CHAPTER XXIX. 



PRICES I THE PUZZLING PROBLEM OF COTTON VALUES 



There is an economic principle which applies to 

 all products of the land and to all products of the 

 shop: The final utility of the product shall determine 

 its market value. When a commodity becomes 

 necessary for any purpose, it will bring in the mar- 

 ket whatever price is necessary to produce it once or 

 to reproduce it again. 



If it costs ten cents to produce a pound of cotton 

 and ten million bales are wanted, then if there is 

 land enough and men enough who will be satisfied 

 to produce it at that price, ten cents a pound will be 

 the market price. But if twelve million bales are 

 needed and wanted, you may or you may not have 

 a different proposition: all available cotton land 

 may be already in use; other workers may not care 

 to engage in the work at the price offered; and if 

 they do not turn to it, the increased quantity cannot 

 be grown. What follows? The economic princi- 

 ple answers: If cotton is in greater demand than 

 other things, then a higher price will be offered for 

 it in order that laborers may be attracted to it ; that 

 lands now given to other products be given to cot- 

 ton; that owners of land on which ten-cent cotton 

 would not pay, shall have the inducement of higher 

 prices. So the additional two million bales are 

 produced. On this basis an increase shall be 



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