The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-08-29
THE PRICE OF FLEECY STAPLE
Cotton Governed==by the Law of
Supply and Demand.
Free Silverites Should SuiY This
4 History of Production and the
Prices Since li9l What the
Record of Crops Proves.
No Effect on Prices.

<1ne spread ct free coinage sentiment
IN the southern states has been almost
entirely due to the belief that tho low
price of cotton was caused by the adop-
tien of tho gold standard. Tho main
argument of the advocates of 90 cent
dollar in this section of tho country has
been that tho alleged characterization of
silver was the cause of tho marked fall
In cotton during the past % years.
A bulletin just issued by the depart
ment of agriculture giving the history
of the production and price Of cotton for
over 100 years proves conclusively that
the use Of silver as money has nothing
to do with the decline in value of cot
ton. Beginning with 1871, with crop
of S,SS9 bales, worth on M average 20
cents per pound in the United States,
tho production rapidly increased during
the next ten years to 2l0, 526 bales, and
the price ut tho same time advanced to
"a cents. In 1902 the crop was 24l, 22S
bales. of which l20,6l9 were shipped to
Great Britain, but, owing to tho great
1y increased supply and y large stock
l54, 600 bales.-on hand Mt tho close of
tho year, tho price dropped to 10 cents
per pound in New York.
In spite of this remarkable decrease
81 price the crop increased to $40, 900
bales III 1910, worth l6 cents. In 1916
tho crop was 457, 1868 bales. but the
enormously increased demand from
Great Britain forced prices up to 20LI
cents. and the next year to 81 cents
These high prices caused an increase in
the acreage of cotton. and by 1890 the
crop was COG, 0Gl bales and the price
dropped to I cents. The production in
creasing. prices fell i'll 1929, to II. 80
cents, and in 1897. with crop of 957,
2Sl bales, and with 562, 800 bales in
stock, to 0.29 cents
n By 1884 an increase in the EuroDcan
demand for cotton had advanced the
price to nearly Is cents, with crop OF
1,2o5, S94 bales. For the next five years
prices ductuated widely, averaging from
w to 20 cents per pound, and when, in
1910, the crop amounted to 2,l17, 500
bales, the average price went down tc
500 cents. The great crops and tho nc.
cumulation of large stocks in Liverpool
caused still further decline. in 1915
reaching d cents, the lowest recorded
price, with q crop of 2,391, SOB bales
BY 1850 prices had advanced to II. -
cents, and for tho next ten wears aver
aged about ] / cents, tho crop increasing
to 3,G55,55 i'll 1856 and to i ,S6i 49,
in 1860.
IS The war which broke ont in 1861
brought Oh the 'cotton panic" which
lasted to 1866, when prices went as hirl
. as $1.S9 per pound. The close of tho
! war left many of tho cotton growing
states III an impoverished condition. au(
1t was not until 1876 that the crop wa.
as large as that Of 1860. In the mean
time the price had fallen with the grad
nal increase i'll production until in 1871
with crop of 4,362, 3l7 bales, it aver
aged 1895 cents. In 1872 cotton wa.
badly damaged by excessive rains, nnt
with crop of only 2,974, 35l bules. til,
price reached 90. As. In 1880 the Gro,
was 5,76l, 252 bales and the price haf
fallen to ,02.
The increased European demand for ;
time prevented prices falling to the leve
of the decade previous to the war, bu,
~ 3NS' tiiV StCCh Oli Iltltl pt1puu 10 Ill
crease beyond the demand, and in 1891
the unheard of crop of S,G52, 597 bale.
forced the price down to 0. OBJ cents Ii
1892 the crop was $685. 79 bales. tic
stock on hand amounting to 2,253, 00C
bales. Prices fell to 1.6l cents, but ad
vanced in 1898, when on account of I'M
favorable weather the crop fell off tc
$500, SG5 bales. TO g. "a cents. An in.
crease TO 7,549,Sl7 bales in 1894 was
Followed by decline in price, and tho
greatest crop on record in 1855, amount,
ing to about 9,4T6 435 bales, brought
down the price TO g. 2G.
The following table gives the conpar.
ative crops aud stocks Of cotton and the
Y lowest and highest prices in the United
States for two decades, showing that
prices reached the lowest point during
the years when the accumulation of sur,
plus stocks was the largest, and that
those were the years Of largest crops:
1St1-185o.
Crops in Surplus in M!ddlinc nm.
United Europe ut land per ID. In