Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-05-15
NninM and Amfrifan.
REPORT OFTHE NEW YORK CHAM
BER OF COMMERCE ON THE COT
TON TAX.

BER OF COMMERCE. On THE COT
TON TAX.
From the New York Times, we obtain the
following report of the Committee specially
appointed to consider and report upon the
proposed tax on cotton. Ii will be found
both interesting and instructive. The ques-
ton involved is one of vital interest 10 the
South:
The Committee appointed by the Cham
Der of Commerce to consider the effect of
proposed tax by Congress of 3 cents per
pound on cotton" beg to report: They feel
that the subject is one Of vast interest to
that section Of the country in which cotton
is grown Of great national concern, and es-
pecially worthy of consideration in view of
the political state Of the South.
They assume that in an enlightened com
munity Of merchants, the Importance OF
dealing Justly with the South at the present
iuncture will be deeply felt; and adopt as
the sentiment Of this community, that II
any error is committed in our national legis-
lation, il shall not be on the side of seyerl-
~. If il is necessary 10 exclude representa-
tiyes of the Southern States from the Halls
of Congress, because of disabilities growing
out of the recent war, and measures are to
be adopted affecting the industries of large
section and Of a numerous people, these
measures should be characterized by a spirit
of generosity, which will take the sting from
the declaration that Taxation without repre-
sentation is tyranny" 1t should appear in
after years, when prosperity in the South
takes the place Of present adversely, and
fratcrnal relations are again restored in and
out of Congress, that, in the days of her
weakness, the North and West did not take
undue advantage Of the South, discrimina-
ting against her industry, and imposing bur
dens too heavy TO be borne; but on the con-
trary, that a spirit Of magnanimity ruled in
the councils of the nation, disposing our
Legislators TO deal generously with the peo-
pie of the South, thus TO aid in restoring
them from a state of weakness to a condi-
ton Of strength.
These are the views that animate your
committee, and they are such as in their
opinion, this Chamber should urge upon
Congress as Of most importance, and IN con-
sidering the amount Of internal revenue tax
10 be levied upon raw cotton, they are deep
ly impressed with the feeling, as they sup
pose all right-minded men are, that the cul-
tivation of cotton should not be discouraged
by onerous taxation, and your committee beg
TO present some Of the reasons which, in their
Judgment are conclusive against a duty Of
uht NihA1 liNA lDhiin DAA AAN EANthb a'''NiiNia'
staple viz
/. That the cotton interest in India, Bra
I'll and Egypt have accumulated large capt.
tails from the high prices of the last three
years. while our plantations, as a rule, have
lost all theirs.
2. That nothing has yet occurred TO ar
rest the extension of cotton production in
those countries, and nothing will arrest IT
short of a material and permanent decline
in prices hereafter.
3. That in the last five years railroads
have been opening to traffic in India, and
other means Of transportation have been
improved; and as the Indian Government
guarantees an annual dividend of not less
than five per cent. TO railway stockholders
we must suppose that branch railroads will
be made wherever they are likely 10 pay.
4. That during the four years famine o.
the United States cotton in Europe, great
improvements have been made in the man
ufacture Of yarns and fabrics from India cot
ton, 10 that eminent manufacturers, who
thought formerly that they could only use
American in making their standard fabrics
have found that mixture of four-fifths In
dia and one.fifth American, or over nine
tenths India and one-tenth American, pro
duce the requisite quality; at least so it is
stated on authority which your committed
are forced 10 respect, without being compc
tent 10 indorse il.
8. That the expenses in the United States
Of producing, transporting and selling at tho
ports, exclusive Of tax, must be estimated
this year at not less than thirteen cents pei
pound in case Of Yield of 100000 bales
and about two cents more If the yield Is less
IL is sometimes said, but very incOnsiderate
~ that the cultivation Of cotton i'm India
and Egypt has been a failure. Let us ex.
anime this up 10 the present time, 10 give
the latest possible light upon the question.
The average import into Liverpool, from
the LIST of January TO the Goth of April, of
bales has been rs follows:
India. Egypt. Brazil
3years, 1859 to ls61......1l6,OoO 5000 &0,oOl
years, 1862 to lS6i....-.l!S,OO 10000 5i,OB
2 years. 1865 to lS66.....2l3,OOO $4,000 l5l,OE
The quantity known Ton both April, al
Liverpool) 10 be at sea for England, from
India, lin bales) was:
1866. 1865. 1864. 1863 1862
Ap1 20, esyr5l5.OOO 10000 2iS,Ooo $4,000 lsiOO
Stock Of all
kinds cotton $4,000 $4,000 $4,000 2a3OoO i22 O0
10Th April.
Av'ge imp. Of II m'ths into)
Grt Britain in 10 yrs, from S2ll6N 10000 1000
1853 To 1862 inclusive bales
The like during lS65-....l .267. 600 $1,000 $4,000
1 ne ABOVE AilblGN SHOW lilal the IlFOthlC'
ton of cotton has been an eminent success,
in India, Egypt and Brazil, in quantity
and, whatever may be said to the contrary
the quality seen of India cotton is good
enough even to drag down our own growth
as happened in Liverpool last month, to th,
extent of Cd sterling per pound-equal {,
Is or l6 cents in our money-in less than
six weeks.
The natural course seems now TO be fol
cotton TO decline, perhaps very slowly and
by fits and starts, until it reaches half its
present value, If the growths of 1866 and
1867 are prolific; and il is equally natural to
suppose our planters must make two sue
cessive crops, each of 5000, 600 or 100000
of bales and sell them AT very low prices
before the cultivation in the Bombay dis
trict will be materially curtailcd.
The prospective difficulties of the Ameri-
can planter, even without any tax on cotton,
are great probably greater than he suPposes,
as both in the North and South there are
still lurking ideas that American cotton is
king For if he secure a large crop, he is
sure 10 meet a low price, while If his
crop is short, and his earnings therefore
small, the cultivation in other countries will
continue 90 increase. Yet at this very time
when he is struggling for existence, a tax of
HNc Genus per pOunu Is pIppuscu, winch pc-
ing practically an export duty, is equivalent
charging him with that amount for the pur-
pose of paying il over TO the cultivation of
Egypt, India and Brazil. And still it is
expected he is TO compete successfully with
those growers. Our knowledge Of the pro-
position is mainly derived from the sketch
of a bill for amending the Internal Revenue
Act, published some days ago in our papers.
We deem il reasonable to suppose that twas
first suggested when cotton was worth fifty
cents and expected by some persons be sixty
or seventy cents per pound this summer,
while the present average value at the ports
of the United States is little more than
thirty, and If il is 10 go 10 forty, il must be
from speculation for resale, chiefly TO our
spinners, and because of anticipated failure
Of the growthof thisyear. The bill is based
upon the assumption that thirty-four mil
lions Of revenue will be derived from this
tax, and connects with the recommendation
other proposed changes in the law, which
are as favorable to the Weather portions of
our country as the tax referred 10 is OPP
pressive 90 the South, viz:
l. The reduction of taxes on incomes.
>. A drawback on cotton goods when eX-
cd of FIVE cents per pound, thus in
sing the bounty on their production from