17 



creasL' over 100 per cent, from that of 1S50. Tho increase, as shown by the 

 mctitiily reports for July aud Soptember, U large, perhaps 100 per cent. This 

 would raise the flax produced here to 7,-557,686 pounds. The increased pro- 

 duct of flax for Europe and America may be placed at 57,500,000 pounds. 



General Summary. 



A general summary of the foregoing statistics gives the following results : 



Cotton production f.f 1860, (lbs.) 2, 379, 230, 800 



Cotton production of 1864, as shown by estimated imports of 

 Great Britian, and 100,000,000 pounds consumed by the 

 United States, as supposed, (lbs ) 1, 166, 000, 000 



Deficit of cotton in 1864, (lbs.) 1, 213, 230, 800 



From which deduct : 

 Increased wool production, being, as estimated. 102, 000, 000 

 Increased flax product, being, as estimated. . . . 57, 500, 000 



159, 500, 000 



Deficit in 1864 of textile raw material, (lbs.) 1, 054, 730, 800 



After the restoration of peace, should it be this year, the cotton crop of the 

 United States in 1865, and the increased product of the world, could not be 

 greater tlian this deficit; so that an overproduction of textile material cannot 

 occur prior to 1865. As long as the war continues this cannot occur for several 

 years, from the increased cotton product of foreign nations and of our own, and 

 their increase of wool and flax. 



What should the fanner do as to increasing his Jiock of sheep in 1864? 



Next summer and fall this practical question will present itself to every wool- 

 grower. The high price of pork will create an active demand for mutton ; and 

 looking to the offers, then, for his sheep by the butcher and the prospective 

 market for wool, he will ask, what shiU he do ? 



The answer is furnished by the foregoing examination of the market for tex- 

 tile material. If peace is conquered next summer, wool will rapidly decline in 

 1865. The clip of that year will not command a price justifying his refusal to 

 Bell at least the older sheep. If the war must exist during the year 1865, 

 with large armies in the field, he may safely continue the full increase of his 

 flock. Wool has evidently reached its maximum price ; but should the blessings 

 of peace not be attained this year the prices will recede but slowly, and will 

 contmue to be remunerative until peace is achieved. 



ISAAC NEWTON, 



Commissioner 



THE PE0P03ED TAX ON TOBACCO LEAF. 



In his letter of November 30, 1863, to the Secretary of the Treasury, Mr. J. 

 J. Lewis, the Commissioner of Internal Hevenue, recomm.-nds a tax on tobacco 

 leaf of twenty cents per pound, without any drawback of this tax when the 

 tobacco is exported. He makes this recommendation on the facts that our 

 tobacco is heavily taxed by foreign nations, that their demand has been con- 

 stantly increasing, whilst our domestic production has been greatly diminished 

 by the war, and, therefore — such is his inference — this tax would not scsriously 

 affect the export trade of tobacco. In other words, he thinks that foreign gov- 

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