185362.] FOUR GENERAL CONCLUSIONS. 263 



3rd, American Cotton must always command a CHAP. 

 higher price than Indian. This conclusion is already VL 

 proved by what has been stated in support of the previous 373 

 proposition. New Orleans Cotton is undoubtedly better 

 than any' which has as yeb been produced in India. A 

 pound of New Orleans makes much more yarn, and from 

 the length of the staple can be twisted much more rapidly 

 into yarn than a pound of Indian Cotton. Thus a pound of 

 New Orleans Cotton must always fetch more than a pound 

 of Indian Cotton, because it furnishes a larger quantity and 

 a better quality of wool. 



4th, The demand for Indian Cotton must always 374 

 depend upon the supply of American. This conclu- 

 sion may also be inferred from the previous propositions. 

 The manufacturer will always prefer New Orleans to Indian 

 Cotton ; and Indian will only be purchased when New 

 Orleans is scarce and too highly priced. The position of 

 Indian Cotton in the English market is thus strictly a 

 subsidiary one ; and its utility to the manufacturer is 

 more in the way of keeping down the price of New Orleans, 

 than of being actually employed in the manufacture of goods. 

 The tendency of New Orleans to rise in price is checked by 

 the importation of Indian Cotton ; and whenever the dispa- 

 rity of price is such that the same money's worth of Indian 

 staple will make more money's worth of yarn than New 

 Orleans, then the Indian will be largely in demand. The 

 improvement of communications in India, and the large in- 

 crease of Cotton cultivation in the latter country, will 

 probably render the Indian Cotton better and cheaper; but 

 until this Cotton can be laid down in Liverpool at such a 

 price, and in such quantities, as to render the culture of 

 American Cotton a loss to the Planter, the American will 

 always hold its own, and the demand for Indian will depend 

 upon the supply of American, Manchester looks to India 



