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STATE OF TRADE.
THE COTTON INTERESTS.
In our last article on the State of Trade, ed sale of this crop was, by the Union's we gave a condensed summary of the first tables, 103,805 bales. Just at this time, part of an argument given in an editorial of the practical effects of the tariff of '46 bethe “Plough, Loom, and Anvil," in confu- gin to be felt; and the increase for the tation of the views taken by the New York succeeding year is only 20,000! and the correspondent of the Union, who is also price, until very lately not above the the financial writer of the Democratic Re- cost of production. view.
When cotton was low, the purchasers sent We now proceed to an examination of their orders early and purchased largely. the statistics of that correspondent. Thus, of the crop of 1847-8, 281,497 bales
While speaking of the cotton trade, our were taken in the first seven months, beargument will be taken chiefly from the ing at the rate of 40,000 a month, leaving “Plough, Loom, and Anvil."* In the
for the last five months, 250,000—i. e., eral argument, we shall indulge in some 50,000 a month. reflections of our own.
Of the crop of '48–9, there were taken In his tables, the cotton crop of '46–7 in the first six months, 307,303 balesis set down, as usual, for that of '47, and 51,000 per month, leaving to be taken, to that of '47-8, for that of '48.
equal the last year, less than 83,000 a The whole business relative to the crop month. of '47–8 was closed in July, '48, just at Thus it appears that low prices, and a the time when the tariff of '46 came into large supply, induce larger sales in the direct and practical operation upon the early part of the year, and vice versa. business of the country.
One effect of the
“ If our readers will now re-peruse our exsystem was, however, felt before that time. The failure of the large English effect of the article to be produced by compar.
tract from the Union, they will find the whole cotton brokers had disabled them from ing the early purchases of the present year, acting as usual for the American growers, which were large, with the early purchases of and funds had fallen in consequence; this last year, which were small. bankruptcy, the fifth of that class of deal- The real facts we will now show, made up ers in one quarter of a century, being at
to the time at which we write : tributable to unforeseen causes in England, On hand in Northern ports, of which we shall not now make mention. Sept. 1.......
Shipped to Northern ports.......619,381 The crop of the present year's consumption is the first that came under the opera
Exported from do......]86,892 tion of the tariff of '46; and yet the Union On hand in do......... 59,317 246,209 82,919 335, 470 gives us tables showing a large increase of
Taken for consumption.... 483,081
482,360 consumption of cotton during three years, under the operation of a tariff whose The quantity taken by spinners, thus far, is practical effects could not be felt by any shown to be 700 bales less than in the pre
vious year. "There remain yet about five weeks crop previous to the one of the has just ended.
to make up the year, and we may now esti
mate what their consumption is likely to be, Observe—the crop produced and sold by ascertaining what has been that of the few in '47-8 is the crop of '47. The increas- past weeks. * For a critical notice of this important period
The first six months gave....... 307,393 = per month 51,200
40,000 ical, see Critical Notices of this number.
June 14 to July 25, gave....... 35,000 =
Tariff of 1842. 1842-3 increase...... 1843-4 1844-5 1845-6 66 1846-7
The remaining period may give 30,000, but | 1842 remained unchanged? Would not that is exceedingly doubtful, for within a month we have seen notice of the total stoppage of bales? And would not the demand have
we now be consuming 250,000 additional three or four large factories in our own immediate neighborhood, and the same causes that sustained the price at ten cents, as it now stop them must tend to produce the stoppage stands, instead of the low rates that have of others. Allowing, however, that 30,000 ad- prevailed through the year ? And is not ditional bales will be required, we obtain as the this the price that has been paid by the consumption of the year, 512,360; against a South, not less than $55,000,000, for reconsumption of the previous year of 531,772; fusing to allow the products of the land being a falling off of 20,000 bales in a year,
to be consumed on the land ? instead of an increase of 20,000 in ten months. The consumption and exportation of cotton
And now upon the topic of the Southern cloth for the year, notwithstanding the low factories, upon which the correspondent prices, will thus fall short of last year not less remarks that they have no protection than 20,000 bales; and then the following will against New England. It is true they be the result of the years affected by the tariffs have no legal protection against New Engof 1842 and 1846 :
land, but they have the prodigious advanTariff of 1846. tage over the New England factories, of
having their raw material growing almost
at the door of the factory. Against Eng. ..42,262
land, however, the South maintains a pro1847-8 .. 103,805
tection for herself in the shape of the tariff
..20,000 of 1846, and there is every probability This, however, tells but a small part of the
that if that were removed, she would be story. Every one knows that the consumption deluged with cheap and worthless goods is greatly affected by the price.
of foreign manufacture, and her new and
flourishing factories be broken down. Crop 952 millions pounds, average price 6 cents-
consequent increase in home demand of 57,000 Another topic of importance, touched 1844. Crop 812 millions pounds, average 8 cents.
upon by the “Plough, Loom, and Anvil,"
is that of emigration. Every emigrant to 1845. Crop 958 millions pounds, average 6 cents. Increase
the West is an additional producer of corn 1846. Crop 840 millions pounds, about 8 cents. Increase or cotton in the West, whose competition
in ditto, 33,000. 1847. Crop 711 millions pounds, average 10 cents. Increase tends to lower the price of Eastern and 5,000.
Southern products, and, we may add, to Total increase, then, over 1842, 16,000 raise the price of manufactures; and every bales ; increase of home demand over do., individual workman who kept at home 70,000 bales; showing the extraordinary and employed in manufacture, is an addipermanence and certainty of the home mar- tional consumer of Eastern and Southern ket over the foreign one.
products, whose competition lowers the 1848.-Crop again large-price seven price of manufactures, and raises that of cents. Home consumption increased corn and cotton. 103,000 bales, and exceeded by 206,000 “We are gravely assured that the conthe quantity taken in 1843, when the
crop sumer benefits largely by the low prices, but was nearly the same, showing a large de- whence come the low prices ? Is it not from crease in the power of consumption abroad. the depression of the South ? And can the 1849.—Crop 1100 millions pounds, five cents, as they could do at ten? Certainly
South consume as much cloth with cotton at average price eight and a half cents; and yet the consumption, so far as seaboard is its own loss, and the power to consuine
not. The South is now clothing the world at concerned, has, for the first time in some cloth is there diminished, and would be years, absolutely gone backward, while still more so, were it not that it is to a certain our population has increased with immense extent maintained by the introduction of a new rapidity.
species of employment, that would long since Now, if the consumption of 1847, with have been naturalized there had the plough,
the loom, and the anvil been permitted to come a crop of 711 millions, average above ten cents, increased 5000 bales, what would minishes, notwithstanding a vast increase of
together. The consumption of the North dibe the increase of the present year, with a population, and notwithstanding, the great .crop 389 millions larger, had the tariff of diminution of cost, and it does so because the
in ditto, 21,000.
in ditto, 42,000.
people who worked in mines, and furnaces, and agriculture shall furnish Great Britain, even mills, are idle and unable to sell their labor to without the aid of corn-laws, with a full obtain the means of buying food, or cloth, or iron.
supply of better food than the stale corn, “Every increase in the ratio of consumers to rancid meal, and withered potatoes, which producers tends to raise the price of food and
our farmers send across the Atlantic. cotton, and of all other agricultural products,
1. Either the farmer depends on the and to enable farmers and planters to consume contingency of a deficient supply of fooe more largely of cloth and iron, shoes and hats, in foreign countries, raising prices to th paper and books, and the producers of these famine point there ;-or, in times of latter commodities are thereby enabled to con
plentysume more largely of food and cotton, and thus it is that the owner of land benefits by an in
2. He must expect to undersell the Eucrease in the home consumption of the products ropean producer, who is able to produce of the land. Every man that is driven to seek at half the cost. the West, there to raise food or cotton, tends Again, to diminish the power of farmers and planters 1. At all times, the wealth of the farmer to consume cloth and iron, and to diminish the depends upon his ability to exchange his sume food or cotton, and thus it is that the surplus products for manufactured articles, owner of land is injured by a diminution in the
or for money wherewith to purchase such home consumption of the products of the land.” articles. -Plough, Loom, and Anvil.
2. The increase of his wealth is limited
to his ability to dispose of his surplus: that It is a fact but little attended to by the is to say, to the ability of the foreign manenemies of protection, that the wealth of ufacturer to supply him. the farmer is not to be measured by his 3. The foreign manufacturer will supply production merely, but by his power of him at prices regulated by the dearth or exchanging his surplus products. · A sheaf abundance of grain in Europe and Great of corn rotting unused in the stack is not Britain. wealth ; but when a market opens for it, then 4. If food is abundant in Great Britain it becomes wealth. Now, by the free trader's and Europe, the home demand in those plan of trusting to the contingencies of an countries for manufactures will raise their European market, the wealth of the United price, while at the same time raises the States is to be gauged by the wants of Eu- price of food in America. горе. A good crop and low prices in 5. Thus it appears that the American Europe is to bring the entire trade of producer has a double disadvantage of sellAmerica to a dead stop.
Let us suppose ing less food, and getting less for it, whenthat not a single manufactured article was ever the price of food falls in other counproduced on this side of the Atlantic, that tries. our entire commerce consisted in an ex- But there is still another consequence to change of breadstuffs for manufactures, be taken into the account. which would be the paridisaical condition The surplus of the farmer is that which of free trade, we are then under the neces- remains over, when he has fed himself and sity of keeping the prices of breadstuffs his dependents. The home market is down so low as to compete with the farm- therefore composed of those who are not ers of England and the grain-growers of engaged in farming: Europe, who produce at a half or one But these are chiefly the artisans, and third the price that we do; and being sub- handicraftsmen, and those connected with ject to this competition, we should be obliged to pay our own freights and broker- The farmer is almost always able to proages, and run our own risks of insurance, duce a considerable surplus, the sale of and other expenses, while we have twice which is his source of wealth ; and the or thrice the distance to travel over, and more there are of handicraftsmen and the political contingencies of corn-laws, others who consume this surplus, the embargoes, and maritime wars hanging greater will be the wealth of the farmer. perpetually over us; to say nothing of the When the number of handicraftsmen and certainty of a time to come, and that not operatives is sufficient to supply the farmer far distant, when the improvements in with all he needs, both partie s will sustain
each other, independently of foreign aid, much the produce of her food producers and free of the contingencies and fluctua- as of her artisans, her agricultural resourtions of the foreign market.
ces must be measured by the value of her But the process does not stop here. The manufactured exports, less her imports of handicraftsman is able to produce more
food and raw material.
Let us suppose than is necessary both for himself and the for instance, that England and America farmer. Over-production reduces the price, export equal values of home-manufactured and the farmer is the gainer.
articles. Then, if America produces the But, if there is an over-production of raw material, food, and machinery, which food, in the hope of a foreign market, the made these articles; while England, a mere handicraftsman gains, and the farmer is the workshop, imports the food and raw maloser,
terial for hers; America reaps three profThe foreign market for grain stimulates its where England reaps one.
America the over-production of grain; and being reaps the profit-1st, on the raw material unsteady, always inflicts more mischief -2d, on the food sold to operatives and than good upon the producer. And, manufacturers—3d, on the manufacture
The foreign market for manufactures itself, and the machinery employed in it. stimulates the over-production of manufac- England, importing food and raw matetures, reduces their price, and is in that rial, reaps only one profit, viz., that on the sense gainful to the farmer ; while, at the manufacture and machinery. same time, it is not subject to one half or The unexampled increase of wealth in one third the extent of fluctuation suffered England, from the time of Cromwell down by the market for food.
to the time when American manufactures Strange as it may appear at first view, | began to compete with hers in the markets we make bold to insist, that no country of the world, is doubtless to be attributed was ever made wealthy by a foreign de to the policy pursued by England, of semand for breadstuffs while we equally curing all the profits to herself, excepting, insist that a foreign market for manufac- of course, that upon the raw material of tured goods, creating a home market for cotton fabrics, which she was never able the farmer, has been the great source of to command. riches time out of mind.
Thus, the navigation laws secured to Let us consider it. The raw material her the profits of transportation, and creexported, pays a certain profit. The same ated a wealthy merchant marine, besides material manufactured and exported, pays enriching the growers of English forestthe same profit, and an addilional one for trees. being manufactured. A pound of cot- The corn-laws raised the value of lands, ton worth ten cents, pays perhaps 1 cent and enriched the aristocracy. The proprofit; worked into a piece of cloth valued tection on every species of chemical and at $1, it pays 10 cents profit. Other things mechanical manufacture created a powerbeing equal, the more a substance is ful and wealthy manufacturing interest. wrought up, the more is gained by its ex- These several branches of protection portation. It is therefore a much better were part of a grand system of protection, plan to have the raw material worked up and the one supported the other. as much as possible at home, in order that It was the policy of England first, to all the profil that can be got out of it may cultivate her waste lands, and to carry agribe got at home.
culture to the highest possible pitch. This It is a very common error with the shal- was the work of the aristocracy. To enlow free-trade economist, in whose ears the rich the aristocracy, it was necessary to word free tingles with a deceitful talis- provide a home market for their surplus, manic power, to suppose that a country the foreign market for grain yielding little must export the staff of life, in body and or no profit, because of the excessive costs unchanged, in order to be considered a of production. food-exporting country.
Her next step was to make herself the It has been long noticed, we believe in grand manufactory of the world; and the first instance by Mr. Carey, that as the one of the first consequences of her doing home manufactures of a country are as so was the enrichment of the land owners,
who found at their doors a constant and tion of which trebled from 1842 to 1847. In free market for the sale of their surplus
1849, men are unemployed, and the consumpproducts; they thus, indirectly, became
tion of fuel is stationary. producers of food for all parts of the world, doubled. In 1849 it has become stationary.
“From 1842 to '47, the consumption of iron and the protection, extended to navigation
“From 1842 to '47, the consumption of cotand manufactures, became indirectly a ton and woolen cloth was doubled. In 1849 it protection to agriculture.
has become stationary. Now, however, under the regime of “In 1846 and 1847, there was universal acPeel and Cobden, England has abandoned tivity. In 1849, there prevails a 'masterly inher protective system, and on the follow activity,' because houses and ships, and roads,
and mines, and mills and furnaces, have ceased ing principles, of which we do not mean,
to be profitable. Capital, food, cotton, wool, at present, to dispute the policy as far as
cloth, sugar, shoes, paper, and all other comregards herself. Having three objects to modities needed for the convenience and comaccomplish, the cheapening of raw mate- fort of men, are surplus, and the universal dorial, the cheapening of transportation, and sire is to diminish production to the level of the cheapening of food-the cheapening of consumption, while tens of thousands of labormanufactures having been carried to the
ers can purchase neither food nor clothing. lowest possible degree, by the effects of The war against labour and capital,' agreea
bly to the doctrine of the Union, has ceased, competition--it was proposed to subject the
but with each successive day labour and capihome producers of food to a foreign com- tal become less productive." petition, in order to bring food to bear some just ratio, in price, to manufactures. A great deal of the private and commerIt was proposed, also, to subject transpor- cial distress of the present season has tation to a foreign competition, in order been attributed to pestilence, and it is very farther to lower the prices of manufactures certain that the business of the cities and in foreign markets; and, as a part of the towns has been immensely disturbed by same system, tariffs were to be lowered on
No species of property feels the raw material of industry, to enable the lighter fluctuations of the general inmanufacturers to work with a smaller out
terest more keenly than periodical works. lay of capital
From our own observation, we can say, This entire system, constructed not for with confidence, that there has not been a the benefit of England or Great Britain, time since 1827 when persons of moderate so much as to sustain the interests of the
means, indulging in moderate degrees of manufacturing classes, now deemed, by luxury, were more straitened or alarmthemselves, to be the leading interest, and ed for their incomes, or more disposed to therefore entitled to subordinate the others, be economical than during the past season. cannot be subjected to criticism in its de Popular magazines have, in general, as an tails, but only in its principle; that principle article of almost pure luxury, been an exbeing to support one interest by the cellent and true index of popular feeling sacrifice of all others. It is diametrically in regard to private expenditure, as they opposed to the grand protective system of have, perhaps, never suffered more than Great Britain, of which the design was, to during the last four months. Other inmake the plough, the loom, and the anvil, terests have been affected in the same neighbors and equal partners in the great way. Of works of art, fewer than ever firm of the national enterprise.
have been disposed of at reasonable prices, To return, after these desultory remarks, Paintings, an article of pure luxury, can to the argument in the “Plough, Loom, be hardly said to have sold at all. and Anvil.”
The lithographic print establishments in
New York, whose business is a very good “ In 1842, we imported little, and were una- index of the amount of pocket-money and ble to pay the interest on our foreign debt.
feeling of pecuniary ability among the " In 1846 and 47, we imported largely, and poorer classes of the community, both in paid off much of the principal of our debts. " In 1849, we import about the same amount
city and country, are at present making per head, and run largely in debt.
but few sales, and those moderate ; nor do “ In 1846, the demand for labor was great,
they look forward to any immediate imand men consumed largely of coal, the produc- 1 provement of the business—that is to say,