The Hawaiian gazette., 1897-03-30

surplus products TO distant markets.
Products for sale should be such as
win bear the cost of transport. In this
respect cotton. even at five cents. has
greatly the advantage over corn, whose
local value is only one-half cent per
pound.
After cotton, tobacco is the next
great money crop. OF the 4SS. 900 900
pounds grown by this country last year
the South produced the chief part. Ken
lucky and North Carolina supplying
three-fifths OF the total amount. The
South can produce more OF this article
for which the demand is permanent.
North Carolina is now growing tobacco
and the census tobacco bulletin states
that the average price for this State in
1880 was go cents, and of four other
large tobacco States, including Connec-
ticut. nine cents per pound. All the
Southern States might well ask for the
privileges Of Louisiana. She grows
cotton and tobacco: is rapidly obtain.
ing the production OF rice. having in
iCreaSsd from 4 Loco. 900 pounds in 1860
TO $4,000, 600 in 1890. when the total
American production was 12S.000. 900
pounds; and she has the monopoly Of
cane sugar, We could enlarge further
upon the possibilities of Louisiana, but
our subject IS The Crisis in the
South"
6-EFFECTS OF THE MARKET UP
ON CURRENT VALUES OF
COTTON.
Cotton. like other industries. is still
under the effects of the recent financial
and trade crises. The worlds purchas-
ing power has not vet recovered. A
revival Of general trade will tavorably
afeect the values of cotton. How much
cannot be said. but conservative opin-
ion considers that rise of one per
cent. per pound, which win be nearly
20 per cent. on present values, may be
hoDed for from this source.
One other effect is said TO result from
eXorhitant estimates of the current
crop. II would be we'll IL estimations
of production were exclusively official.
IL the figures of the United States De
Fartment of Agriculture are not enough
TO guide the market they could be am
plife6, and their acceptance enforced
by the commissioners of agriculture of
the cotton States. This will not pre-
vent trading firms from keeping con-
troll of cotton movements for their own
use. should they net be published. It
should be remembered. however. that
the official statements OF the govern
ment have been prepared by the use
Of figures furnished by non-govern-
mental authorities: for example. Thos.
Ellison. H. G. Hester and others (see
United States government reports. and
this should be taken as proof of the
general accuracy of this class of pri-
waite statements.
Dealing in futures" has been shown
by the authorities of the New Orleans
Cotton Exchange TO have an effect "the
opposite of prejudicial TO the interests
OF cotton" This is in keeping with the
usual effects of speculation.
In presenting what We have con-
sidered the causes of the agricultural
crisis in the South. and the measures
for the relief OF the crisis. the nature
OF these causes must be duly consider
ed Several. we have seen. are world
wide in their operation and beyond
Our control. The chief causes have
been of slow growth. and time is re-
uuisite for their removal. There is no
specific remedy for the situation which
is due TO many causes, and relief must
come through measures from as many
sources. Moreover. we live in an era of
low prices. not only of cotton, but of
wool cereals and sugar. and the in
vention of devices TO produce these
things profitably ar their present val
nos will oDcrafa m Keen urippS Inv
The combined ingenuities of men have
reduced the cost of producing all com
modities. and as the cost of production
is the basis of values. the latter must
remain permanently low. If the South
wishes to hold its place in the pro-
duction of cotton it must consider and
act. upon this modern condition. as
those industries must also do which
hope TO survive in the competition for
producing iron and sugar