The southern press. [volume] (Washington [D.C.]) 1850-1852, 1851-11-10
From the Richmond Enquirer.
mseSn (Gs. Convention.


of tho interesting report Of the minority OF the
committee. They proceed to show that the de-
pressions in the price Of cotton to which the
planters are forced so often to submit, are not
fairly attributed to over productlon---for in the
last 20 years the whole production has been 49,
| 760 900 bales, while the consumption IN the same
time has been 49, 100000 bales, or an excess
over the production of 5000 bales since 1870.
The committee, further, strongly Impressed
with the opinion that, at fair prices and win
proper organization on the part of the American
cotton planters, the capacity for over.productlon
does not, aud never can exist. In hve years
| from 1910 TO I845, the extraordinary increase
in the production of the world, averaging 642-
900 bales per annum, left on hand in Europe, on
the 3lst December, 1915, stock OF l,22l,OO
bales The stock on hand in Europe on the 3lsi
December, however, was reduced TO o4o,Ooo
bales--aud from the short crops OF lo49 ana
| 1850, it is calculated that the consumption Is
now being limited and curtailed by short sup
ply of the raw material Moreover, while The
per cent increase in American cotton has declined
to three per cent. per annum, the American con-
sumption has increased more than nine per cent.
per annum
The committee having established that there
has not been, and probably will not be, any over
production, proceed to trace to irregular produc-
ton, all the fluctuations to which the great in
terest of cotton has been subjected. While ir-
regular production cannot be prevented, they
think that organized concert of action will con-
troll its effects-and the grand panacea for the
evil, is recommended in the following words:
BY way of illustration, suppose that the year
| 1851 yields 100000 bales, and that il is detn-
itely aseertained that the capital employed is only
sufficient to manufacture 100000 of these
now, in the ordinary course of trade, the effects
of irregular production would be shown by great
depression in price. But suppose the planters
refuse to send the crop forward to any greater
extent than is actually sufficient to supply the
demand for consumption, and retain under their
own sheds the other 100000 bales. Such a
course would secure them fair prices for the
amount sold, and control the natural effects Of
irregular production for that year. Then sup
pose the year 1852 furnishes only 100000
bales the ordinary effect of this, as has been
shown, would be to drive capital out Of the
manufacturing business, and lay the foundation
for subsequent low prices. This would be con-
troled, by adding the 100000 bales retained
from the crop of lS5I-supplying the manufac-
turers misunderstanding good prices for both
crops, and preventing the arrangement which
would have resulted from withdrawal Of manu-
featuring capital. hus, the principle might run
through any number of years, and admitting that
there is no aggregate over production, every
crop would bring fair price, because offered
only in quantities sufficient to supply the de-
mand. Such system as this, would protect us
against the consequences of irregular produc-
ton, but it can never be carried into effect by
individual action There are no means of pro-
curing the necessary concert, TO say nothing of
other insuperabe obstacles.
If we would do anything certainly and eff
fecLivey, we must organize cotton planters
association This should be chartered by the
States of South Carol ma, Georgia, Alabama,
Louisiana and Florida, with capital of at least
$4,000 900, to be increased in amount the
wants of the business might require. The
ISOLATION should erect or purchase extensive
warehouses in Charleston, Savannah, Mobile,
New Orleans Apalachicola, and ST. Marks, and
establish at each Of those points a regular CON-
mission business, with view to the storage and
sale of the entire crop of the United States.
For the purpose of securing TO themselves the
whole cotton commission business, they should
establish minimum price, which, for the pur-
poses of this argument, we will fix at 10 to l2t
cents, according to quality and location, and av-
eraging say / / cents per pound This should
be guaranteed to all their regular customers, and
80 long as the said cotton remained ia their ware
houses. The world should have notice that,
whenever the cotton Offering was not wanted by
Others at or above the minimum fixed, it would
be wanted by the association-that, when once
purchased, it would never be re-sold, until taken
at cost, adding storage, insurance interest on
the investment, with a commission for purchas.
ing, and another for selling. This accumulation
of charges would induce the manufacturers to
take their supplies before the company would
be required to take any, nor is it, indeed, likely
that they would ever be purchasers TO any large
| extent. Under such system, the planter would
not crowd the market with cotton, as is now the
case, and Spectators at the minimum price
would purchase freely and hold with confidence.
Another inducement for such an organization
may be found in its capacity for Increasing the
consumption, provided the raw material is furn
ished. The bagging and rope, necessary for
packing a crop of 2,500,0 900 bales, would require
about 100000 pounds, or about 10000 900
pounds, or about 100000 bales, of the most in
ferior part of the crop. This would be four per
cent. of the entire yield. To insure this large
increase In the consumption of the United States,
il would only be necessary to erect the ma
chinery for manufacturing these artcles-sell
them at trile above the cost Of production, and
DISCRIMINATE IN the minimum price nNeo, 10 sucn
extent as might be found necessary, against cot
ton packed in any other material. Ttis would
insure the packing Of the entire crop in our own
staple, and provide for the employment Of con
siderable amount of labor in manufacturing the
bagging and rope necessary. But this is not the
only increase TO be effected in the consumption;
the guarantee which the manufacturer every
where would have Incidentally that his goods,
when made could never be brought into compe-
ttion with goods made from cotton at lower
prices than his own, would induce the produc-
ton of a larger proportion Of coarse numbers
feeling that there could be no risk in stocking
himself heavily, spindes would not be stopped or
short time resorted TO, because orders were not in
hand for work ahead-the manufacturing busi-
ness would be characterized by greater regu-
larity, and conducted with greater confidence
the supplies of goods would be better and the
consumption larger. Another inducement for
such an organization is the great saving OF ex-
pense in getting our cotton into the hands Of the
manufacturer.
The Liverpool market governs the American
market, and il matters not where the planter