The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1896-01-29

upon the market of the world, without
demand or necessity for it, it only
answers the purposes of visible sup
ply, an active coadjutor of speculative
gamblers, and dangerous menace to
future values.
The world spends annually about
$400, 100000 for cotton goods. If we
send out 6, 6,500,OO0 bale crop we get
this money foi it, and the consumers
will compete among themselves for
our product, and the producer sub.
stantially dictates the price. If we
send out a 10000, ,O0O-bale crop, as we
did in 1894, they pay the 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
consumption of cotton is nearly in
flexible. The production is flexible.
With these conclusions it resolved it.
self into the deduction, "How are we
to destroy this annual surplus?' The
only safe and practicable way sug.
gested is by judicious decrease OF
acreage say of 25 per cent. !; we would
then realize rs per cent. increase IN
the price, and still have 5,OOO,O0O
acres of land to raise food crops up
on, which, if raised in sufficient guam
tity on the farm, instead OF being pur-
chased at longtime prices, with cot
ton as its uncertain security, will
make another legitimate difference in
favor of the cotton grower OF 25 per
cent.
There can be no palmer object les
son portrayed than that of this last
season of the result Of decreased pro-
duction. As another lesson, as to the
efficacy of the decrease of production
as a stimulus to the increase of price,
we will cite the history of the cotton
market in the year 1S45. The average
price of cotton that year was $50.
The production was decreased the
next year by general consent about 9
per cent. and cotton values rose in
consequence thereof to 7.S7 in 1916.
Thy farmers of the South, recogniz-
ing 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, 1S47, 10 per
cent. Cotton values continued to rise
commensurately with the decrease of
acreage, averaging that year 11.21
cents. A 19 per cent. reduction re-
suited in a SO per cent. rise in values,
and this in the face of the stagnation
of trade in England, due to the great
Irish famine that year, the rapid fall
in sterling exchange in consequence
of the shipments of breadstuffs to the
United Kingdom, and the reduction
of 10000 bales per week iRthe con-
sumption of manufacturers.
AS an evidence of the influence of
over-production I present the homely
illustration: A farmer goes into his
market town with a basket full of
eggs; it is the first of May, and the
poultry is producing freely. He pre-
sents his eggs to the merchant for
sale and is met with the intelligence
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 mer-
cant if he can't make him an offer
tor them at all. The merchant reluct-
antly offers cents for them and the
trade is made-the merchant debating
the price. Later in the season, say in
December, the farmer comes in, but
instead of having twenty dozen eggs
he has only five dozen; and he goes
to same the 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 replies that as the hens
seem to be Ia a combine, trust or a
strike and eggs are very scarce in the
country, and the demand seems to ex-
c,ed the supply, he wants 20 cents
per dozen for them, and the trade is
made-the farmer debating the price.
The idea that has been advanced
to deter farmers from decreasing their
acreage, to the effect that it would
simulate the production of other coun-
tries, is a ''delusion and snare. !"
This question has been settled some
time since to the satisfaction of those
who have put themselves to the
trouble to investigate.
The civil war did not have this ef-
feet, 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 ex-
pected met to concert measures for OBJ
tanning all that was wanted without
the aid of America. The colonies and
dependencies of Great Britain, includ-
ing India, seemed well able to grow
all the cotton that could be required,
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, Turkey, Greece, Africa, West
Indies, Queensland, New South Wales
Peru, Brazil, and in short wherever
cotton could be produced; and there
seemed no room to doubt that in 6
short time there would be abundan
supplies independent of America. But
ten years afterward, in the exhibition
of 1872, which was especially devoted
to cotton, only few of the thirty-fivt
countries which had sent their sample!