Savannah courier. (Savannah, Tenn.) 1885-1979, 1889-09-19
SOUTHERN AGRICULTURAL.
Cotton VS.. Jute Bagging.

American crop OF cotton is used by
foreign manufacturers. and, conse-
quently, the foreign prices govern the
home market. Liverpool, being the
greatest cotton market in tho world
practically controls the cotton market
of the world for the above reason, and
for the further reason that there the
cotton from all the cotton-producing
countries meet in competition. Amer
can prices represent just as low
price as the Liverpool market will
justify; and whenever American buy
ers offer only fraction lower than
the shipper can realize by sending his
cotton to Liverpool. he will ship it
there. And American prices must,
therefore, represent the Liverpool
price less the cost of all expenses that
attach to shipping and selling in that
market. These expenses can be esti-
mated with great accuracy, and in
whichever market the seller can realize
the most net money there he
will sell. This operates to keep the
markets practically equal. In ship
ping to Liverpool, there is freight
to be paid. also insurance, commits
sions and tare for bagging, ties and
dirt. These all attach as expenses.
and are deducted from the gross pro-
ceeds to give to the net or American
price. The tare for bagging and ties
is variously estimated; some claim that
they take off the bagging and ties and
weigh the net cotton; others that the
ties are taken off and weighed actual,
and that the bagging is estimated at
sixteen pounds and dirt at four pounds;
others that they take tare Of six per
cent or about an average of thirty
pounds per bale. The latter system is
probably almost the universal custom,
and for the purpose of this examina-
ton the tare will be calculated at
thirty pounds per bale, as is the GUS
tom in estimating American QUOTA
tions. The ties actually weigh about
ten pounds, and as we have seen the
bagging averages ten and half
pounds, the allowance of the four
pounds claimed for dirt brings the
total up to twenty-four and a halt and
leaves the balance of five and half
| pounds to represent loose cotton that
sticks to the rough bagging when it is
removed. OF course that is entirely too
much, as probably not over pound
or two does actually so stick to the
bagging, but it is very troublesome in
that particular. Since, then, tare
representing the full amount OF the
weight of the bagging and ties, and
about one per cent. of the cotton. is
deducted at Liverpool market, and
since the Liverpool market fixes and
regulates the quotations OF all other
markets, American as well as foreign,
let no man be deceived by the asser-
tions of superficial persons who claim
that no tare is taken on the American
1arket. The tare is allowed for in the
quotation of prices, and, therefore, is
never avoided by single bale. And
since it represents all the bagging and
the ties and one per cent. of the cot
ton, there is exactly that much abso
lutte loss that must be charged to the
expense account. To illustrate: Sup.
pose bale of cotton sold weighing
500! pounds; at cents a pound there
are 500 pounds OF cotton, bringing $40
and 204 pounds of bagging and ties
bringing Sic making total OF Sal. 81
1t would seem that the bagging ant
ties, which cost probably 30 cents, hat
been sold for "A cents profit, but i
should be remembered that 5 cents
as the price is based on the English
tare, and without that would be thirty
pounds, mt cents, more on the bale
or $40 being about 81 cents pei
pound. Now what is the differenc,
between paying the 81 cents and de
deducting the tare, or paying s cent
and pretending not TOP
The bagging made from cotton il
much lighter and is OF uniform weight
This is an advantage, because tn,
weight being always the same, it cal
be accurately estimated; whereas, jut,
being of different weights, the tare a.
above shown, is based on heavie
weights. The cotton weighs three
fourths Of pound, and il the sam
amount be used rs is customary o
jute, the crop of 100000 bales will
require As. 600, 600 yards, which will
weigh S4,000,000 pounds, and costin,
at 12l cents per pound-the maximum
PRICES, 700, 900. BY allowing two pc
cent. for waste in manufacturing, TIL
gross pounds of raw cotton used il
making that amount of bagging year
ly will be 34.6S4,000 pounds, or SO,
$50 bales of 500 pounds each. Cotto
is much less inHammab!e than jute
and, in consequence, it's claimed, will
be entitled to lower rate OF insul
ance. Cotton will weigh from six t
eight pounds less than jute per bale
and it will have no lint col
ton sticking to it; therefor
the tare must be reduced eight pound
in cotton wrapped in cotton bagging
The planter will be Independent of tn
cash market for his low grades of co
ton, and can ship them to nativ
Southern cotton mills to be made int
bagging, at not over Slcents per yart
! and estimating such low-grade cotto
, at 6 cents per pound, three quarters {
pound would cost AZ cents for tn
cotton, making s cents complete; an
at the lowest possible estimate at tn
, added independence of money power
price cotton. together with augmente
utility of the low grades and increase
> demand. with the consequent shortag
in total cron produced nv this man,