Congress has apparently decided to put a small excise tax
on the production of cotton, instead of an export duty, which would require an amendment of the Constitution. The Senate reported in favour of a tax of two cents a pound (1d. a lb.) ; the House of Representatives wished for a tax of five cents (2d.) a pound, and it is thought that a compromise of three cents (lid.) will be ultimately agreed upon. This will not make any very im- portant difference in favour of our India cotton, but in the present state of the Bombay markets even lid. additional• cost per pound to the American cotton may keep a good deal of land under cotton cultivation in India which would otherwise revert to its condition precedent to the American war.