The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-11-26

| Commissioner Wells-The Cotton Tax
Mr.. WELLS, Special Commissioner OF
the Revenue, has communicated to Con-
gress paper recommending the repeal OF
the cotton tax on grounds Of policy. In
making this communication he states that
he anticipates his annual report because
he supposes the subject Of the repeal OF
the tax will be taken up promptly by Con-
gress.
Mr.. WELLS states that the price of cot
ton has declined, and must continue to
decline, in consequence Of the rapid in
crease of its production under the high
prices paid for some years. India, the
principal competitor of the United States,
has, by improvements in cultivation and
in the quality Of seeds, improved the
quality of her cotton until it bears the re-
lation of two thirds to three-fourths the
| value of the American, instead of one-haf
to two-t thirds, as formerly. A tax Of three
cents per pound on American cotton ope-
rates as a premium of fifty per cent. upon
the cost Of raising cotton in India. HIS
fact, Mr.. WELLS states, can be established
by data in his possession; and it may be
further established by statistics that India
has the capacity to throw upon the mar
ket an extra 100000 bales in any year that
the price would offer sufficient induce
ment, while she has the capacity to con-
sumo 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 1850, when 1t
amounted to ,32l 900 bales, averaging 400
pounds to the bale, or SID, 10000 pounds
Of which the United States furnished 90
per cent. In 1866 Europe obtained sup
ply of 4,5l3, 023 bales, averaging 3G2 pounds
per bale, equal to 1868, 1926 pounds
of which less than 40 per cent. was lur-
nished by the United States.
Being convinced from the statistics that
cotton must rule at low prices, he contends
that it's production must not be dlscour-
aged by taxation. He refers to the report
of the Hon, E. r. NUDGE, Of Massachu-
setts, Commissioner Of the United States
to the Paris Exposition, to whom, as chair
man of a committee, the subject Of fu-
ture supply of cotton was committed.
This gentleman sums up his conclusion in
the following concise and clear manner:
First. That cotton growing in the south
ern States if untuXed, can be conducted pro-
! ftably and successfully, as against all compe-
| tition elsewhere.
| "Second That if burdened by :; tax sulf-
cient TO be worth TO the Treasury the cost of
| its collection, it cannot at present, il ever, be
| successfully prosecuted.
| Third That, already familiar 10 our peo-
pie in all its details, it is the only industry i'm
| lnedately available and practicable TO the
great body of the laboring population of the
South for the profitable employment OF sur
plus labor-that is, beyond the necessities OF
! crops for subsistence, III the production of
| something saleable and eXchangeable, where
| by wealth can be regained; and
| " Fourth. That the importance of 4 large
| production of cotton as the chief export of
| the country in adjusting balances OF trade
and exchanges, and especially in its bearing
upon the future position of the public debt,
| so largely held and 10 be held abroad, cannot
we'll be overstated, and so far transcends the
| value of the present tax that TO preserve the
| latter at the cost of losing the former would
| be Il ha penny orth VI wisdom 10 Il pound
Of folly"
The revenue from the cotton tax for the
year ending 3Oth June was s23, 769, O7s.SO-
an amount not easily spared from the trea-
sury but, under the circumstances, Mr..
WELLS recommends its repeal, and also
the corresponding existing duty on i'm
nOrted cotton