The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-11-23
THE COTTON TAX.
Report OF Special Com mi ssIoner Wells to
the SECRETARY OF the Treasury.

W. OA' AhA'
Report OF Special Commissioners Wells to
the Secretary OF the Treasury.
TREASURY DEPARTMENT OFFICE OF SPECIAL,
S9MAlssI0SER Is 31S OF OF THE REyENgE. WAsHINeToN,
The Treasury.sir:As the 1uestIoD o2 t6e reny F OF
the Internal Revenue tax levied upon raw cotton
early day have thonghi i expedeni to anti
epsIe 30 much Of my annual report as relates this
accompanying statement, wi tn the request that the
To this statement there is appended the report of
the Committee OF the Commissioners OF the United
the consideration and examination of the samples OF
seemed desI9aSia sbn5G s document which It has
ent Time rather than to allow the same to be delayed
tne complete publication Of the reports of the
When the Internal Revenue tax OF three cents nor
pound was Imposed upon raw cotton, by the act of
July l3, 1866 the average price of "middng" cotton
been in Of forty cents per poaHe M0qhs S o had mad
twelve months next succeeding was in excess Of
the tax in question was undoubtedly less b9rdensome
nan tne ts 3es imposed and still maintained other
AT the time it has been generally assum ed In
jeet, that the tax cotton temporary measure,
called ior ana only 70 be defended on the ground OF
the earliest moment, when its continuance Seemed
production undesirable stimulus to the foreign
G9ittvaI1r; nt That these contingencies are mm
ofralsing revenue from tax upon cotton should no
dent from the following facts aud statiscs: e'i-
the OF m a. the United States In
dian been rally advanced during the
ments In machinery tor its manufacture; and Sc
Say due IN To- Care sn IN % 5 in It's
Of excite and to the transfer of native seed from
staple to those where the production has been in
1t is to this latter agency that the recent marked
Improvement in india cotton is, perhaps, espe
caui what they may It may be affirmed that Where
1ndla cotton formerly bore the relation Of one-haft to
RELATE of two;thirds to threequarters, while por
the manufacture of heavy fabrics. "f''"""' ioi
Evidence exists tending to show that the present
PeF OF III 1
upon the cost OF raising cotton in India and by
The tax, therefore could with propriety be imposed
han the emand and the pe % %as ess
above the normal rate The largest consumption ' Of
a%GTnted an , TO $a GOO bales eq9al to 1874
i've per cent, and there be but little doubt that
tnrpus Of cotton goods was produced in that year,
staple then prevailing undoubtedly afforded to con-
in the year 1865 Europe obtained supply of
ABB 2s bales, averaging 1852 pounds each, equal to
was rom Se United sat san B9 GTy 6y per gent
although somewhat less in pounds than the supply OF
at the prices ruling and about bales added
socF on the ist OF January s the eess %hea y" te
European 0 cotton OF year was as followsmIn Great
rive estimate cotton at 400 pounds to the bale las
has been the custom in the United States In the re.
turns of the census the comparative supply will ap
fact that the cotton year Of Europe is made M 10 the
lst OF January and that United States 70 the LIST
OF September, In bales or 800 pounds each:--
CONSUMPTION OF EUROPE IN $780,
AMERICAN 89l1,750
4sIl.75O
SUPPLY OF EUROPE IN 1866.
Americana 900 900
O'heE 24s3,2S4
4Os42 2s5
7505OO0O0 pounds, In bales of 400 pounds s7625O
somewhat larger than at later date; but in 1851 il
was was les less than eight per cent of total OF over
The crop Of 1856 in the United States for the year
nom to baes oa o tbts e h9ye been
Of over 100000 bales-the surplus being old cotton
been Anticipated by the most sangune friends OF free
hayins BEEN n soS bY wss sessnn 90 realty failure s
Than almost any heretofore experienced.
plt9us ana the amount % forward Is esmsted
bales Of pounds each. and may even reach an SS
gregate OF 900 900 bales.
ton in the United states, with reference to the ina
enee OF the tax y Is Desirable TO take large rather
ume, therefore, the product of the year to be
deduct 100 COO bales for home consu ptton s aT9
for an addition 70 the small domestic stock to be
or 2l25.000, estimated at 100 pounds each. II now
isss land there is no evidence as Yet Of SpnTeciaba
decreased quantity from other Countries than the
United States estimated In bales of 400 pounds each
will be ,4S6 O00 making q total available cotton sun
ply to Europe Of 6l000O bales. Such supply viii be
equal TO that OF the year 1862 when there was un.
doubtedly surplus but of this quantity the United
states viii furnish less than per cent Instead
Of So per cent. in the year referred.
In short, under the stimulus OF high prices the
world has produced more cotton than can consume
at the prices OF the day. To cheaper orIcea m av
greatly extend the consumption after recovery from
OF prices the profit OF the producerrestinV nnon h
higher prices which Invited his OutAy-has 10 a very
great extent, and for the time, been lost. 80
When the American crop was in it's supremacv tha
average price OF SuTat cotton In Liverpool for the
twenty l64l TO 1850 ranged 3D. 10 bd ner
pound. When y was sd In 1885, the import to Great
Britain was only $4,000 Dales when Il was bl<d IN
1855, the import was 100000 bales. Thus Il appears
that the price regulated the quantity imported ana
Indie was any measure OF the production OF that
Though ita export IN annual average had been only
about 800 bales and mnch Of thai 10 China when
me American war made fB sudden call for cotton
IN 1871 India contributed more than OOG O00 haes
that season, There u no evidence thRf there Wa