that total numbers at the beginning of 1914 were 3,850,000 head and in January, 

 1919, had contracted to 2,579,000 head. The unfavorable feed conditions and 

 hard winter of 1919-20 further reduced numbers by January, 1920, to 2,083,000 

 head. A steady upward swing in numbers has been evident in the period 1920 

 to 1928. In January, 1927, the sheep population had passed the three million 

 mark again and in January, 1929, total numbers had climbed to 3,761,000 head. 



THE FIRST EXPANSION PERIOD 



During the first expansion period of the sheep industry in Montana which 

 assumed importance after 1890, sheep operators were competing freely with 

 cattlemen for range rights. Contentions over conflicting rights during this period 

 often assumed the nature of open warfare between sheepmen and cattlemen. 

 These conditions not only prevailed in Montana but also in other states of the 

 northern great plains area and resulted in the enactment of certain herd laws 

 within these states which today are still on the books although their usefulness 

 passed with the open range days. 



THE PASSING OF FREE DOMAIN 



The factors which terminated the first expansion of the sheep industry in 

 Montana were: (1) The passing of the public domain with the entrance on the 

 range of the homesteader. (2) The inability of the sheep industry as it was then 

 organized to adapt itself readily to the new order of fenced ranges. As was the 

 case with cattlemen, many sheepmen who had acquired large tracts of land, took 

 advantage of the increased value that agricultural developments had placed upon 

 their holdings during the period 1910 to 1915 and sold out. 



THE WORLD WAR 



Thus the sheep industry was in the process of liquidation of its holdings 

 when the world war opened. Apparently the response of Montana sheepmen to 

 the higher prices of the war period was that of still further reducing their in- 

 ventories by profit taking on these prices as witnessed by the fact that total 

 numbers continued to decline from 3,850,000 head at the beginning of 1914 to 

 2,670,000 head at the close of 1916. The poor feed years of 1917 and 1918 and 

 1919 then intervened to prevent any expansion during that period as might other- 

 wise have been expected with the continued rise on sheep and wool prices. 



The fairly favorable feed conditions of 1920 were accompanied by a break 

 in both sheep and wool prices. Commitments made that year along expansion 

 lines were disastrous as were also the investments of new operators venturing 

 into the sheep business in that year. Such distress as was visited upon sheepmen 

 with the deflation, while severe, was short-lived. In the first place the industry 

 had not inflated during the war period and its obligations were largely those of 

 feed bills for the winter of 1919-20 and such credit extensions for expansion as 

 had been made in 1920. The sharp depreciation in sheep and wool values that 

 took place between 1920 and 1922 was met as well as possible by existing credit 

 facilities on part of banks and associated credit agencies. That the bulk of 

 sheepmen weathered the storm and were able to recoup their losses over the 

 period 1923 to 1926 is testimony to that conclusion. 



PRESENT CONDITION GOOD 



The recovery of the sheep business since 1923 has been accompanied both by 

 an expansion of numbers on part of the larger operators as well as the develop- 

 ment of farm flocks, some of which have been on the co-operative share basis. 



Since 1923, prices of both wool and lambs have fluctuated around levels that 

 have been relatively profitable for this expansion. 



To what extent the expansion has been accompanied by better management 

 on part of sheepmen tending to reduce production costs and thus making the de- 

 velopment less dependent upon price changes which may come, is difficult to de- 

 termine. However, it is the observation of those interested in the development 

 of the industry that more interest is now being shown by sheepmen in securing a 

 better market product in case of both wool and lambs than during the pre-war 

 period. 



The co-operative spirit among sheepmen today is evidenced by the growth of 

 the Montana Wool Growers Association. Through this association as well as 

 through the Extension service of the agricultural college, there has been brought 

 about more interest generally in the marketing end of the sheep business. 



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