158 MARKETS 



abroad by an import tariff of 2c per pound or $1.00 per case of 

 condensed milk, and to conditions prior to the advent of the 

 European war in 1914. 



In 1913, the United States, by Act of Congress, removed 

 the import tariff, placing condensed milk on the free list. This 

 Act became effective in the fall of the same year. Its immediate 

 effect was a rapid increase in the importation of European con- 

 densed milk, which was offered for sale at relatively low prices, 

 decreased the sale of domestic goods and caused the holdings of 

 condensed milk to accumulate in large quantities. Condensed 

 milk prices depreciated rapidly throughout 1914 and reached 

 the bottom in the fall of that year when financial limitations 

 compelled many concerns to move their goods at any price. At 

 that time the bottom prices of condensed milk were approxim- 

 ately as follows : 



Sweetened condensed milk per case $2.50 



Evaporated milk per case 1.90 



The losses suffered by this slump in the condensed milk 

 market, caused by the influx of cheap foreign goods in the 

 absence of a protective tariff, were enormous and caused bank- 

 ruptcy of numerous of the financially limited concerns. The 

 outlook for the future of the industry looked very uninviting 

 at best, but the situation was saved and market conditions 

 reversed by the urgent food requirements of the Allied nations 

 in the European war, and after the entrance of the United States 

 into the World War, by large orders for the American army 

 and navy. 



The extraordinary and very urgent demand for condensed 

 milk by the U. S. Government and by its allies boosted the 

 prices of this product to a level not attained since the Civil war. 

 The profits per case were augmented manyfold of those of normal 

 periods and the prices paid the farmer in some localities rose 

 to as high as $3.50 per hundred weight and 75 cent per pound 

 of butterfat. This situation naturally made it easy for the milk 

 condensing factories to encroach on the milk and cream supply 

 territory of the creameries and cheese factories, whose products 

 experienced only a relatively moderate increase in price, and 

 not at all proportionate with the soaring of condensed milk 

 prices. 



