The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-25
MIR. sHEPpERsoN's VIEWS.
Gives His Reasons for the Decrease
in the Value of Cotton.

author and publisher OF cotton FactS,
which is regarded as authority in all mat
ters pertaining to the movement and tluc-
tuatlons of cotton for many years past,
has written the following letter to Messrs.
w. w. Gordon & Co., of this city, in which
he gives his views regarding the present
situation of the cotton market and the cir
cumstances which cause the decrease in
the value of the staple:
Cotton Exchange Building, New York,
Oct. %, 1851 have recently made a care
full comparison of the weekly prices of sill
yer and cotton in New York since 1874, the
figures for silver having been furnished me
by Hon. r. K. Preston, director of the
mint while the figures for cotton are from
official reports of the New ork Cotton Tx
change. Regarding them valuable for flu
ture reference, the statistics have been ar
ranged for publication in the edition OF
Cotton Facts" soon to be issued. My eX-
animation of these quotations has thor
oughly convinced me that during the pc
riod referred to, the price of silver has had
no direct influence whatever upon the
price of cotton In this country. While the
general tendency of silver and of cotton
has been to lower prices, they have not
uniformly advanced together or declined
together. The price of each of these COM
modites has been influenced by its own
conditions of supply and demand. In no
year has the change in price of silver from
the previous year conceded with the
change in price Of cotton. During each
year cotton has often declined heavily
concurrently with a sharp advance in sill
yer and has as often advanced materially
in the face of a serious decline in silver
On the third inst, the price OF silver was
667s cents per ounce, against 1884 cents on
To, Al fHa inn haf mol
cent. On the third inst, middling cotton
was S9s cents, against 9l9 cents on Jan. A.
1879, being a decline of only II per cent.
have selected these dates because specie
payments were resumed on Jan. l. 1879.
In my opinion no greater fallacy has
ever been advanced nor one which could
be so easily disproved by an investiga-
ton of the actual facts than the propost-
ton that the fall in cotton since 1873 has
been due to the decline in silver. l re-
greet to differ upon this matter with
southern friends for whom / have the
highest respect and esteem, but l have
made painstaking study of all the es-
sential features of the subject, not only
in our own country, but in India and
Egypt as well, and my opinion is based
upon the facts which have been devel-
oped. Many causes have contributed to
the decline in cotton since 1873 Every one
knows that gold was at a premium then
and that this fact added several cents to
our quotations of cotton. The great re-
duction in the cost of Bessemer steel has
probably been the most important factor
in lowering the price of cotton. Cheaper
steel, by so greatly reducing the cost of
railroads and steamships has wonderfully
increased the means and lowered the
cost of transportation by land and water
throughout the world, thus vastly ex-
tending the area of cotton cultivation in
our own and other countries, and carry
fraor nesea1xr fha allr
plus cotton of every section, to the mar
kets where needed.
Cotton production has been greatly in
creased and competition in European
markets made keener. The influence of
cheaper and quicker transportation
cheaper and better fertilizers, cheaper
and more efficient farm implements and
machinery, cheaper mules, bagging and
iron ties, cheaper labor and lower rent
of land in reducing the cost of cotton
cannot be questioned. Another important
cause of the reduction in cost of produce
ton is the constantly increasing proper
ton of small farms in the south, and the
better cultivation resulting therefrom. A
much larger proportion of the crop is now
grown on small farms, and as a surplus
crop than ever before. The increased
value of cotton seed and the larger guam
tty of it which is now sold, also reduce
the net cost of cotton. Many of the items
entering into the cost of cotton produce
ton are now only one-half as high as in
1873, and some of them are even less.
Owing to the improvements in cotton
presses and the reduction in ocean
freghts, the cost of carrying cotton from
the ports of India to Europe is not one
third the cost in 1873, the reduction be-
ing equal to nearly cent a pound linda
has now over 1900 miles of railroads.
against 5000 in 1873, and the resulting re-
duction in the cost of transportation from
fpFiOF IN
dian ports has been enormous. 1t is evil
dent that these great reductions in the
cost of transporting cotton from the in
terror of India to the markets of Europe
have seriously affected the price of our
cotton in foreign markets. The cost of
carrying cotton from Egypt to Europe has
also been greatly reduced from similar
causes. 1t may be noted here that the
expense to the American farmer Of mar-.
keting his cotton is much less than for
merly, as the handling and selling charges
have been greatly reduced in all OF our
important markets. At no other time has
the cotton-grower received so large pro-
portion of the price at which his cotton
is sold in the large markets Our
spinners consume only about 20
ton crop. About 70 per cent. of each crop
is bought In our markets for shipment 10
Europe. The price which the exporters
will pay for our cotton is based entirely
upon the present or prospective value OF
the cotton in the European markets to
which they propose to ship 1t. 1t would
not be possible for the buyers of only 20
per cent. of the crop to fix the price
against the views of the buyers Of the
other 70 per cent.
1t may be accepted. therefore, as a fact
that the price of cotton in this country Is
fiXed by the price in European markets
based on European conditions of supply
and demand, and upon the gold standard
which prevails in those markets. This be-
ing true 1t follows that no change in our
monetary standard would affect the actual
value 0n gold of cotton here or in Europe
We might change to a silver basis or a tin
basis or even return to ''wampum" money
without affecting in the least degree, the
price Of cotton in Europe or its actual gold
value here.
Exporters would have to make calcutta
tons to reduce our silver, tin or "wam-
pun" money to a gold equivalent and that
would be all. 1t would be just as It was
during our suspension Of specie payments
when calculations had to be made for the
difference between "greenbacks" and gold