Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-02-23
CONDITION OF COTTON cRor.
Causes of Existing Depression and
Remedies That should he Applied.


Remedies That should he Applied.
WASHINGTON. ID. c.. February o.
Senator George. chairman OF the Senate
Committee on Agriculture. has made n
report on the condition of the cotton crop.
the causes of the existing depression. and
the remedies that should be applied. The
Investigation was made under authority
OF Senate resolution Of April 10. 1894.
The cotton report Is divided into FIVE parts.
the first part being devoted to
the financial condition OF the producers
Of cotton. from which 1t appears. first.
that the financial condition OF the farmers
is bad, and that very few indeed are SUBJ
stantlally increasing In the possession OF
property. Second that with the prices
prevailing In the years 1891. 1892, and 1893
in nearly every part OF the cotton-produc-
ing region. the cost OF production eaualled.
IL IL did not exceed. the value OF the cot
ton raised. The result has been TO pro-
duce widespread discomfort among cot
ton-producers and n disposition to dis
credit their old-time, conservative
methods, and TO induce a too-ready ac-
ceptance OF plausible theories for re-
lief
WIN fcEHfu 10 lft NdustN VI lpW
prices the report says: 1T is conceded
that the obvious. apparent, and pr0xi-
mate cause is overproduction. since. in
the main, with devations produced by
abnormal conditions, prices are regulated
by supply and demand-a full supply with
relatively diminished demand bringing
low prices, and a great and active de-
mand, with relatively diminished supply
bringing higher prices"
But statistics are produced to over
throw the theory Of overproduction being
the cause OF the low price, the surplus
in Europe and America being less than
in 1860. Concluding this part of the re-
port the committee say: 1T Is the ef-
fective wants of the ultimate consumer
which fix the amount of the demand for
the raw cotton. If there was not a cot
ton factory in the United States, and
foreign cotton manufactures were adj
mitted free Of duty, and sold at a cost no
higher than Is now charged for cotton
goods there would not be one pound less
consumed in the United States than at
present. II such goods were admitted
at a low price, consumption would be adj
vanced. SO that the real. effective home
market for the raw cotton. wherever
manufactured. is in the consumptive
power Of the people. Whoever takes the
cotton from the farmers and gives it in
a manufactured state to the consumers
at the lowest added cost IS a beneficial
agent both to the consumer and the pro-
Queer. by increasing consumption and pre-
venting surplus Whoever and whatever
Increases this additional intermediate
charge reduces consumption and Injuries
both producer and consumer"
The curious extent to which dealing in
futures" has attained in late years is
announced as another cause contributing
1. IL
subject was taken by the committee. An
elaborate argument Is made to show
the power of Congress TO deal with this
subject and control or suppress 1t. Hav-
ing established this fact TO its own salts
faction, the committees report cOntin-
ues:
1T would seem to require no argument
to show the propriety OF the exercise Of
the power, II only the result would be
to restore to the public at large the FIRE.
and untrammelled right Of buying and
selling. and thus destroy an illegal mo-
nopoly Cotton exchange. confined TO the
members Of two corporations, and TO thu
membership of which only a few can be
| admitted, and these only by the selection
| of the corporations themselves"
Two thirds OF the cotton crop Is ex-
ported. This expectation plays a most
| important part In the regulation Of our
| foreign tNcndnR =. anu contributes very
| largely to the maintenance OF our fnan-
| cial system. The higher the price Of the
! export the greater the value of our for
| egn trade in bringing larger wealth TO
| our country. In this view IL Is to the
| manifest interest of the whole country
| that all arrangements or customs Of trade
which artificially depress the price Of cot
| ton should be abolished. Cotton-raising IS
the principal business Of at last nine
ba Of NH oh t., 10
main. from many causes, unable to change
| TO other business for many years to
come. To these people specially, shown
| by the evidence We report TO be in the
| bad financial plight We have described. 1t
| IS a high duty Of the common govern
mant of the whole country that 1t shall
use it's powers to prevent depression In
| the price OF their great staple by the de-
vices and articles Of gamblers I'm human
labor as We have shown these dealers to
| be-"
The committee concludes this part OF its
report by stating its conviction to be that
while these dealings In futures cannot
for any long period control absolutely the
price Of cotton ind apendently of supply
and demand. yet they clearly sometimes
abnormally produce too low prices. as
well as high prices as is admitted by
their advocates. for a temporary period
BILE extent prices, and Congress not only
has the power TO abolish them, but 1t is in
duty bound to do so.
SILVER
Under part the characterization Of sill
Yer is discussed. this being a cause for
the low price Of cotton. in the estimation
OF the committee, more potent than any.
There are many printed pages OF argu-
ment I'm favor Of the rehabilitation of sill
yer, and the prevention thereby Of falling
prices by the opposition Of gold. The
committee also find that importation from
Europe, other than by regular COM
mercial methods tends to depress the
price of cotton. as II lessons the amount
Of money in the market, which fixes the
price Of cotton.
The report concludes with a division
devoted to remedial Legislation. The con-
illusions reached by Mr. George are nom
concurred in by his Republican associates.
His great remedy is the rem )netiLatiOn
Of silver. but he admits there is no i'm
mediate prospect for rs realization.