The Charlotte Democrat., 1895-03-01
The Cotton Crop.

The Cotton Crop.
Report of the Senate COMMITTEES on Agriculture
as to It's Condition, the Causes of the Depres-
ion and the Remedies Therefor.
WASHINGTON, Feb. Ex-senator George,
chairman of the Senate Committee on
Agriculture, has made report to the
Senate, under Senate resolution, on the
condition of the cotton crop, the causes
for existing depression and the remedies
that should be applied. The report is
divided into five parts, the first part be.
ing devoted to the financial condition of
the producers of cotton, from which it
appears, first, that generally the financial
condition Of farmers is bad, very large
per centage insolvent, and that very few
indeed are substantially increasing in
the possession of property; second, that
with the prices prevailing in the years
1891-92-93 in lnearly every part of the
cotton producing region the cost of pro.
duction equaled, if It did not exceed, the
value of the cotton raised. The result
has been to produce widespread discon-
tent among cotton producers and q dis
position to discredit their old time con-
servative method and to induce s too
ready acceptance of plausible theories
for relief.
With regard to the causes of the low
prices the report states: It is conceded
that the obvious, apparent and proxi-
mate cause ia overproduction. Since, in
the main, with deviations produced by
abnormal conditions; price is regulated
by supply and demand, a full supply with
relatively diminished demand. bringing
low prices, and a great and active de>
mand with relatively diminished supply,
bringing higher prices. Where there is
an annual increasing supply there ought
also TO be, to maintain prices, an annual
increasing demand. Statistics are pro-
duced to overthrow the theory of over
production being the cause of the low
price, the surplus in America and Europe
being less than in 1860.
Concluding this part of the report the
committee says: 1t is the effective wants
of the ultimate consumer which fixes
the amount of the demand for the raw
cotton. If there was not cotton factory
in the United States and foreign cotton
manufactures were admitted free of duty
and sold at cost no higher than is now
charged for cotton goods, there would
not be one pound less consumed III the
United States than at present. If such
goods were admitted at low price cons
sumption would be advanced. So that
the real effective home market for the
raw cotton, wherever manufactured, is in
the consumptive power of the people.
Whoever takes the cotton from the far
mers and gives it in q manufactured state
to the consumers at the lowest added cost,
is q benefit both to the consumer and
producer, by increasing consumption and
preventing surplus. Whoever and
whatever increases this additional inter,
mediate charge reduces consumption and
Injuries both producer and consumer.
The curious extent to which dealing in
cultures has attained in late years is
also set out as another cause contributing
to the low prices. Much testimony on
this subject was taken by the committee.
An elaborate argument is made to show
the power of Congress to deal with this
subject and control or suppress it. Hav-
ing established this fact to its own salts
faction, the report continues: 1t would
seem to 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-
meled right of buying and selling, and
thus destroy an illegal monopoly Cotton
Exchange) confined to the members of
two corporations and to the membership
of which only few can be admitted, and
these only by the selection of the corpo-
rations themselves.
Under part four the demonstration of
silver is discussed as being cause for the
low price of cotton in the estimation of
the committee, as more potent than any.
There are many pages of arguments in
favor of rehabilitation of silver and the
prevention thereby of falling prices by
the opposition Of gold. This committee
also finds that the importation of gold
from Europe, other than by the regular
commercial methods, tends to depress the
price of cotton, as it lessons the amount
of money in the market which fixes the
price of cotton.
The report concludes with q division
devoted to remedial legislation. The con-
clusions reached by Senator George,
chairman of the committee, are noncon.
Cured in by his Republican associates.
His great remedy is the remonetization
of silver, but he admits there is no i'm
mediate prospect for its realization.
Other remedies suggested by the report
are the repeal of the duty on cotton man.
ufacturing machinery, especially spin
ming machinery, the accomplishment OF
which, the report admits, is unlikely.
After viewing all sides of the question,
the report saysit will be found impossi-
BILE to forecast with certainty the future
in all its phases Of the cotton problem;
but it seems that the following may be
relied on with some confidence:
l. Considering soil and climate, in
dustry and skill Of the people, the Amer
ican cotton raiser has the advantage over
all others, and in the sharp competition
in ithe future he will be the most sue.
cessful.
2. That as the old high prices are not
to be expected, the American cotton
raisers may 80 generally diversity their
crops with others suited to the soil and
climate as to supply most of their wants
and to that extent secure to themselves
immunity from the evils of low prices.
3. Such diversifcatlon will tend to
the prosperity Of cotton farmers in that
it will facilitate the change now abso,
lutely necessary from the expensive sys-