The times. [volume] (Richmond, Va.) 1890-1903, 1892-03-12
COTTON, WHEAT AND ZIG IRON.


In the last two years there has been q very
remarkable decline in the value Of cotton and
pig iron. and in the last twelve months of
wheat. Cotton is now selling at seven cents
pound; one year ago it sold at nine cents.
Bessemer pig iron one year ago was selling in
Pittsburg for $3.50. 1t has now fallen off to
s15, difference of 1925 as compared with
the figures which prevailed i'll the same
market two years ago. Twelve months ago
wheat commanded in the New York market
Sill 1t is now selling for S102].
These differences in value represent de-
cline which in the aggregate Is truly enor-
nous. The brietest calculation will show
this. The nine million tons of iron produced
in the last twelve months are now only worth
one hundred and thirty-fye millions Of dol
lars. One year ago these nine millions Of
tons would have been worth, at the rates
which prevailed at that time. one hundred
and forty eight millions Of dollars. and, at the
price of two years ago. one hundred and
eighty-two millions of dollars
For the same length of time the decrease in
the value of cotton amounts to two hundred
}
the 5000. 900 bales produced in the Southern
States in 1891 would have brought Mt the
price of that year five hundred millions of
dollars. and at the prices of the succeeding
year three hundred and sixty millions To
day this crop will bring about two hundred
and eighty millions of dollars
At the prices Of last spring the wheat crop
~ NIT al Gfata $50 -, -,
six hundred and sixty-six millions 1t will now
bring in six hundred and thirteen millions.
Three years ago it would at the figures then
prevailing have sold for only five hundred
and nineteen millions. In this respect. the
producers OF wheat have in the course
of the last three years. taken as
a whole, enjoyed very great advantage
over the producers of cotton and iron. This
is tantamopnt to saying that the West alone
has had reason to congratulate itself. The
South has been specially unfortunate. for its
principal product. cotton. has dropped in two
years forty-four per cent IN value, or at least
to point closely approXimating this degree
of shrinkage.
An examination of the recent history of
Z
in the prices of these staples is TO be attributed
10 overproduction. In 1890 the price of cot
ton was advanced to extravagant figures by
speculation. and this tempted the Southern
planters TO raise the largest crop which had up
to that time been made in the South. An
equally enormous crop was gathered in the
fall OF 1891, and in consequence the supply has
been far in excess of the demand.
The decline in the value of wheat was due
largely to the same causes. In 1890 the yield
was comparatively small. which led TO unusu-
ally high prices. The result was that the
farmers were moved to SOW an enormous area
which would have brought wheat down to a
lower price than that at which it is now sell
ing if the failure Of the crop in Europe lad
not created an exceptional demand for it.
1t is gratifying to find it stated by reliable
journals devoted to the iron interests that
the Southern furnaces are making greater
advances in cheapening the production of
iron ore than the Northern furnaces. and
for this reason are displaying a greater ca
pacity for standing the test of the existing
competition. In the light of this fact, 1t is
| Justly predicted that the South will gain
| upon the North in iron manufacture until it
has attained to an undisputed supremacy.