Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1895-09-07

GOVERNED BY The LAW or SUPPLY
AND DEMAND.

free silyerItes should study This History
of Production and Prices Since 1891.
What the Record Of Crops proves--sil-
yer Has No Erect on prlces.
The spread of FREQ coinage sentiment
in the southern states has boon almost
entirely due to tho belief that the low
price of cotton was caused by the adop-
ton of tho gold standard. The main
argument Of the advocates of 90 cent
dollar in this section of tho country has
been that the alleged characterization of
silver was the cause Of the marked fall
in cotton during the past 23 years.
A bulletin just issued by the depart
nent 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 1901, with crop
Of $3.50 bales, worth on an average 26
cents per pound i'll the United States,
the production rapidly increased during
the next ten years to 210, 526 bales, and
the price at the same time advanced to
IA cents. In 1902 the crop was S41, 228
bales, of which 1870, 619 were shipped to
Great Britain, but, owing to the great
" increased supply and large stock
154, 600 bales-on hand at tho close Of
the year, the price dropped to 10 cents
per pound in New York.
In spite of this remarkable decrease
in price the crop increased to $4,000
bales in 1910, worth 16 cents. In 1916
the crop was 457, 565 bales, but the
enormously increased demand from
Great Britain forced prices up to 29@
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 606,061 bales and the price
dropped to II cents. The production in
creasing. prices fell, in 1922. to 11.40
cents, and in 1927, with a crop of 957,
PSI bales, and with 502, 800 bales In
stock, to 8. 80 cents.
By 1884 an increase in the European
demand for cotton had advanced the
price to nearly 10 cents, with crop of
1905, 1914 bales For the next five years
prices huctuated widely, averaging from
u to 20 cents per pound, and when, in
1910, the crop amounted to 2,177, S55
bales, the average price went down to
8. go cents The great crops and the &C.
cumulation Of large stocks in Liverpool
caused still further decline, in 1915
reaching . cents, the lowest recorded
price, with crop of 2,394, SOB bales.
BY 1850 prices had advanced to 10. "a
cents. and for the next ten years aver
aged about II cents, the crop increasing
to 1866, 657 in 1856 and to 1861, 292
in 1860.
The war which broke out i'll 1861
brought on the "cotton panic, " which
lasted to 1866, when prices went as high
as $I.89 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 a crop of 4,352, 317 bales, it aver
aged 16. 80 cents. In 1872 cotton was
badly damaged by excessive rains, and
with a crop of only 2,974, 351 bales, the
price reached 2O.48 In 1880 the crop
was 5,761, 252 bales and the price had
fallen to 1906
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 1862, 597 bales
forced the price down to 8. 03 cents. In
1899 the crop was 9,035, $40 bales, the
stock on hand amounting to 1888, 900
bales. Prices fell to 7.64 cents, but ad-
vanced in 1898, when on account Of un-
favorable weather tho crop fell off to
G,700, 800 bales, to 1874 cents. An in
crease to 7,540,817 bales in 1894 was
followed by decline in price, and the
greatest crop on record in 1895, amount
ing to about 9,476, 435 bales, brought
down the price to 6.26.
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 largeos, and that
those were the years of largest crops:
1S41-1s5O.