Savannah morning news. [volume] (Savannah) 1868-1887, 1885-04-04
Silver and the Price Of Cotton.

In the last number OF the Ftnd1 al
Chronicle there is an interesting article
on "Cotton Supply and Depression in
Price" The Chronicle argues that some
powerful and adverse influence caused
the crop Of lSS45s5 to bring a smaller ay-
erage price than, according to all reason
able calculations, it ought to have
brought. In seeking the cause for this
low average price, the Chronicle says:
It is true that cotton shares in the gem
eral depression in spite of it's own scarcity,
through the bad state of cotton manufac-
ture and trade. as 1t did in the extreme
depression OF 1S77-7S, and from a similar
cause-distrust, then as now the effect Of
an HnsOuud aud uutrustwOrthv currency;
then OF irredeemable greenbacks, now OF
irredeemable and depreciating silver dol
lars. Seven years ago, when there was
doubt if resumption of gold payments
would be attained by Jan. l, 1879. as re-
qured by the act Of 1873, even then the
first fve-siXths Of the crop Of that season
sold at a higher price than has been OBJ
tanned for the crop of loSiSj although
the statistical position OF the latter has
been far the stronger.
Why should this be so? Because, bad
as things We're then, there was a bright
and hopeful outlook ahead. A currency
based on and redeemable in good money
was promised by the resumption act, and
fulhllment was near. Now the promise
Of existing law touching the currency is
that its volume shall be increased while
its value shall be degraded by the addition
yearly Of about 2S,000,000 silver dollars
or up to 5G,000,09 at the discretion Of the
Secretary OF the Treasury until the en-
tire currency its gold part then being
eXpelled) shall consist of silver dollars
and circulating notes redeem
able in silver dollars-unless
timely repeal or suspension
Of the silver coinage act shall avert that
catastrophe. Sooner or later the end
feared must come if silver coinage be
continued until the officers of the United
States Treasury shall be compelled to
tender payment of any government debt
in silver dollars, or any other contingency
shall put premium on gold. II that
shall happen every bit Of property, every
| debt receivable, every days labor belong
ing to the people, will be valued only in
silver, say - or 50 cents per dollar, while
/ bankers, merchants and other capitalists
| know how to protect themselves with
! gold contracts. AS the danger now is far
! greater and the hope less than in lSlI-1S.
so is the djStrust more depressing now;
and that is why the distrust
born of silver coinage has cut
down the price of the cotton crop
! of 1SS4-S5 at least one cent, it may be two
cents, per pound lower than it ought to
| have been had the silver coinage act been
| repealed two years ago. 1t is not eXtraYa-
| CANT TO say chat if the last Congress at its
| first session had repealed the law it
would have saved twenty million dollars
to the people of the South on that one
crop alone, for it would have inspired
confidence, which is the life Of credit and
so of active and profitable trade and pro
ductlyeindustry, as distrust is their de-
strOyer.
No man can find any other sufficient OF
even plausible reason why cotton did not
rise in price as demanded by its st3tisti-
cal position last October, or for the greater
part of the business depression that every
| BODY has felt the last year. than the dread
Of evil TO come (hereiu called "distrust'
proceeding from silver legislation. If OW
cotton crop of this season has been de-
preciated to the amount of $2j,00O,OO0 Oh
| more, whereby the cotton growers were
made to lose that much money by cOmpul
sion OF the silver coinage law--if that loss
was avoidable, forced by folly ruling in
Congress against every requirement OF
principle and good policy, as against the
earnest representations of the several
Presidents aud Secretaries of the Treas.
ury, and if the failure of members of Con.
gress from the cOtton-produciug States &c
vote for repeal OF tine Injurious Legislation
IS the real and responsible cause of The
loss to their constituents, the inquiry on
which we started is answered.