The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-02-23
CAUSES OF LOW COTTON
Senate Committee on Agriculture
Makes Exhaustive Report.
THE CAUSES AND THEIR CURE
Over Production, Dealing in Fu-
lures, and Silver Demonetiza-
tion Prime Causes. Con-
gressionai Duty in the
Premises.
By Southern Associated Press.

WASHINGTON, February 22.-Sen-
ator George, chairman of the Senate
Committee on Agriculture, has made
report to the Senate on the condi-
ton OF the cotton, the causes for ex :
'sting depression and the remedies
that should be applied. The inves
tigation WAS made under authority
OF Senate resolution of April, 1893.
The cotton report is divided into
i've parts, the first part being do
voted to the financial condition Of
the producers Of cotton, from which
1t appears, first, that generally the
financial condition of tho farmers is
bad, large percentage insolvent,
and that very few indeed are sub
stantially In possession Of property.
Second, TINT with the prices pre-
vallng IN the years 1891, '92, '93 IN
yearly every part of the cotton pro
duclng region the cost of produc
'ion equalled, if it did not exceed,
ihe value of the cotton raised. The
result has been to produce wide
spread discomfort among cotton pro.
uucers and q disposition to discredit
their old time conservative methods
and then induce too ready accep
tance of plausible theories for re
lief.
With regard to the causes of the
low prices the report says
1T is conceded that the obvions,
apparent and proXimate cause is
overproductlon. Since in tho main,
with devintions produced by'abnor
NAL conditions. price is regulated
by supply and demand--a full sup.
ply with relatively diminished de.
mand bringing low prices, and u
great and active demaud with rela-
lively diminished supply bringing
higher prices-where there is an
annual increasing supply there ought
also 10 be, TO maintain prices, an
annual increasing demaud."
Statistics are produced to over
throw the theory OF over. .produc-
ton, being the cause of the low
price. the surplus in America and
Europe being less than in 1860.
Concluding this part Of the report,
ihe committee say: ut is the eifec
tive wants of the ultimate consumer
which fixes the amount of the de
mand for the raw cotton. If there
vas not cotton factory III the
United States and foreign manu-
Iactures were admitted free of duty
nnd sold at cost no higher than ls
now ohalg ged for cotton goods there
would not be one pound less con
sumed IL the United States thnn at
present. Ii such goods were all
mitted ct u lower prices consump
'lon would be advanced. SO that
the real effective home market for
the raw cotton wherever mauufac-
tnred is in the consumptive power
of the people.
Whoever takes the cotton from
the farmers and gives it ina manu-
Iactured state 10 the cocsumers at
tho lowest added cost is a beneficial
agent, both to the consumer and
producer, by increasing cousump
Hon ana preventing asurplus. Who
ever ana whatever increases tins
additional intermediate charge re
duces consumption and Injuries both
producer aud consumer.
The curious extent to which deal
Ing III cultures" has attained in late
years. is also set as another caso
contributing to low prices, Much
testimony on this subject was taken
by the Committee. An elaborate
argument Is made to show the pow
er OF Congress to deal with this
sublect and control or suppress.
Having established this fact 10 Its
own satisfaction, the Committees
Report continues:
at would seem to require no erou.
ment to show the proprlety of The
exercise of the power, if ONLY the
fesuit would be to restore the public
0t large the freq and untrammeled
right Of buying and selliug, and thus
destroy Oh illegal monopoly Cotton
Exehange) confined to the members
ot the two corporations, and to the
memDers OF which only few can be
admitted and these only by the SO
lection OF corporations themselves. "
The committee concludes this part
OF the report by stating its conyic.
tlop TO be- that whilst tho DEALINGS
In futures cannot for auy long
period control absolutely the price
OF cotton lndependent Of the slippIv
ana demand, yet they clearly some.
times abnormally produce too low
prices, as we'll as high prices, as is
admitted by their advocates. for n
temporary period. But generally
they depress to considerable ey
tent prices, and that Congress not
only has the power to abolish them,
bnt 1t 10 In duty bound to do SO.
tUnder part four the demonetiza.
ting OF silver IL discussed, this being
acause for the low price OF cotton
In the estimation OF the COMMITTEES
al moro potent than any. There