New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-01-15
REPEAL OF THE COTTON TAX.


of its continuance. In a short speech
Senator Sprague urged its repeal, and
placed the whole subject in such a light
that the entire country can see it 10 all lis
practical bearings. The tax was origin
ally designed to obtain something from the
South to assist in sustaining the heavy
load OF debt the war put upon the country.
In its practical operation, however, it has
not affected the South nearly as much as
the North, Nearly all the capital invested
in the cultivation of cotton came from the
North, and nearly all the losses arising
from its culture have fallen upon Northern
men. 1t has only indirectly embarrassed
Southern men. From having Suffered
heavy losses Northern men can not be in
duced to experiment further in the cultiva-
ton of staple now being raised in all
parts of the world, and that under the best
of circumstances is an uncertain and pre-
carious one in the profit it will yield.
To manufacturers as well as planters
relief from this tax is especially important.
One hundred and City millions of capital is
invested in the manufacture Of cotton in
the North, and the tax now imposed cuts
of the possibility of our manufacturers plae-
ing their goods in foreign markets at the
same price British manufacturers can fur
nish like goods. The Commercial and
Financial Chronicle of New York, next TO
I the Journal Of Commerce the best financial
and commercial paper in the country, says
within the last six years India has gained
immensely in her cotton culture and will
henceforth send to market far more valu-
able product than we formerly had to COM
pete with. On the contrary, the advantages
of the Southern planter have been seriously
diminished. His capital has been impaired
and his credit is almost gone-a most
material consideration when it is remem-
bered that the crop is raised almost entirely
upon credit. The war has left behind
condition of universally high prices, which
involves doubling of the former cost of
planting and marketing the crop. What
ever may be the ultimate effect of eman-
cipation upon the cost OF negro labor, the
result thus far has been to make it much
more costly and also much less reliable
Under such a reversal of the former condi-
tions Of production il betrays an utter dis
regard of facts to assert that we have no
ground for apprehension in regard to the
competition of foreign cotton. On the con-
trary, there is every reason for the most
serious misgivings as to our ability to mar
ket the former amount of cotton in Europe,
without sweeping reduction in the costs
of growing, and especially of the costs of
labor.
The planters are already beginning to
feel the necessity of reducing the price of
labor. At the current price of cotton they
lose enormously. Some have been ruined
by the present crop, and all have had their
capital seriously impaired; and this very
fact renders it the more difficult to procure
advances for cultivation in the coming
season. A very large proportion, coase-
quently will either totally abstain from
planting next year or will plant much less. |
How far this may tend to improve the |
price will depend upon the extent to
which the prospect Of light crop in the |
United States induces the growers of India |
and other countries to increase their
product. .....
We had hoped from the unanimity with
which the honse voted in favor of the re-
peal of the tax that it was no longer
necessary TO urge the discontinuanee of the
inpOst upon these general grounds. The
tenor Of the late discussions in the senate
however shows that that branch of con-
gress has been slow to comprehend the
economic principles underlying this ques-
ton. The considerations above advanced
held against the taxation of cotton in any
degree, and apply as much to the proposal
In the senate to impose tax of one per
rent per pound as to the present more
onefeus duty of two and half cents. The
Of an evil is a good thing, but
ts eradication is far better. The present
Of the cotton interest, and Of the
large working population dependent upon
It, is such as to demand the utmost possible
relief, and with no unnecessary delay.
So many Of the factors have been ruined
by their late losses, and SO limited are the
means Of the planters, that it is also ex-
lremely important That the tax should be
RENTED upon the present crop II the South
Is to be placed in position for planting
next year. If the tax is collected upon the
cotton now in the hands of The growers,
many win be incapacitated, by the conse-
9uent losses, from growing crop next
year with what result 10 the negro pOpu-
lation, and to the commercial interests of
the whole nation, need not be stated.
Besides, the less needy class Of
planters would DO apt to hold their
present stock until after the repeal went
into effect. They would argue that the in
nry TO planters generally from Che pay
nent Of the duty would 50 far limit the next
crop as to keep up the price Of the staple, |
and that consequently they could safely |
bold their cotton until next September, and |
save the two and Aalf cents duty. Not
only would shishoarding Of cotton seriously
derange its value, but it would also pro-
duoe great ineoAyenIence to our foreign |
exchanges, Election were kept back we