The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1867-11-25
THE COTTON TAX.
Highly Interesting Report from .ommis-
sioner Wells of the Revenue Bureau.
rRElsURY DEpARTMEN

| TREASURY DEPARTMENT,
OFrror OF SPECIAL COMnsER OF THE REVENUE,
-, WASHINGTON, November 81, 1867.
| Hon H;,oh 1fcCuNoct, Secretary of he Treasury ::
SR-As the question Of the repeal Of the Inter
nal Revenue tax now levied upon raw cotton Is
| likely to be brought to the attention of Congress
at an esrly dsy. have thought it expedent to an
tcinate 40 much Of my annual report relates to
this subject. and accordingly herewith submit to
Won the accompanying statement, with the request
That the same, Il approved, be transmitted to Con-
When tbe Internal Revenue tax OF three cents
mar nonnd was imposed upon raw cotton, by the
act of July 18Th 1856. the average price OF mid
ding cotton in New York for the preceding twelve
months had been in excess OF 1ortV Genus PEI
Was in excess of twenty-five cents per pound; at
which range of prices the tax in question was un-
doubtedly less burdensome than the taxes imposed
and still maintained on other forms OF domestic
industry. o.,,,-,oa
in al ost all previous reports and debates on the
subject. that the ta1 on cotton was temporary
measure. called for only to be defended on the
ground of the necessities OF tine natlon ana 20 DE
renealed Mt the earliest moment when it's contipu-
nnce seemed likely to prove serious impeachment
to domestic production, or an undesirable stimulus
to The foreign cultiyitor. That these conungen-
cies are now imminent, and that the time has ar
when the ppSnrd onper be to-
will, it is believed appear evident from the tolow
ing facts and statistics:
The principal competit or to the United States in
the production Of cotton is India, and the price OF
India cotton has been materially advanced during
the past five years throuqh two agences-frst, by
improvements in machinery for its manufacture;
and secondly in consequence OF an improvement
in it's quality due to increased care in handling;
to the use OF exotic seed and to the transfer of
native seed from districts which have heretofore
Welded the best staple to those where the produc-
ton has been inferior. 1t is to this latter agency
that the recent marked improvement in India cot
ton is, perhaps, more especially to be attributed
than 10 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-thrds to three-quarters, while
portion of the crop is fully equal to middling up
Evid snce exists, tending to show that the pre-
sent tax Of two and half cents per pound on
American cotton is equal to premium OF at least
fifty per cent. upon the cost OF raising cotton in
even greater. The tax, therefore, could with pro-
priety 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 1880, when il amounted to ,s21,-
amount the United States furnished eighty-fve
Der cent, and there can be but little doubt that
surplus Of cotton goods was produced in that year
even with the stimulus which the low cost OF the
staple then prevailing undoubtedly afforded to
consumption. .,
In the year 1866 Europe obtained supply Of
4,513 023 bales, averaging 1852 pounds each, equal
to 16sS, TIA S26 pounds, Of which less than forty
per cent. was from the United States. But this
Quantity, although somewhat less in pounds than
the supply of 1850, was too great for the demand
for consumption al the prices ruling, and about
900, 600 bales were added to the stock on hand IN
European markets; which stock, on the 1st of
January, 1867, the close Of the European cotton
year, as follows In Great Britain 5S1, $40 bales;
on the Continent 100000 bales; total, 74i,57O
bales.
II we estimate cotton at 400 pounds to the bale
(as has been the custom in the United St1tes in
the returns Of the Censusl, the comparative sup
ply will appear as follows, subject to slight va.
ristion, from the fact that the cotton year Of Eu
rope is made up to the 1st Of January and that Of
the United States to the 1st of September in haes
Of 400 pounds each:
oossUnRr1os OF EURoRE m 1850.
American, about. 39l1, ,160
Other varieties. iou'VO