Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1867-12-06
Daily Journal, Nor. %
Commissioner yyems-Tho Cotton Tax.

Cotton
Mr.. WELLS, Special Commissioner of the
I'evenue, has communicated to Congress q
paper recommending the repeal of the
cotton tax on grounds of policy In making
this communication he states that he an
hclpates his annual report because he sup
poses the subject of the repeal of the tax
VIII be taken up promptly by Congress.
Mr.. WELLS states that the price of cotton
has declined, and must continue to decline,
IN consequence of the rapid increase in it's
production under the high prices paid for
some years. India, the principal competi-
tor OF the United States, has by improve
ments in cultivation and in the quality of
seeds, improved the quality of her cotton
until 1t bears the relation of tvo-tbirds to
/ three-fonrths the value OF the American.
instead OF one-half to :wo-thirds, as for
merly. A tax Of three cents per pound on
American cotton operates as a premium of
nifty per cent. upon the cost of raising
cotton in India. This fact, Mr.. Wells
states, can be established by data in his
possession and it may be further estab-
lshed by statistics that India has the ca
pacity to throw upon the market an extra
100000 bales in any year that the price
would offer sufficient inducement. while
she has the capacity to consume her whole
crop when at such low prices that she
could not afford to export it to Europe or
China
The largest consumption of cotton in
Europe was in the year 1860, when it
amounted to 4,321, 900 bales, averaging 400
pounds to the bale, or ], s44, zoo, 900 pounds;
OF which the United States furnished IS
per cent. In 1866 Europe obtained q sup
ply of 4, $40. O23 bales, averaging 1862 pounds !
per bale, equal to 1858, ia, 326 pounds of
which less than 40 per cent. was furnished
By the United States.
Being convinced from the statistics that |
cotton must rule at low prices, he contends
that its production must not be discouraged |
by taxation. He refers to the report of
the Hon. E. r. NUDGE, of Massachusetts,
Commissioner of the United States to the
Paris Exposition, to whom, as chairman of
committee, the subject of future supply
Of cotton was committed. This gentleman
sums up his conclusion in the following
concise and clear manner: ,
= Frss: That cotton-growing in the Southern ,
otSIes, II untaxed, can be conducted proftably
II here. ~ 'i'ion o47e
second. That if buTdened by tax sufficient
70 be worth to the Treasury the cost Of its coao
lon 1T eannot at present. if ever, be successfully
Third. That, already familiar to o,,r r,aoplo
az It's detas it s the only industry imme
~ sTanaple and practicable to. the great !
2ooy OF the laboring population of the Sontb for
e PRONE PTOntdoe b employment of surplus laborMthat
nee, in the production of something saIesbio
manageable, whereby wealth can be reeain ed
Fourth That the Importance of a. laroe ,,xo- "
ucon OF cotton as the chief export of the coun-
!! IN adjusting balances of trade and exchannea
'na especially in its bearing upon the futnrss La
heId a Oh me public debt so largely held and to
Al the value of the present tax that to
TIC latter at the cost Of losins the former