The Sun.
London, England, 1838-11-05 00:00:00

MONEY AND CITY NEWS.

(FROM THE MORNING PAPERS OF THIS DAY.)

TIM E S.—Considering the heavy•state of the Cotton mar-
L ket here at the time, a good deal of surprise was excited by
, the considerable speculations which commenced immediately
after the late arrival of the Great Western from New York.
It was speedily.made public, however, that prices had advanced
in the United States just previous to the departure of the
steamer, and that the markets were then in a very buoyant
position. The manoeuvres were so nicely timed that all
this bustle of buyers and sellers was contrived and con-
fined to the shortest period before the departure of the
vessel, so that the scheming purchasers might run the less
risk of loss, and the markets in England might be ope-
rate I upon thus on the cheapest t!rms. Another branch
of this project appears to have been not only the
despatch of flourishing advices about what was doing
out there, but also the transmission of orders for pur-
chase and cotton speculations in Liverpool. The combination
seems to have been perfectly understood and acted upon.
People in Liverpool, known to be overloaded with stocks
already, with a slackened demand in the manufacturing dis-
tricts, and prices receding, were seen apparently as eager to
buy as if the old crop, before understood to lie so heavy a
drug on hand, was exhausted, and the new crop, commonly
reported to be so abundant and already making its appearance
at the Southern ports of the United States, were actually
ascertained to be a failure. Thus, taken by surprise, the plot
is said to have succeeded to some extent with the dealers and
spinners, who, duped by the flourishing accounts from America,
and by the seeming animation of the market here, were induced
to speculate in the expectation of a rise. It is understood
that during this short-lived fever Mr. Biddle's agents managed
to ship some large parcels of the cottons held on his
account. The advices received by the three last sailing
packets from New York, of several days' later dates than those
by the Great Western, have served to expose the delusion and
at the same time bring to light the real actors in this nefarious
juggle. It may be repeated here, that the scheme was con-
cocted and the consequent transactions and rise in prices in
the cotton market of New York, so close upon the sailing of
the Great Western, that the purpose was effectually answered
of preventing any untimely exposure by competent parties,
since there was not time sufficient even to write a letter on the
subject. The following extracts from corresrondeuce since
received, taken from a Liverpool Paper, which guarantees the
respectability of the quarters by whom communicated, show
that the nature of the business was quickly penetrated on the
other side of the water, and no time lost in a transmission of
particulars here to place the unwary on their guard.
(Per George Washington.)
" NEW YORK, Oc•r. 8, 1838. —lt appears that we were
right when we suspected the agents of the bank of an at-
tempt to raise the cotton market, merely to cause favourable
reports to be sent out by the Great Western, with a view
thereby to facilitate the sale of their cotton in Europe. The
moment the steamer was gone they became indifferent about
buying, and spinners, then the only buyers, felt reluctant to
pay the advanced rates. The markets closed heavily on
Saturday,"

(Per Wellington.)
" OCT. 9.--Our preceding letter will have informed you of
the manoeuvre on the part of individuals who are believed to
be agents of the hank to cause a stir in the cotton market ;
they were successful; the Grcat Western must have carried
out favourable accounts, and it is probable these will have
facilitated the sale of cotton in Europe. Whether the parties
will follow up the game towards the departure of the Royal
William, remains to be seen; we think it is not unlikely they
will."

( Per United States.)
•
" OCTOBER 12.—We are curious to see whether the bank
agents will cause another movement in the market prior to the
sailing of the Royal William ; we expect they will, as they
cannot expect to have sold a great deal of cotton between the
arrival of the Great Western and the Royal William. Just
now we are actually dull here.
" Report says the Great Western has taken out many
orders for the purchase of cotton in your markets, some say
to the amount of many thousand bales on Philadelphia ac-
count ; if true, your good folks may be surprised to find those
to be purchasers who should be sellers. Her arrival will no
doubt cause a stir with you, and then there will be a reaction
here, and, the see-saw once established, it may be long ere it
subsides."

The position of a concern which, like the bank of Mr. Bid-
dle, could lend itself to a course of scheeming so low and
every way discreditable, would appear to be anything but re-
spectable. The Manchester spinners will know how to be pre-
pared for a repetition of deceptions so gross in future. It has
so far already operated unfavourably upon their interests as to
have discouraged buyers from entering the yarn market, which
at this season of the year those among them possessing the
requisite capital are generally in the habit of doing quietly,
taking a fair advantage of the temporary cessation of export
and demand, and the trivial depression of prices in conse-
quence, to lay by in anticipation of the spring trade.

CHRONICLE.—The late reports respecting the defi-
ciency of the present crops of cotton in the United States, are
now considered to be fully confirmed by the tenour of the
latest advices from the Southern States. There is no doubt
the deficiency will be fully 250,000 bales, as compared with
the crop of the year 1537 ; this falling off in the growth of
cotton being attributed to the excessive drought which pre_
vailel throughout the Union during the past summer, and
likewise to a much more extensive cultivation of corn, We
understand that a letter from one very eminent house in New
Orleans was received by the packet ship United States,
countermanding the sales of their very large stock of cotton in
the hands of agents in Liverpool, from a conviction, it is said,
founded upon an extensive knowledge of the cotton growing
districts, that the price of the material will be considerably
higher in the month of January than at the present time.

IIERALD.—It is pretty well understood that not only the
joint-stock but the country private banks, within the past week
or so (particularly), have been edging themselves against any
sudden changes in the Maley Market, such as those which may
be brought about by political events, or their influence upon
the future proceedings of the Bank of England direction. The
continued and increased business which prevails in the market
value of Bank Stock arises from the fact that many country
bankers, either'for themselves or the account:of their clients,
during the past week have effected large sales of Bank Stock.

MORNING POST.—Rumour3 were prevalent to.day
in the City that there will shortly be a partial change in the
Ministry; it is supposed Lord John Russell will at any rate,
temporarily, quite public life, in consequence of his late very
severe domestic calamity. This circumstance, coupled with
the present state of our foreign and colonial policy, has caused
continued heaviness in the public securities.