The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1895-12-07
THEPRICE OF COTTON
GOVERNED BY THE LAW OF SUPPLY
AND DEMAND.

GOVERNED BY THE LAW OF SUPPLY
AND DEMAND.
Free Silverites Should study This History
of Production and Prices Since 1871.
What the Record of Crops ProyeS-Sil-
yer Has No Effect on Prices.
The spread Of free coinage sentiment
i'll the southern states has been almost
entirely due to the belief hat the low
price Of cotton was caused by the adop-
ton Of the gold standard. The main
argument Of the advocates Of Il 80 cent
dollar i'll this section of the country has
been that the alleged demonstration of
silver was the cause Of the marked fall
III cotton during the past % years.
a bulletin just issued by the depart
ment Of agriculture giving tho history
Of the production and price Of cotton for
over lee years proves ConcluSivcly that
the use Of silver as money has nothing
20 dc with the decline in value Of cot
ton. Beginning with 1891, with 4 crop
Of $3.50 bales, worth On an average &c
cents per pound in the United States,
the production rapidly increased during
the next ten years to 2IO, 52G bales, and
the price at the same time advanced TO
Il cents. IL 1902 the crop was 241, PES
bales, of which i2O, Gl9 We're shipped to
Great Britain. but, owing TO the great
" increased supply and a large stock
l5+,G00 baIes-on hand mt the close of
the year, tire price dropped to 10 cent
per pound III New York.
IN spite Of this remarkable decrease
III price the crop increased to $40, coo
bales III 1910, worth lG cents. Ii 1916
the crop was 457, $50 bales, but the
enormously increased demand from
Great Britain forced prices I'D to 29H
cents, and tho nex year to 81 cents.
These high Prices caused IA increase in
the acreage If cotton, and by 1920 the
crop WAS COG, 0GI bales and the price
dropped to Il cents. TIE production in
creasinG, prices fell, i'll 1922, TO lilo
cents, and III 1921, with a crop Of 3d.
PSI bales, and with 5G2,3GO bales IN
stock, 10 9. % cents.
By 1881 an increase III the European
demand for cotton had advanced the
price to IyIrly i3 cents, With Il crop Of
I,205,3@ baics. For the next five years
prices f~luctuated widely, averaging from
IA to 20 cents per p0und, and when, III
1910, the crop a:l3Unged 10 2.I11,S55
bales, the average price went down TO
$50 cents. The gre. crors and the a.
cumulauOn Of large stocks i'll Liverpool
caused stiIl further decline, IL 1915
reaching ) cents, the lowest recorded
prIcc, with q crop Of 2,39t,503 bales.
by 1850 prices lad advanced o 1881
cents. and Tor the next ton years aver
aged "bDGt II cents, tie CruD H. sing
to ~3,G55,5J1 in Is5G and t. a.oGi, 292
III 1860.
Tho war which broke ous IL 1851
brought o. the cotton panic. which
lasted 10 1866, when prices Went il hian
U- #l.o9 Per pound. The Close Ct the
wa Ictt many Of the cotton growing
states IL IN impovcrish" he'd condition. and
1t was not uEtil 1916 that the crop was
rs Iar-e q, that Of 1850. In the mean
time the ir-cc had fallen with the grad
ual increase III producer On until III 1911,
with q cE0D Of L,:;J2,3Ii bales. il aver ;
aged 10 cents. In 1912 cotton WAS
badly damaged bv excessive raf:ls, :md
with a crop Of only 2.gG4,@51 hlics, t., .
price reached 20.Is. III 1850 he cr.p .
WIS :, IUI.@J2 bales and IN prize hal
fallen 10 zoe.
Tn" increased EurJG-nu tcIuanG fora
time prevented prices failing to the level
Of The ,icr;.r previous - the war, hat
By 1885 ;ln stock on hand began tn in .
crease beyond the demand. ard N 1891
thc urhcarL II crop Of S.G52,541 bales
forced the 3r:cc down - 9.03 cents. In
IS92 the crop was 9.035,a79 bales, the
stock ~ hand amounting - 2.25a,00
};lcs. Prices fell to 7.Gl cents, hut al
rancsd IN 1888, whom IN Hncoul5 Of IN
favorable weather the crop fell off -
{, 90&-%G5 IGios, 10 %.24 cents. IN in
crease to I,5i9,SI1 bales in 1894 was
followed hv :; decline IN price, and iho
greatest crop onr5coc,j IL 1880, amount
ing ,c about 9~,E7G.ta5 bales. Brought
down the price 70 G.26.
Iho following table gives the compa--
",iyc CROPS AID stocks Of cotton sad the
lowest aud highest prices IN taa United
States fo: ;,vo decades, showing that
prices reached the lowest point during
the years WHOM the accumulation Of sur
plus stocks vas the largest, and that
those were the years If largest crops: