The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1876-07-16
THE SPINNER AND TIE PLANTER
Cotton Sold for Less than Cost of Pro-
duction.
TALK OF STOPPING NORTHERN MILLS FOR
TWO MONTHS
Necessity o, Establishing Mills in the South.
IN. O. Price Current |

The raw material has declined below tn,
cost of production. There may be q con
siderable difference of opinion as to tn.
Actual cost, which necessarily varies &C
cording to the fertility of the soil and the
rates of wages. The question moreover
Ia affected by proximity to market and cap
ital invested. If lands be worth 800 pei
acre, 1t is manifest that the charges for in.
terest or rent, which are virtually synoni.
nous, must be much greater than when
they are worth only $40 per acre. And Sc
with regard to transportation. Whether il
cost the planter 81 per bale or IS per bale
to place his crop in the delivery port, must
be an important factor in the problem. Aud
SO, moreover, with regard to the price of
such necessalies of life as compose the
chief elements of subsistence. Whether
corn costs the planter 75c per bushel or
81 5Oper bushel, must be regarded in the
cost of production. Taking, however, a
broad view of the subject, aud estimatin G
the outlay of the planter up to the delivery
of his crop at market, it is generally CON
ceded that the staple has fallen below tie
average cost of production.
The natural result is that planters are
eeekiDg to diversity their industry. They
are paying more attention to cereal crops
and stock. In some districts their crops of
corn will exceed the home demand for con-
sumption, and, from at least one point, we
have heard of burning that crop for fuel.
One would naturally suppose that any ex-
cess in Southern corn would be absorbed
in the increase Of Southern hogs, the cost
of which mainly depends upon the supply
and price of corn. But planters are not
yet quite ready for the change that is act.
ually in progress. In another season the
two branches of industry will be better
adapted to each other, and the South will
have more abundant supply of home
made meat, as well as of home made
bread. But this will not diminish the cost
-
the supply. Corn raised at home may
really cost the planter more than Western
corn would cost delivered at the plantation.
No agricultural product grows spontane-
ously all require labor and implements,
which involve the paymentO of wages, as we'll
az of interest on tho capital invested on
the plantation. But even if his corn and
hogs cost the planter more. when raised at
home, than when bought at the West, a .ju-
dicious economy will often-not always
indicate that he had better pay little more
for food, than increase his cotton crop,
either at an actual loss on outlay for cult
walton, or with 60 remunerative result. NI
a crop of over four and half million bales
is excessive compared with the worlds
wants, and if prices thereby fall below the
cost OF production, n reduction of little
over quarter of a million, may bring pro-
ductioD and consumption into healthy Iela-
tions and raise the price to a renumerative
point.
This has probably been accomplished.
The growing crop will hardly reach four
and o quarter millions, and may not much
exceed four millions. The general convic-
ton, therefore, is that prices must rise, in
stead of continue to decline, and that the
net proceeds of the growing crop will
furnish, at least, slight profit to the plan
Ter.
The objection to this is that there may
be corresponding decrease in consump-
1ion. The masses may consume as much as
ever, or even more, but until the excessive
stocks of goods are reduced, the spinners
will need less and take less, and their de-
mand is the commercial measure of con-
sumption. We have reason, however, to
believe that this excess of goods has been
for some time steadily diminishing, and
that the time is not distant when the pres
sure of the demand upon the supply will
restore full time at all the British mills. In
connection with this matter, IL m ust not be
overlooked that the depression of trade, of
which We hear such general complaints,
has not been confined to any one locality
or country. Old England has equally euf. |
fered with New England, and the Conu
mental with the British spinners. In the
meantime the actual consumption by tho
masses has been stimulated by uDprece
dentedly low prices of fabrics, aud has no
baby increased, instead of diminished
Thus the actual movement is steadily tend
ing TO the normal relations between con-
sumption and production.
Under such circumstances we cannot but
regard as unwarranted the position adopted
by some of our New England contempOra-
Ties that the price of the raw material
must be farther reduced. " If the manu-
facturer is to be saved from ruin cay the
Providence Journal, Zone of two things
must happen-gooGs must advance or cot.
ton must decline. Goods cannot advance,
for the supply is greatly in excess of the
demand, and production, larger than the
consumption, is constantly adding to the
surplus stocks which now burden the mar
ket. And cotton will not follow it's natural
tendency to lower prices, while spinners by
their regular purchases enable the specu-
lStOr to hold the market at lite present
rates." Granting all this, We reply that
cotton cannot decline, or that If it did tenn
OrArily, the result would be q diminution
Of production, consequent decrease in the
Oupply, and a hnAl advance much above
the prices now current at the delivery
ports. But the Journal makes the specu
l0tor the chief factor IN maintaining prices.
hu fhon