Addresses of the Philadelphia Society for the Promotion of National Industry

by John Richardson, of Liverpool, and dated the 11th of November, 1818.

"It was confidently expected by many, that prices would "have rallied before the close of the year; but the immense 66 quantity of East India cotton which is weekly forced on "the market by auction, renders this speculation extremely "uncertain; particularly as by a recent discovery in the pre"paration of Bengals and Surats, the spinners are enabled "to make better yarn and spin finer numbers; this has very "materially interfered with the consumption of American “cotton, and will prevent it from ever reaching such prices 66 as it has of late years done."

This letter arrived in Philadelphia in December. There was then ample time to profit by the important information it contained. But its salutary warnings, like those of 1817, were totally disregarded. The parties immediately interested, and the country at large, reposed in a dangerous security. There were no preparations made to parry the stroke, by the infallible means of providing a home market, a measure dictated by every principle of regard for self-interest, as well as for the welfare of the nation. The duty of twentyseven and a half per cent. on cotton goods, (except on those at or below twenty-five cents per square yard, which are dutied as at twenty five cents,) remained unaltered, notwithstanding the earnest and reiterated applications of the manufacturers-the ruin of hundreds of our best citizensthe suspension of establishments on which millions had been expended-and notwithstanding so large a portion of the men who had been employed in them, were driven to idleness and want, many of them with large families. A prohibition of low priced muslins at that period, and an advance of duty on high-priced to 40 per cent. would have produced such a great increase of consumption in the United States, and of course such a reduction of the quantity in the British market, as to prevent any material depression in the price, and would have saved the planters and the nation millions of dollars, as will appear in the sequel.

Great Britain derives nine-tenths of her supplies of cotton from the East Indies, South America, and the United States. Of each in order.

East India Cotton.

The importation of cotton from the East Indies into the

Prices of East India and American Cotton.

205

British dominions, to any considerable extent, is of recent date. The whole amount in twelve years, from 1802 to 1813 inclusive, was only 188,911 bags,* or an average of about 15,700 per annum.

There have been two objections to the general use of this species of cotton, the shortness of the staple, and the great want of care in cleaning and packing it. The latter has been in a great degree obviated, so far as regards a large portion of what is received in England. But in some cases it still exists; hence the great difference of price between the extremes, which is frequently three or four pence per lb.

The staple has likewise been considerably improved. We have now before us printed circular letters which shed strong light on this subject, and cannot fail to be duly appreciated by every enlightened planter. One is from the house of Humberston, Graham, & Co. of Liverpool, and dated as early as June 28, 1817. "With the chief part of "the Uplands now brought forward, East India cotton be"gins materially to interfere: and if the quality of the crop 66 yet to be received should not improve, this will occur, to "a more considerable extent; for in the late imports of "Bengal cotton, there is a decided improvement in staple; "and, by reference to the annexed list of sales, it is evi"dent they are coming into more general use.”

There is likewise an item in the London price current for August 31, 1819, which confirms the preceding statement. Surat cotton is therein quoted at 7d. to 94d.: but Surat extra fine is 9d. to 11d. This implies a great improvement, either in the quality of the seed, or the mode of preparation, or both: and when the strong incentive to further improvement is considered, it may be presumed that every effort will be made, and no doubt successfully, to remove any existing objections. It is to be observed, that in no other price current that we have seen is this item of Surat extra fine cotton to be found.

One other remark is called for. The best Surat cotton in the Liverpool market generally comes very near in price to the Tennessee.

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The improvements made in the culture and preparation of the East India cotton, have been greatly promoted by the very high prices of ours and those of the Brazils, Bourbon, &c. It is only wonderful, that they did not take place much earlier.

We annex a table of the importation of East India cotton into Great Britain, for two successive periods, each of four years. Imported in 1811

Bags.

14,646 Imported in 1815

23,357

1812

2,607

1816

30,670

This table affords matter for serious reflection, not merely to the cotton planters, but to the people and government of this country. It speaks volumes on the rapid strides making in the British markets by the East India cotton. The increase is probably without example. It was nearly four-fold in 1817-and more than two-fold in 1818. The capacity of the East Indies to produce this article is without limits. By a Calcutta paper of Jan. 20, 1819, it appears that

Bags.

The export of cotton from Calcutta in the year 1818 was 336,848 from Bombay

equal to about 190,000,000 lbs.

323,807

660,655

It is supposed by many of our citizens, that there is a radical and insuperable inferiority in the East India cotton. This in an egregious error. The finest muslins in the world are manufactured in Hindostan, of the cotton of that country. It therefore follows, that the great superiority assumed for ours cannot be regarded as any security against the East India competition. We are informed by a writer of high authority, that "a fine sort of cotton is still grown "in the eastern districts of Bengal, fit for the most delicate "manufactures."†

* Seybert, ibid. and Journal of Trade and Commerce, vol. ii. page 113.

† Colebrook's Remarks on the husbandry and internal commerce of Bengal, page 138.

"A perennial species, which produces cotton of uncommon "beauty and excellence, has been already introduced from the "Island of Bourbon."

The immense extent of the cotton district, and the cheapness of labour, in the East Indies, render that country a most formidable rival to the United States. In the event of a great extension of the culture of this "fine cotton, fit for the most delicate manufactures," it will probably exclude. us from the European market almost altogether: and unless greater protection than three cents per lb. be afforded to our planters, it may very materially and injuriously affect the consumption of their cotton in our own markets. "The price of their daily labour, when paid in money, "may be justly estimated at little more than one ana sica, "but less than two-pence sterling. In cities and large towns, "the hire of a day labourer is, indeed, greater; because "provisions are there dearer, and the separation of a man "from his family renders larger earnings necessary to "their support. But even in the neighbourhood of Calcutta, 66 men may be hired for field labour, at the rate of two "rupiyas and a half per mensem, which is equivalent to "two pence half-penny per diem. Compare this with the "price of labour in the West Indies, or compare with it "the still cheaper hire of labour by a payment in kind, a "mode which is customary throughout Bengal. The allow "ance of grain usually made to strong labourers, cannot "be valued at more than one ana, and does in reality cost "the husbandman much less. The average would scarcely "exceed a penny half-penny. In short, viewed in every way, "labour is six times, perhaps ten times, dearer in the West "Indies than in Bengal."†

"The prime cost [of cotton] reduced to English money, "is less than two-pence per pound avoirdupois."‡

In seasons of difficulty we eagerly catch at any hope, however slender. Hence many of our citizens shut their eyes to the real state of the case. They flatter themselves that the East India cotton has proved so far inferior to ours, that the competition is nearly at an end. This fond hope is fostered by various letters from England, and paragraphs from English papers, stating that overland dispatches had been forwarded, countermanding the orders previously given for shipments of India cotton, on account

* Idem, p. 143, † Idem, p. 131. + Idem, p. 142.

of its extreme worthlessness. To this is added another article of information, that orders had been received from Russia for cotton yarn, expressly stipulating, that proof shall be made on oath that it is not spun of East India

cotton.

Were the inference drawn from this intelligence correct, it might afford some consolation to our planters, as affording a distant prospect of retaining their ascendency in the British markets. But if unfounded, it may lead to pernicious errors. We shall therefore fully investigate the subject. The importation of cotton from the East Indies has not diminished. For the first seven months of 1818, it was only bags, 130,000 Whereas for the same period in 1819, it was

141,900*

We do not, however, lay much emphasis on this fact. The countermand, it may be said, could not have taken effect. This we admit. But the price affords an infallible criterion. Had East India cotton proved so very indifferent as is stated, the price must have fallen in an equal ratio. Let us examine the fact. It is of great importance, and tends to ascertain the future prospects of this country in regard to its greatest staple.

We annex the prices of New Orleans, Georgia, Surat, and Bengal cotton, in Liverpool, on the 28th of November, 1818, previous-and on the 12th of May, 1819, subsequent -to the ruinous reduction of price, and likewise on the 30th of September, 1819.