Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1895-04-04
Silver and Cotton.

OThe silver monometallists are
mistaken when they think that
the farmers of this section can
, be easily deceived. Their last
claim that cotton has gone up is
, demagogy, Of the rankest kind.
Why has the increase in the price
of silver had more effect on cot
ton than the increase in the price
of soLle other things?
| During the past sixty days a
number of railroad stocks have
increased in value. The argu-
ment would be equally good if it
were urged that the rise in the
value of railroad stocks had in
creased the value of cotton. AS
both happened during the same
time, therefore the increase in
the value of railroad stocks was
what really caused the increase
in the value of cotton. For this
reason farmers, then, should
favor high freight rates and ex-
orbitant charges for transpor-
tation generally so that railroad
stocks might further increase in
value with the expectation of a
similar increase in cotton.
The truth is that business is be-
ginning to revive. Gold ship
ments have ceased as a result of
the effective effort to stop gold
exports by the Democratic admin
istration. General confidence is
rapidly returning. Long before
next years campaign this coun-
try will be enjoying the result Of
its usual prosperity, and the
bowling of those who, upon the
pretext of favoring bimetallism
are really seeking to bring the
country to a single silver stand
ard, silver monometallism, will
not longer be able to check busl-
ness and enterprise,
The Improvement in the price
of cotton is due partly to specu-
lation and partly to the prospect
of a decrease in cotton acreage.
The silver theory will not work
as any explanation Of the rise in
cotton,
The theory that cotton and sill
yer go up and down together is
contrary to both reason and eX-
perience. Some months ago
Mr.. Henry L. Nelson, published
an article showing that in the
course of the last thirty years
the prices of farm products and
silver have borne no relation to
each other and frequently have
moved in opposite directions. In
reference to cotton, Mr.. Nelson
makes the following accurate
and interesting statement:
GA careful examination of the
facts surrounding the course CT
prices for cotton develops the
fact that from 1864, when cotton
was selling in New York for 80
cents in gold a pound, it fell
steadily from this high war level
until 1873, when the quantity
lproduced first exceeded the ante
bellum maximum, and the price
again reached the level of 1850;
lust as we learn from this exam
ination that in 1873 the prices of
cotton had, from the highest
pointer already fallen sixty -four
cents a pound, or 700 per cent
more than it has fallen since.
Was this fall Of sixty-four cents
prior to 1873 due to other causes,
while the fall since 1873 is due
alone to the fall in the value of
silver.
| From 1879 to 1890 the price
fuctuated between 9 1-2 and 13
cents, as the crop happened to
be abundant or meagre, and the
average of the twelve years was
very close to the average of the
twelve years ending with 1860,
although after two very short
crops in 1856 and 1887 the price
rose in the latter months of 1857,
despite the acute money crisis
, then prevailing to Is 1-2 cents a
pound, or the highest price
known between 1886 and 1894, if
we exclude the prices of the war
period, say from 1861 to 1865.
This fact and the other related
fact that from 1885 to 1888, dur:
ing all the acute money crisis of
1887, the prices for wheat, corn,
; cotton and oats were extremely
high, showing how little none
, tary conditions of the most pro
nounced character affect the price
, of any article of prime necessity
, when the supply is actually de
fective. In considering condi-
| tions affecting the price of cotton,
the period ending in 1873, wher
prices resulted from the peculiar
conditions existing at the South
after the war, must be excluded
=, Doing that, it is found that the
! price has varied only as affected
= by supply and demand, and otter
moved in the direction opposite
to that taken by silver.
5 The crop of 1889 was the great
est ever grown till that time
f and aggregated nearly 1900, ,OO(
5 bales, but the crop of 1890 ex
/ ceeded it by 100000 bales, OF
/. 19 per cent; and this great cror
( was Immediately followed by one
5 of 9, 900, 900 bales, or 25 per cent
/ in excess of the crop of 1889
t The crops of 1890 and 1891 aggre