The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-01-22


ply, and active coadjutor Of specula-
tive" gamblers. and a dangerous menace
to future values.
The world spends annually about
$500. 900. 900 for cotton goods. If we
send out $500. 000-bale crop we get
this money for it, and the consumers
will compete among themselves Tor
our product, and the producer sub
stantiallv dictates the price. II we
send out a 10000. 00O-bale crop, as we
did in 1894. they pay the same or less,
and leave MS to compete among our
selves for the price, our labor ana eN~
penSeS remaining the same.
The world has to be clothed. Inc
consumption of cotton is nearly intIeN-
ible. The production is flexible With
these conclusions il resolves itself in
to the deduction. How are we to de
strov this annual surplus The only
safe and practicable way suggested IS
Inv n malicious decrease of acreage
say of IS per cent. We would then re-
allie rs per cent. increase IN the price,
and still have 100000 acres of land to
raise food crops upon, which, II raised
in sufficient quantity on the farm, M
stead of being purchase at longtime
prices. with cotton as its uncertain
security. will make another legitimate
difference in favor of the cotton grow
er Of 25 per cent.
There can be no palmer object les
son portrayed than that of TINS last
season Of the result Of decreased pro-
duction. As another lesson, as 10 the
efficacy Of the decrease of production
as a stimulus to the increase OF price,
we will cite the history of the cotton
market i'm the year lS45 The average
price OF cotton that year was 800. The
production was decreased the next
wear. bv general consent, about 9 per
cent. and cotton values rose in con
sequence thereof to Isl in lsl6.
The farmers Of the South. recogniz-
ING that they could not raise cotton
prohtably even ut this price, though
having the benefit then Of slave labor
in their favor. again reduced the acre
age the next year CS4O 10 per cent.
Cotton values continued TO rise com
menSurately with the decrease OF acre
age. averaging that year ll.2l cents.
10 per cent. reduction resulted III
% per cent rise in values, and TINS IN
the face of the stagnatiOn OF trade IN
England. due to tile great IRISH famine
that year. the rapid fall in sterling eN-
change i'm consequence of the snip
meuts OF breadStuffs TO the United
Kingdom, and the reduction OF 10000
bales per week in the consumption OF
manufacturers.
As an evidence OF she influence OF
oyerproduction. ] present the homelN
illustration: \ farmer goes into his
market town with a basket full o1
eggs: il is the first Of May, and the
noultrv is producing freely. He pre-
SCENTS his eggs TO the merchant for sale
ana is met with the intelligence that
he has all the eggs that he can handle;'
that the market is glutted, ana Inc
supply exceeds the demand. The far-
u,rr has more at home than he needs,
and he does not care to take them
back; so he finally asks the merchant
;f ne can't make him an offer for them
at all. The merchant reluctantly OF
fers } cents for them and the trade -
made the merchant debating me
price. Later in the season say III De-
cember- the farmer comes III, but m
stead of having twenty dozen eggs ne
has only five dozen. and he goes 10 the
same merchant and notes that there
seems to be dearth Of eggs 10 the
tubs and boxes sitting around. and
when the merchant asks him what ne
has. he replies gIibly, Eggs. ne
merchant asks him what they are
worth. and he replies that as the hens
seem TO be in combine. trust or q
strike and eggs are very scarce ~ fiir
country, and the demand seems 10 e>
ceed the supply, he wants ~ cents pr
dozen for them. and the trade is madp
the farmer debating the price.
The idea that has been advanced to
deter farmers from decreasing their
ACREAGE, 10 the effect that
II would stimulate the pro
duction of other countries, is 'delu-
sion and a snare" This question has
been settled some time since to the sat
isfaction of those who have put them
selves to the trouble to investigate.
The civil war did not have this effect.
In this period of restitution the cot
ton growing resources of every part OF
the globe were tested 10 the utmost;
and in the exhibition of 1862 the rep
resentatiyes from every country from
which supplies might be expected met
TO concert measures for obtaining all
that was NdutPu alLiiOii Aii1 'i' ~
America. The colonies and dependen-
ces Of Great Britain, including India,
seemed well able to grow all the cotton
that could be required, while numer-
etIe7z.her countries were ready TO Of
fer their cooperation. \ powerful
stimulus was thus given to the growth
of cotton. in all directions; degree OF
activity and enterprise never Witnessed
before was seen in India, Turkey,
Greece Africa, West Indies, Queens
land, New South Wales, Peru, Brazil
and in short wherever cotton could
he PRODUCED; and there seemed no
room TO doubt that in a short time
there would be abundant supplies indie
pendent Of America. But ten years
aftepward. in the exhibition OF 1872,
which was specially devoted to cotton,
only a few Of the thirty-fiFe countries
which had sent their samples in 1867
again appeared, and these for the most
part to bear witness TO disappointment
and failure.
The East Indian crop that in 1919 and
1876 amounted TO 10000 bags,