Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1895-09-13
PRICE OF COTTON
GOVERNED BY THE LAW OF SUPPLY
AND DEMAND.

Free silverites Should Study This History
OF Production and Prices Since 1891.
What the Record OF Crops Proves-sil-
yer Has No Efrect on Prices.
The spread Of free coinage sentiment
in the southern states has been almost
entirely due to the belief that the low
price of cotton was caused by the adop-
ton of the gold standard. The main
argument Of the advocates Of 90 cent
dollar in this section Of the country has
been that the alleged demonstration Of
silver was the cause Of the marked fall
in cotton during the past 23 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 1891, with crop
of $3.50 bales, worth on an average 20
cents per pound in the United States,
the production rapidly increased during
the next ten years to 210, 626 bales, and
the price at the same time advanced to
A cents. In 1902 the crop was 24l, 1913
bales, Of which 1870, 6l9 were shipped to
Great Britain, but, owing to the great
" increased supply and a large stock
l54, 900 bales-on hand at the close OF
the year, the price dropped to 10 cents
per pound i'll New York.
In spite Of this remarkable decrease
In price the crop increased to $40, 900
bales in 1910, worth 16 cents. In 1915
the crop was 457, 565 bales, but the
enormously increased demand from
Great Britain forced prices up TO 291a
cents, and the next year to "a cents
These high prices caused an increase in
the acreage Of cotton, and by 1920 the
crop was 606,061 bales and the price
dropped to II cents. The production in
creasing, prices fell, in 1922, to 1L.40
cents, and in 1927, with a crop Of 957,-
PSI bales, and with 562,96O bales in
stock, to 8. 30 cents.
By 1884 an increase In the European
demand for cotton had advanced the
price to nearly Is cents, with crop OF
1905, 1914 bales. For the next five years
prices huctuated widely, averaging from
IA to 20 cents per pound, and when, in
1910, the crop amounted to 2,l77, $50
bales, the average price went down to
s. 90 cents. The great crops and the &C
emulation Of large stocks in Liverpool
caused still further decline, in 1S45
reaching cents, the lowest recorded
price, with crop Of 1894, sos bales
By 1850 prices had advanced to 1894
cents, and for the next ten years aver
aged about II cents, the crop increasing
to 1866, 557 in 1855 and to 1881, 292
in 1860.
The war which broke out in 1851
brought on the cotton panic" which
lasted to 1866, when prices went as high
as 81. SO per pound. The close Of the
war left many Of the cotton growing
states in an impoverished condition, and
it was not until 1876 that the crop was
as large as that Of 1860. In the mean
time the price had fallen with the grad
ual increase in production until in 1871,
with crop Of 4,352,S 81 bales, it aver
aged l6. 90 cents. In 1872 cotton was
badly damaged by excessive rains, and
with crop of only 2,974, 1851 bales, the
price reached 2O.4S. In 1880 the crop
was 8, 761,2 bales and the price had
fallen to 1902.
The increased European demand for
time prevented prices falling to the level
Of the decade previous to the war, but
by 1889 the stock on hand began to In
crease beyond the demand, and in 1891
the unheard Of crop Of 1868, 597 bales
forced the price down to DOS cents In
1892 the crop was 9,035,379 bales, the
stock on hand amounting TO 2,25S.OO
bales. Prices fell to 7.64 cents, but ad-
vanced in 1898, when on account Of I'M
favorable weather the crop fell Off to
6, 700. S65 bales, to 8.24 cents. An in
crease to 7,549,S17 bales in 1894 was
followed by a decline in price, and the
greatest crop on record in 1895, amount
ing to about 9,476, 435 bales, brought
down the price TO Gao.
The following table gives the compAr-
alive crops and stocks Of cotton and the
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: