The Sun.
London, England, 1839-05-28 00:00:00

COTTON SPECULATIONS.

It has happened, by a singular fatality, for years past
that panics or pressure in the money market have almost
invariably been preceded, and doubtless to a
great.
extent caused, by speculations in the cotton market of
Liverpool, generally as reckless and ill-grounded as in
the present instance. The present cotton speculation,
which may now be said to be on its last legs, was, it will
be remembered, in the first instance got up by Mr.
Biddle, and supported by the bank of which he was then
the head. The facility with which he was enabled to
obtain from the planters in the cotton-growing states of
America their produce in exchange for his notes, and
when he had screwed up prices in the markets of this
country by the monopoly there created, to tura his
cotton into cash for the payment of dividends on the
Bank Stock and on his back loans here, had the effect
of tempting other banking competitors into the same
line of business. To such an extent did these, the
Mississippi banks above all, push their operations, and
so much more liberal were they, in their prices
and paper advances to the planters that they
speedily put Mr. Biddle's bank aside, and ,engrossect.
the whole of this cotton and paper trade. In
course of time, by keeping the cotton out of the mar-
ket, and even out of the American ports, they suc-
ceeded, with the help of confederates in this country, in
persuading the Liverpool people that the last crop of
cotton was a decided failure, and therefore that there
must be a deficient supply this year. The process of
failure was variously, if not ingeniously, accounted for
by the parties concerned, and that portion of the press
which appeared to be in their secrets. Sometimes the
shortness of the crop was caused by too much rain, at
other times by excessive drought, and next by keen
morning frosts which injured the plant. In the end,
not only did the cotton-dealers of Liverpool fall into
the snare, but the cotton-spinners of Manchester fol-
lowed, and prices rose, as everybody rushed wildly into
the market. The total advance in the prices of cotton
from the first to the last of this speculation has not
probably been less than 75 or 80 per cent. The con-
sequence of a rise so unprecedented and uncalled for
were not long in being experienced. The higher prices
of cotton fabrics which ensued had the natural re-
suit of checking demand, both at home and abroad.
and the weekly consumption of the raw material in
England and Scotland, which upon the whole of last
year amounted to 23,785 bales per week, is now n"t;
culated to have averaged little more than 180;
bales weekly, from the commencement of this Ye:"
to the present time. The decrease in the total
tity taken for consumption in Liverp f
00l alone t
year is stated at 130,000 bales, and these are .tische
not depending on hearsay, but which appear nn the
face of the weekly and yearly reports o.e But
brokers and other less interested authorities.
ltm;
it is not only in this country that the consu'''.
tion of cotton is on the decrease and the manufactories
working short time. It is the same in the manufac-
turing districts of Belgium, France, and the Continent
generally. With respect to France, it has been stated
by Baron Charles Dupin, in a recent discourse 00
the causes of the commercial crisis, that the diminu*
tion in the quantity of cotton taken for consumption
there for the two months of January and February
alone of this year, as compared with the same months
of last year, was equal to nearly 1,100,000 kilogrammes'
or about 2,400,0001 b. ; the total amount taken for
consumption in 1839 for the period specified being
6,115,446 kilogrammes against 7,210,426 for 1838'
There appears besides to be no deficiency of stocks
either in France or here, even should the demand
come to be equally extensive with that of last year,
which is not at all probable, for whilst the stocks 00
band here now are about on a par with what they
were at the same time and with a consumption to
more extensive last year, the stock on hand at Havre
on the 30th April last was 81,800 bales against 53,000,
at the same date last year. The consumption in France'
so far as drawn from Havre, which in that respect sn.P;
plies about an equal proportion of the whole //later::
worked there as Liverpool in this country, we 569,4
the four months ending the 30th of April 56' iod
biles only, against 104,795 bales for the same Per
of 1838.
According to the most accredited accounts from the
car-
United States there were no more indications 0f sand
city. there than in Europe. The cottons s°l°ngo find
designedly kept back in the interior had begurunrt money
their way to the ports since the pressure 1--
had recommenced, and bank paper was falling into
discredit from the renewal of bank failures. Accord
ing to New Orleans Papers of the 9th of March the
Mocks of cotton in New Orleans, New York, and nine
other ports named, with others not named, taken as
existing at the last accounts made up and received
there, beginning with February 1 at Macon, in Geor-
gia, and ending with March 9 at New Orleans, con-
sisted in the whole, on land and on ship-board, of
y
399,184 bales against 399,449 at the same dates lastear, showing a decrease so far this year of no more
than 265 bales as compared with last year. The pre-
texts put forth of a grossly deficient supply and short
crop, appear, therefore, for the most part to be imps'
dent fabrications of the prime movers in the cotton
speculation confederacy on both sides the water. When
in course the Great Western,L:
which starts to-morrow,
shall arrive out at New York with correct news of the
state of markets here, more particularly of the money-
market and the recent decision of the Bank of Eng'
land with regard to raising the rate of discounts, it
may be expected that the bubble will burst and the
trading Banks will be thrown into utter confusion, with
stocks of cotton monopolized and unsaleable, as their
dollar
notes will be irredeeniable.—Times.

REDUCTION Or POSTAGE.—M. Piron, Sub'
Director of the Post-office of France, has written a pam-
phlet, which has been privately printed for the use of the
French Ministers, in which he recommends a plan for the
management of the French Post-office, avowedly founded
on that of Mr. Rowland Hill, M. Piron's recommenda-
tion is to charge two sous for each letter which does not '
leave the arrondissement, and four sous for all other letters;
throughout that extensive kingdom; and to require that
the postage shall Le paid in advance, by means of :tamps-

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