The Russellville Democrat., 1893-11-16

z. George, of MIssissippi, has been in St. Louis some days past investigating the causes Of and the remedies for the low prices of cotton. He told a reporter of The St L7Uis Republic that be almost hesItsted 10 express an opinion. The situation, !" he went on, lis favorable for a cousid- erable d.e in the present prices of cotton. The stock on hand as compared with the two preceding years has been reduced. l. seems 10 be conceded on all sides that the present crop will be a short one A very high authority, 4. 5. Shopper son, Of New York, estimates the present crop at considerably less than 100000 na.es--as ] recolleet i.. about s.x and three-quarter millions. Mr. Eei'. of New Orleans, who is also a hign authority, es- inmates the crop at about seven and three quarter millions. ] believe that this last estimate is too high 1 fud that tue opinion prevails among the cotton men in St. Louis that the crop will De about seven and a quar ter millions. and l incline 10 thlnk this is nearly right. So much for the supply.
 Looking at the denaad, find it very largely exceeds the supply. Thomas Ellison, of England, the highest authority known on cotton consumption, lu his annual report, issued last week, estimates that the world will need for consumption 8,174 ,0O0 bales of American cotton of the present crop Inc Lancashire strike has been settled and the English mills are all running. They consumel last year G00,00O bales less than the normal quantity on account of the strike. This deficit in the manufactured goods must now be supplied.
 "So, comparing the supply and the demand, t appears evident that there should be a large advance over present prices, if there were no countervaiEng causes operating to produce low prices.
 'Uufortunately there are such causes. Among them, and a very powerful enc, is the repeal of the purchasing clause of the Sherman law. This repeal practically puts the United States on q single gold basis that is, makes gold the only money of ultimate payment, which means that gold has the additional burden cast on it of re1eeming, when called for, all other money-all kinds of paper as well as silver. This new demand for gold will greatly intensity the scramble for gold, as Mr. Sherman calls it, now going on in Europe and will extend 1t to the United States. As a necessary re- suit this will icrease it's value or pur- chasing power This is but another name for lower prices for commodi- ties, including cotton.
 CURRENCY CONTRACTION.
 Assuming the estimates of the treasury department to be nearly correct as to the per capita circula- ton of $2J in the United States, and considering the normal annual increase in our population, it will take an addition of sig, ,000, GOO per annum to keep up the present per capita rate Unless this is supplied in some way we will have contract ing currency from this time. This will further add to the value or pur- chasing power of money and, of course tends to lower prices.
 'sThe difficult thing to ascertain is how far this cause of low prices, coming from the repeal of the Sher- non law, will counteract the natural tendency for rise in prices coming from deficiency in the supply of cotton. confess am unable to weigh accurately these conflicting forces. It is clear, however, to my mind that there would have been a great rise in the price of cotton but for the repeal and if is possible that the insufficient supply as compared with the demand will cause a consid- erable rise notwithstanding the re- peal Those who believe that the repeal will aid and not retard a rlse have now an opportunity to test their faith in the efficacy of the repeal by investing in cotton.
 Another drawback to the rise in the price of cotton is the practice of dealing in futures, whereby from five to eight times as much cotton is sold as is raised in the United States These heavy sales, as is claimed by those who favor these dealings, have a strong tendency 10 fix the price of cotton for the future months to which they extend They have, in fact, fixed the price of cotton up to Jaly next, as far as human agency can fix it in advance. As thus fixed Doe price is very little higher than he present rates.
 With these conflicting factors operating l am not able to predict v;th any certainty as to the price. so I express no positive opinion. merely state, as l understand them, hc agencies whose forces are to be onsidered and leave to each per- on interested to determine for him. slf simply adding that the great ernsnd and the deficient supply ught by all commercial rules cause
 considerable advance in the near