The times. (Owosso, Mich.) 1882-1897, 1895-09-13
THE PRICE OF COTTON
GOVERNED BY THE LAW OF SUPPLY
AND DEMAND.

Free silve-ites 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 the adop-
ton of the gold standard. The main
argument Of the advocates Of 90 cent
dollar in this section of the country has
been that the alleged demonstration OF
silver was the cause of the marked fall
in cotton during the past 23 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
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 Oh an average 90
cents per pound III the United States,
the production rapidly increased during
the next ten years to go, 526 bales, and
the price at the same time advanced to
"A cents. In 1902 the crop was 241 1898
bales, of wi CHI la0, 619 were shipped to
Great Brita Il, bat, owing to the great
ly increased supply and large stock
$4,000 bales-on hand at the 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 $40, 900
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 2914
cents, and the next year to "a cents.
These high prices caused an increase in
the acreage of cotton, and by 1920 the
crop was 606,06l bales and the price
dropped to II cents. The production in
creasing, prices fell, in 1892, to 11.4O
cents, and in 1897, with crop of esq.,
281 bales, and with 562,360 bales in
stock, to 0.29 cents.
By 1884 an increase in the European
demand for cotton had advanced the
price to nearly ID cents, with crop Of
1,205,39 bales For the next five years
prices fluctuated widely, averaging from
IA to 90 cents per pound, and when, in
1910, the crop amounted to 2,177,855
bales, the average price went down to
500 cents The great crops and the ac-
emulation of large stocks in Liverpool
caused still further decline, in 1916
price, with crop of 2,394, SOB bales.
BY 1850 prices had advanced to 1894
cents, and for the next ten years aver
aged about | / cente, the crop increasing
to 1855, 557 in 1896 and to A,S61,292
in 1860.
The war which broke out in 1861
brought on the cotton panic" which
lasted to 1866. when prices went as high
as $3.50 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 1850. In the mean
time the price had fallen with the grad
ual increase in production until in 1871,
with crop of 4,352,317 bales, it aver
aged 95 cents. In 1872 cotton was
badly damaged by excessive rains, and
with crop of only 2,974, 551 bales, the
price reached 90. 4S. In 1880 the crop
was 5,76i, 252 bales and the price had
fallen to 1902,
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, ard :, 1911
the unheard of crop Of 500, ~, III -
forced the price down to 9.03 cents. In
1892 the crop was 9,035,379 bales, the
stock on hand amounting to 2,253, 900
bales Prices fell to 7.64 cents, but ad-
ganced in 1898, when on account Of un-
favorable weather the crop fell off to
600, 800 bales, to 8.24 cents. An in
crease to 7,549,S17 bales in 1894 was
followed by decline in price, and the
greatest crop on record in 1895, amount
ing to about 9,476, 4S5 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 largest, and that
those were the years Of largest crops:
, 1S41-135O.