The Express.
London, England, 1861-10-07 00:00:00

iIIITA IN I A.

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LoNDQN, MONDAY, OCT. 7.

TO OUR READER&
SPORTING INTELLIGENCE.

A !ate edition of the ILepreas u publi.died every
evening during the racing 111111A011, containing the
results of the day's races.

Wes► by week the disorganization in tho cot-
ton trade—the greatest manufacturing interest in
the kingdom—becomes more strongly marked. It
forms the most serious commercial feature of the
day. The adversity of the cotton interest means un-
questionably a great diminution in the profits of
the nation, for many other branches of business
must be more or lees affected by it. Thu fact
that the price of cotton is now higher than at any
period since the year 1836, indicates the ettraor-
dinary character of the zrisis upon which we are
entering. The subject is a most extensive one.
The position and prospects of the supply, and
their bearing upon the price of cotton, form but a
portion of it. The condition of the manufacture
itself, ae afiecting, firstly, the spinner and mane-
facturvr, and, secondly, the working classes, will
soon be pressed forcibly upon public attention.
Then the state of the foreign markets and the
prospects of consumption might claim a chapter
for themsch•es. All that we can do is to lay
before our readers a few of the more salient
facts.

The total computed stock of cotton at Liverpool 1
on Friday was 711,900 bales, whilst at the cor-
responding period of last year it was 834,190. The I
relative falling off in the stock of American is far
more decided, the total of that growth now held I
being little over four hundred thousand bales. 1
The importation of American being at an end, it is 1
evident that, wore the purchases to be continued
at the rate witnessed during the last five or six i
weeks, the whole of the stock of American cotton '
in Liverpool would be absorbed by the end of '
next mouth. This phenomenon, of course, will
not occur, as the rapid rise in prices repels buyers '
for actual consumption, and even chucks the
ardour cf speculators. Yet, as steady
draughts un the Liverpool stock are quite I
in the usual course at this period, peed-
ing ieplenislunent from the American
source,. of supply, now exceptionally shut up, any
falling d in those draught& merely serves to show
how completely the trade is diverted from its
ordinary path. The extensive introduction of the
apeculati'.o element into the cotton trade is, per-
haps, the most noteworthy feature of all, se mark-
ing its increasing disorganization. It is observed
that the present speculation for higher prices in
cotton is being carried on to a very great extent
by persons not regularly engaged in this branch
of business. It would almost appear as if many
of the legitimate traders retreated gradually into
a secondary position as soon as political uncer-
tainties began to overshadow ordinary commer-
cial calculations. This is just the point at which
the speculator rushes in. The atmosphere of
gambling in which he thrives, and finds Ins facul-
ties quickened to their utmost power, paralyses
the steady trader, and brings his transactions to a
standstill. The latter declines the risk which the
former makes it a business to assume. It is not only
the raw material that is attracting an extraordinary
amount of speculative attention. In addition to
the operations of the local capitalists--and their
number is great because it is less of a fashion in
those parts than in the metropolis to live up to or
beyond one's income—money has flowed to Man-
chester,fur investment in the matnefact.erni article,
from London, Liverpool, and many other parts of
the country. It appears, too, that the mania has
seized some of the spinners and uutuufacturers
themselves, who, quitting their legitimate walk,
have let themselves run extensively into stock, as
the phrase is. This signifies manufacturing on
speculation, instead of to order; and its risk is
aegravated by the fact that such operations stand
already upon the insecure basis of a very high
price of the raw material, produced by artificial
causes. The first impulse to the speculation in
the manufactured commodity arises from the
general resort which is now being had to
" short time " in the mills, and from the pro-
spect that the excessive and still increasing coat of
the raw material will yet cause a great curtailment
in the production of goods. The market for these,
like every other, is of course affected by the varia-
tions in supply and demand ; and it is argued that,
as the supply falls off, the prices of existing goods
must rise, particularly if cotton continues to rise
also, thus putting it absolutely out of the power of
mannfacturers to produce hereafter goods at the
prices current now. But then arises the very im-
portant question of the effect which all this may
have in checking the consumption of our manu-
factures abroad. The nearer foreign markets refuse
to respond to the rise in Manchester, and the ad-
vices from the more distant markets have long been
very unfavourable. There can be no doubt that
many of these, particularly the Indian, are largely
overstocked ; and the returns from some
quarters do not cover prime cost, to
say nothing of profit. Home speculators in
the manufactured article have, therefore, to bear
in mind even the contingency of a return of goods
from India. If the prices of goods are pushed up
too fast at Manchester, it may become cheaper to
fetch tlat in back from distant parts, the coat rat•
withstanding. At the same time, it may be argued
that it is safer to speculate in the manufactured
than in the raw commodity, because the prices of
the former are now far too low in relation to the
latter. The difficulty experienced from this cause
by spinners and manufacturers desirous of carry-
ing on their business on legitimate principles has
latterly become greater than ever. An eminent
firm pits out that, during the past month, the
rise in time price of cotton has been 12 or 15 per
cent., and that in yarns and goods only 5 to