The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-11-24
A COTTON MART.
How San Francisco Might
Become One.
RESTS WITH THE RAILROAD.
Japan a Buyer of the American
Staple.
RESTS WITH THE RAILROAD
BUT PURCHASES IN LIVERPOOL.
Reduced Rates Would Change All
This and Divert the Orient'S
Trade to This City.

A sufficient reduction in railroad rates
would make San Francisco one of the
great cotton marts of the world, the dis
tributing point for the Oriental trade. and
would turn the balance of trade, which is
now largely in favor Of the Mikado's
realm. to the ADVANTAGE of America.
There are two great American commod-
tiles for which demand exists in japan.
These are silver bullion and cotton. Japan
is supplied with both from England.
Liverpool ships the cotton and London as
the worlds financial center is the regulator
and source OF supply of the white metal.
Japan buys $14,000000 worth of Amer
can cotton yearly. The purchase directly
from the United States is insignificant.
The average value of the annual exports
from the United States to Japan is
S3,000000. The IMPORTS from japan to
this country average abou; $1,000 600
year. The value of the English imports
from Japan is scarcely $4,000, 600. The
balance of trade between England and
Japan is largely in favor of England, and
England receives this advantage upon
American products, which she buys and
sells to the Orient. England acts as the
middle-man and takes the toll of profit.
The rate ON cotton from Texan points
via the Sunset route and thence by
steamer to Yokohama is $26 ton.
In speaking of the possible shipment of
cotton by this route a Southern Pacific of
fetal said yesterday: "We have considered
TOR some time plans by which the trade
could be diverted from Liverpool to this
city, but there are great difficulties in the
way. Liverpool is The great cotton market
of the world. Its trade has been estab-
lished aud it has all the advantages at
tached to this fact. We have a haul of
hu fah
is much more expensive than by sea. Cot
ton from tidewater points in Texas and
Louisiana can he shipped in sailing YES
sells to Liverpool very cheapy. From
there TO Yokohama, by way of the SueZ
canal, the carriage is likewise all by sea.
There is another disadvantage. When the
cotton reaches San Francisco it has TO be
transhipped by steamer, as no cargo
laden sailing vessels come to San Fran
cisco from Japan. The rate of SIG a ton
leaves but slight margin of profit on the
combined rail and steamer carriage of cot
ton. Last season we did ship several
hundred bales of cotton in this way, and [
am Informed that a few shipments of
American cotton were made over the
Canadian Pacific Railroad and its connect
ing steam hio line"
A well-informed railway man declared
yesterday that with its advantage of con-
trolling both the rail line and the steam
its way clear to make lower rate. He
asserted that a reduction of S. ton could
he made without operating at loss. but
whether this would be sufficient TO meet
the rate by the route from gulf tidewater
TO Liverpool and thence via SueZ 10 Yoke
hama he could not say, as The data does
not seem to be obtainable in this city upon
which to make an estimate. 1t is believed,
however, that such reduction would be
sufficient to divert large portion OF the
Orient's trade In cotton directly to the
United States.
In the shipments of cotton to Japan via
San Francisco the railroad takes two
thirds of the tolls on freight. allowing the
other third to the steamship line.
Another project which the silver men
have in virw if successful would prove OF
great advantage to this city. The aim is
to make New York instead of London the
storehouse for the silver of the rid and
TO have its price regulated in the American
instead of the English metropolis. Should
such plan succeed San Francisco, as the
nearest port on American soil, would be
the point from which the Orient would
then receive its entire supply of bullion,
and this city would then become, next To
New York, the greatest silver market in
the world.
1t is urged by those who have made a
study of these subjects that if this city
could be made the point from which all or
nearly all of the exports Of silver and co..
ton were shipped to Japan and the East the
entire trade of the Orient would then cen
ter here, thereby vastly increasing the
commerce and the business Importance of
San Francisco.
There are many things which the South
ern Pacific has done to injure San Fran
cisco 1t sought to divert the grain trade
sailing craft which frequent this port.
The opportunity is now offered to draw
the line Of competition against the sailing
craft on the other side If the continent
and to seek San Trancisco's benefit while
benefting the company by making this the
export point for cotton destined for the
Orient.