The Sun.
London, England, 1839-06-27 00:00:00

of the first Liverpool houses are in possession of letters
of the latest dates, from correspondents of the highest
commercial importance in New York, which make not
the slightest reference to any such document—a thing
quite inconceivable, upon the supposition that it is
authentic. We think, indeed, that on looking carefully
over the letter, our readers will not find a single topic
in it treated in the way in which it would be likely to
be treated by an officer of the United States' Bank, or
by any party who was in a condition to afford assistance
to the holders of cotton. The tone throughout is that
of parties soliciting rather then offering to afford accom-
modation ; and the document bears every appearance of
having been written by some such person as Mr. Vin-
cent Nolte, whose circular, on the prospects of the cotton
crop, we presented to our readers a few weeks ago. The
mere fact of the circular being unsigned, and the am-
biguous allusions to [the United States' Bank, are, in
our opinion, quite sufficient to show that the letter is
nothing better than a hoax, concocted just in time for
the sailing of the packet, and intended solely for the
Liverpool market.
Since the above was written, we have heard it alleged
that the circular emanates, not from the United
States' Bank, but from an association of merchants at
New York, who, it is said, are in a condition to make
the pecuniary advances required for the purpose of
protecting the holders of cotton. That the circular
may have emanated from a few merchants at New
York is sufficiently probable ; but we rather think they
will prove to be merchants who are rather in need of
assistance, than in a condition to afford it. The New
York merchants, if we are not mistaken, have quite
enough to do in order to meet their present engage-
ments, without making advances upon the remaining.
stock of cotton, for the protection of speculative bankers
in the Southern States. And, if they were in a condi-
tion to afford assistance, they would assuredly set
about it in a more business-like way than by issuing a
circular like that which we have laid before our readers.

We imagine it will be found that the following ex-
tract from the New York Morning Herald of the 4th
instant, takes a more correct view of the real position
and prospects of the American cotton market than
could be gathered from the alleged circular of the
United States' Bank, or the association of New York
merchants.

" At the south, and also at the south-west, the banks
are in a most precarious position ; their assets are chiefly
dependant upon the state of the foreign markets, the
accounts from which are such as to cast great gloom
over all those connected with that section, and to cause
great apprehensions for the stability of many of the
banks. They are al:owed to have resumed too early,
even had the state of our foreign trade continued pros-
perous; but, as it now stands, the planter has received
payment for his cotton in the bills of banks which have
directly or indirectly held the cotton on speculation,
depending on the sale of stocks to sustain themselves.
This resource has failed ; not only are farther sales cut
off, but the holders in London show a disposition to
withdraw their loans, even at a decline in the price of
the securities ; at the same time, the crop is unsold
and must continue so until the affairs of the continent
have revived so far as to admit of a demand for yarns,
or the raw material fall so low as to induce spinners
again to come forward. Up to the present time, the
receipts of cotton, thus far, as compared with last year,
are less by—

- 311,246 bales, equal to 15,562,300 dollars.
The exports are less
by .. 334,7(34 18,338,300 do.
Making an over
stock 0f... 53,518 2,675,900 do.
" This large overstock has been held chiefly on specu-
lation. The favourable point for sale is past, and the
general opinion in Liverpool at the latest dates was, that
a decline of at least 23. per lb. or 20 per cent. must be
submitted to before sales would proceed to any great ex-
tent. This deduction from the amount held will be a
loss of
Add the diminution in receipt

And we have an amount of ...... 16,097,480
" This sum forms an immense reduction in our
means of paying for foreign importations. The defi-
ciency thus far has been met by the exchange drawn
against stock sales, which have hitherto been sufficient
to keep sterling exchange below par, or about 1,070
against England. Latterly, however, the market there
has been more dull, and the rate for sterling bills has fre-
quently touched a point so high as to create uneasiness.
Tnis feeling has heretofore been much relieved by the
confidence entertained in the maintenance of the price
of cotton, and the hope that should the stock sales not
revive, that article would furnish the means of keeping
the balance of trade nearly equal. This hope is becoming
illusive, and those southern institutions who have been
making ads ances to large cotton dealers, as for instance,
the Citizens Bank of New Orleans, which institution
has a large amount of 5 per cent. sterling bonds in the
London market, pending sale, will be involved in
serious difficulties. The cotton cannot be sold unless
at a loss, nor will the bonds find sale. In this predica-
ment, the banks of the south have no other resourse
than to curtail their liabilities to the utmost of their
power. At New Orleans the banks have been much
benefited hitherto by the specie arrivals from Mexico ;
on the 27th, there was an arrival of 29,497 dollars to
r different firms in that city. The fact is well known
in London, that the chief resource of the southern in-
stitutions is the cotton, therefore the state of the mar-
ket there has a great influence on the bonds of such
institutions ; another fact which has gone against
them, is the fact sometime since mentioned in the
London Post, that the interest of the Mobile city bonds,
dated February, 1836, for ten years, at 8 per cent,
had not been paid. This was calculated to excite sus-
icion and now that the rate of interest is improved
in London, capitalists are less likely to run any risk
in purchasing American securities, at least for the
present."
(From the Liverpool Courier of Wednesday.)
An unprincipled combination has been set on foot
amongst the cotton holders of the United States. It is
nothing less than an attempt to monopolise all the cot-
ton on the other side of the Atlantic, for the express
purpose of raising prices in this country. A circular
announcing this intention will be found in another
column. The attempt will be as futile as it is infa-
mous. There is, we believe, already cotton enough
here to supply the manufacturers, at the rate at which
they are now working, till the close of the year. Long
before that time the new crop will fall in : the new
crop pressing upon the old stock will create a difficulty
in withholding supplies from the market such as r.o
contrivance of grasping selfishness will be able to over-
come : and thus prices, instead of being raised, will
stand a fair chance of being still further reduced.