The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1866-04-24
The Proposea Ta. on COTTON.

| The proposed Tax on COtt0ns
The largest consumption Of cotton in any
/ one year was in 1860, when the whole
amount used in the United States was about
400 ,0o0 zoo pounds; and Of sll Europe, l.
| 8s4 700, 0O0 pounds, making in all 2,244,-
| 709,000 pounds, equal 10 about five million
bales of American cotton, Of $50 pounds
| each.
From this consumption Of cotton an ex-
| cessfye supply Of cotton fabrics was made,
/ and the over supply would probably have
caused a serious check 10 this branch of ia
dustry had il not BEEN for the war We may
! assume, then, that whenever, in the next
six OF seven years, the total supply Of cot
ton shall be equal 10 5,00O,0 600 American
bales, there will be cotton enough.
Whenever there is cotton enough the
price will be regulated in Liverpool by the
| price at which cotton is most cheaply pro-
| duced can afford 10 continue aud increase
| its cultivation, even though such countries
| may each produce a comparatively small
part OF the total supply. If We impose a
| tax upon American cotton, the countries
which will thus regulate the price will be
India, Egypt and Brazil. Europe consumed
in 1865, 1885 600 pounds Of cotton,
equal TO 1851 zoo American bales Of $50
pounds each. OF this, over 100000 bales
we're from India, Egypt, Brazil and other
countries outside Of the United States.
In this year, 1866, it is not likely that
there will be any increase, but the crop
planted for delivery next year viii have
been planted under the stimulus of price
of from thirty-five to fifty cents per pound
in gold, in Liverpool. 1t may therefore be
said that the crop of other countries than
the United States planted this spring for de-
livery in twelve months from November /,
1866, TO November l, 1867, will be fully
equal 20 two million FIVE hundred thousand
bales of American cotton.
If the United States should this year pro-
duce two million five hundred thousand
bales of cotton, there will be a full supply
in 1867. But while many believe in even a
larger quantity, it can hardly be expected
that so much will be raised, and it might
therefore be said that cotton would for one
year bear q tax as high as that recommend
ed by the Revenue Commission viz five
cents per pound. But is it not almost Ger
tain that the total crop delivered in 1868
will be in excess Of the demand? Is it not
solerably sure that our crop will next year
be 5000, 000 bales Moreover, il the price
brought by the crop now planted is 30 high
as to warrant a tex Of five cents per pound,
will it not stimulate larger product in
other countries as well as here
We do not think our necessities warrant
even a temporary departure from sound
principle Of political economy, by taxing a
raw material, one of the chief products of
our agriculture, in such manner as TO give
a dangerous stimulus to the production of
other countries. If our revenue were in
sufficient there might be an excuse, but
with an ample revenue there can be none.
But, if We must tax cotton at all, five cents
per pound is too high, for the reason that it
will soon represent more than the difference
in value between American and East Indian
cotton. The cotton Of Egypt and Brazil is
better than our own, and will, therefore, al
ways take precedence in the English mark
ct. The largest supply of foreign cotton is
the East Indian or Surat. This formerly
sold at about two-thirds the price of Amer
can, but the improvements in machinery
for the manufacture Of shOrt-stapled cotton
have caused Surats TO average nearly three
fourths the value of American cotton.
Now, with only full supply of all de-
scri ptious of cOtton-without a surplus-the
average price cannot be expected TO rule
above sixteen cents in gold, free from taxes.
But suppose the average TO be twenty
cents, Tree from taxes; the Surat would
bring seventeen and one-haif cents, and
the American about twenty-five cents. If
We then add the tax of five cents, we put
American at twenty-seven. The margin
between IL and Surats would be far greater
than the difference in value, and either cur
| taxed cotton would be piled up, and the
| product decreased, or the attempt to collect
the tax from foreign countries would fail,
aud our own producers of cotton would
pay it.