Birmingham age-herald., 1895-02-23
Of the Senate Committee on Ag-
 rioulture
AS TO EXISTING EVILS
In Cotton Raising, overpro- duction, Low Prices, Etc, and
 How to Remedy Them.

WARRINGTON, Feb. 22.-Senator George, chairman of the senate committee on agri- culture, has made a report to the senate On the condition of the cotton crop, the cause for existing depression and the reme- dies that should be applied. The investi- gation was made under authority of gen. ate resolution of April 19, 1892. The cotton report is divided into five parts, the first being devoted to the financial condition of the producers of cotton, so it appears-hrst, that generally the financial condition of the farmers is bad, a very large percentage insovent and that very few indeed are sub stantially increasing in the possession of property.
 Second, that with the prices prevailing in the years 1891 -92- 93, in nearly every part of the cotton producing region the cost of production equaled, If it did not exceed, the value of the cotton raised. The result has been to produce widespread discontent among cotton producers and disposition to discredit their old-time conservative methods and to induce a too ready accept ance of plausible theories for relief.
 With regard to the cause of the low prices the report says: It is conceded the obvious, apparent and proxImate cause IS over production. Since in the main, with de- Viations produced by abnormal conditions, price is regulated by. eupply ana denlaud- a full supply with relatively diminished demand bringing low prices, and a great and ac i've demand and diminished sup ply bringing higher prices-where there is an annual increase in supply there ought also to be, to maintain prices, an annual increasing demand.
 Statistics are produced 10 overthrow the theory of overproduction being the cause of the low prices, the surplus in America and Europe being less than in 1860.
 Concluding this part of the report, the committee says: "lt is the effective wants of the ultimate consumer which fixes the If there was not a cotton factory in the United States, and foreign cotton manufac- lures were admitted free of duty and sold at a cost no higher than is now charged for cotton goods, there would not be lc0 bales less consumed in the United States than ar present. If such goods were Ed- tnitted at lower price consumption would be advanced, so that the real effective home market for the raw cotton, wherever man. ufactured, is in the consumptve power of the people. Whoever takes the cotton from the farmers and gives it in a manu- factured state to the consumers at tue low est added cost is a beneficial agent both to the consumer and producer by increasing consumption and preventing surplus. Whoever and whatever increases this addi- tional intermediate charge reduces con- sumption and injures both producer and consumer.'
 The extent to which dealing in futures has attained in late years Is also set as an- other cause contributing to low prices. Much testimony on this subject was taken by the committed. An elaborate argument is made to show the power of congress to deal with this subject and control and sup press 1t. Having established this fact to its own satisfaction, the committees re- port continues:
 s.It would seem 10 require no argument to show the propriety of the exercise of the power if only the result would be to restore to the public at large the free and untram :. thus destroy an illegal monopoly (cotton exehanses), confined to the members of two corporations and to the mem tership present, of which only a few can be ad- mitted, and these only by the selectiou of the corporations themselves.'
 ,fwo-thirds of the cotton crop is ex- ported. This exportation plays a most important part in the regulation of our foreign exchanges and contributes very largely to the maintenance of our Financial system of securing to us favorable ex- changes. The higher, therefore, the price of the export, the greater the value of our foreign trade in bringing larger wealth to our country.
 In this view it is the manifest interest of the whole country that all arrangements, customs of trade. which artificiaIly depress the price of cotton should be abolished. Cotton raising is the principal business of at least nine states, and the people are in the main, from many causes unable to change to other business for many years to come. To these people especially, shown by the evidence we report to be in bad financial plight, 1t Is high duty of the common Government of the whole country that it 6hall use its powers to prevent depression in the price of their great staple by the tricks. devices and artifices of gamblers in buman labor, as we have shown these dealers to be.
 The committee concludes this part of it's report by stating It's opinion to be: s'That whilst these dealings in futures cannot for : any long period control absolutely the price of cotton, independent of the supply and demand nRrI Iy-sometimes ab- ] ''!' E 5 ]: ]: as high ry their ad- vocs' But gem erall 1erable ex- tent lot only has uf1n but Is duty