The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-01-23


the market of the world, without a de-
mand or necessity for it, it only answers
the purpose of visible supply, an active
c0adjutor of speculative gamblers, and
dangerous menace to future values.
The world spends annually about
| 500 O00O 600 for cotton goods. If we
send out $500, 000-bale crop we get this
money for it, and the consumers will com
pete among themselves for our product,
and the producer substantially dictates
| the price. If we send out 10,000,0OO-
same or less, and leave us to compete
among ourselves for the price, our labor
and expenses remaining the same.
The world has to be clothed. The con-
sumption of cotton is nearly nhexible
The production is flexible. With these
conclusions it resolved itself into the de-
duction, How are we to destroy this an
nual surplusT' The only safe and prac-
ticable way suggested is by a judicious
decrease of acreage, say of % per cent;
we would then realize 20 per cent in
crease in the price, and still have 5,OO0,-
600 acres of land to raise food crops
upon, which, if raised in sufficient
quantity on the farm, instead of cotton
as its uncertain security, will make an
other legitimate difference in favor of
the cotton grower of 20 per cent.
There can be no palmer object lesson
portrayed than that of this last season
of the result of decreased production. AS
another lesson, as to the efficacy of the
decrease of production as n stimulus to
the increase of price, we will cite the his
tory of the cotton market in the year
1915. The average price of cotton that
year was 5.5G. The production was de-
creased the next year by general consent
about . per cent and cotton values rose in
consequence thereof to 1877 in 1916.
The farmers of the South, recognizing
that they could not raise cotton profitably
even at this price, though having the
| benefit then of slave labor in their favor,
again reduced the acreage the next year,
| 1877, 10 per cent. Cotton values CON
tinued to rise commensuratey with the
decrease of acreage, averaging that year
11.21 cents. A 10 per cent reduction
resulted in a 80 per cent rise in values
and this in the face of the stagnaton of
trade in England, due to the great Irish
famine that year, the rapid full in ster-
ling exchange in consequence of the ship
ments of breadstuffs to the United King
DOM and the reduction of 10000 bales
per week in the consumption of manufac-
turers.
As an evidence of the influence of over
production | present the homely ilustra-
ton: A farmer goes into his market
town with IL basket full of eggs; it is the
first of May, and the poultry is produc-
ing freely. He presents his eggs to the
merchant for sale and is met with the in
teligence that he has all the eggs that he
can handle; that the market is glutted.
and the supply exceeds the demand The
farmer has more at home than he needs,
and he does not care to take them back,
so he finally asks the merchant if he can't
make him an offer for them at all. The
merchant reluctantly offers ) cents for
them and the trade is made-the mer-
chant debating the price. Later in the
season, say in December, the farmer
comes in. but instead of having 90 dozen
eggs he has only five dozen, and he goes
to the same merchant and notes that
there seems to be a dearth of eggs in the
tubs and boxes sitting around and when
the merchant asks him what he has he
replies gliby, Eggs" The merchant
asks him what they are worth, and he re-
plies that as the hens seem to be in COM
bine, Il trust or Il strike and eggs are
very scarce in the country, and the de-
mand seems to exceed the supply, he
wants 30 cents per dozen for them, and
the trade is made-the farmer debating
| the price.
The idea has been advanced to deter
farmers from decreasing their acreage,
to the effect that it would stimulate the
production OF other countries, is Il "delu-
sion and II snare This question has
been settled some time since to the salts
| faction of those who have put themselves
to the trouble to investigate.
The civil war did not have this effect.
In this period of destitution the cotton
growing resources of every part of the
globe were tested to the utmost; and in
the exhibition of 1862 the representatives
from every country from which supplies
might be expected met to concert meas
llres for obtaining all that was wanted
without the aid of America. The colo
MES and dependencies of Great Britain.
including India, seemed weel able to
grow all the cotton that could be re-
quired, while numerous other Countries
were ready to offer their cooperation.
A 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, Tur-
| key, Greece, Africa. West Indies, Queens
land, New South Wales, Peru, Brazil,
and i'll short wherever cotton could be
produced: and there seemed no room to
doubt that in a short time there would be
abundant supplies independent of Amer
lea. But 10 years afterward, in the
exhibition of 1872, which was especially
devoted to cotton, only a few of the 81
countries which had sent their samples
l. ~ it'- hShih hppttItu, anu tHtSc lbE
the most part only to bear witness to dis
| appointment and failure.
The East Indian crop. that in 1875 and
'I6 amounted to 100000 bags. amount
ed in 1894 to 100000. The Egyptian
crop amounts now to about the same it
did then. Brazil has fallen from 402. 600
down to 100000 last year. and sundrcs.
that is to say. all other countries have
fallen from 100000 to 100000. and the
entire foreign production amounts to
only 1,OOO,5IJ American bales there
fore we have little to fear from foreign
countries.
by Il reasonable curtailmcnt of cotton
acreage, and planting the same in home
supply crops. it figures largely both in re-
ducing the cost of the production of what
cotton we might raise. in that we can
raise bread and meat very much cheaper
than we can ordinarily expect merchant
to supply the same, taking the risk that
he is obliged to take in having cotton
only rs II security, which is subject to
be cut off by seasons, and if not cur
tailed by seasons. subject to the greater
uncertainty of being able to get anything
for it, if seasons are propitious, and Il
large production follows. On tin, other
hand. decreasing acreage is an unfailng
leverage in raising values
The farmer who lays away diversified
farming and deyotes his labor and CAPT
tai to the raising of cotton alone. be-
comes simply Spectator and hazards
what he puts up on the bull side of
the market. The commission and per
/ nj hot hn tS f,,l1t tNl