The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1896-01-11
Depressing Effect of IL Chinese
Industry upon the Prosper
ity of America.
CONDITIONS BAD FOR AMERICA
FircbugS Try Some lnccndiary
Work on the Great Fails
Opera House.

In 1874 the Shanghai price Of
picul ll33a lb.) of the best Chinese .
cotton was about II llaillwan taels
Today II Haikwcn .aels is still Civ
en- as about the average purchase
price Of picul of the b est Chinese
cotton in Shanghai, and during all
the Intervening years the price Of
cotton varied but little. For the last
u years the average price Of Chinese
cotton has been about ~ lIlikwan
taels But the Hailswan tael is bas-
ed on silver. In 1871 it was worth /
$l.Gl in gold, on October last but 80 /
cents, while on the first Of the year
it was worth but Il 8 cents
For - IIaikwan silver tacls the
Englishman could have bought pi |
cuI Of Chinese cotton in 1871 or 10: |
, for II IIaillwan tacls he can still buy
a pioul Of cotton. But in 1874 he
had to pay for this tael *l.Gl in gold,
while today lie pays but 80 cents; 50
that the cotton which in 1874 would
have cost him $l9.32 would cost to-
day but $500. The silver price Of
cotton in Shanghai has remained un-
changed for the past % years, but
the price to buyers purchasing With
gold has varied with the nuctuation
in silver.
In lS74-1o the taeI cost &l.Gl in
gold, which made the cost Of cotton
purchased in Shanghai at y taels
picul, 14.i9 cents pound; in 1856,
the cost Of the tacl in gold had fallen
to 1926, which reduced the gold
price Of cotton costin~,12 taels pro
portionately, or to ll.l2 cents per
pound.
Thiss clearly shows bow the nuct
uations in silver affect the price Of
cotton. 1t is true, Chinese cotton
does not come to an apprecIable eN-
tent in direct competition with Am
erican cotton. and that Chinese cot
ton, being Of Il poor grade, because
Of unscicntitic cultivation, American
cotton has the preference IN tn" Eu-
ropean markets. But none 'he les,
a fall in the purchase price Of Chm
ese cotton in gold must result in a
fall in American cotton, because the
Chinese cotton would be purchased
and used in the place of our cotton
in the manufacture Of low grade
goods if the price Of our better cot
ton is held at "A price above the Chl-
nesc article more than sufficient to
to compensate for the difference in
quality.
In view of the great advantage
which the fall in the gold price Of
silver has given the cultivator Of cot
ton in China, il is not surprising that
the exports Of cotton from Shanghai
: should have risen from 81 millions OF
= pounds in 1886 to l24 millions OF
pounds in 1894. of which Japan took
i more than half, which her manufact-
cries converted into goods that are
replacing the prints formerly made
in England aud America with Amer
j. Jean cotton, for the Chinese and Jap
J. anese trade, and thus curtailing the
# demand for American cotton.
IF Speaking of this expectation o
: cotton. Mr.. Jcrnigan, /. s. consu
,r general at Shanghai, remarks IN h
n consular report: .'it may be notec
rs that the large increase in expectation
h did not increase the price of cotton
$. and This may confirm the opinion
s among business men here that til
Chinese are prepared to extend tn
to area of cultivation Of cotton in Pre-
tn portion as the demand arises. Alon
I'd the Yangtsc valley the soil ayailabl
he for cotton cultivation appears as lin
n itless as the supply of labor in Chin
as appears inexhaustible."
IA This is the new competition we al
be raising up by blindly adhering to tt
.e- gold standard, resulting in the d
probation of the gold price Of silve