 3, 815, 616 < 4, 652, 213 M, 572, 541 Pounds. 4,156,041 5,092,665 5,414,083 5,061,724 4,700,755 6,823,372 7,747,265 5,625,119 From PhiUp- pine Islands (free) (cane). Pounds. 2 '2, 340 326,842 217,190 267, 891 197,-522 196,319 318,156 342,380 Total all exports (re- fined).' Pounds. 90,336 581,710 1,66.5,895 1,2.54,619 587,572 1,480,122 963,7:i5 1,102,279 Ratio of dutiable imports to con- sump- tion.3 Per cent. 50 56 65 57 55 74 76 58 1 Raws yield approximately 95 per cent refined sugar. - Practically all of these exports are of foreign origin reflned in this country and reexported. 3 Imports are taken as 96° sugar for this computation. * Willett & Gray, Sugar Crops of the World, Jan. 12, 1922, p. 17. Sources: Except as otherwise noted, columns 2 and 3 from Statistical Abstract, United States, 1920, pp. 552-553; columns 4, 5, and 6 from Commerce and Navigation. It will be seen that, roughly speaking, somewhat more than half of the total amount consumed is of foreign importation and the remainder of domestic production, including in domestic production beet and cane sugar produced in the continental United States, and in Hawaii, Porto Rico, and the Philippine and Virgin Islands. The figures in the above table do not exactly check; i. e., it will be found that the sum of the domestic production and import less the exports gives a result differing somewhat from the total con- sumption. The reason for this is that the figures in the several columns do not all refer to the same grade of sugar. Consumption is reduced to a refined basis and all of the exported sugar is refined. Of the domestic production all of the beet sugar and a considerable portion of the Louisiana sugar are either refined or, at least, in the case of Louisiana, advanced to a stage suitable for final consumption. The remainder is raw sugar, testing about 96° by the polariscope. Virtually all of the imported sugar is raw sugar. The United States annually consumes from one-fifth to one-fourth of the entire world output of sugar. The per capita consumption has steadily increased from about 27 pounds at the close of the Civil War to nearly 90 pounds at the present time. The chief sources of the domestic supply are shown in Table II. 598—22 8 IIG IJETOnT ox TIIK KMKUCK.NCY TAlllFF ACT. Taui.k TI. — Sugar — Domrstir i>ro(hic.tion. [000 omitted.) Year. Total. 1910-1914 (aver- Pounds. ago) ' 3.849,914 191.1 4.i:«,97t) J9It; 4,22;),7i»4 1917 4,(>70,<),>vS 191S 3,JM.5,t).W 1919 ! 4,213,527 1920 1 3,634,047 1921 » 5,190,781 Boot. Pounds. 1,219,239 1,444,1(18 1 , 74S, ^■^^) i,t>4i,:n4 1,.S30,4I4 1,521,900 1,452,902 2, OK), 000 Pound*. 2,(«n,C.75 2, t'lH'l, Sii7 2,4S1,.W4 :{,()2 1 , 201^ S.")!'. i,i.si;,;v,5 1,2S!1, 142 l,l;Vi,(i7S 1. 207,1 1'.5 1,111,450 1,138,798 1,075,200 Porto Ulco. Virgin Islands. Pounds. 1 73S, 122 m\, 190 1,(KW,790 '.»27,2r.(i 812,2')4 971,7(iS 979, (533 92it,000 Pounds. 1 12, ('.92 a3,040 17,443 12,09(i 20, ICrf) 27,77C. 10,080 11,200 Louis- iana. Pounds. I 459,314 275, noo (:()7, 799 487, 198 5(11, 79 pri(v of Ihio i;ran«i luted and I lie rt-llniTs' margin 'arc also sliown ] Pate. 1 Costs and freight. ' DifTerence between the r)rice of fine granulated and 96° centrifugals. REPORT OX THE EMERGENCY TARIFF ACT. 115 It will be seen from tliis table that with some fluctuation there was a general tendency for the price of sugar to decline throughout the year 1921, and again with some fluctuations a general tendency for prices to rise from the beginning of 1922 to the present time. It will further be noted that this tendency to decline in 1921 was not checked by the passage of the emergency act in May. Both the duty- Eaid sugar and the c. and f . sugar continued their downward course, ut the fall in the c. and f. sugar was the greater of the two. As a result the difference between these two columns is throughout the table approximately the rate of duty — 1 cent before the passage of the emergency act and 1.6 cents thereafter. DAIRY PRODUCTS. Article. Emergency tariff rate. Senate bill. Act of 1913. Act of 1909. Butter and butter sub- stitutes 6 cents per pound . 23 per cent 8 cents per pound . i 2i cents per poimd. 5 cents Der Dound . J 20 roer cent 6 cents per pound. Cheese and cheese sub- Do. Milk, fresh 2 cents per gallon. 2i cents per gallon. 5 cents per gallon.! 22i cents nereallon. Free 2 cents per gallon. Cream .... do 5 cents per gallon. BUTTER. In the act of 1909 the duty on butter was 6 cents per pound. This rate was reduced to 2^ cents in the act of 1913 and was restored in the emergency act. In the last 10 years there has been a small increase in the total pro- duction of farm and factory butter in the United States ; the output in 1919 was 1,649,000,000 pounds as against 1,622,000,000 in 1909. If the production of butter substitutes be added, it may be said that the per capita production remained almost stationary. It was 18.7 pounds in 1909 and 18.9 pounds in 1919. The trade in butter has fluctuated greatly in recent years, as is shown in Table I. But in 1920, when imports reached the highest point in the history of our trade in dairy products, they amounted to something over 2 per cent of the domestic production, while exports were about 1 per cent. Table I. — Butter — Summary table. Year.' 1909 1914 1910-1914 (average) . 1915 1916 1917 1918 1919 1920 1921 1922 (3 months) Production. Factory. Pounds. 627, 145, 865 786, 003, 489 760, 030, .''>73 743, 895, 06S 798, 7K5, .522 8.56, 866, 448 86.3, 000, 000 1,026,000,000 Farm and factory. Pounds. 1,621,796,475 1,649,000,000 ' Fiscal years, 1909-1918; caleiuhir years, 1919-1922. General imports. Pounds. 646,320 7, 842, 022 2,479,603 3, 828, 227 712,998 523, .573 1, 805, 9Z5 9, 519, 3f)8 37, 4.54, 172 18,558,388 2, 182, 452 Domestic exports. Pounds. .5,981,265 3,693,597 4,277,955 9, 8.50, 704 13, 487, 481 20, 835, 092 17, 735, 966 34, 556, 485 17,487,735 8,014,737 1,712,629 116 IJKl'OUT ON rilK K.MKKCKNl'V TAKIFI' ACT. Tahle I. — Butter — Sunimanj table — Continued. CREAMERY Bl'TTER. I'alo. 19J0. Jainiary FebriiuVy Mnrrh April May Juiie July August September October Novoiulior Decombor Production. Factory. Farm and factory. Pnvnds. Pounds. I'.I.IMI.OOO ir.,:i.v,,(XX) ' ■'i«i, 3ia; (XX) W), t')-'2, (100 f Sfi, S45, (XX) n4,695,0(X) ] 110,844,000 90,669,000 77,106,000 I 65, 129, (XX) 53, 570, 0(X) 52,395,000 , (Ti>noral Imports. Pounds. 334, 135 1,095,813 3,151,640 5, 06.5, 020 1,710,519 3, 18(>,559 8,311,414 2, 737, 265 2, 579, 064 2,455,315 2,798,684 4, 033, 754 Domestic exports. Pounds. 1, 899, 19ft 4,294,300 6,396,823 779, 216 886, 552 696,232 576, 892 436,214 327, 482 3S3, SOS 306,328 50-1,631 Imports of butter prior to the passage of the emergency tariff. — The reduction in duty on butter from 6 cents in the act of 1909 to 2h cents in the act of 1913 had Httle influoiice upon imports during the war, as conditions of international demand put this country upon an ex- porting basis. In 1920, however, 37,454,000 pounds were imported. Table II. — Butter. IMPORTS BY COUNTRIES. Year.i Total. 1 Denmark. Canada. Argen- tina. Nether- lands. New Zealand. Austra- lia. Other coun- tries. 1910-1914 (average) . . . 1915 Pounds. 2,479,603 3,828,227 712,998 Pounds. Pounds. 376,678 619,639 1,620,882 1,277,877 160.422 372.066 Pounds. 56,112 351,233 Pounds. 28,865 2,700 219 Pounds. 249,082 157,365 122,990 50,400 Pounds. 386,651 275,621 18,416 6,696 1,004,957 Pounds. 762,576 142,549 1916 38,885 1917 523,573 149,078 311,257 1,805,925 83,305 620,279 9,519,368 71,448 9,437,960 37,454,172 19,934,547 9,235,630 18,558,388 12.238.086 2.»16.057 336 47,783 196 4,048,648 696,275 5,806 191S 49,601 1919 9,764 1920 3,061,842 247,442 645,459 969, 153 2,806 1,433,603 525,240 1921 127.772 : IMPORTS BY MONTHS. 1920. January 334,135 February 1,095,813 March 3,151,640 April 5,065,020 May 1,710,519 June 3,186,559 July 8,311,414 August I 2,737,265 September I 2,579,064 October i 2, 455, 315 November i 2,798,684 December 4, 033, 754 1921. January..., 3,811,905 February 1,896,938 March 4, 263, 581 AprU 1,370,222 May 54,637 June 33,884 July ■ 191,748 August 1 149,886 September 397, 929 October : 1, 858, 409 November : 1,925,560 | December ! 2,601,689 1922. ' January ' 1,555,544 February 453,151 268,792 792, 161 8.32, 365 4, 100, 954 247,180 714,460 5, 356, 355 1, 463, 167 591, 693 1, 014, 827 1,387,12:3 3, 165, 470 2, 834, 807 1,639,713 4,015,777 1, 301, 346 34,901 8,606 98,393 58,052 147, 545 856,273 581,029 672,644 456,087 9,872 59,239 237, 586 2,299,611 750, 273 390, 715 691, 876 1,511,&55 877, 08.5 595, 848 437, 695 719, 302 684,515 2,205 "ie'sw" 85,795 017, 394 112 170,765 386, 893 398, 719 756, 145 211,818 2,248 61, 579 1,100 34,902 : 104,330 28,149 , 194,017 3,886 ; 195,990 5.3,780 I 12,296 I , 23,427 110,425 83,512 244,114 995,030 I 63 82:j,612 425, 924 201, 875 189,8:37 144,989 201,000 55,000 667, 7a3 220, 171 1,920 977 1,176 4,969 47, 167 154,65:3 12, 716 4,541 984 440 1,332 2,322 1,764 2,646 441 52, 363 13, 240 2,540 1,273 560 2,800 6,627 244,216 353,512 40,544 673,940 8,400 24 2,912 6,160 11,200 315, 948 32,760 2 3 5,600 112 421,246 1,006,640 36,000 3,899 1,687 2,010 127, 438 224 112,328 52,268 8,200 5,200 1,256 121, 960 93, 780 9,273 22,341 4.3,384 112 54,637 519 608 6,534 600 442 36, 110 281,366 591, 132 26,657 1 Fiscal years, 1910-1918; calendar years, 1919-1921. EEPORT ON THE EMERGENCY TARIFF ACT. 117 These unparalleled imports, which were continued during the first few months of 1921, were the result of an extraordinary combination of circumstances. High prices, which were maintained in the United States contemporaneously with lower prices in other large consuming countries, especially Great Britain, made this country the world's best market for surplus countries. Denmark was the source of 53 per cent of the total imports. About 25 per cent came from Canada, 1 1 per cent from Argentina, and 8 per cent from the Nether- lands. While even the large imports of 1920 were only 2.3 per cent of the total domestic production, their effect was narrowed and therefore heightened by two factors. In the first place, the imports were largely concentrated in New York, Boston, Philadelphia, and San Francisco. Over 28,000,000 pounds came in at New York alone and were largely consumed there. When this is compared with the 1920 receipts at New York — 165,000,000 pounds of foreign and domestic butter — it is seen that foreign butter made up 17 per cent of New York's requirements. Since New York is the country's largest consummg market and draws a large portion of its supply from the Middle West, the effect of imports upon the New York market was reflected in other important markets throughout the country. In the second place, the effect of the imports was still further narrowed because the imported butter came into competition directly with the kind of butter it most nearly resembled. Thus the high quality Danish butter which constituted the larger part of our imports came into competition more directly with domestic "extras" (92 score) and "higher than extras." Exports. — It is important to note that exports were maintained even in 1920. Table III.— Butter. EXPORTS BY COUNTRIES. Year.i 1910-1914 (average) 1915 1916 1917 1918 1919 1920 1921 1922 (3 months) Total. Pouvds. 4,277,955 9,8«0,704 13, 487, 481 26,835,092 17,735,9f>6 34, 556, 485 17, 487, 735 8,014,737 1,712,629 Mexico. Panama. Pounds. 369, 271 138,066 167,395 5.58, 369 223,091 429, 608 798, 5% 1,121,874 235,073 Pounds. 510,358 559,809 621,527 573, 580 513, 524 471,812 565,274 713,978 161,448 Venezuela. Pounds. 599, 600 255, 570 .38,663 79, 785 6,402 35, 563 2 1, 1S3, 122 2 508,921 « 191, 195 Cuba. Pounds. 250, 380 254, 484 311,141 339, 104 268,386 554,116 858,783 715, 166 221,665 Year.i 1910-1914 (average). 1915 1916 1917 1918 1919 1920 1921 1922 (3 months) Haiti. Pounds. 413,292 293,981 426,200 443,430 223,. 589 364,410 552, 700 429, 005 163,272 French West Indies. Pounds. 280,099 182,4.38 195,523 137,962 121,683 109,723 < 1,419,188 <1,. 565, 379 < 507,471 Canada. Pounds. 499,942 2,642,954 2,013,392 1,32.3,6.53 44, 749 274,893 8,55, 1.50 1,907,184 48,717 United Iviiigdom. Pounds. 601,095 3,336,425 5, 433, 282 20, 839, .58.3 13, 982, .5.59 20,922,012 3, 898, 845 65, 168 Other countries.^ Pounds. 753,918 2,216,977 4,280,3.58 2, .5.39, 626 2, .351, 983 11,394,348 7,3,56,077 988,062 183, 78S • Fiscal years, 1910-1918; calendar years, 1919-1922. ' South America. 'The large "all other" due to heavy shipments to Belgium, France, Italy, Netherlands, and the I'liil- Ippines. fOther West Indies. 118 REPORT ON rilK K.Mi:i{(iKXC'V TArilFI" ACT. Taimk 1 1 1. -/>'n//(T -('ontiiuu'il. KXPOirrs BY MONTHS. Month. January... February . March..!.. April May Juno 1920 I.SiW. I9A 4,J94..iOO 6.a9(},S23 779, 216 S.S6, ."fcVi 096,232 1921 1922 .•.7.'., ms .>1S, 967 MS, ,S03 .'lOO, 293 1.3.V).0!>1 673,369 1.10»».566 647,118 640,753 ' Month. July August .'^pptombcr. . <)clolx>r Novomlwr. . December. . . 1920 .'>76. 892 4:i6,2l4 327, 4S2 3S3, 808 :j0t).326 .')04,634 531,078 4;«, 489 376, 283 463, 633 480, 147 439, 208 Importti ofhntter in 1921 and 1922. — During the first four months of 1920, imports continued heavy, hut in May thev were greatly reduced and thereafter subsequent to the increase in duty on May 28 from 2^ to 6 cents per pound, they were small as compared with the receipts of foreign butter during the year previous. During the nine months period following the enactment of the emergency tariff, imports were 9,168,000 pounds, less than one-third as much as dur- ing the corresponding months of 1920-21. For a complete expla- nation of this reduction, however, a study must be made of the situation in the domestic and foreign markets. Table IV shows how the New York market receipts increased in 1921 supported by an extraordinary domestic production of creamery butter. Receipts in the five principal markets also show a large increase. Table IV'. — Creamery hutter — Production by months. Month. 1921 1920 Month. 1921 1920 ' Pounds. January ; .>5, 442, 000 February 54,876,000 .March 6.5. .596, 000 April 80,-363,000 May 116,0.53.000 Pounds. 49, 044, 000 46,355,000 .56,303,000 60,622,000 86,845,000 114,695,000 110,844,000 August September October November December Total Pounds. 108, 897, 000 87,634,000 82,785,000 68,604,000 69,104,000 Pounds. 90, 669, 000 77, lOS, 000 6.5, 129, 000 53,570,000 52,395,000 July 109, 288, 000 1,026,583,000 863,577,000 Butter — Receipts at New York by months. Month. 1920 Pounds. January 10, 165, 0.50 February 9, 275, 805 March 10,893,708 April 11,982,789 May 17,831,961 June 22,870.512 July 18,193,203 August.. .-> 19,877,823 Pounds. 9,9.50,031 8, 985, 186 1 10,9:55,225 , 6,651,099 10,406,907 18,646,803 i 18,350,451 I 14,560,749 Month. September. October. . . November. December. 1921 Total 7 months June to December Pounds. 17.799,642 15, 229, 746 13,112,946 12,509,532 179,742,717 119,593,404 1920 Pou 11 10 nds. 629, 800 146, 465 766, 135 435,259 137, 90, 464,110 535,662 In spite of the decline in the price from an average of 61 cents in 1920 to 43 cents in 1921, butter was the most profitable outlet for the increased production of milk. The extremely low price of feedstuffs encouraged the production of milk and also some milk was diverted from the manufacture of condensed milk to butter. Table V gives a comparison of Danish butter in London with the nearest comparable grade (92 score) in New York. REPORT ON THE EMERGENCY TARIFF ACT. 119 Table V. — Danish butter — Comparison of prices in London with prices of 92 score butter in New Yorh. [Per pound.] Date. New York.' London .2 Excess of New York over London. Exoess of London over New York. 1921. $0.5700 .5350 . 5200 .5000 ! . 4950 ! .4600 : .4400 i .4800 .5250 > .5300 .4750 .4500 .4650 .4950 .4900 .4550 .4100 . 35,50 .3600 .3000 .2800 .2900 .3000 .3150 .3300 .3450 .3550 .3850 .4150 .4200 .4350 . 4450 .4400 .4200 .4150 .4050 .4200 .4400 . 43,50 .4450 .4650 .4750 .4750 .4850 .4650 .4.500 .4250 .4500 . 46.50 .4600 .44,50 .4200 .3950 .36.50 .3750 .3700 .3850 .3650 Duty, Si cents. SO. 5323 .5460 .5602 .5666 .5797 .5110 .5194 .5147 . 5160 .5212 .5212 .5227 .5225 .5224 British con- trol ended. .5210 .5037 .4911 .4945 .4969 .3398 .3616 Emergency duty, 6 cents per pound. .3787 .3668 .3559 . 3461 .3456 .3433 .3524 .3842 .4319 .4269 .4157 ,4271 .4385 .4379 .4122 .4090 .3834 .3801 .3829 . 3895 .4002 .4162 .4199 . 4225 .4269 .4,574 .+440 .4024 .3917 .38.59 .3275 .3056 .2984 . 3334 Xominal. .3566 .3311 . 3559 .3613 . 3.590 $0.0377 8 $0.0110 15 .0402 22. . .0666 29 .0847 Feb. 5 .0510 12 . 0794 19 .0347 26 .0090 .0088 Mar. 5 12 .0462 19 .. .0727 26 1 .0575 Apr 2 .0274 9 . 0310 16 .0487 23 .0811 30 . 1395 .1369 14 .0398 .0816 28. .0887 .0668 11 .0409 .0161 25 .0006 .0107 .0326 .0308 9 23 .0119 .0081 .0293 .0129 Aug. 6 20 ... .0185 4 .0229 Sept. 3 .0072 .0110 . 0.566 . 0549 .0621 . 07,55 .0748 .0588 .0651 .0425 .0231 Sept. 17 Oct. 1 15 22 . 29 Nov 5 12 19 . 0324 .006 .0626 .0683 . 0591 .0925 .0894 .0660 .(M16 Dec. 3 17 31 Jan. 7 . . . 21 .0284 .0339 Feb. 4 18 .3800 . 36(K) .3800 .39.50 .4000 .3700 .3550 .0187 .0010 25 Mar. 4 11 18 . . 25 Apr. 1 I Prices of 92 score creamery batter in New York from the Market Reporter, U. S. Department of Agriculture. » Prices of Danish butter in London from the London Statist converted at current rates of excimnge. Prices controlled January 1-April 9. 120 KKPdirr ON TIIK KMKIUIKXl'Y TARIFF AC.T. In May, after tho docontrol of butter prices by Great Britain, the liill'erentijil in favor of shipinont of Danish butter to London rather than to New York increased to nearly 14 cents and our imports fell olV sharply, even before the jiassa^e of the emergency tariff. After May 28, tlie ilitferential favorinjz; Lon(h)n (Un'reased and after July it swung over the other way. Tliereafter, with but few exceptions, the New York price was higher than the London price, the average niarijin bein<; 4.3 cents. The emer 320, 532, 181 2 370,278,599 Pounds. 35, 548, 143 63,784,313 49,220.117 .50, 138, 520 30,087,999 14,481,514 9, 839, 305 11,332,204 15,993,725 26,866,404 8, 433, 759 Pounds. 6, 882, 842 2 427 577 1914 1910-1914 (average) 4 915' 502 1915 55 362 917 1916 3 333, 593, 841 394,845,038 378, 939, 610 430, 853, 213 44, 394, 301 66,050,013 44 303 076 1917 1918 1919 14 159 721 1920 le' 291', 529 1921 1 11', 771' 971 1922 (4 months) 2 046 771 1 > Census figures: Production on farms and in factories. -.. 2 Census figures: Production in factories only. 3 Bureau of Markets figures: Factory production only. In our foreign trade in cheese, imports have consisted very largely of fancy European varieties, while exports have been mostly Ameri- can Cheddar cheese. The bulk of imports were of varieties whose manufacture required much skill and long experience and were types not made in the United States. Moreover, some of the important varieties were made of sheep and goat milk. The bulk of domestic production and export, on the other hand, was of types to which the factory system of manufacture was best adapted. Just before the war our exports had declined to such an extent that they amounted to less than 3,000,000 pounds annually as compared with 50,000,000 pounds in 1900. Imports of the fancy foreign types had steadil}^ in- creased until in 1914, under the rate fixed by the act of 1913 — of 20 per cent ad valorem — nearly 64,000,000 pounds were imported. Of this 42 per cent came from Italy, 36 per cent from Switzerland, 8.5 per cent from France, and nearly 6 per cent from the Netherlands. Table VIII. — Cheese- — Imports by countries. Year.! 1910-1914 (average) 1915 1916 1917 1918 1919 1920 1921 1922 (4 months) . . . Total. Pounds. 49,220,117 50, 138, 520 30,087,999 14,481,514 9,839,305 11,332,204 1.5,99.3,725 26, 866, 404 8, 433, 759 Italy. Pounds. 20,834,962 2.5,662,362 16,084,058 8, 482, 280 16,044 373, 807 985, 197 9,099,697 2, 398, 583 Switzer- land. Poundx. 16,924,388 14,766,682 9,514,008 1,640,656 12, 3.54 801,902 France. Pounds. 4,142,716 3, 5.54, 297 2, 321,. 543 1,937,341 1,026,117 680, K07 1,.5K3,U9 2,358,883 2,080,874 1,401,863 1,178,9.50 ^ Fiscal years, 1910-1918; calendar years, 1919-1922. Nether- lands. Pounds. 3,365,038 2, 210, 861 .578,201 249,371 4,947 863, 405 1,183,232 708, 272 Argen- tina. Pounds. 1,841,288 8, 252, 446 ,5,04.3,010 9,871,815 8, 088, 775 1,362,4,50 Canada. Pounds. 290, 857 157,419 121,2.50 91,. 5,53 72,717 1,731,-529 ,S13,(K)1 2,497,978 718,695 other countries. Pounds. 3,062,1.56 3, 7.S6, 899 1,46K,9;« 239,025 471,9H1 485,690 1,07.5,280 1,. 5,56, 965 664,946 122 nKPORT ON THK KMEROENCY TARIFF ACT. Tabik IX. — Cheese — Exports, by countries. Vivir.' 1910-1014 (aver- ace) 1«15 1916 1017 1918 1919 1920 1921 1922(3monUis). Totnl. Ponndf. ■i.ms.riOi 5o,;W2,917 44.394.301 H6.0.V1,013 44,3n;},n:« 14.1.')9,721 ir),20,.'vJ2.279 3S,077,«,')7 .'•),'■.. 399, 101 3r..S17,4SO ,")S.'j.s2;> .'•),2:W,407 3,492,7r)l , 235,073 Canadtt. P(>iin(h. 10(>,4S7 2,H0-J,243 2, ry>Si\, 944 2,247,702 349,933 2S2.9,5S ><41,t>47 1,S<)»),413 221,665 rnmi- raa. Poundn. 40;!, 420 4S9,0.'iO J4,'-.,2:}7 S.'iO.SU 2«>2,0S1 173,309 3ir..405 399,02:! 507,471 Mo\io(). Pounds. 2S2, 004 70,974 l*is.;iSC,7..5.'i2 235,073 West Indies. Cuba. Pound/!. 103, 7S2 4.")7,9U 1,002,032 Ponmh. 370,474 329. 850 433,407 347,143 '1,40«.C.00 241,906 '2,7.js,s73 225.851 2,348., -,75 3.59,919 ,2,875.070 416,929 ,1,562,264 172,997 00,610 China. Other coun- tries. Pounds. ]Poundi>. 72,795 I .500. 305 .57.015 010,.VSil 8X.820 1.011,215 122.816 1,372.1M)2 232,422 3. S J 1,907 145.017 9.479.007 173.208 5.310.315 205,470 2, 261,. 563 33,340 216,400 ' Fiscal yC4»rs. 1910-1918; calendar years, 1919-1922. With tlio incroasiiii]; .strinijoncv in food supplies in Eiu'ope and with the niultipHcation of ollicial restrictit)ns on fooil exports, it became more and more didieult to ol)tain fancy cheeses from Europe. In the fiscal year 1919. practically none was imported from Italy, Switzerland, and Xetiierlands, and very little from other European countries. Some Italian varieties came in from Argentina, but for the most part the markets were bare of imported cheese. The reduction in the European shipments greatly stimulated pro- duction of foreign varieties in this country. The output of Swiss cheese increased from 15.800,000 pounds" in 1910 to 21,000,000 pounds in 1919; 5,000,000 pounds of Italian varieties wei'c produced in 1919 and 11.700,000 pounds of all other varieties. But the lack of cheese makers skilled m the making of foreign cheeses and the ab- sence of suitable conditions and necessary supplies of raw material, prevented the production of these varieties in sufficient quantity and variety to supply the demand. Furthermore, American factory methods were not adapted to the making of man}^ of these varieties. Table X. -^Cheese — Imports by months. Month. 1920 January... February. . March April May June July August — September October. . . November. December. Pounds. 1,155,278 667,497 1,335,924 740, 158 2, 307,. 5.54 1,822,027 .5,50, 000 660,963 961,450 1,780,698 1,739,351 1,780,034 1921 1922 Pounds. 1,844,115 713,324 1,342,192 1,558,125 1,469,677 1,691,860 2,200,800 3,091,008 2,570,827 3,952,650 3,980,147 3,398,876 Pound.1. 2,174,402 1,936, .554 2,045,703 2,277,100 As soon as the European export restrictions were removed, im- ports began to increase. In 1920, 16,000,000 pounds, valued at .S5,000,000, came in; and in 1921, 20,000,000 pounds, valued at S8, 000,000. In the fiscal year 1914 imports had been 04,000,000 pounds and in 1918 only 8,500,000 pounds. Of the 1921 imports about 9,000,000 pounds came frcmi Italy and 2,000,000 pounds each from France and Switzerland. During 1921 imports increased month by month. Consumers were eager to get once more the imported REPORT ON THE EMERGENCY TARIFF ACT. 123 European product. The imported commands a considerable price' premium over the comparable domestic types. For example, im- ported Swiss cheese in Auojust, 1921, was quoted at 65 cents, whole- sale in New York City, while fancy, domestic, large-hole Swiss was quoted at 57 cents. Imported Roquefort sold for 72 cents, while domestic brought 60 cents. These figures indicate the preference of the consumer for imported cheese. The emergency act raised the duty on cheese from 20 to 23 per cent ad valorem; this small advance had no perceptible effect in slowing up the increase in imports from Europe. A recent report from Eu- rope states that there is a tendency to revert to conditions under which surplus milk is converted into butter and cheese rather than into condensed milk. The continental dairy trade possesses a valu- able good-will asset in cheese.^ European production for export will therefore be likely to increase gradually. Our imports of 26,000.000 pounds in 1921, although large as compared with imports in war years, was only 40 per cent of the amount which came in during 1914. MILK. Under the tariff act of 1913 fresh milk was granted free entry. The emergency tariff restored the 1909 rate of 2 cents per gallon, equiv- alent in 1921 to about 8 per cent ad valorem, foreign valuation. Market milk and cream consume about 43 per cent of the production of fluid milk, or about 4,500,000,000 gallons, but because of their bulky and perishable nature foreign commerce has been confined to a border trade with Canada. The tariff problem is a local one, con- fined largely to the New England States. With the expanding de- mand for market milk in Boston and other large New England cities, the territory supplying these cities, especially Boston, has been en- larged to include Vermont, Maine, eastern New York, and points in Quebec south of the St. Lawrence. But according to figures com- piled by the Boston Chamber of Commerce, the proportion of Boston's supply of milk coming from Canada is very small, even in the summer months, the period of largest demand. From August to October, 1919, it amounted to only about 1 per cent. Prices of milk in Bos- ton are generally higher than in New York, Philadelphia, or western cities, but restriction of imports would doubtless not greatly affect prices of milk in New England because of the small proportion that imports have constituted of the whole supply. Imports of milk from 1910 until the enactment of the emergency tariff. — It is only in recent years that imports of milk from Canada have been at all important. From 1909 to 1914, under the duty of 2 cents per gallon, imports never exceeded 215,000 gallons, valued at $29,000. New England markets had not expanded to the point where there was a demand for milk from Canada. The balance of duties also favored the importation of cream rather than milk. But under free trade, from 1915, to 1920, imports increased until in the calendar year 1919 they amounted to 2,753,000 gallons, valued at $739,000. I Commerce Reports, Apr. 17, 1922. 1'24 i;r.r"i;r on I'lii. i..mi:k(;i;N( n iaiiii !■ act. Taulk XI. — Fresh milk — Kxportt/roin Canada to the United States.^ Moiilli. June July AURllSt Septonibcr «. clotior Novon\l>or Ppcemlior Jaiiuarj- Kebniarj- Nine months ended February Quantity. 19'20 1921 Oallont. 155,235 2»4,9e3 133,717 341,203 106,045 142, 105 67,977 » 68,502 ' 45, 120 Oallont. 166,787 167,843 116,895 198,829 47, 128 125,845 111,174 '70,696 '91,111 1,244,987 1,096,308 Value. S39,305 62.065 Hn.2:>3 t)9.31S 33,283 45,927 24,062 '21,057 » 13,213 344,483 «36,243 34,610 24,429 20, l.-V? 34,373 2.S,024 26,530 •17,603 » 22, 106 244,077 'Weekly nulletin. Commercial Intelligence Service, Department of Trade and Commerce. Canada, Canadi;iii e\t)orts are given since import.s of fresh milk, by montlis, are grouped with imports of cream in the I'nited States. « 1921. '1922. Imports of miUc under the emergency tariff. — A month by month com- parison of exports of milk from Canada ' to the United States shows that after the passage of the emergency act, from July through November, imports decreased as compared with the amounts coming in during the corresponding months in 1920. During the nine months June 1, 1921, to February, 1922, 1,096,308 gallons came in, compared with 1,244,987 gallons during the corresponding nine months of the previous year of free entry. The relatively small duty upon milk in the emergency tariff, therefore, appears to have had little influence in retarding imports. Neither is it likely materi- ally to have affected prices because of the very small place imports have in New England s supply. CREAM. In the act of 1913, cream was free of duty. The emergency tariff restored the 1909 rate of 5 cents per gallon, equivalent to about 4§ per cent ad valorem upon imports during the nine months ending February, 1922. As in the case of milk, the trade in cream has been a local one, largely confined to the New England States whose demand is increas- ingl}' exceeding the local production. But imported cream has been a much more important factor in New England's supply than imports of milk. For cream, summer is the season of greatest consumption chiefly because of the demand for ice cream. During the summer, Boston dealers have reached out farther and farther for their sup- plies of cream, being forced to do so by the expanding demands and the increasing specialization in market milk in the near-by districts. From August to October, 1919, imported cream made up from 10 to 18 per cent of Boston's total supply. Imports have consisted mostly of pasteurized cream for the Household and hotel trade and for manufacture into ice cream. But little cream has been imported for manufacture into butter. A duty high enough to restrict imports would doubtless be reflected in an increased price in the New England States because of their considerable place in the supply. 'U.S. imports are not separately given by months. REPORT ON THE EMERGENCY TARIFF ACT. 125 Imports of cream from 1910 until the enactment of the emergency tariff. — Tn contrast to the trade in fresh milk, imports of cream were rather large in the period 1909 to 1914, The duty of 5 cents per gallon was equal to about 6 per cent ad valorem and was not high enough to discourage imports. They ranged from 700,000 to 2,300,000 gallons in quantity and from $585,000 to SI, 875, 000 in value. The higher unit value of cream made it a more economical product to ship than milk. During the period 1917 through 1919, imports of cream declined even though they were free of duty. This was prob- ably due to the fact that cheese and butter for shipment to Europe at war prices constituted a more favorable outlet for Canadian milk than the American cream market. But in 1920 imports again increased, amounting to 1,597,000 gallons, valued at S2, 080, 000. Table XII. — Cream— Exports from Canada to the United States.^ Month. June July August September October November December January February Kine months ended February Quantity. Value. 1920 1921 1920 1921 Gallom. Galhns. 184,031 202,488 $279,412 1306,218 221,031 184,621 337,049 271,424 169,004 190,518 264,859 296. 103 194,166 191,639 297,757 301.541 144,425 174,252 227. 144 262,778 110,050 121,611 187,881 186,012 51,773 87,546 87,883 127.353 » 27,498 3 222.094 8 40,970 3 317.732 2 21,046 3 46.8.50 2 35.822 » 60,077 1,123,024 1,421,619 1,758,747 2,129.238 » W cekly Bulletin, Commercial Intelligence Service, Department of Trade and Commerce, Canada. » 1921. • 1922. Imports of cream under the emergency tariff. — Monthly exports of cream from Canada to the United States after the passage of the emergency act were almost uniformly larger than during the corre- sponding months of the previous year of free entry. During the nine months ending February, 1922, they amounted to 1,421,619 as against 1,123,024 gallons in the same period in 1920 and 1921, From this it is evident that the emergency duty of 5 cents per gallon was not high enough to discourage imports. On the con- trary, the increase in imports may be due in part to a lack of balance between the duties on dairy products which made it more profitable for importers to bring in cream than milk or butter. The average value of cream imported during the nine months was SI. 50 per gallon, and of milk 22 cents per gallon. The 5-cent per gallon duty on cream equals about 3 per cent ad valorem, while the 2-cent per gallon duty on milk is equivalent to about 9 per cent. The shipment of cream is evidently favored under the duties. But the possibility that there may have been some shifting from milk to cream could not account tor any large part of the increase in iniporls of cream. The increase amounted to 298,595 gallons (ecpiix alent to at least 2,000,000 gallons of milk), while the decrease in inii)or(s of milk amounted to only 148,679 gallons. The increases in (lie duty on butter pro'oably had more influence in increasing the imports of 508—22 9 126 KKi'Hirr (IN riiK kmi'iuifai'v takiim- act cn^nni. 'riu> (lutv df (> ciMils aiiKMiMtril (o al>(>ut 23 ]H'r('(Mi( ;ul \jilo- HMii. Caiiadljui exports of WuttiT lo (he I'liilcd vS(nt(>s clinod from t.M'.*-'. ()()() |)oiiiuls in the niiu> moiidis |)(>rio(l (Mi(rni_M, (o 'J. !VJ1 ,()()() pouiuls (liirinj; tlio snm(> period in the foUowin*^ WAV. 'Phis Mas a net decreasi* of 1,1 70, ()()() pounds, ecpiivahMit to al)oui ;ir>(), ()()() ^aUons of ereani. or more than enoufjjh to aeeount for tlie inerease in exports of cr(>ain to the Tnited States in the sjune period. But most of the Canadian exports of hutler lo the United States were diverted to other markets ratlier than converted into rream. The decrease in Canachan exports of butter to all coimtries during the same period amounted to only 151, ()()() pounds, or an equivalent of ;i7,000 gallons of cream. In short, under the emergency tarill", there was actually an increase in imports of cream, a i)art of which represented substitution for imports of other milk ])roducts. PRESERVED MILK. .Milk, preserved or con- densed. !- ugar of milk Emergency tiuifl rate. 2 cents per pound . Scents per pound. Scvinte liill. 1 cent to IJ cents per pound. 50 per cent (Par. .505). Free. Free. Act of lOUit. 2 cents per pound. 5 cents per pound. MILK, PRESERVED, CONDENSED, OR STERILIZED. In the act of 1909 milk, preserved or condensed, was dutiable 2 cents per pound. This duty, which was removed by the act 1913, was restored by the emergency act. Table XIII affords a comparison of our production and trade. Table XIII. — ifilk, condensed and evaporated or siwilar — Summari/ table. at of Year. Production. Imports for consumption. Domestic exports. 1909 Pounds. 11)4,796,544 873,410,504 Pounds. 254, 101 14,950,973 3,737,029 33,613,389 18,173,426 18,350,416 29,926,931 ' 16,509,^39 123,755,780 '8,667,626 1 134,614 Pnuruii. •: 1.3,311,318 1911 10,20!), 082 1910-1914 (average) 1.5,773,900 1915 37,235,627 1916 992,364,000 1,333,786,000 1,675,934,000 2,030,957,000 1,560,000,000 159,577,620 1917 259,141,231 1918 528, 7,59, 232 1919 852, .865, 414 1920 414,250,021 1921 299, 124, 137 1922 (4 months) 90,413,872 I General imports, fresh and condensed. J Figures are for 1910, as exports were not separately shown prior to that dale. In condensed and evaporated milk, as in no other dairy products the United States is markedly on an exporting basis. Even before the v/ar, there was a slight excess of exports over imports. But the war period saw a remarkable development in our production and export of canned milk. The reduction in European dairy herds and the disproportionate decrease in the supply of milk due to the lack of imported concentrates resulted in a marked shortage at a time of REPORT ON THE EMERGENCY TARIFF ACT. 127 extraordinary demand to supply the needs of the armies and civilian populations. There was an additional demand for sweetened con- densed milk owing; to the difficulty in obtaining sugar. Stimulated by the enormous European demand arising out of these conditions, our exports rose to unprecedented figures, reaching the peak in 1919 when they amounted to 852,865,000 pounds valued at $121,893,000. Production increased from 873,000,000 pounds in 1914 to over 2,000,000,000 pounds valued at nearly $300,000,000 in 1919, requiring nearly 600,000,000 gallons of milk. In order to produce this enor- mous quantity, the productive capacity of the domestic condensaries had to be greatl}^ increased. Old plants were enlarged and new plants were built. But in 1920, with the falling off of both domestic and foreign demand, production declined to 1,560,000,000 pounds. Many plants were idle and there wag a general oversupply of pre- served milk. Table XIV. — Milk and cream condensed and evaporated — Exports by countries. Year.i Total. Cuba. Panama. ' Pounds. 1910-1914 (averaged i 15, 773, 900 1915 ; ! 37, 235, 627 1916 j 159, 577, 620 1917 259, 141, 231 1918 ! 528, 759, 232 1919 1 852, 865, 414 1920 i 414, 250, 021 1921 299, 124, 137 1922 (4 months) 90, 413, 872 Pounds. 6, 233, 724 8,391,430 27,678,974 30,723,758 33,594,661 33,461,993 50,517,629 33,312,658 9,079,636 Pounds. 1,307,304 1,3S9,399 4,071,203 6, 497, 772 4,444,714 3,599,564 4,511,626 5,075,132 1,621,032 Philip- pines. Pounds. 2,281,793 2,531,824 2,587,328 7, 729, 034 11,566,748 14,085,937 12,480,463 11,601,665 2,406,135 Russia (Asiatic). Pounds. 1,181,990 1,830,448 511, 088 734, 880 19,062 254,624 52,346 124,514 (2) China. Pounds. 808,079 2,496,544 3,079,288 4,495,800 3,666,776 5,555,679 4,493,158 4,732,177 1,222,352 Year.' France . United Kingdom. Belgium. Netherlands. All other.3 1910-1914 (average) Pounds. 491 2,497 4,353,071 30, 263, 356 74,859,652 114,818,165 58, 936. 867 19,333,398 658, 062 Pounds. 256, 877 4,037,502 85,058,739 91, 330, 504 248,221,794 420, 928, 450 124,658,560 73, 735, 921 6,675,441 Pounds. Pounds. 90 2, 565, 298 2,374,184 12, 850, 724 Pounds. 3, 703, 552 10, 657, 768 25,324,953 49,361,432 118,894,313 1915 3, 332, 917 4, 538, 792 25,153,971 33,491,513 61,596,636 17,943,937 8, 966, 801 349, 710 1916 1917 1918 1919 11,821,267 5,689,655 6, 057, 501 1,164,465 186 743 099 1920 134, 965, 780 136 184 370 1921 1922 (4 months) 6?; 237^039 1 Fiscal yeirs, 1910-1918; calendar years, 1919-1922. * Not separately shown. ' In recent years made up of large shipments to Germany, Italy, Poland, South American and Asiatic countries. Table XV. — Milk and cream — Imports by countries. PRESERVED, CONDENSED, OR STERILIZED. Calendar year. Total. S. F--e. Nether- lands. Switzer- land. United Kingdom. Canada. Other. 1919 Pounds. 16, 509, 239 23, 755, 780 8,667,626 134,614 Pounds. Pounds. 60 Pounds. Pounds. Pounds. 618 15,377 6,299 Pounds. 16,441,663 17,290,119 8,410,376 Pounds. 66,898 1920 14,011 720 5,792,698 183, 640 144 9,645 642,711 1921 1,198 369 56.099 1922 (4 months) 128 RErOHT (IN TMK F.MKKCKXCV TAKIKK ACT. Taiu k XV. — Milk and creinn—Impnrls by cotoilries — Oontuuiod. FRKSH. Calendrtr yenr. Total. Canada. Other. I9I9 Pounds. 31,CS9,426 35,413,226 39,671,874 0,858,967 Pounds. 31,6S9.420 35.400,369 39,660,052 Pounds. 1920 12, 857 1921 . 11,825 1922 (4 months) Imports of condensed milk. — Imports from 1910 to 1914 under the duty of 2 cents per pound, imposed hy the act of 1909, averaged 3,737,029 pounds. But after they were made free in 1913, imports ranged from 14,950,973 pounds to 33,613,389 pounds during the pe- riod 1914-1920. These came hirgely from Canada. In the calendar year 1920, out of 23,756,000 pounds imported, 17,290,000 pounds came from Canada and 5,792,000 pounds irom the Netherlands, Ac- cording to official Canadian figures," American capital represents 40 per cent of the investment in the Canadian condensed milk indus- try. It is probable that a large portion of the imports from Canada under free trade were shipments from American branch factories in Canada to nearby American customers. The imports from Europe were mostly to satisfy special demands for certain European brands of milk. Table XVI . — Milk and cream preserved, condensed, or sterilized— Imports by months. Month. January . . . February. . March April May June July August September October. .. November. December. 1922 Pounds. 574, 763 689,294 250,926 436,055 702, 811 196,279 584, 718 628, 895 190,632 560,298 978,867 962,242 Pounds. Pouvds. 162,659 1,316 1,600,135 5,000 1,412,500 3,018 1,152,509 125,280 2,684,392 354,681 623,398 594,007 3,501 34,963 43,390 1,491 In 1921, after the passage of the emergency tariff imposing a duty of 2 cents per pound on condensed milk, imports immediately de- clined and continued to do so until in December only 1,491 pounds were imported. In the six months ended December, 1921, during which the emergency tariff was in effect, 1,655,000 pounds were imported as compared with 16,102,000 pounds during the corre- sponding period in 1920. While the reduction may have been due to some extent to the domestic surplus, it is apparent that the rate of 2 cents per pound has been effective in discouraging the shipment of condensed milk from Canada and thereby in greatly reducing imports. But it is doubtful if this reduction has had any appreci- able effect on the domestic industry because of the smallness of the imports as compared with production and exports. Even in 1920, ' Canada has a Field for British Branch Industries, Department of Trade and Commerce, Canada. 1022, p. 122. REPORT ON THE EMERGENCY TARIFF ACT. 129 when imports amounted to 22,903,000 pounds, they were only H per cent of domestic production and 5^ per cent of our exports. The effect of these relatively small imports was further decreased because of the fact that they were distributed fairly evenly between a number of ports. The imports were apparently largely of the nature of a border trade. Of the total imports in 1920, 31 per cent came in at Buffalo, 25 per cent at New York, 15 per cent across the Vermont border, 12 per cent over the St. Lawrence border, and 6 per cent into Michigan. TOBACCO. Article. Emergency tariff rate. Senate bill. Act of 1913. Act of 1909. Wrapper tobacco: Uustemmed Stemmed $2.35 per pound... $3 per pound 35 cents per pound. X cents per pound. $2.35 per pound . . . $3 per pound 35 cents per pound. 50 cents per pound. $1.85 per pound... $2.50 per pound... 35 cents per pound. 50 cents per pound. $1.85 per pound. $2.50 per pound. 35 cents per pound. 50 cents per pound. Filler tobacco, n. s. p. f.: Unstemmed WRAPPER TOBACCO. Under the tariff acts of 1909 and 1913 the duty upon wrapper tobacco, unstemmed, was $1.85 per pound, or an average of 142 per cent ad valorem (foreign valuation). The emergency tariff raised the rate to $2.35 per pound, which was about 132 per cent of the higher foreign values then prevailing. Although the United States is by far the world's largest producer and exporter of tobacco, it is largely dependent upon foreign sources of supply for two kinds: Turkish cigarette and cigar wrapper leaf. The importance of the supply of wrapper tobacco to the cigar industry arises from the fact that the wrapper leaf determines to a large extent the appearance and therefore the saleability of the cigar. Thus the discriminating demand for cigar wrappers of required size, smooth- ness, and color; and the shortage of such tobacco has been reflected in a higher average price for all wrapper tobacco than for other domestic leaf; and especially high prices for the select grades. Roughly, about 60 per cent of the requirements of cigar wrapper are produced in the United States, while around 40 per cent comes from the Dutch East Indies, Cuba, and other foreign sources. 130 HF.roHT ON THK HMKIUiKNCY TAKIFF ACT. ¥dn i a ? 1 %• i ^. 5) n* 11} d • d> y s . Jj A a _^ 1 5i^ §i i : i§ ■ f2 : s •- »vc' «■ s . g'-i ^\ c"* a S vc ~ i § 32 a > n 5 r m t^ N o» J c '•Vj fc e> ^ £^ ^ J? z:' ■re' $^ c5 1 s :5 o. 3. ex. 1 ■ •■: = c oo» X M :-, £•0 1 &Si-J ■^■« ii ?5 2 C£ :k 1 1^ r o> ■^•.•iC CU5 CO h- ■ ' £ — fi X u-'m •r o' c ;» o> 1I5 6|-H •15 • ',■1 S855 00? s 1 S§ g t->iT:r r~-r to i afn'— " ■?i3 •n" L; t-" ■0 _; es 1 1 1- ©00 C :r « 3^'i c c^ ss ?5 5 "^ 5_So ■S ^ n "1 CC .E ^ S C5C^'-* r-.-iM' 0" j? e*f»c 7} c: KO fC ^^ ■X. ',^ 3 3=- 1 ^ '■Z3 u 3 coo t^ § r^ — "Z, ^ t^ I^ cc cr >? oc 1 nviit^ MOJ 1^ « — '^ C5 ci mto — '0 •c* _' l^'t-' "c" Ou 2 ■s. •1 c^ ^ ^* ' ~ 1 ~" II , -f op •^^^ ^ r~ _. c jC 1 -^ C*l gs cS a: S r S^ i "S S 1 a 1 -£ cc C-1 X t^ 1 =£ c M a: -< CO T ■n i^ 1 "!^ S OM t- r-^ g 1 S 2 — — — *" '^ X a ! fe c ggg ^0 St; g cr s - "1 "O 05 0-. 1^ S S S~-' _ i2 {H y. ^ 3 C: iC 1 M X — • 1^ T 1 d 1 ^ b> 1 M "O 1 § « c ri cc 5 C ^ ~ ''^.' - 3 2 "* " ^^ G^ « oeoM oo« « r^ OC<5 ^ -r -T- ■V -^ -f . * ■ s oa r- < 2 j " ! ^^ C ^ j i a 1 E Si 2 a> : S-5 t? !•£ 5 S ■g ^ ; =f 5 „ _>.■? 3 .2 c _-'|o : ■== = ! -"3 g t. - - .S S Kit" . w.> — '0 £ ^ * ,^ s r< - • ^."--^^ i << . 1 c 5: ^ ■3 5fSo5 'C H 1 2 « Sc. c .. 2 03 S xt;-- £ ^- r- ♦3 o is ti <" S S cj S; CCOhO REPORT ON THE EMERGEXCY TARIFF AC^T. 131 Domestic production of wrappn- tobacco. — Of the 1,118,000,000 pounds,^ the total amount of tobacco grown m the United States in 1921, 217,000,000 pounds or about 20 per cent were of cigar types. The bulk of these cigar types consisted of filler and binder grades. No figures are available as to the actual amount of wrapper tobacco produced and only a rough estimate can be made as to the proportion it makes up of all cigar leaf. This varies w*ith the seasons. The g -owing of \\Tapper is for the most part confined to Connecticut, eorgia, and Florida. The production of '■shade-gro%vn"' \\Tapper, i. e., the growing of wrapper from Cuban seed under cloth shade, has been developed to such a large extent in Connecticut and in Georgia and Florida that it makes up the larger proportion of domestic production of ^v^apper tobacco. It is a very expensive method of production, involving heavy expenditure for labor, cloth, and fertilizers. Other types knoAvn as "sun wTapper," ''broadleaf WTapper" and 'Havana seed wrapper" are grown in the Connecticut valley and to a limited extent in other sections. Even in a favorable season, the larger part of these types is of binder and filler grades. The annual production of domestic shade grown tobacco may be estimated as between 6,000,000 and 8,000,000 pounds, while an estimate based on such evidence as is available for the total domestic production of all kinds of wrapper tobacco would place it at between 10,000,000 and 12,000,000 pounds. This estimate takes into consideration the amount of tobacco used in domestic cigar manufacture, the proportion of WTapper tobacco used, and the amount of the imports. Imports of wrapper tobacco from Sumatra in 1920 amounted to 6,900,000 pounds but because of its covering capacity, Sumatra is used to wi-ap a larger proportion of the cigars manufactured than a comparison of figures of imports with estimates of domestic produc- tion would indicate. It is estimated that about 2 pounds of/Sumatra tobacco, or 2 pounds of Florida and Georgia tobacco, or 4 to 10 pounds of Connecticut tobacco are rec|uired to wrap 1,000 cigars. Thus in 1920, Sumatra tobacco was used to cover about 43 per cent of the domestic production of cigars. The marked difference in wrapping capacity of the different types of wrapper tobacco should be taken into consideration both in comparing the importance of the different tobaccos to the cigar industry and also in comparing the prices of the different tobaccos. Uses of imported and domestic wrapper tobaccos. — Sumatra leaf possesses in generous measure the characteristics which make it desirable as wrapper tobacco. It is noted for its light color, smooth- ness, thinness, good burning qualities, and lack of objectionable taste. The thinness oi the leaf gives it a large wrapping capacity. Sumatra wrapper is used in many different combinations with other tobaccos in making cigars. The bulk of the Sumatra wrapped cigars (Contains domestic filler and binder tobaccos from Now England, Wisconsin, and Ohio, with some small quantities from Pennsylvania and New York. Some contain imported Cuban filler and other brands an^ made up of blends of imported and domestic filler. vSumatra tobacco is thus used in low and medium priced cigars, the price of which rMng(>s from 7 cents up to 25 cents. Connecticut shade and sun grown wrappers ' In the last decade, exports of leaf tobacco have ranged from 250,000,000 pounds to 776,000,000 pounds, but only a small part, has been wrapper tobacco. 132 KKPdirr (^X THK EMERGENCY TARIFF ACT. niul (ioort;ia aiul Florida wrnpjxM-s nro also used in various combina- tions with (loniostic and imported lillrrs acrordino; to tho brand of the fiij^ar. riu> (irorj^ia and Florida wrap))ors como nearest to resembling the imported Sumatra. Producers of Ccmneclicut shade-grown wrap- per tobacco have built U|) a specialized demand for it for use in high- priced cigars containing imported Havana filler. The best grades for this use bring jirices just under those of good Havana wrapper. The relatively small (piantities of imported Havana WTapper are used only in "clear" or all-Havana cigars. When a manufacturer sets out to create a popular ])rand of cigars he makes a selection of the kind of tobacco he wants for his wrapper, binder, and (illi'r. Then bv the expenditure of considerable sums for advertising he introduces this brand on the market and the consumer of his cigar acquires the habit of looking for the particular combina- tion of tobaccos that make up the brand. The ^^Tapper is particu- larly important because it is that \vhich determines the appearance of the cigar. If that brand has met popular favor, a variation in the blend may destroy the trade therein. It is only on the rarest occasions that this has been successfully done. This great reluctance on the part of cio;ar manufacturers to jeopardise their brands by substitu- tion of a different kind of tobacco necessarily limits the efi'ectiveness of import duties in causing a substitution of domestic for Sumatra ^^Tappe^. Each type has distinct characteristics. The manufacturer, moreover, must assure himself of a continuous and adequate supply, uniform in quality, of the requisite tobaccos, in order to maintain his blends. The Sumatra tobacco is comparatively uniform in quality and quantity. Thus a sudden change in the price of one type of tobacco, caused lor example by an increase of duties, might not for some time be completely reflected in an increased demand for the relatively lower priced leaf. But of course in establishing new brands, the manufacturer would take into consideration the new price relations between the different types of tobacco. Table II. — Wrapper tobacco, unstemmed — Imports for consumption {except from Cuba). Year. Rate of duty. llscal year: 1910 $1.85 per pound . . .do. .do. .do. .do. -do. -do. -do. .do. 1911. 1912 1913 1914 1915 1916 1917 ,. 1918 Calendar year: 1918 1919 1920 1921 1921, lirst quarter do 1 921 , second quarter do Do S2.3o per pound . . 1921, third quarter do 1921, fourth quarter do 1922, first quarter do .do. -do. .do. .do- Quantity. Poundi. 5,4.56,891 5,719,591 5,310,808 5,477,786 5,153,356 5, 142, 662 5, 139, 562 .5,569,083 4,114,532 4,054,658 4, 760, 897 6,893,811 8,917,189 2, 524, 710 5, 660, 701 15,274 288, 675 487, 829 687, 987 I Value i per Value. unit o( i quan- 1 tlty «5, 841, 571 I J1.07 6,041,727 1 1.06 5,879,580 1.11 6,892,335 1.26 6,940,399 I l.,35 6,772,652 i 1.31 6,454,110 1.25 7,685,067 I 1.37 5,566,241 I 1.35 .5,608,674 1.38 7,178,281 1.51 10,926,813 ! 1.59 16,381,980 1 1.84 4,728,139 10,244,722 29,026 39.1,303 984,790 1,4^,506 EEPORT OX THE EMERGENCY TARIFF ACT. 133 Table IIa. — Wrapper tobacco, unstemmed — Imports for consumption (fromCuba). Period. Rale of duty. Fiscal year: 1910.... 1011 1912 1913 1914 1915 1916.. 1917 1918 Calendar year: 1918 1919 1920 1921 1921, first quarter... 1921, second quarter. Do $1.85 per pound less 20 per cent. do do do do do do do do 1921, third quarter. Do 1921, fourth quarter. 1922, first quarter... .do. .do. .do. .do. .do. -do. $2.35 per pound less 20 per cent. Old rate S2.35 per pound less 20 percent. do do Imports of wrapper tohacco since 1913. — Virtually all of the imported wrapper is brought in "unstemmed." Fully 95 per cent of our im- ports of such leaf have ordinarily come from the Dutch East Indies. Small amounts of Cuban wrapper have come in for the manufacture of clear Havana cigars, and some duty-free Philippine leaf has been imported; scattering amounts have also come from other countries. During the period 1910 to 1917, the imports for consumption of unstemmed wrapper were fairly uniform in amount from year to year ranging between 5,000,000 and 6,000.000 pounds. In 1918 and 1919, because of shipping difficulties caused by the war, con- siderably less than the usual amounts were imported, but large in- creases in 1920 and 1921 more than made up for the deficit in the two previous years. Average foreign values during the period 1919- 1921 were greater than ever before. They ranged from SI. 51 to $1.84 per pound, as against $1.07 to $1.35 in the period 1910-1914. Ordi- narily the wrapper from the Dutch East Indies is handled through the Netherlands. Dutch merchants furnish the capital for the to- bacco plantations in Sumatra and Java and the business of the islands is tied up with the homeland. In the spring and early summer, tobacco "inscriptions" are held in Amsterdam and Rotterdam, where the East Indian tobacco is auctioned off to merchants from America and Europe. Large amounts are held in storage in the Netherlands, after sale, because of the good and cheap warehouse facilities and favorable climatic conditions. Only the l)est of the tobacco, the first few counts, is suitable for the demands of the American cigar industry. In 1918 it was impossible to ship the to- bacco to the Netherlands, so that practically all imports came directly from the islands. This was true also in 1919, but in 1920 and 1921 the trade largely reverted to the old route. Imports in 1921. — -The trade practice of leaving considerable cjuan- tities of Sumatra wrapper tobacco in bonded warehouses, until re- quired for use, played an important part in imports during 1921. i:u IJKPOHT ON rilK KMKKCKNl'V TAIUKK ACT. Durinj» llie first two quarters, beforr (lu> passage of (he emergency act increasing tlie duty ou unRteninied wraj)|)er tobacco from SI. 85 to S-'.o") per pound, imports for consum|)t ion, inchiding witlidrawals from bond, amounted to S, 17."), ()()() pounds. 'IMiis was about 2,500,000 pounds more than (he normal annual imj)orts in the period 1910 to 1017. After May 2S. oidy 7;^2, ()()() jxnmds paid duy. In otber words, 92 per cent of the imports in 1921 were withdrawn at the lower rate of duty. In like manner, 91 ,000 pounds out of the 1 1 9,000 pounds imported from C^uba in 1921 came in during the lirst five months at the old rate. Because of the heavy withdrawals before May 29, the cigar industry had practically a year's sui)ply of wrapj)er imported at the old rate. Large mainifacturers stocked up while the smaller mainifacturer;- bougiit from dealers who had withdrawn the tobacco at the old rate. Also, the very fact that the enu>ro;ency act was frankly- a tem- porary measure tended to lessen its eflect. After the heavy witli- drawals in the early summer, duty was paid on very little and im- ports kept piling up in bonded warehouses. On Februarv 28, 1922, 2,591.000 pounds, valued at .16,494,000, wxre being so held, in anticipation of the permanent rate. Undoubtedly withdrawals will be much freer as soon as the permanent rate is enacted. Moreover, it was to be expected that whatever small effect the increase in duty had in keeping up the price of Sumatra would not be largely reflected in the j) rices of domestic wrapper because of the lack of ready sub- stitution between types in particular brands of cigars. If the adjustment of prices between the different types of tobacco were un- balanced b}' the increase in duty, adjustment to the new basis would await the comparatively slow process of the development of new brands of clears. Table III. — Dealers' representative prict per pound of imported (in bond) art^ donun' wrapper tobacco before and since the passage of the emergency tariff act, May 21 , 199A . Ctrade. Before. Since. Java- Finest $2.50 1.75 4.00 2.25 i.on- i.i)0 3. 00- 3.25 .85- .90 .90- 1.00 M.--.- 1.25 $2.50 V iddio 1.7.5" Poorer 1.00- 1.25 Sumatra- Finest ■1.25 Middle (S-cent eiear) 2.50 Poorer (5-ccnt ciear) 1.00- 1.50 2.2.5- 2.50 Connectient broadleaf, No. 1: 191S 1919 1920 1921 .95- 1.00' Connecticut broadleaf, No. 2: 1918 .85- .70- .ft.'v- .70 .75 1.00 1919..' 1920 1921 .85- -90 Connecticut Havanna .seed, No. 1: 1918 .80- .90- .85 .95 .95 .HO .70 .70 1919 1920 1921 .95 1922 .95 < onnccticut Havanna seed. No. 2: 1918 .65- 1919 1920 1921 .75 1922 :;::::::::::;?:: .(ti REPORT ON THE EMERGENCY TARIFF ACT. 135 Table III. — Dealers' representative price per pound of imported (in bond) and domes- tic wrapper tobacco, before and since the pismrje of the emergency tariff act, May 27, 1921 — Continued. Grade. Before. Since. Connecticut shade grown, No. 1: 1918 4.00 4.20 4.50 1919 1920 1921 5. CKV- 5 25 1922 4.50 Tonne cticut shade grown, No. 2: 1918 3.Q0 3.00 3.50 1919 - 1920 1921 4.0O- 4.25 1922 3.00 Wrapper tobacco is ordinarily dealt in in large lots at irregular intervals. A year's supply is often bought at one sale or inscription. There are considerable differences between grades and lots and each dealer or manufacturer endeavors to buy the particular tobacco that suits his requirements. Consequently no regular published prices are available, and only the most general information on prices can be obtained. Table 3 gives prices of domestic and imported wrapper tobacco before and since the passage of the emergency act. These prices have been obtained from leading dealers and are considered to be representative. It is to be noted that after the passage of the emergency act there was a decline in prices of domestic wrapper. The hnest grade Florida and Georgia declined from a range of $3- S3.25 to a range of $2.25-S2.50. The best grade of Connecticut shade grown declined from |5-$5.25 to 14.50. These declines were part of the general price recession and were a movement toward more normal levels. That they were not affected by the tariff is due to the factors already described, especially the importation of more than a normal year's supply of wrapper in 1921 at the old rate. It is important to note, further, that during this period the price of Sumatra wrapper in bond increased, the best grades moving from $4 to $4.20 per pound. This shows the lack of immediate connection between the prices of the imported and domestic tobacco. To sum up, the effect of the emergency tariff upon the domestic cigar and tobacco growing industries was small owing primarily to the large imports that came in before the increased duty was in force and also to the lack of ready substitution between types of tobacco. Domestic prices, instead of increasing under the influence of restriction of imports, actually decreased under the pressure of domestic market conditions. APPLES. Article. Emergency tariff rate. Senate bill. Act of 1913. Act of 1909.* ■ Apples 30 cents per bushel (green or ripe) . 30 cents per bushel (green or ripe). 10 cents per iHishel. 25 wntsiKT liiishcl. 136 ItKPOKT ON THE KMHIUJKNCIY TARIFF \V,T. l^ndiM- (lu> tMiuMi^tMicy tarilF the dutv on apples was increased from 10 cents (o ;U) cents per busliel. The United States produces far more apples than any other country, and is the largest exporter, both of green or ripe and dried a])ples. The total crop of 1920, tlie largest on recortl. amounted to 22:^,677, 000 i)ushels of which only 101,715.000 bushels, or 45 j)er cent, comjirised the commercial crop. The farm value of this commercial crop was 8126,800,000. In 1921 frosts and adverse weather conditions caused a reckiction in the total production to 96.881,000 bushels, and tlie commercial produc- tion to 1)0,294,000 bushels, valued at §93,008,000. Apples are grown in nearly every State. The largest producing sections, however, are New York State, the Pacific Northwest, Virginia and Maryland, Mis- souri, Michigan, and New England. A general view of the trade in apples is given in Table I. Table I. — Apples — Summary table. Production. Imports for consumption. Year.' Total farm crop. Commercial crop.* Exports. 191ft-1914 (average) Bushels. 197, 89S, 000 230,011,000 193,90,5,000 166, 749, 000 169.625,000 142, 086, 000 22.3,677.000 96,8S1,000 Bushels. Bushels. 41,911 66, 865 14,761 18,144 44,866 464, 528 381, 555 1, 191, 199 Bushels. 4,653,7.59 7, 0.54, ,503 4, 39S, 963 1915.. 78.450,000 80,241,000 67,023,000 74,2-29,000 78,477,000 101,71,5,003 60,294,000 1916 1917 5, 219, 991 1918 1,906,227 1919.... 5 137 101 1920 5,393,133 5,808,672 1921 > Fiscal years, 1910-1918; calendar years, 1919-1921. * One barrel is equivalent to three bushels. The large increase in domestic imports of apples in 1921, despite the higher tariff, was due to the almost total failure of the apple crop in the eastern United States that year. The following tables, taken from official Canadian reports, show by years and by months the export and import trade in apples between Canada and the United States. Table II. — Apples — Canadian imports from and exports to the United States.' Fiscal year ended Mar. 31— Exports from Canada to United States. Imports into Canada from United states. Fiscal year ended -Mar. 31— Exports • from Canada to United States. Imports into Canada from United States. 1915 . .. Barrels. 27, .530 6,413 8,5.54 15,807 Barrels, 269,305 274, 966 277,951 426.229 1919 Barrels. 23, 680 236, 000 48, 107 486,445 Barrels. 281,316 1916 1920 145,086 1917 1921 273,319 191i 1922 110,702 > Annual Reports of the Trade of Canada, Dominion of Canada, Department of Trade and Commerce. REPORT ON THE EMERGENCY TARIFF ACT. Table III. — Apples — Canadian exports to the United States. 137 Month. January... February. March April May June July August 1920 Bushels. 65, 127 30, 588 124, 896 61,797 6,456 I 1921 Bushels. 2,664 1,998 1,026 96 417 156 948 49,164 1922 Bushels. 15, 597 378 2,463 3 3 Month. September. October November. December.. 1920 1921 Bushels. 39,057 12,363 14,424 3,582 Bushels. 229, 572 771, 174 341, 184 49,125 Bushels. Total I 359,244 1,446,585 18, 444 » Canadian Department of Trade and Commerce. The exports of green apples, given in total m Table I, go mainly to the United Kingdom, Canada, Norway, and Sweden. Exports to Canada reached the highest mark in 1918 when a total of 457,948 barrels were exported. For the calendar year 1920 exports to Can- ada amounted to 274,358 barrels, valued at $1,527,408. In 1921 ex- ports to Canada were 166,410 barrels valued at S777,290. Cana- dian apples, particularly fall apples, are from 10 days to 2 weeks later than American apples grown south of the border, and consider- ably later than apples grown farther south. It is this situation together with a certain amount of border trade in the vicinity of American producing sections that accounts for the rather large exports to Canada. In addition to the exports cf green apples there are considerable exports of dried or evaporated apples from this country— 8,827,806 pounds in 1920 and 19,962,306 pounds in 1921. Canada produced 3,334,660 barrels of apples in 1919, valued at $24,396,210. About half of the crop was produced in Nova Scotia and the remainder almost entirely in Ontario and British Columbia. Table IV. — Apples — Average monthly price per bushel received by producers. Date. 1920 1921 1922 Date. 1920 1921 1922 Jan. 1.. . $2.14 2.15 2.32 2.60 2.86 2.97 $1.19 1.28 1.31 1.34 1.42 1.69 $1.81 1.82 1.97 1.99 2.09 2.13 July 1 $2.81 1.98 1.37 1.33 3.30 1.15 $1.72 1.71 1.64 1.87 2.14 1.84 Feb. 1.... .\ug. 1 Mar. 1 Hcpt. 1 Apr. 1 . .. Oct. 1 May 1 Nov. 1 Dec. 1 The above table indicates that for the first three months after the emergency tariff was in cflect prices were considerably loelow the level of the corresponding period in 1920. This was in line with the condition of general receding prices on all commodities. After three months there was an improvement in prices over the preceding year, owing to the fact, as stated above, that the domestic supply was fnr below normal and the great eastern consuming markets were ()l)ligo(I to import apples from Canada under an increased rate of (hity. 138 KKPoiM" ON iMiK i:.mi:iu;kn('V r.\i;iri' act. CHERRIES. \rlirl,'. KincrRoncv lariir lU't. S,-iiul.. hill. All o( HIIS. Act of 190S). Chorrio.-i, n>\v cents per pound. The fresh cherry, because of its limited keeping quality, is a negligible item in the import trade and may be disregarded for present purposes. Production of cherries in the United States, while extensive for home use, is restricted commercially to a few sections. The sour cherry, the hardier variety, is more largely groA\m. Commercial pro- duction of cherries is now chiefly in New York, Ohio, Michigan, Wis- consin, Colorado, and the Pacific Coast States. In the Pacific States the crop is mostly sweet; elsewhere mainly sour. In 1919 the do- mestic production of cherries was 3,945,749 bushels, valued at $14,166,170. The crop in 1909 was 4,126,099 bushels. Nearly all of the domestic crop is used as fresh fruit or for canning. The production of canned cherries in 1919 was 1,362,832 cases, valued at $8,451,029; in 1914 production was 543,213 cases, valued at $1,628,975. (A case of canned cherries consists of 24 No. 2 cans, the average weight of contents being about 31 pounds.) Under the emergency tariff act, from May 28, 1921 to March 31, 1922, 5,519,588 pounds of cherries, valued at .$777,347, were entered for consumption. These imports consist almost exclusively of cher- ries in brine. It is not possible to compare these figures with a preceding period because cherries in brine were formerly grouped with other fruits in brine, all free of duty. The imported cherries in brine are of the sweet type; in the manufacturing process the brine is removed, the fruit dyed a brilliant red, and used for glace cherries, cocktail and maraschino cherries. Under a court decision only raw cherries are included under the emergency tariff. Because of the lack of comparable statistics it is impossible to de- termine the effect of the emergency tariff. OLIVES. Article. Olives: In solutions . Not in solutions Pitted or stuffed. Dried ripe Emergency tariff rate. 25 cents per gallon. 3 cents per pound . Senate bill. 20 cents per gallon. 80 cents per gallon. 4 cents per pound. 15 cents per gallon. Act of 1909. 25 cents per gallon, containing less than 5 gallon. 15 cents per gallon — all other. REPORT ON THE EMERGENCY TARIFF ACT. 139 The emergency tariff act increased the rate on olives from 15 cents per gallon to 25 cents per gallon when in solution (in brine) and 3 cents per pound when not in solution (dried ripe olives) . Imports lor consumption of olives in brine during the last two quarters of 1921 and the first quarter of 1922 (June, 1921-March, 1922) amounted to 3,536,660 gallons. During the same period imports of olives ' ' not in solutions "' (dried salt-cured olives) amounted to 123,633 pounds. Imports for the corresponding nine months' period (1920-21) amounted to 2,556,073 gallons. Imports of olives in solution are practically all green olives in brine. This type is not produced in the United vStates in any considerable quiintity. Olives grown in California are used largely in the pro- thu'tion of the ripe pickled olive, in which industry there is practically no direct competition. The two types, green and ripe olives, enter into a somewhat distinct trade. Some salt-cured ripe olives are imported; they are now dutiable at 3 cents per pound. Table I. — Olives — Summary table. Year.i Production, pickled, ripe olives.''' General im- ports (prin- cipally green olives). 1910-1914 (average) Pounds. Ottll07lS. 4,3S7,8M 1915 7, 921), ()0() 7,.'')24,(«)0 7,12,H,000 8,910,(H)0 10, 791, WO 6,100,000 9,200,000 3.622,275 1916 5, 9:?H. 446 ,1917 5,641,7&9 191S 2, 3S5. 059 1919 3, 753, 962 1920 4,777,975 lf<2l '. ,: 3 4,266,527 ' Production figures are for calendar years. Import figures, 1910-1918 are for fiscal years; 1919-1951, for calendar years. 2 A gallon 01 pickled ripe olives weighs about 6i pounds. 3 Imports for consumption. Domestic production.— Olives are commercially grown in this coun- try only in California and in some favorable locations in Arizona. The largest crop ever produced in California, in 1919, amounted to 17,564,020 pounds, valued at $1,405,121, compared with 16,132,412 gounds, valued at S40 1,277, in 1909 — a slight increase in quantity ut an increase of about 350 per cent in value. Arizona's production in 1919 was 112,561 pounds, valued at $11,256. California had 910,890 trees of bearing age in 1920, compared with 836,347 in 1910, which represents a gain in trees of bearing age of less than 9 per cent in the 10-year period. However, the trees not of bearing age had increased from 121,659 to 687,017 in the same time. Assuming that a typical acre of olives contains 70 trees, there were approximately 13,000 acres of bearing trees and 9,800 acres of nonbearing trees hi California in 1920.^ The average production per acre in California is about H tons, although a high-grade grove will produce about 2 tons per acre. California olive growers assert that the investment in their industry is between $25,000,000 and $30,000,000. There are 26 processing plants in California and Arizona, and of these 13 produce olive oil. I Production figures and number of trees are from Census Reports. The California Olive Association, in a brief filed with the Corainiliec on Wavs and Moans, 1921, estimates the normal production in the scale at 16,000 tons and the total acreage of olives at 40,(K)0, of which between 20,000 and 30,000 are be*lng. The .same .source estimates the total area devoted to olives in Arizona at I'M acres. 140 i;i:i'(»irr on iiik KMKRtiKNcv tariff act. Olive }]:ro\vtM-s in this cminln lii-sl uiuloiloitiv, to <2;ih)\v olives for the manufuituro of olive oil. It was soon (louu)nstrnto(l that they could not compoto H' the best and most perfect fruit can be processed, and experience iuis shown that it is necessary to convert about half of the crop into oil. this percentage depending on the season. In nearly all foreign countries certain types of olives are devoted only to oil, the oil industry being the primary business, but in California this end of it utilizes only the culls from the pickling industry, the overripe, bruised, and shriveled or withered fruit. In California, therefore, the oil may be considered a by-product. The domestic production of olive oil is less than 5 per cent of the consumption. A few green pickled olives are processetl in California and some of the green olives in brine are shipped east and there processed. How- ever, this branch of the industry is not large. Also a small part of the California crop is used in making the salt-cured olive (Greek style), for which ready sale is fomid chiefly among foreign-born population of the country. The normal output of the olive industry divided proportionately into the different classes of olive products is as follows: ^ Tons. Ripe canned olives 7, 000 Black ripe olives (Greek style) 1, 500 Green olives 500 Olive oil 7, 000 Total 16, 000 In 1919 a total of 10,791,000 pounds of pickled ripe olives were produced in California, which was the largest amount produced in any single year. In 1921 production was 9,200,000 pounds. During 1919 the production of salt-cured ripe olives totaled 1,198,000 pounds, and in 1921 the production was estimated at 3,600,000 pounds. Domestic production of olive oil in 1921 amounted to 128,045 gallons. Foreign production. — Spain and Italy lead in the production of olives. • Greece, Portugal, France, and the countries of northern Africa also produce large quantities. The great bulk of Spain's olive crop is pressed for oil; for the five years previous to the w^ar approximately 95 per cent was used in this way. The rest of the crop is used for pickled green olives, the south of Spain producing the finest pickled green olives known as Queens. Italy ranks second in the production of olives, practically all of which are pressed for oil. 'From brief filed with Committee on Ways an J Meim. liJ2l. REPORT ON THE EMERGENCY TARIFF ACT. 141 Greece in normal times produces annually a large crop of olives, but for the last five years, owing to war conditions, the crop has been considerably below normal. Most of the crop is used for oil, but there is also produced a considerable quantity of salt-cured ripe olives in brine. American interest in the Greek trade has centered chiefly in the black ripe olives barreled in brine, which compete to some extent with the California ripe pickled olive. In 1919 Greece ex- ported 45,700 gallons of black olives in brine; in 1918, 32,000 gallons; and in 1921, 47,000 gallons. Sicily also exports small quantities of black salt -cured olives. Import classifications do not segregate green pickled and black or ripe pickled olives. It is estimated ^ that in a normal 3'ear about 10,000,000 pounds of the black salt-cured olives come into this country. Over three-fourths of the imported green and ripe olives come from Spain; Italy and Greece supply most of the remainder. Table II. — Olives— ^Imports by countries. Year.i 1910-1914 (average) 1915 1916 1917 1918 1919. 1920. 19218 Total imports. Gallons. 4, 387, 864 3,622,275 5,938,446 5,641,759 2,385,059 3,753,962 4,777,975 4,266,527 3 42, 830 Spain. Gallons. 3, 16S, 248 2,404,080 4, 750, 260 4,842,858 2, 198, 520 3,205,017 3, 342, 653 Greece. Gallons. 943, 513 1,037,292 863, 016 364,651 32,672 223,363 481,079 Italy. Gallom. 215,858 156, 818 284,994 401,912 37,817 268, 208 507,166 .\11 other Gallons. 70,245 24,085 40,176 32,338 116,050 57,374 147, 077 1 Fiscal years, 1910-1918; calendar years, 1919-1921. ' Quantities of general imports are not shown for the calendar year 1921; therefore imports for con- sumption are substituted. 3 Pounds. Table III. — Olives — Imports by months. January. . . February... March April May June July August September. October November.. December . . Month. Total 4, 777, 975 1920 Quantity. Value. Gallons. 512,888 344,875 422,264 737,60:< 640, 641 431,096 232,705 619,745 189,7.57 1. '54,820 1.5,5,644 335,937 $409, 233 326, ,538 4-36,065 771,401 746,461 563,839 266,784 7.55,027 207, 762 142,721 112,631 186,712 1921 Quantity. Value Gallons. 561,497 217,617 217,740 401,604 .588, 167 378,495 4,925,174 2,272,685 $269,898 151,096 1 ,50, 940 266, 508 336,4.50 176,207 2.''i4,217 63, 1S7 270,697 115,015 04,114 124,406 1922, value. S219,926 227,400 310, 461 585, 019 Because of the dissimilarity of imported olives to those produced in this country, it is not possible to make price comparisons. ' Brief of the California Olive Association filed with the Committoc on Ways and Moans, 1921. 598—22 10 14'2 IMIPOKT ON TllK HMKHOKNCY TAltlFF ACT. DUTIES COLLECTED UNDER THE EMERGENCY TARIFF. Arlii-I.' Wheal Floiir Semolina Flaxsoe*! Corn Beans Peanuts rotatixss (Anions Rice, oleanwl lUi-e, cleaned far use in canuiiiR food Rioe. iinileaned Rice flour, rice meal, and broken rice Pa,0KH li.MK) S.641 15,441 111), 1<)1 v.). 904 H(i,i;<)'i till, 21)1 137,702 ■.'iiH.:)i-,;5 141,017 2,')7,7t)0 :i')H. 777 709, 370 I17,()S2 ^2'i. ■l,V2 34,40.'> 7'-.. 425 iin.s:)!) 215 9 234 !)l,:jf)l ir>.:!43 1IH).704 1,%H 395 2.363 3(13 1,(K)1 1,364 SI2,420 336. UHS 1.148,508 01,598 ld,S44 77, 442 4 1 5 12,797 IS, 632 :'.i,429 11,344 27 11,371 025,726 30(),3O2 1,2:VJ,('2H 984, 171 407, I'.IH 1,:5'»I,3G9 673, 482 44.111 717,503 7,868 1,444 9,312 70,319 15, 852 S6, 171 334,841 35, 270 370,111 47,387 12,868 60,2.55 .3,955 4,379 S,334 115,742 38, 787 l.'")4,529 10,688 6,339 17,027 76, .378 28,347 104, 725 564,588 547,343 1.111,031 703,956 3.59, 261 1,063,217 183, 764 501,024 684, 788 10, 150 38, 608 4,S, 758 122 18,672 18,794 3,022,510 1,631,316 4,f)53,826 \ 37,310,666 f 95, 988 \28,388,818 1 05.795,470 154,856 2,583 1.57,4:9 31,729 4, 238 35,907 48 23 71 378,879 147, OIW 52."), ,SS.i 1,302,982 553, Sf;5 1,8.56,847 36,012 S,085 44, 097 83,996 8,42-1 92,420 13,890 157 14,047 1,771,805 1,609, .578 3,381,383 3.57,360 5, 230 ;?62,590 89, 316 76, 272 165, 588 515,085 401, 28H 916,373 1,282 2, 523 3, 805 $55, 375, 932 $36, 255, 462 $91,631,394 1 Estimated from quantities and values rc[>orted in imports for coasumptioD, first quarter, 1922, Depart- ment of Commerce. o 4 96 S II This book is DUE on the last date stamped below 1964 JUL i ' 196* m APRllli«i;s 4\il 6l98'i Form L-9-15m-7,'31 MWJi^ iumnP,nvlll^^. I^EG'ONAL LIBRARY FACILITY AA 001 006 018 4 ^