The Penn's Grove record., 1896-07-10
THEPRIOEOFO0TT
GOVERNED BY THE LAW OF SUPPLY
AND DEMAND.

Free silverites Should Study This History
of PRODUCTION and Prices Since 17eI.
What the Record of Crops P~roves-sn-
yer Has No Erect on Prices.
The spread of free coinage sentiment
in 1.-THE southern states. has been almost
entirely due to the belief that the low
price of cotton was caused by the adop-
tion of the gold standard. The main
argument Of the advocates Of o 30 cent
dollar in this section of the country has
been that the alleged demonetization Of
silver was the cause Of the marked fall
in cotton during the past 80 years.
A bulletin just issued by the depart
ment of agriculture giving the history
Of the production and. of cotton for
over 100 years proves conclusive1y that
the use of silver as money has nothing
to do with the decline in value of cot
ton. Beginning with 1871, with a crop
of $3.50 bales, worth on an average 80
cents per pound in tho United States,
the production rapidly increased during
the next ten years to 210, 526 bales, and
the price at the same time advanced to
A cents. In 1902 the crop was 241, 228
bales, of which 1870, 619 were shipped to
Great Britain, but, owing to the great
" increased supply and a large stock
$4,000 bales-on hand at the close Of
the year, the price dropped to 10 cents
per pound in New York.
In spite of this remarkable decrease
in price the crop increased to $40, 900
bales in 1910, worth 16 cents. In 1915
the crop was 457, 500 bales, but the
enormously increased demand from
Great Britain forced prices up to 29H
cents, and the next year to 81 cents.
These high prices caused an.inorease in
the acreage of cotton, and by 1890 the
crop was COG, 061 bales and the price
dropped to II cents. The production in
creasing, prices fell, in 1922, to II. 40
cents, and in 1897, with q crop of 957,-
2S1 bales, and with 562, 800 bales in
stock, to 9. % cents.
By 1884 an increase in the European
demand for cotton had advanced the
price to nearly 10 cents, with O crop Of
1,205,394 bales. For the next five years
prices fuctuated widely, averaging from
~ to 90 cents per pound, and when, in
1910, the crop amounted to 2,177, 855
bales, the average price went down to
500 cents. The great crops and the &C.
cumulation of large stocks in Liverpool
caused q still further decline, In 1845
reaching 6 cents, the lowest recorded
price, with q crop Of 1884, SOB bales.
By 1850 prices had advanced to 10. "a
cents, and for the next ten years aver
aged about II cents, the crop increasing
to $685. 57 in 1856 and to 4,S61, 292
in 1860.
The wal which broke out in 1861
brought on the "cotton panic" which
lasted to 1866, when prices went as high
as 81. 80 per pound. The close of the
war left many of the cotton growing
states in an impoverished condition, and
it was not until 1876 that the crop was
as large as that Of 1860. In the mean
time the price had fallen with the grad
ual increase in production until in 1871,
with o crop of 4,352,317 bales, it aver
aged 16. 90 cents. In 1872 cotton was
badly damaged by excessive rains, and
with o crop of only 1914, 351 bales, the
price reached 20. 48. In 1880 the crop
was 5,761, 252 bales and the price had
fallen to IL. 02.
The increased European demand for q
time prevented prices falling to the level
of the decade previous to the war, but
by 1889 the stock on hand began to in
crease beyond the demand, and in 1891
the unheard Of crop Of S,652, 597 bales
forced the price down to o. 3 cents. In
1899 the crop was 9,035, $40 bales, the
stock on hand amounting to 2,258, 900
bales. Prices fell to 7.64 cents. but ad-
vanced in 1893, when on account of IN
favorable weather the crop fell off to
6,700, 865 bales, to s.24 cents. An in
crease to 7,549,817 bales in 1894 was
followed by a decline in price, and the
greatest crop on record in 1895, amount
ing to about 9,476, 1876 bales, brought
down the price to 6.26.
The following table gives the compar-
alive crops and stocks of cotton and the
lowest and highest prices in the United
States for two decades, showing that
prices reached the lowest point during
the years when the accumulation Of sur
plus stocks was the largest, and that
those were the years of largest crops: