Comparison of United States prices of imported and domestic worsted yarns.-The kinds of English and American worsted yarns selected for price comparisons are given below. Column B of each type shows the quality of top used in making the count of yarn listed in column A. Table 34 shows the actual selling price per pound of English yarns in England, their probable landed cost and selling price in this country, and the price at which comparable United States yarns were sold during the months of May, 1914, May, 1924, and February, 1925. Table 34.—Approximate selling price per pound in the United States of English and comparable American worsted yarns, during May, 1914, May, 1924, and February, 1925 I Prices obtained from Wool Record and Textile World and N. B. K. Brooks, of Boston, Mass. The English prices were converted into United States currency at par for 1914; for 1924, at the rate of exchange on May 15, and for 1925, at the rate of exchange on Feb. 5. * Includes freight, insurance, and commission charges. Includes 5 per cent on landed cost for importer's overhead and profit. 4 Prices obtained from American Wool and Cotton Reporter. The figures in the previous table tend to show that the United Kingdom can compete on the American market only in certain kinds of yarn, in so far as prices are concerned, but that the United States can not compete with the United Kingdom in the world markets. When domestic mills buy direct from foreign sources, the total landed cost of English yarns must be the basis of comparison with American selling prices. A comparison of the domestic and English worsted-yarn prices quoted in Table 34 shows that the selling price in the United States was considerably higher than the selling price of a comparable English yarn in England for the dates mentioned in 1914, 1924, and 1925. The higher selling prices in the two countries in 1924 and 1925, as compared with 1914, were due primarily to the higher prices of raw wool and tops, and to the greater manufacturing costs, including higher wages based on increased living costs. The variation in the rate of increase for different qualities of yarns was caused mainly by the quantity available, the demand, and the price variation in the particular grades of raw wool and tops required. Table 35 shows that the percentage increase in the selling prices in 1924 over 1914 for English yarns in England and comparable American yarns in the United States was as follows: TABLE 35.-Increase in selling prices of yarns, 1914–1924 The fact that the domestic product can not compete with the English product in foreign markets is emphasized by the size of our domestic exports, which for the year 1924 amounted to only 98,707 pounds. Trend of prices, 1913-1925.-Table 36 gives the range of market prices of four standard domestic worsted yarns as quoted on January 1 of each year since 1913, and a comparison with the index number of all commodities. TABLE 36.-Comparison of wholesale prices per pound of four standard domestic worsted weaving yarns, 1913–1925 1 Wholesale prices of worsted yarns were obtained from bulletins of the National Association of Wool Manufacturers. ' Index numbers of all commodities as published by the Bureau of Labor Statistics, United States Department of Labor. The relative price figures for worsted yarns show that on January 1 they were lower than the general market level for all commodities in 1914, 1915, 1916, and 1917, considerably higher in 1918, 1919, and 1920, slightly above in 1921 and 1922, but much higher in 1923, 1924, and 1925. On January 1, 1925, the average price of the four yarns cited above was 2.29 times the price on January 1, 1913. The wide variation in yarn prices reflects the great fluctuations throughout the world in the prices of raw wool. The extent to which the above yarn prices are affected by raw wool coming into this country free of duty or dutiable can not be stated. However, in 1913 raw wool was dutiable; from January 1. 1914, to May 28, 1921, it was duty free; and since the last-mentioned date it has been dutiable. COMPETITIVE CONDITIONS The costs of producing worsted yarns are lower in England and continental Europe than in the United States, but as to the exact relation of production costs in the various countries there is little available information. In England and upon the Continent the worsted-yarn business is largely divided between the yarn merchant, who owns the combed wool or tops, and the commission spinner, who spins the worsted yarns for a fixed fee per quantity for the yarn merchant. In the United States a greater percentage of these yarns are made in the establishments in which they are later consumed in the manufacture of cloth than is the case abroad. The production of worsted yarns for sale is therefore relatively larger abroad than in the United States, although according to the census of 1919 worsted yarns for sale in this country amounted to about 50 per cent of the total quantity manufactured. Imports during the fiscal year 1914 were less than 1 per cent of the total domestic production of woolen and worsted yarns; in the calendar year 1919 they were less than one-tenth of 1 per cent. Practically all imports are worsted yarns (this includes mohair yarns), and may therefore be compared with domestic production. In 1914 imports constituted 1.8 per cent, and in 1919 only 0.26 per cent of the domestic production of worsted yarn. Taking the 1919 domestic production as a basis for computation, the 1923 imports of worsted yarns constituted about 4 per cent of the probable domestic production, and 1.5 per cent of the total woofen and worsted yarns made in the United States. With a total domestic production in 1923 of probably 400,000,000 pounds of woolen, worsted, mohair, alpaca, and other similar yarns mentioned herein, and 6,336,224 pounds of these yarns imported during the year, it is evident that there is relatively little foreign competition on the American market. Imports in 1924 totaled 2,916,206 pounds, which was less than half the quantity imported in 1923. TARIFF HISTORY Under the provisions of the tariff act of 1890, all yarns made wholly or in part of wool, or of hair of the camel, goat, alpaca, or other like animals, were dutíable under a combination of specific and ad valorem rates. This compound rate was applied to three classifications of yarn values, namely, (a) not more than 30 cents per pound; (b) more than 30 cents but not more than 40 cents per pound; (c) more than 40 cents per pound. The actual and computed ad valorem rate averaged 105.11 per cent per annum for the entire period of this act. equivalent ad valorem duty was higher than that applied under any subsequent act. The average annual imports during the life of the act of 1890 were 862,815 pounds. valued at $527,296. This In the act of 1894 the descriptive wording was the same as in the previous act, but the rates were made ad valorem only and were applied to two classifications of yarn values, namely, (a) not more than 40 cents per pound, and (b) more than 40 cents per pound. The equivalent ad valorem duty averaged 38.09 per cent per year during the life of this act, this being the second lowest for the last 34 years. Imports immediately increased and the average annual imports for the period during which this act was in force was 2,559,350 pounds, valued at $1,242,955. In the act of 1897 the rates were changed back to specific and ad valorem and were applied to two classifications of yarn values, namely, (a) not more than 30 cents per pound, and (b) more than 30 cents per pound. During the period of this act the equivalent ad valorem duty averaged 93.54 per cent per year, and the average annual imports were only 239,002 pounds, valued at $157,620. The provisions of the act of 1909 were identical with those of 1897, except that the ad valorem rate for yarns valued at not more than 30 cents per pound was reduced 5 per cent. Thus, the equivalent. ad valorem duty was slightly lowered to an annual average of 86.12 per cent. The yearly average imports during the life of this act were 197,018 pounds, valued at $164,141, the lowest ever recorded. Under the act of 1913 straight ad valorem rates were again applied, and yarns were classified into two divisions: (1) Those made wholly The emer or in chief value of wool or of camel's hair, and (2) those made of the The act of 1922 provides for yarns made wholly or in chief value of wool or of hair of the camel, goat, alpaca, or other like animals under specific and ad valorem rates based upon value as follows: (1) Valued at not more than 30 cents per pound, (2) valued at more than 30 cents and not more than $1 per pound, and (3) valued at more than $1 per pound. Although the equivalent ad valorem duty in 1923 was 67.34 per cent, importations for that year were the largest of any one year in history, amounting to 5,617,321 pounds, valued at $7,238,370. In 1924, however, there was a falling off to 3,120,690 pounds, valued at $4,416,431; the equivalent ad valorem duty was 65.21 per cent. The figures given in the following table show imports for consumption in 1923 and 1924 of the yarns described herein; the bulk had a foreign value of more than $1 per pound, a small percentage had a foreign value of more than 30 cents and not more than $1 per pound, while practically none was valued at 30 cents or less a pound. TABLE 37.-Imports for consumption of yarns under each value classification, 1923 and 1924 The rates of duty imposed by the tariff act of 1922 are higher than those of the acts of 1894 and 1913, but lower than those of the acts of 1890, 1897, and 1909. During the period that each of the last six tariff acts remained in effect the average yearly imports for consumption fluctuated to a considerable extent. For instance, under the act of 1890 the average per year was 862,815 pounds; under the act of 1894, 2,559,350 pounds; under the act of 1897, 239,002 pounds; under the act of 1909, 197,018 pounds; under the act of 1913, 2,413,012 pounds. In 1923, the first full year under the act of 1922, imports were 5,617,321 pounds, and in 1924, 3,120,690 pounds. D |