Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1895-11-21
THE PRICE OF COTTON
GOVERNED BY THE LAW OF SUPPLY
AND DEMAND.

Free silverites Should Study This History
of Production and Prices Since 1901.
What the Record OF Crops Proves--Sil-
yer Has No Effect 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 tho adop-
tion of tho gold standard. The main
argument of the advocates of II so cent
dollar in this section of the country has
been that the alleged characterization Of
silver was the cause Of the 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
to do with tho decline in value Of cot
ton. Beginning with 1891, with crop
Of $3.50 bales, worth OH IN average 26
cents Per pound in the United States,
the production rapidly increased during
the next ten years to 21O, 52G bales, and
the price at tho same time advanced to
A cents. In 1909 tho crop was PAL ,22S
bales, Of which 1870, Gl9 were shipped to
Great Britain, but, owing to the great
ly increased supply and II large stock
l54 900 bales-on hand at tho close of
the year, the Price dropped to 10 cents
per pound III New York.
In spite of this remarkable decrease
in price the crop increased to $4,000
bales i'll 1910, worth 1G cents. In 1916
the crop was 457 ,5G5 bales, but the
enormously increased demand from
Great Britain forced prices up to 291a
cents, and the next year to 81 cents.
These high prices caused an increase in
the acreage of cotton, and by 1920 the
crop was G06,O6l bales and the price
dropped to II cents. The production in
creasing, prices fell, i'll 1922, to 11.40
cents, and in 1927, with a crop of 957,-
2S1 bales, and with 562,36O bales in
stock, to 9.29 cents.
BY 1884 an increase in the European
demand for cotton had advanced the
price to nearly 10 cents, with crop of
1,2O5,39 bales. For the next five years
prices fluctuated widely, averaging from
IA to 20 cents per pound, and when, in
1910, the crop amounted to 2,177, 1856
bales, the average price went down to
8. 90 conts. The great crops and the &C
emulation Of large stocks in Liverpool
caused still further decline, in 1916
reaching 5 cents, tho lowest recorded
price, with q crop of 1894, SOB bales
BY 1850 prices had advanced to IL. "a
cents, and for tho next ten years aver
aged about l 1 cents, the crop increasing
to 3,655,557 in 1856 and to 4,SG1, 1902
in 1860
The war which broke out in 1861
brought on tho "cotton panic" which
lasted to 1866, when prices went as high
as $l.S9 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 largo us that of 1860. In the mean
time the price had fallen with the grad
ual increase i'll production until in 1871,
with Il crop Of 4,352,317 bales, it aver
aged 1876 cents. In 1872 cotton was
badly damaged by excessive rains, and
with crop of only 2,974,351 bales, the
price reached 20. 4S. In 1880 the crop
was 5, 1925 bales and the price had
fallen to 1902.
The increased European demand for a
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 1863, 597 bales
forced the price down to 0. O3 cents. In
1899 the crop was 9,O35, 1870 bales, the
stock OH hand amounting to 2,253,00
bales Prices fell to 1894 cents, but ad-
vanced in 1898, when ON account of un-
favorable weather the crop fell off to
G,700,3 bales, to 1874 cents. An in
crease to 7,549,817 bales in 1894 was
followed by decline in price, and the
greatest crop OH record in 1895, amount
ing to about 9,476, 435 bales, brought
down the price to sac.
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: