The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1867-12-04
THE COTTON TAX.

Ia HffsEN- = a
REPORT FROM COMMISSIONER WELLS IN FAY
-t OR OF ITS REPEAL. .t-
TREASURY DEPARTMENT,
OFFICE OF SPECIAL Con-. OF THE REVENUE,
la WASHINGTON, Nov. 21st, 1867.
The Hon. HUGH McCULLocn, Secy. Of the
i Treasury. lsi ia.
SIR AS the question of the repeal of
the Internal Revenue tax now levied upon
raw cotton is likely to be brought to the at
tention of Congress at an early day, have
thought it expedient to anticipate so much
of my annual report as relates to this sub
ject, and accordingly herewith submit to you
the accompanying statement, with the re-
quest that the same, if approved, be trans
mitted to Congress. ailEs.
To this statement there is appended the
report of the Committee of the Commission
ers of the United Stntes to the Paris Expos
ition, to whom was referred the considera-
ton and examination of the samples of cot
ton there exhlbited-a document which it
has seemed desirable should be made public
at the present time, rather than to allow the
same to be delayed until the complete
publication of the reports of the Commits
sioners, tJ7
oil When the internal Revenue tax of three
cents per pound was imposed upon raw cot
ton by the act of July IL, 1866. the average
price of 6 Middling" cotton in New York
for the preceding IL months had been in ex-
cess of 40 cents per pound, and for the 10
months next succeeding was in excess of
25 cents per pound at which range of pri-
ces the tax in question was undoubtedly less
burdensome than the taxes imposed and
still maintained on other forms of domestic
industry.
la At the same time it has been generally as
sumed in almost all previous reports and de-
bates on the subject, that the tax on cotton
was temporary measure, called for and on
b ly to be defended on the ground of the ne
cessitles OF the nation, and to be repealed at
the earliest moment when its continuance
seemed likely to prove serious impeachment
to domestic production, or an undesirable
stimulus to the foreign cultivator That
. these contingencies are now imminent, and
that the time has arrived when the policy of
raising revenue from tax upon cotton
should no longer be adhered to- will it is be-
lieved, appear evident from the following
s facts and statistics:
\ The principal competitor to the United
3 In the production of cotton is India, and
1.-THE price OF India cotton has been materially
advanced during the past FIVE years through
two agencies first, by improvements in ma
chlnery tor Its manufacture; and secondly,
In consequence OF an improvent in its quail
ty, due to increased care in handling, to the
use of exotic seed, and to the transfer of ma
tive seed from districts which have here
totore yielded the best staple to those
: where the production has been inferior It
Is to this latter agency that the recent mark
ed Improvement in India cotton is, perhaps.
more especially to be attributed than to any
other. But be the causes what they may. it
may be affirmed that where India cotton
formerly bore the relation of one half to two
thirds the value of American. it now bears
/. the relation of two-thirds to three-quarters.
while portion of the crop is fully equal to
mlddllng uplands for the manufacture of
heavy fabrics. e5s S. 77l. 80
81 Evidence exists tending to show that the
Z present tax of two and a halt cent per pound
on American cotton is equal to premium
OF ar least 80 per cent upon the cost of rails
I, ing cotton in India, and by some authori-
ties it is alleged to be even greater. The
tax, therefore, could with propriets be inn
posed only while the aggregate supply of
cotton was less than the demand, and tile
price consequently far above the normal
rate. The largest consumption of cotton in
Europe in any one veal. was in 1860, when it
amounted to A. 21 900 bales equal to 1874
10000 pounds. of this amount the Uni
(, ted States furnished IS per cent, and there
can be but little doubt that surplus of cot
ton goods was produced in that year, even
with the stimulus which the low cost of the
staple then prevailing undoubtedly afforded
to consumption 80. 1919 =. =. 80 as. ~
"a In the year of 1856 Europe obtained q
supply of 4,513,02s bales averaging 372
pounds each, equal to 1, 6SS, ia, 1886 pounds
OF which less than 40 per cent was from the
United States, But this quantity, although
somewhat some less in ponds than the supply of
1860, was too great for the demand fo Z con
sumption at the price ruling, and about sOO,-