260 



COTTOF. 



On February 23d, orders were issued from 

 the Treasury Department to close up all agen- 

 cies for the seizure of cotton or other property 

 belonging to the late Confederate States Gov- 

 ernment, and to settle up all accounts at once. 

 But Congress soon after laid a tax of three 

 cents per pound upon all cotton produced. 

 The tendency of this measure was unfavorable 

 to the crop, by the embarrassments caused in 

 its collection, and by burdening it with an addi- 

 tional charge in its competition with the foreign 

 staple. The embarrassments arising under the 

 assessment and collection of the tax caused 

 very serious and extensive complaints. Ap- 

 prehensions were also awakened of an unfavor- 

 able effect from this tax upon the cotton man- 

 ufactures of the country. These manufactures 

 are practically confined to the consumption of 

 the American staple. Their machinery is not 

 adapted for the use of the short staple of other 

 countries, and, if it were, there would be the 

 necessity of adding to the price paid at Liver- 

 pool the cost of transporting the India article 

 here. The Lancashire manufactures of England 

 have a variety of staples to which they can 

 resort rather than pay the tax. By mixing a 

 certain proportion of Eastern cotton with 

 American, they can set off the extra price of 



the latter arising out of the tax, and yet on 

 many heavy goods, and on dyed goods espe- 

 cially, produce an article as marketable as 

 though made wholly from Southern cotton. 

 Hence the tendency of the tax would be to 

 divert cotton manufacturing to Lancashire, and 

 to give to English cotton goods the ascendency 

 over American, not only in foreign countries, 

 but in this market. 



It was suggested that if the tax deprived tho 

 planter of a profit on his crop, he must neces- 

 sarily purchase so much less of home products. 

 If one portion of the country suffered, the 

 other could not expect to be prosperous. On 

 a crop of two million bales the tax is thirty 

 millions of dollars, in addition to a personal 

 income tax. The labor of the South might 

 also be diverted from cotton-growing to the 

 cultivation of breadstuffs, of which her broad 

 cotton lands would produce a large surplus 

 and make her a competitor with the West for 

 the foreign markets. 



The disturbances in this country have had a 

 very stimulating effect on the culture of cotton 

 in foreign countries. This is shown by the 

 importations into Great Britain, where the 

 importations during the ten months ending 

 October 30th, were as follows : 



COMPUTED EEAL VALUE OF IMPORTS FOE TEU MONTHS. 



