The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-01-17
PAYING ZOO MUCH INTEREsT.

A recent estimate of the cotton crop of
1901, as compared with realized crop of
1s69-70, though, perhaps, overstated, pre-
aents facts for serious reflection, when
taken in connection with the report of the
condition of the manufacturing business in
England, as given in a letter, under date of
December Esd, 1870, from gentleman
thoroughly acquainted With the subject in
all its bearings, -who writes:
"With respect to the cotton spinning and
manufacturing trade, you have an erroneous
impression. FrC.n an early period of the
civil war on your continent, that trade has
been in a state of suffering, and there has been
triehtful depreciation Of mill property. Our
spinners and manufacturers see no hope of
much change for the better, until the price of
the staple IS lo,cer. The wages of labor here
are now very high in comparison with the
rates some years SINCE"
The estimate of the cotton crop, referred
to above, shows that the purchasing power
of the Cotton States is less by 500 900, 900
this year than last, by the following
general calculation
Crop lso9-70 3,l3o0o0 bales at 500 D. b. $4,000 600
crop lSfo-Il 3,5oO0O0 bales at $50 p. b. 2100OOoOo
Decrcaso.".,.......... $loo,OOo,ooo
Liverpool prices current show little
margin over 10 cents per pound-in
fact, there is no money in it; and
from present appearances, as indi-
Gated by the remark of our cores
pondeIt, "no hope of much change for
the better, until the price of the staple is
lower"--that price 10 cents-(which is the
basis of the estimate above, showing a de-
crease of $lOo,ooo,o OO) may not be sus-
tanned, and the decrease in the value of
the crop be still more disastrous. No
wonder merchants are cautious, and PLAN
tiers discouraged, while both look anxious
ly for peace between France and Germany
But there must be something in the pres
ent conditions under which cotton is pro-
duced affecting the cost of production,
other and beyond the change in our labor
system for the difference in amount of
years wages now, is not as Is to TO- COM
pared with the hire or interest and main.
tenance of the laborer as a slave. An ac- |
knowledged authority, as political econ
omist, lays it down as an axiom, "the
wealth of country can only be divided
into wages, rent, interest and profits; and |
inssmuch as interest is on an average an
exact measure of profits, it follows that if
among any people rent and interest are
both high, wages must be low" Has
not interest, at the exorbtant rates
paid for advances, absorbed all the
profits, much of the rent, or annual
value of land land will it not, if the
price of Gotten declines further, trench
upon the other element-wages. One and
q half per cent. per month has been
paid by planters in the Cotton States for
advances, while every prudent farmer
knows that he incurs great risk at one
half of one per cent. per month for any
considerable amount or extended time
md is not this reckless borrowing at the
bottom of the trouble to which Is cents
per pound for cotton has brought planters?
It is very probematical whether legalizing
rates of interest in excess of, say eight per
,ent., has been benefit to this and other
Southern States. 1t is true some capita,
las been attracted by the tempting bait
welve per cent. and upwards; but has any
me profted but the lender, and, if the :
oan is to farmer, can any one be profted
,ut the lender? We think not, unless the
Dan is an incident, not the basis of the
arm management. The war in Europe =
,resses heavily and injuriously on our sta. 6
lies tobacco as well as cotton--and until
ne last Prussian has been recalled East of a
be Rhine, for our farmers, as well as those u
T more Southern States, to be cautious, is
} be wise; and if lenders, be they corpo-
ate or individual, turn a deaf ear to their
aims for reasonable accommodation at g
rates, and bestow their high in
riced favors upon the traders exclusively, pc
icy may make money for while, but :
icy will sap the very foundations of State y
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