Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1867-12-01
THE CoTroS TAX.
Report from Commissioner Wells in
Favor Of Its RepeHI.
TREASURY DEPARTMENT,

TREASURY DEPARTMENT,
OFFICE or SPECIAL C0llIIs-z K uF EEyENUE
NAsHINGToN, November ., ls57- }
The Hon. Hugh AcClaloeh, Secretary Of The
Treasury
SIR; As the question Of the repeal OF the In
terual Revenue tax now levied upon raw cotton
is likely to be brought to the attention or Con-
gress at an early day, / have thought 1t eXpe-
dent 70 anticipate 81 much o. my annual re-
port Is relates to this subject, an accord ngiy
hereEtth submit 10 you the accompanying
: atsmenL, with the reQuesi that Gue same, II
app owed, be Transmitted to Congress-
40 Jnls ststefnen there Is appended the re-
port OF the COMMITTEES of the Commissioners OF
the United States to the Paris exposition, 70
whom was referred the consideration and eN-
animation OF the samples 81 cotton there eN-
hlOited-a document which II mas seemed de-
sirabie should be made public at the present
time, rather than to allow the same 20 be de-
layed until the complete publication Of the re-
ports Of The Tom 10 isst1ners
When the Internal Revenue tax OF three
cents per pou al wa, imposed upon raw cotton
by the acI Of July Is, Loo, the aveEags price Of
=" "Iniddung coston in AeE York for tue pre-.
ceding twelve months had been IN excess OF
forty cents per pound, and Tor the Twelve
months Be1t succeeding WAS IN excess OF
twenty i've cents per pound at which range
OF prices the tax In q lesJlOn Wfs undoubtedly
les burden -ome Than the taxes imposed and
stil maintained on other tOruss OF uJInSsttc in
dustry.
sumed IN almost all previous reports and de-
bates on the subject that the tax On cotton was
"a temporary measure, called for and only 20 be
defended on the ground Of the necessities OF the
nation, and TO be repealed ut the earliest mo-
rneut when lis continuance seemed likely 10
prove a serious inpediment TO domestic pro-
tuction or an undesirable stimulus 70 the for
eign .culIiyaIOr. That these contingencies are
now imminent. and that the time has. arrived
Wnen uue policy OF raising revenue from a tax
upon cotton should no ionger De adhered TO,
viii, IL Is believed, appear evident from the IOl-
lowing fac S and statistics:
The lrinsipaI com upetlJOr 10 the United states
in toe production OF cotton is India, aud the
urice OF India cotton has been mAierIa y ad-
sau ced during the past five years III rough IWO
sgencies--hrsJr by improvements IN machinery
for lis manufacture; and secondly, IN COuse-
queu. OF an Improvement in its qua lJy, due 10
Increased care in haudItug, TO the use of exotic
SEED, and e. the transfer OF native seed from
districts which have heretofore yielded the
best staple 10 those where Tie production has
been inferior. lt is 10 this laticf agency that
the recent marked 1m prove Eeut in indlA cot
ton is, perhaps more especial y 10 D. attributed
than 70 any utheI. But Re the eau -es what
they may, AZ may be Affirmed that where India
cotton formerly bore the relation of One-haIf
70 two-Lnirds The value OF America, u now
beans the reldt ON o. twO-thlrds 20 three qu-r-
ters, while a portion OF the crop - fully equal
10 luidllIng upiunds for the Manufacture OF
heavy fabric5.
Evidence exists tending 70 show that the
present tax OF Two and hall cents per pound
on American cotton is equal TO premium Of
al least nfty per cent. upon the cost Of raising
cotton in India. and by some authorities IL is
alleged 10 be even greater. The tax, therefore,
cUuld with prOprlety be imposed only While The
aggregate supply Of cotton was less than the
demand, and The price consequently far above
the normal rate. The largest consumption OF
cotton in Europe in any one year. was in 1850,
hen il amounted to 4,32l,O0J bales, equal 10
L 5i4 700 900 pounds. OF this amount the United
States furnished eighty-tive per cent, and there
can be but little doubt that a Surplus Of cotton
goods was produced in tnat year, even with the !
stimulus which the low cost OF the staple then
prevailing undoubtedly afforded cOnsump-
1On.
In the year 1885 Europe obtained a supply OF
!, s,5l5U25 bales averaging 35z pounds each, equal
10 - pounds, OF which less than forty
per cent. was from the United States. But TINS
luantity, although somewhat less IN pounds
.han the supply of ls61, TOO great for the de-
mand Tor consumption at the p-Ices ruiing.and l
about $4,000 bales were added 10 the stock on
hand in European markets which stock on
.he lst OF January, l,51f the close Of the Eu- I
-Upean cotton year, was as follows: In Great !
Britain, 81 ,57U balaS; the continent. I60UUU
)ales total, 74l.57U bales.
II We estimate cotton at 400 pounds to the bale !
as has been the custom in the United States in |
he returns OF the ceususl the comparative ]
supply will appear as follows sU bJecJ to slight
7ariatiOn frsfn the zact that the cotton year OF
aurope IS made up 10 the lst Of January, and /
hat OF the United states to the LIST OF Sept m
perrin bales Of 40 pounds each:
CONSUMPTION OF EUEosE N 1860.