New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-11-23
CONSTITUTIONAL UNION MAYORALTY NoMINA
THE COTTON TAX.
REPORT FROM COMMISSIONER WELLS IN FAVOR
OF ITS REPEAL.

TIE COTTON TN
REPORT FROM COMMISSIONER WELLS IN FAVOR
OF ITS REPEAL.
TREASURY DEPARTMENT.
OFFICE OF SPECIAL COMMISSIONER OF THE REvESUE,}
WASHINGTON, November u, 1861
The Hon. HUGH MCCULLoCH Secretary Of the Treasury
SIR: As the question of the repeal of the In
terna Revenue tax levied upon cotton is likely
to be brought 10 the attention Of Congress at early
day, have thought cxpedient 10 anticipate much Of
my annual report relates to this subject and accord
ingy herewith submit 10 you the accompanying state
ment with the request that the same, If approved be
To this statement there is appended the report Of the
Committee OF the Commiss of the United states "a
the Paris Exposition, whom referred the cOnsid
Grafton and examination OF the samples OF cotton there
should be made public at the present tinc rather than 10
allow the same 10 be delayed until the complete puDca
ton OF the reports of the Commissioners
When the Internal Revenue tax OF three cents per
nouud was imposed upOn raw cotton 10y the act OF July
49, 1866 the average price Of mddng cotton III New
York the preceding y months had been IN excess 0
Az cents per pound and for the 70 months next succeed
ing In excess OF % cents per pound al which range
OF prices the tax question undoubtedly less bur
desome than the taxes imposed and still maintained
other forms Of dom. &c Industry
At tie same time 1t has been generally assumed in al
most a previous reports and debates on the subject that
Tho tav on cotton u x tennorrv measure called for
and only be defended the ground Of the necessities
of the nation and 10 DC repealed al the earliest moment
when its continuance seemed likely 70 prove serious
impeachment 10 domestic production, or an undesirable
stimulus 10 the foreign cuivatOr That these cOntingen-
ces are now imminent, and that the time has arrived
when the policy of raising revenue from tax upon cot
ton should no longer be adhered TO- will, 1t Is believed
appear evident from the following fact and statctics
The principal competitor to the United States in the
production OF cotton is India, and tie price Of India cot
ton has been materially advanced during She past five
Pears through two agonciesfrst, by Improvements In
machinery fox ts manufacture; ana stc9hdy IN cohse
QueEcc Of inpr0yett in it, quality due 70 increased
in handling 20 the use Of t19uc scel ana TO the
transfer native seed from districts which have hereto
fore yielded the best staple TO those WHERE the production
has been inferior lis TO this latter agency that me re-
especially "a be attributed than 20 any other. But
De the causes What lhty ih1y II nay p. ,lI,u i,
where INDIA c0tt0p formerly bore me teauo OF o.iai
TO wotlrds the EssIe oi American IL no" Deais e re-
laon OF twGtnitds 70 throe-quaIters VINE portion 81
the crop fully equal 10 In!ddDg ul!aA0s tg VIC MANU-
Eydece ~ SITS tending to show that the present tax Of
two ana half cents per pound American cotton Is
equal to premium Of least per upon the
OF raising cotton in India and 10y some authorities II u
alleged 10 be even greater Inc tdN therefore, coud
with prOpr.cy be imposed only while the aggregate sup
ply Of cotton less than the demand. aud the price
consequently far above the normal rate me cor
sumption OF cotton in Europe ~ any one year was III
~ % ,,1r cent ana fberc can be bu little doubt
that surplus OF cotton goods was produced m That year
with the stimulus which the low cost OF me staple
then prevailing undoubtedly afforded to consumption
ina the year Europe obtained supply Ol i,5lJO2i
irds NJ WHEN less fGan 40 Der cent was from the
United States But this quantity, although somewhat
less IN pounds than the supply Of 1900 too great for
Inc demand for consumption al the prices ruling. and
it Sa 6o1 males We're added 10 the stock on hand ia
European markets; which stock on the Isl OF January,
1861 the of the European cotton year, was as fol
lows In Britain, 81 $40 bales; on the continent,
100 600 bales total 7n $40 bales. 80
been the custom in the United states in the returns Tie
censu the comparative supply Will appear az follows.
subject To slight variation from the fact that the cotton
wear of Europe up the lst Of January and That
Of United States TO the LIST Of Sepembe-in bales OF
~ IO'''' coSsr,proS or EUROPE IN 1850
American, about '5'Jll''O
other varieties ACKNOWLEDGEMENTS ""'co
Total ,Cll1JO
SUPPLY or EUROPE IN 1906.
l
OtAcr varieties. -24s52s5
Total .4.os42s5
The consumption OF in 1902 the year Of smallest
suppv and OF highest prices 900 pounds or ~
bales 81 pounds, 1s62j0 the proportion OF American
cotton in this year somewhat larger than at later
date but IN 1854 il was less than eight per cent OF toal
OF over 2 100000 bales.
The crop Of 1866 in the United States for the end
$4,000 bales out Of total delivery Of 2000OOO bales, the
more than could have been anticipated by tho
gunc friends of free labor the crop in question was in
reality failure having been cut short by season
more unfavOrable than almost any heretofore eApe-
The season of 1867 has however proved most propous
and the amount 20 come forward estimated by few com
mercia authorities AT less than 2OOO0 bale OF 400
mounds each and may reach aggregate u JOOO
IN Considering the subject Of the production Of cotton
in the United States with 70 the influence OF
the tax desirable 10 take large rather than
small estimate of the present crop; and we assume,
therefore product Of year to be 250O bales of
4CO pounds each II from this we deduct 10000 bucs
for home cousumptOn and for an addition 20 the small
domestic stock to be held over, have l7j0O0O bales
available for export, 225O bales, estimated at 400
pounds each H. now, other countries shal produce as
much cotton 1866 and there no evidence n yet Of
appreciabe decrease the quantity from other countries
than the United states estimated in bales OF 800 pounds
each will be 24SjOOG making total available cotton
supply to Europe OF 100000 bales Such supply viii
be equal 10 that OF the year leC0, when there was u
dOubtedly surplus; but Of tails quantity the United
States will furnish less than AZ per cent instead OF
s. per cent I'm the year referred TO. .
In short under the stimulus of high prices the world
has produced cotton than II consume al me PR
Of the d0B To cheaper prices may greatly extend the
consumption after recovery from the first shock OF
great change. But In this fan OF prices the profit Of
the producer resting upon the higher prices which tnvi
ted his outlay has TO very great extent and for the
/ time, been lost.
| When the American crop was in its supremacy. the
average prices Of Surat cotton IN Liverpool for the 20
years 1871 20 $780, ranged from Sd 20 5d per pound.
When 3D. in 1916, the import TO Great Britain
only $4,000 bales; when II 54d In 1851 the import
bales. Thus, IL that price regulated
the quantity mDOrtcd and neither the import to Europe
the export from ndla was any measure OF the pro
ductOn Ol that mysterious country though ITS export
in annual had been only about 100000 bales and
much that 10 China, when the American made its
sudden call for cotton, in 1912 India contributed
there was any larger successful planting that
wear than previously only that price called IL out and
the stock left for home use was by SO much the less
Doubtless, the succeeding years. cotton planting in
India was increased, elsewhere, but the stimulus of
lucrative prices 10 the producers and
/ fOrwaTders .,- -,
least In modern days been latent capacity In that
FRY 10 throw upon the market extra and, perhaps.
nnexpected half million OF bales OF cotton IN any year
when the price should offer sufficient nducement and
an equal capacity at home the whole produc-
zion when at so low prices that IL could not be exported
10 FurOpe China Since the completion OF many humid
red miles OF railways IN india that power OF adding
promptly 10 the Woilu supply VI VcoH bIeay
n therefore becomes evident that low prices for cotton
nnst he anticpated for considerable period, during
| aged